Human Resources Planning: Human Resources Planning = Resources Definition ::
planning is the process by which an organization ensures that it has the right number & kind of people at the right place and at the right time , capable of effectively and efficiently completing those tasks that help the organization achieve its overall objectives.. HRP is the process of forecasting a firm’s future for, and supply of the right type of people in the right number.
Importance of HRP:
Importance of HRP HRP is primary nature & therefore, it proceeds all other
functions. HRP translate the organizational objective & plan into number & kind of personnel needed to achieve those objective. HRP contributes in the following ways in managing human resources in an organization -: Defining the future personnel need – planning is significant as it help determine future personnel needs. Surplus & deficiency in staff strength is the result of the absence of or defective planning. Lack of systematic HRP has resulted into large scale overstaffing in many public sectors organization. Coping with changes – In Indian &
scenes , fast changes are taking place. In this war , only those companies will survive which adopt a formal , meticulous HRP
Contd….: Contd…. Part of strategic planning – HR management must become an integral part of strategic management process . All activities of HRM - planning, hiring, recruiting, training & maintaining- must be merged with strategic management. In successful companies there is virtually no distinction between strategic planning & HRP. HR managers are important facilitators of the strategic planning process & are viewed as important contribution to carve the organization’s future. Creating highly talented personnel – jobs are becoming highly intellectual & incumbent are getting vastly professionalized . These knowledgeable people are known as job hopping, there by creating shortage in the organization. Manpower planning helps prevent such shortages. Contd…: Contd… International Strategies – HRP facilitates international expansion strategies. The HR department needs to fill key jobs with expatriates, motivate them & compensates them. Foundation of personnel functions – Manpower planning provides essential information for designing & implementing personnel functions, such as recruitment, selection , personnel movement and training & development. Increasing investment in HR – An employee who gradually develops his /her skills & abilities becomes a more valuable resources. The rupee value of a trained ,flexible, motivated & productive workforce is difficult to determine, although attempts are being made to do so , as in HR accounting (HRA). Contd….: Contd…. Other Benefit – Upper management has a better view of the HR dimension of business decision. Personnel cost may be less because the management can anticipate imbalances before they become unmanageable & expensive. More time is provided to locate talent. Better opportunities exist to include women & minority group in future growth plan Better planning of assignment to dev elop managers can be done. Major & successful demands on local labor market can be made Human resources management process: Human resources management process HRP essentially involves forecasting personnel needs, assessing personnel supply & matching demand – supply factors through Personnel – related programs. The planning process is influenced by overall organizational objective and the environment of business . Figure illustrate the planning process - : HRP Process - Determination of Quantity of Personnel: HRP Process - Determination of Quantity of Personnel Organizational Objectives HR Programming HR Needs Forecast HR Supply Forecast HRP Implementation Control & Evaluation Surplus - Restricted Hiring, Lay Off, VRS, Reduced Hours Shortage - Recruitment & Selection Environmental Scanning: Environmental Scanning Environment scanning refers to the systematic monitoring of the external forces influencing the organization. Managers monitor several forces but the following are pertinent for HRP : Economic factors Technological factors Demographic factors Political factors & legislative issue Social factors By scanning the environment for changes, managers can anticipate their impact & adjustment early. Organizational Objectives & Policies: Organizational Objectives & Policies Hr plans need to be based on organizational objectives. Once the organizational objective are specified, communicated & understood by all concerned, , the HR department must be specify the objective with regards the HR utilization in the organization. Specific requirement in term of number & characteristic of employee should be derived from the organizational objective. HR Demand Forecast: HR Demand Forecast process of estimating future quantity and quality of manpower required for an organization . External factors - competition, laws & regulation, economic climate, changes in technology and social factors Internal factors - budget constraints, production levels, new products & services, organizational structure & employee separations Forecasting Techniques: Forecasting Techniques Forecasting Techniques vary from simple to sophisticated ones. The technique are as follow -: Managerial Judgment - Managers discuss and arrive at a figure of inflows & outflows which would cater to future labour demand. The technique may involve a “bottom–up” or a “top–down” approach. This technique is used in smaller organization or in those companies where sufficient data base is not available. Ratio-Trend Analysis - Studying past ratios, i.e. No. of Workers Vs Volume of Sales, forecasting future ratios and adjusting for future changes in the organization. This is a quickest forecasting technique. Work-Study Technique – work – study technique can be used when it is possible to apply work measurement to calculate the length of operation and the amount of labour required.. Contd….: Contd…. Delphi Technique - From a group of experts the personnel needs are estimated . This technique is quite useful where the problem cannot be solved by using analytical technique but it solution require s subjective judgment on a collective basis. Flow Model – The simplest one is called the Markov model. In this technique, the forecast will – (a) determine the time that should be covered. (b) establish categories, also called states, to which employee can be assigned. (c) count annual movement (also called flow)among states for several time period. (d) estimate the probability of transition from one states to another based o n past trend. HR Supply Forecast: HR Supply Forecast process of estimating future quantity and quality of manpower available internally & externally to an organisation. Supply Analysis Existing Human Resources Internal Sources of Supply External Sources of Supply Existing Human Resources: Existing Human Resources It is generally facilitated by HR audit. HR audit summaries each employees skills & abilities. The audit of non managers are called skills inventories & those of management are called management inventories. Computer is used for collecting, storing , maintaining, retrieving, & validating the HR data & this process is called HRIS i.e human resources information system Internal Supply: Internal Supply Armed with HR audit. Planners can proceed with the analysis of internal supply. The technique generally used for the purpose are : a ) Inflows & Outflows- The number of losses & gains of staff is estimated . b) Turnover Rate - refers to rate of employees leaving. = ( No. of separations in a year / Avg no. of employees during the year ) x 100 Contd….: Contd…. c) Absenteeism - unauthorized absence from work= ( total absentees in a year / Avg no. of employees x No. of working days) x 100 d) Productivity Level - = Output / Input. Change in productivity affects no. of persons per unit of output. e) Movement among Jobs - internal source of recruitment, selection and placement External Supply: External Supply External recruitment, selection & placement - Advertisements, Manpower Consultants, Campus Recruitment, Unsolicited Applications, Employee Referrals Yield ratios - are estimated in the process of hiring applications. Hiring Process Ratio Ad generates 2000 applications. 200 are potential 10:1 Out of 200, 40 attend interview 5:1 Out of 40, 30 were offered jobs 4:3 Out of 30, 20 accepted 3:2 Overall Yield Ratio (2000:20) 100:1 HR Programming: HR Programming Balancing Demand and Supply Vacancies filled in by the right employee at the right time HR Plan Implementation: HR Plan Implementation Implementation require converting an HR plan into action . Recruitment, Selection & Placement Training & Development Retraining & Redeployment Retention Plan Downsizing Plan Succession Plan Control & Evaluation: Control & Evaluation Are Budgets, Targets & Standards met? Responsibilities for Implementation & Control Reports for Monitoring HR Plan