Human Resource Planning

Tejashree Talpade

HR Planning


HR Planning is the process of examining an organizations future human resource need. It involves:
Identifying and acquiring the right number of people with the proper skills Motivating them to achieve high performance Creating interactive links between business objectives and resource planning activities

Human Resource Planning

Human Resource Planning (HR Planning) is both a process and a set of plans. It is how organizations assess the future supply of and demand for human resources. An effective HR plan also provides mechanisms to eliminate any gaps that may exist between supply and demand. Thus, HR planning determines the members and types of employees to be recruited into the organization or phased out of it. Dynamic by nature, the HR planning process often requires periodic readjustments as labor market conditions change.

HRP Process
Strategic Planning Technological forecasts Economic forecasts Market forecasts Organizational planning Investment planning Annual operating plans Human Resource Demand Annual employment requirements Numbers Skills Occupational categories Human Resource Supply Existing employment inventory After application of expected loss and attrition rates Compared with

Variances

If none

End

If surplus

If shortage

Decisions Action Decisions Layoff, retirement, etc.

Decisions Overtime, recruitment, etc.

End

End

The HRP Process

All effective HR planning shares certain features. It is generally agreed that HR planning involves four distinct phases or stages:
Situation analysis or environmental scanning

Forecasting demand for human resources

Analysis of the supply of human resources

Development of plans for action

Why is HRP important ?

  

Even an imperfect forecast is better than none at all Anticipating needs prepare for the future gives you an edge Address potential problems avoid skill deficiencies

What is HRP?
 

HRP is a sub-system of total organizational planning. HRP facilitates the realization of the companys objectives for the future by providing the right type and number of personnel HRP is also called Manpower planning, Personnel planning or Employment planning

HRP ensures that the organization has:

Right Number Right Kind Right Place Right Time

Benefits of HRP
    

Create reservoir of talent Prepares people for future Expand or Contract Cut Costs Succession Planning

Forecasting Techniques
     

Managerial Judgment Ratio trend analysis Work Study Techniques Delphi Technique Flow Models Others

Factors in Demand forecasting



     

Social factors Working conditions, Govt. regulations, environmental conditions, religious, cultural. Technological Factors Political Factors Trade restrictions, War etc. Economic Factors Demand generation Growth Employee Turnover

Job Analysis
Job Analysis is not a one time activity as jobs are changing constantly The job and not the person an important consideration in job analysis is conducted of the job and not of the person It simply highlights what are the minimum activities that are entailed in a job.

Job Analysis


Skill Range
Does the job cover a reasonable but not too extensive range of different tasks? Are there opportunities to use knowledge and skills associated with effective performance of the job? Can the individual make full use of their skills and develop their skill base?

Job Analysis


Job Purpose
Is the purpose of the job clearly and unequivocally Is its contribution to the organisations objectives evident? Is its contribution to its dept obvious? Is the post holder responsible for the successful completion of the whole job? Do the internal systems help the post holder do the job?

Job Analysis


Relationships Are the formal relationships clearly specified and related to the achievement of the objectives? Is there opportunity to develop working relationships within and across the departments boundaries? Are colleagues available with whom the post holder can discuss professional issues

Job Analysis


Job Outcomes: Can the post holder see the result of their efforts? Can the results of the post holders efforts be recognised? Does the post holder have the opportunity to influence their own levels of performance? Rewards Are the rewards appropriate and obtainable? Are the rewards linked directly with the performance of the post holder?

Steps in Job Analysis

1.

2. 3. 4. 5. 6.

Organizational Analysis Overview of various jobs in the organization and the linkages between them and the contribution of various jobs towards achieving organizational efficiency and effectiveness. Uses of Job Analysis Information Selection of jobs for analysis Collection of Data Preparation of Job description tasks, duties, responsibilities Preparation of Job Specification personal attributes required in terms of education, training, aptitude and experience to fulfill the job description

Reasons For Conducting Job Analysis

Staffing would be haphazard if recruiter did not know qualifications needed for job Training and Development if specification lists a particular knowledge, skill, or ability, and the person filling the position does not possess all the necessary qualifications, training and/or development is needed Compensation and Benefits value of job must be known before dollar value can be placed on it

Reasons For Conducting Job Analysis (Continued)

 

Safety and Health helps identify safety and health considerations Employee and Labor Relations lead to more objective human resource decisions Legal Considerations having done job analysis important for supporting legality of employment practices

