Human Resource Planning -Importance of HR Planning -Assessing Organization’s Strategy : Human Resource Planning -Importance of HR Planning -Assessing Organization’s Strategy Presented by: Durga Prasad BaralSubject: HRMCourse: M. Phil., Semester-2 (KUSOED)September 2008 Some facts : Some facts HRM= People Dimension in Management
HRM has 4 steps: ATMM (Acquisition, Training and Development, Motivation & Maintenance )
Getting and Keeping good people is critical to the success of every organization whether it be public or private There is only one constant in the universe. : There is only one constant in the universe. What is that? That is………… “Change” What is HR Planning ? : What is HR Planning ? Human Resource Planning is the process by which an organization ensures that it has the right number and kind of people, at the right places, at the right time, capable of effectively and efficiently completing those tasks that will help the organization achieve its overall objectives.
( Source: Decenzo and Robbins 2000, Personnel/Human Resource Management))
HR/ Manpower Planning is the process of acquiring and utilizing human resources in the organization. It ensures that the organization has the right number of employees in the right place at the right time.
( Source: Adhikari, Dev Raj, 2001,Human Resource Management )
Employment planning is the process of formulating plans to fill future openings based on an analysis of the positions that are exppected to be opeb and whether these will be filled by inside or outside candidates. ( Source: Dessler, G. 2000,Human Resource Management ) Trends in Human Resource Management : Trends in Human Resource Management Work Force Diversity
(Example: In U.S. 45.5% in 1979, 47.7% in 2005)
( Example: Inclusion of different race and communal group)
Portion of Ageing work force
( Example: retirement age, average life expectancy etc.)
Stenograph, Teletype, Fax, Email, Tele-seminar etc.)
Attraction to White Collar and professional jobs Trends in Human Resource Management : Trends in Human Resource Management Globalization/Changing Economy
(Example: same product from different countries, production of different accessories-parts in different countries)
International competition of market
( Example: automobile, electronics, knowledge industries etc.)
Manufacturing plant in different countries
( Example: Sony in Malaysia, )
Job sifting from one place to another
( Example: Tendency to use cheaper workforce, e. g. garments)
High performance work system Trends in Human Resource Management : Trends in Human Resource Management Other Trends:
Changing legal provisions such as equal opportunity laws are being passed which bars discrimination on the basis of age, sex, race, religion, disability, national origin etc.
Health and occupational safety rules are also affect HRM. Why Human Resource Planning is important ? : Why Human Resource Planning is important ? Linking business strategy with operational strategy:
HRP is an important process to maintain the link between business strategy and it operation. It follows different procedures including the need to assess the impact of technological changes on new jobs and new skills
(Example: Nepal Telecom staff used to operate Wireless Set before, but at present complex IT equipments must to handle.) Why Human Resource Planning is important ? : Why Human Resource Planning is important ? Minimizing the risk of loosing:
By forecasting the needs of technical and other human resources it can minimize the future risk of loosing. Delay in recognizing human resources might be costly and expensive in the future.
(Example: Government run banks are compelled to upgrade own staff by providing latest skills and knowledge to them to compete with other fast growing banking organizations.) Why Human Resource Planning is important ? : Why Human Resource Planning is important ? HRP needs for HRD :
HRP is important for planning the investment in the development and utilization of human resources. Any investment in the HR activities is considered an investment for the future growth and development of the organization.
(Example: When curriculum has to be changed, required knowledge and skills of teachers/instructors should be developed prior to implement the new curriculum. So, educational institutions have to be aware of that) Why Human Resource Planning is important ? : Why Human Resource Planning is important ? HRP is pro-active, not reactive :
For solving any sort of future HR problem HRP is pro-active rather than re-active.
(Example: HRP might be helpful to accommodate government legislation regarding inclusion, qualification, possible future demand of trade unions) Why Human Resource Planning is important ? : Why Human Resource Planning is important ? HRP is not in isolation :
HRP recognizes that there must be an explicit link between planning function of human resources and other organizational functions, such as strategic planning and market forecasting. Why Human Resource Planning is important ? : Why Human Resource Planning is important ? HRP is promotes awareness :
HRP promotes the awareness that human resource activities are equally important at every level of the organization. Both lone and staff managers have to be involved in HR planning activities. Assessing Human Resource Strategy : Assessing Human Resource Strategy How strategy affects?
The organization’s objectives and strategies for the future determine future need of human resources. It means number and mix of human resources are reaction to the overall organizational strategy. Assessing Human Resource Strategy : Assessing Human Resource Strategy Implications of future demands
Projection of future human resource needs and future direction of the organization is done basing upon the assessment of its current human resources situation.
So, year by year analysis for every job level and type is necessary.
Organization usually needs heterogeneous mix of people but it is not easy task to maintain all type of people in the organization. If accurate estimates are to be made of future demand in both qualitative and quantitative terms, a lot of information is required. Assessing Human Resource Strategy : Assessing Human Resource Strategy Implications of future supply
Increase and decrease of future human resources assessed by estimating changes in internal supply looking at different factors of changes.
So, increasing and decreasing of human resources is normal. Assessing Human Resource Strategy : Assessing Human Resource Strategy Increasing supply
Increment in human resource supply can be done by combination of following sources:
New hiring : easily predictable with high accuracy
Transfer of personnel: affects in other unit and so difficult.
Individuals returning from long leaves: Such as maternity, military service. These are easy to estimate as they are for fixed period. But difficulties arises when the period exceeds not from the cause of the organization. In this situation the organization can not fire the employee as per legislation. Assessing Human Resource Strategy : Assessing Human Resource Strategy Decreasing supply
Decrease in human resource supply can be done by combination of following sources:
Retirements : easily predictable with high accuracy but very difficult to forecast voluntary quits, prolonged illness and deaths.
Dismissals: It can be forecast within reasonable limits of accuracy.
Sabbaticals: easy to predict as it is given to the employees in frequent intervals, especially to the universities teachers usually with full salary paying.