Summary of Types of Data Collected Through Job Analysis

 

Work Activities work activities and processes; activity records (in film form, for example); procedures used; personal responsibility Worker-oriented activities human behaviors, such as physical actions and communicating on the job; elemental motions for methods analysis; personal job demands, such as energy expenditure Machines, tools, equipment, and work aids used Job-related tangibles and intangibles knowledge dealt with or applied (as in accounting); materials processed; products made or services performed

Summary of Types of Data Collected Through Job Analysis

Work performance error analysis; work standards; work measurements, such as time taken for a task Job context work schedule; financial and nonfinancial incentives; physical working conditions; organizational and social contexts Personal requirements for the job personal attributes such as personality and interests; education and training required; work experience

Conducting Job Analysis

The people who participate in job analysis should include, at a minimum: The employee The employees immediate supervisor Other key stakeholders in the organization

  

Methods of collecting information



Job Questionnaire:
Most cost effective method Elicits information from workers & their immediate supervisor You can get intimate detailed knowledge of their jobs Questionnaire needs to be structured in advance Responses can be used to create a job description

Questionnaire method Disadvantages Right population questions can be interpreted differently Not everyone is able to describe fully & exactly Questionnaire not easy to make to cover all aspects

Interview


Disadvantages: Time consuming Quality and experienced analyst Distrust of interviewers

Observation


It is good for simple and repetitive jobs

Disadvantages: Presence of analyst can cause stress Jobholder may purposely reduce the pace of activity to justify overtime Cannot be used where job requires personal judgment and intellectual ability

Independent Observers


 

Diary One or more incumbents note duties and frequency of tasks performed Critical Incidents Incumbents brainstorm of critical incidents that happen routinely and infrequently this method is excellent for training Photo tape recording Review of records Maintenance records, repair records at seasonal variations

Data collected
       

List of tasks List of decisions made Amount of supervision received Supervision exercised Diversity of functions performed Interaction with other staff Physical conditions Software used

Definitions


Job - Consists of a group of tasks that must be performed for an organization to achieve its goals Position - Collection of tasks and responsibilities performed by one person; there is a position for every individual in an organization

Definitions


Job analysis - systematic process of determining the skills, duties, and knowledge required for performing jobs in an organization Job description document providing information regarding tasks, duties, and responsibilities of job Job specification minimum qualifications to perform a particular job

Job Analysis: A Basic Human Resource Management Tool

Human Resource Planning Recruitment Selection Training and Development

Tasks

Responsibilities

Duties

Job Descriptions Job Analysis

Performance Appraisal Compensation and Benefits

Job Specifications

Safety and Health Employee and Labor Relations Legal Considerations Job Analysis for Teams

Knowledge

Skills

Abilities

Job Description


 

Difficult to have a perfect and fully inclusive JD as one moves up in the hierarchy of the organization, a detailed JD becomes very difficult. Most orgs would prefer not to describe the job fully, because employees would stick to it and not do anything beyond Supervisors job may become redundant Rapid technological changes

Job Description


A job description
Clarifies work functions and reporting relationships, helping employees understand their jobs. Aids in maintaining a consistent salary structure. Aids in Performance evaluations. Is a set of well written duty statements containing action words which accurately describe what is being done.

Duty statements
should focus on primary, current, normal, daily duties and responsibilities of the position (not incidental duties, an employees qualifications or performance, or temporary assignments). Related or similar duties should be combined and written as one statement. Should be a discreet, identifiable aspect of the work assignment, described in one to three sentences, and should be outcome-based, allowing for alternate means of performing the duty, changes in technology, preferences of employees and supervisors, and accommodations of workers with disabilities, without altering the nature of, and/or the duty itself.

Writing a JD


Duties are to be listed in order of importance, not necessarily frequency. There is no need to group tasks/duties under sub headings, however it is acceptable. Commence each statement with a verb eg 'processes', 'maintains', 'records' etc, . Avoid using the term 'responsible for' rather describe the action e.g. 'obtains', 'coordinates' etc.

Writing a JD


Frequencies should be identified in multiples of 5%. Duties that take less than 5% of the officer's time should not be shown as separate but grouped with other duties. Use action verbs which tell what the position does. Examples include "supervises", "programs", "directs" and "analyzes". Provide specific examples to illustrate the duties Avoid ambiguous terms such as "oversees" or "manages", instead, describe the activities involved in overseeing or managing. Quantify activities when possible. Examples may include: How often is the activity performed? How much money does this position manage? What is the volume of work handled?

Writing a JD : Primary Function

  

What is the Position's objective? What is the Role of Position (including key relationships)? Position summary [Briefly state the purpose or objective of the position]: Essential job functions [State the major responsibilities, indicate New (N) or Existing (E), and the estimated percent of time devoted to each - include descriptive statements of typical or representative tasks associated with the major responsibilities/functions]: State briefly the general function of your position, including the basic nature of the department and the relationship of your position with other positions in your work area

Person Specification


Person Specification is a statement derived from the job analysis process and the job description Of the characteristics that an individual would need to possess in order to fulfill the requirements of a job

Compiling a person specification



Attainment: What educational requirements and specialist knowledge are really required for successful completion of the task Experience: What roles and tasks should have been occupied to ensure that the post holder is adequately equipped? Abilities: What skills need to be deployed for the competent performance of the tasks? Aptitude: Where will the post-holders strengths lie;what particular talents do they need to possess? Interests: What interest relevant to the work will suggest possession of sought after skills /aptitudes?

Exercise

Recruitment and Selection

HR Processes An Employee Life Cycle

Routine HR Functions
     

Manpower planning Recruitment and Selection Training & Development Appraisals Performance Management Transfers / Promotions Compensation and Benefits

Non Routine HR Functions

      

Culture Management Change Management Cross Cultural Issue Management HR Audit HR Accounting Outsourcing of HR VRS / Existing Employee Management / Succession Planning

HR Process Mapping

Business Planning

HR Policy

HR Planning

Recruitment Selection

Performance Management

Compensation Management

Talent Management

Training Development

HR Systems Data Mgmt

Employee Relations

Occupational Health and Safety

Definitions


Recruitment: Overall process of defining jobs profiles and inviting applicants. Selection: Specific process of narrowing the focus and selecting the perfect fit

Manpower Planning
   

Business Needs Financial Feasibility Future Plans Brand Name

Manpower Planning


Why does the position exist? Temporary Replacement Permanent Replacement Creation of new position

Manpower Planning


Do we need to review the position? Current and Ongoing need Sufficient budget Is the position description current Appropriate current level Is a full time employee required?

Manpower Planning


What about existing staff? Do we have a succession plan for the replacement? Does the vacancy create career development opportunities for existing people?

Recruitment and Selection process

 

Business Plan Related HR Plan Competencies People

 

Compensation and Benefits Numbers

Current : Budgeted and Actual Future : Short Term and Long Term

Three Conditions Current = Future

 

Maintenance B = A Vacancy Filling B > A Redundancy Planning Recruitment Plan

Current > Future



Current < Future



Recruitment and Selection process



Recruitment Plan
 

Position Description/Specifications Person Specifications Internal

Reference/Promotions/Transfers

Method of Recruitment


External
Advertisement  Where to advertise  Writing an advertisement Consultants  Retainer  Multiple Internet

Receiving Applications and Screening/Filing

Recruitment and Selection process

Screening /Short-listing
Coding Computer aided screening


Selection Tools
Written Tests Group Discussions Interviews Assessment Centres Reference Checks

 

Offer Joining

Process Key Parameters



Process must be
Equitable Objective Open to scrutiny Transparent Merit based Confidential

Common Hiring Mistakes

     

Relying on an interview to evaluate a candidate Using successful people as model Using too many criteria Evaluatingpersonality not job skills Using yourself as an example Not using statistically validated data

Exercise

Performance Management

Objective setting


 

An objective is a simple statement of an end result to be achieved within a specified time frame. It should be short, clear and specific. It can also be in the form of an activity as it may not always be possible to quantify the end results.

Why objective setting?

   

Gives direction to job. Helps focus on important job areas. Assists review and change in job emphasis. Provides a basis for appraisal, counselling and feedback. Increases mutual job understanding with superior.

Objectives
   

Are significantly important areas of job. When performed well, improves overall results. Are maximum payoff job areas. Represent the work which account for 80% of results.

Objectives
Targets are specific conditions to be achieved/indicates how much of what and by when Activities action steps which lead to the end results / used when targets are not quantifiable / indicate what by when

Process of Goal Setting

  

 

What is the job ? What are the end results expected ? What policies / procedures / work methods are impeding performance ? What changes are needed for better results ? How can work assignments be regrouped/altered to improve schedule ? What problems need to be overcome next year ?

Objectives vs targets
    

Focus on imp. Areas Related to job description Signposts Direction of work Optimum number 6

 

Measures imp. Results Related to objectives Milestones/Pathways Specific condition One or more for each objective

  

Criteria for objectives

         

Observable Basis for appraisal Jointly evolved Extra effort Clear/consistent with dept. objective Time bound Initiative Verifiable End result- emphasis on Satisfying

Objectives
    

S - Specific M - Measurable A - Attainable R - Relevant T - Time-bound

Process
   

Establishing specific goals to support stated purpose. Determining the importance of these goals. Making plans for action. Arriving at performance standards and measurement criteria. Stating anticipated problems.

Process


Weighing the resources required to carry out the planned action. Providing for interaction of organization and individual goals. Following up with actual performance measurement and evaluation.

HRs role in Performance Management

    

Delivering time-lines Ensuring timely adherence Auditing the objectives jointly with line managers Ensuring objectives are in line with organisational goals Requesting modification if required

Competency


It is derived from the Latin word Competere, which means to be suitable. The concept was originally developed in Psychology denoting Individuals ability to respond to demand placed on them by the environment.

Competencies defined


A collection of characteristics (i.e. skills, knowledge and self-concept, traits, behaviour, motivation, etc.), that enables us to successfully complete a given task.

Skills

Knowledge

SelfSelf-concept (Attitude)

Iceberg Model of Competencies

Competencies in the Corporate World

         

Communication Critical Thinking Ethics / Social Responsibility Information Technology Interpersonal Diversity Leadership Managing Change Self-managed Learning Teamwork Technical know-how

Emotional Competency Framework

Personal Competence
Self Awareness: Knowledge of ones self-concept and values Self Regulation: Management of ones impulses and emotions Motivation: Self-guidance and direction

Social Competence
Empathy: Awareness of others feelings and emotions Social Skills: Adeptness at inducing desired responses in others

* from Working With Emotional Intelligence, by Daniel Goleman

Competency Classification

Individual Social
Behavioural Leadership Generic competencies Functional / operational knowledge Skill knowledge Threshold competencies

Organisation
Organisational Cultural

Technical

Core competencies Corporate competencies Distinctive competencies

Why use competencies



Competencies
help individuals and organisations to improve their performance and deliver results can be quantified and communicated can be taught, learned, measured and monitored

Benefits of competency-modeling
       

Integrates fragmented management and practices Links individual or group performance to strategic direction Helps develop high value activities for the organisation Focusing on what people do, not what they are Leads to organisational flexibility and stability Leads to competitive advantage Is participatory and involving Is objective; therefore, can be geared to possible change in business future and to ensure relevance

Benefits of competency-modeling HR Delivery

     

Matching of Individuals and Jobs Employee Selection Training and Development Professional and Personal Development Performance Measurement Succession Planning

Who Identifies competencies?



    

Competencies can be identified by one of more of the following category of people: Experts HR Specialists Job analysts Psychologists Industrial Engineers etc. in consultation with: Line Managers, Current & Past Role holders, Supervising Seniors, Reporting and Reviewing Officers, Internal Customers, Subordinates of the role holders and Other role set members of the role (those who have expectations from the role holder and who interact with him/her).

What Methodology is used?



      

The following methods are used in combination for competency mapping: Interviews Group work Task Forces Task Analysis workshops Questionnaire Use of Job descriptions Performance Appraisal Formats etc.

How are they Identified?



 

The process of identification is not very complex. One of the methods is given below: 1. Simply ask each person who is currently performing the role to list the tasks to be performed by him one by one, and identify the Knowledge, Attitudes, and Skills required to perform each of these. Consolidate the list. Present it to a role set group or a special task force constituted for that role. Edit and Finalize.

What Language to Use?



Use Technical language for technical competencies. For example: knowledge of hydraulics. Use business language for business competencies. Example: Knowledge of markets for watch business or Strategic thinking. Use your own language or standard terms for Behavior competencies. Example: Ability to Negotiate, Interpersonal sensitivity, Sales techniques. Too technical and conceptual knowledge align to the organization and people may create more problems than help

HRD Audit


HRD audit is a comprehensive evaluation of the current HRD strategies, structure, systems, styles and skills in the context of the short- and long-terms business plans of a company. It attempts to find out the future HRD needs of the company after assessing the current HRD activities and inputs and thus proving to be an effective tool for the organization development process.

How is Human Resource Analysis Done?

 

Human Resource Audit Purpose:

To identify the size, skills and structure surrounding current employees and to identify future human resource needs of the organization

Question Answered: Are the human resources a strength or a weakness?

The Audit: Principles



Obtain some basic information on the people and policies involved in the organization Explore in detail the role and contribution of the human resources management function in the development of strategy

The Audit: Contents

People in the Organization Role and Contribution of HR strategy

 

HR Audit: People in the organization



Employee numbers and turnover Organization structure Structures for controlling the organization Use of special teams, e.g. for Innovation

Selection, training and development Staffing levels Capital investment/employee Role of quality and personal service in delivering the products or services of the organization Role of professional advice in delivering the product or service

 

 

Level of skills and capabilities required Morale and rewards Employee and industrial relations

Role & Contribution of HR Strategy

   

 

Relationship with strategy Key characteristics of HR strategy Consistency of strategy across different levels Responsiveness of HR strategy in leading change in the organization Role of HR strategy in leading change in the organization Monitoring and review of HR strategy Time horizon for operation of HR strategy

What the Audit Achieves



Provides information that is useful in deciding how feasible a strategy is Identifies any human resource gaps (human resources necessary for a proposed strategy minus the current state of human resources) Allows the organization to benchmark their performance against other organizations (benchmark is a process of comparison)

Human Resources as a CSF



Critical Success Factor (CSF) = a reason why one organization is superior to another HR can be a CSF if employees have unique skills

The HR audit is based on the following premise

The Vision and Mission of the Organization: The Audit consultants are able to formulate their strategies based on these objectives. They also analyze the competencies that the organization will need to achieve these targets whether long term or short term. The consultant breaks down these organization level competencies to individual skills to be developed at various levels. These competencies may deal with various aspects like technical, conceptual or people management skills

Current competencies available in the company

This is generally done through examining the details of the employees like their qualifications, job descriptions, training undertaken, thus basically trying to identify the skill level of the employees at various levels. Organization process documents like performance appraisal feedback and training need identification provide additional information on this. Departmental heads and other employees provide insights into the competency and other skill requirements.

Available HRD systems that help build the competency levels required achieving the long-term goals or the short-term goals.

These provide details for the HRD Systems maturity score in the HR scorecard. The existing HR processes tell the auditors the maturity level of the process that is studied in detail to ensure the availability, utilization and development of skills in the organization.

Effectiveness of the HR systems and process

The presence of the HRD systems is not sufficient to achieve success. These processes also need to be efficient. Example: An organization may have an excellent Exit interview system in place. But if the feedbacks from the Exit interviews are not utilized for improving organization systems then the Exit interview process is of no use and becomes redundant over a period of time. The exit interview should give inputs for training needs or improving people management skills or compensation policies in some cases.

Ability of the existing HR structure in managing the HR process and policies



The consultants identify whether the current HR structure is sufficient to handle the pressure of the future needs of the company. To implement any OD intervention or handle any Change management exercise the HR task force has to be at its best with all the required tools of competencies and skills.

Leadership styles of the Management team

The senior manager leadership style is very important for any change process and implementing the HR audit. It is necessary that their management style facilitate in creating a learning organization. The leadership styles define the culture of the organization

The HR audit process



Auditing a human resource department is a systematic process that involves at least two steps:
 

Gathering information to determine compliance, effectiveness, costs and efficiencies. Evaluating the information and preparing a written report, with an action plan based on exposures, priorities and a timeline for instituting changes. In order to reduce exposure to legal liability, some changes will need to be implemented immediately, while others can be completed in three to six months.

Immediate benefits of an HR audit



Very typically, small to medium-size companies realize almost instant cost savings once an audit is complete and changes are implemented. For example:
Correcting benefit premium errors and overpayments can generate many thousands of dollars in savings. Examining the effectiveness of recruitment

A small or medium-size firm also may benefit from using an HR audit to:
Study retention and turnover, employing a neutral party to solicit honest feedback from employees, and allowing the company to develop an action plan. Examine the company's foundation for its compensation philosophies and develop an objective method of grading jobs, with new ranges that are market-competitive and internally equitable. Improve employee communication and ensure that the HR department is accessible. Identify opportunities to outsource areas within human resources that offer more value to the company