Human resource planning

UNIT 2

definition

is the process of forcasting an

organizations future demand

for and supply of the right type

of people in right number

ALSO CALLED STRATEGIC

MANPOWER PLANNING OR

EMPLOYEMENT PLANNING

definition

Process by which an organization ensures that it has the right number and kind of people at the right place an at the right time, capable of effectively and efficiently completing those task that help the organization achieve its overall objectives.

definition

The ongoing process of systematic planning to achieve optimum use of an organization's most valuable asset - its human resources. The objective of human resource (HR) planning is to ensure the best fit between employees and jobs, while avoiding manpower shortages or surpluses. The three key elements of the HR planning process are forecasting labor demand, analyzing present labor supply, and balancing projected labor demand and supply.

The HR plan needs to be flexible enough to meet shortterm staffing challenges, while adapting to changing conditions in the business and environment over the longer term. Human resource planning is a continuous process.

WHY HRP

If organisations overdo the size of their workforce it will carry surplus or underutilised staff. Alternatively, if the opposite misjudgement is made, staff may be overstretched, making it hard or impossible to meet production or service deadlines at the quality level expected.

Importance of HRM

Part of strategic planning 2 way support determines future personnel need Helps organization get people with the required skill, knowledge, education, aptitude.

to foresee the employee turnover and make the arrangements for minimizing turnover and filling up of consequent vacancies

to meet the needs of the program of expansion, diversification

to foresee the impact of technology on work, existing employees and future human resources requirements

to assess the surplus or shortage of human resources and take measures accordingly.

Bases for other HR functions Better selection of employees Better planning to implement any legal requirement. Important for International strategie to minimize imbalances caused due to non-availability of human resources of right kind ,right number in right time and right place;

to make the best use of its human resources to estimate the cost of human resources.

To reduce HR cost : Today the cost of HR is about 25% to 45% of the cost of production and this cost is increasing very quickly and cost has to be reduced in order to face competition. HRP helps to avoid both shortage and surplus of labour. It helps to make optimum utilisation of labour. It also helps to reduce labour turnover. All this helps to reduce labour cost. To identify potential replacements : Each year many employees either retire or leave or are taken out of the organisation. HRP helps to find replacements for these employees. These replacements may be either from inside or from outside the organisation

To avoid disturbance in the production process : In HRP, the manpower requirements of the organisation are determined well in advance. So the manpower is supplied continuously to the organisation. This helps the production process to run smoothly. Thus, HRP helps to avoid disturbances in the production process

Planning process

Environment scanning
Organization policies & objectives HR Need forecast and HR supply forecast HR programme HRP Implementation

Control & Evaluation

Surplus (restrict hiring reduce working hours)

Shortage-(recruitment)

Environment HR Needs Forecast

Org objectives and policies

HR Supply Forecast

HR Programming

HRP Implementation

Control and Evaluation

Surplus

Shortage

Environment 1)

2)
3) 4)

5)

Economic factors Technological Changes Demographic changes( us age vs india ) Political and legislative issues (quotas , labor, child labor) Social concerns (inclusive growth)

Organizational objectives and policies-:

HR plans need to be based on organizational objectives. Specifics requirements in terms of numbers and characteristics of employees must be derived from organizational objectives.

HR demand Forecast- estimating the quantity & quality of people required to meet future needs of the organization.

Forecasting techniques
Managerial judgment top down & bottom up Lower departments + HR Top management+ HR
1. Ration Trend analysis-

studying past ratio say between the number of workers and sales in an organization

Delphi technique- estimated prepared first my sales experts then submitted to HR experts who give their opinion and resend it back and this continues till there come to a common point of agreement. The distinguishing feature is the absence of interaction among the experts.

Supply forecast
Determines whether the hr department will be able to procure the required number of personnel . It measures the number of people likely to be available from within & outside on organization. They also identify the outside source.

Supply forecast prevents shortage Management inventory and skill inventory( related to non managers) catalogue gives planners a comprehensive understanding of the capabilities which can be found within an organization. External supply is important for (a) new blood new experience & additional number and type of employees.

Hr programming- creating demand and supply balance

Hr plan implementationrecruitment, selection placement, training no of training ,type, entire calendar is prepared. Control & evaluation Surplus restricts hiring, reduced hours (VRS, lay off etc) Shortage recruitment and selection

Downsizing plan

Who is made redundant when and where. Plan for re development and retraining where this has not been covered in redevelopment, Planning for outplacement Policy for declaring redundancies and making payment. Program for informing those affected. Reduced working hours Forced leave VRS

Managerial succession plan

Includes training programmes and series of job assignments leading to top positions.

Managerial succession planTATA Motors

Fast track selection- any one from management grade has been in tata motor for more than two years can apply. Boss recommendation 15 people from all over India, all or no one may be selected Written test, 2 aptitude test one on tata motors, GD, interview 3 day residential assessment- case study, group activities, debates Reaches MT grade 5 straight away

Ess- executive selection scheme

Goal: Match Person & Job

Person
KSAs Talents & Interests Motivation

Job
Tasks & Duties Rewards

Job Outcomes
Performance Satisfaction

Need information about the Person & about the Job

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job is..
JOB- A BUNDLE OF RELATED Task SYNONYM OF JOB IS WORK WORK IS UNDERSTOOD AS PHYSICAL AND MENTAL ACTIVITY THAT IS CARRIED OUT AT A PARTICULAR PLACE & TIME ACCORDING TO INSTRUCTIONS IN RETURN FOR MONEY. MONEY IS IMPORTANT TO CONSIDER IT WORK.

Example of task in sales

Identifying target customer Tele calling Visiting customer Selling a product Preparing sales report Training subordinates Giving test Maintaining customer database

Definitions

Job Analysis: the process of

collecting & analyzing information about jobs
Job Description: a document that identifies the tasks & duties performed by a job Job Specification: a document that identifies the human qualifications required for a job

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Job Description

A job description is a written statement of the tasks, duties, machine tools, equipments, supervision given or received, working conditions, hazards required and reporting relationships of a particular job. The job description is based on objective information obtained through job analysis. Job description acts as an important resource for

Describing the job to potential candidates Guiding new hired employees in what they are specifically expected to do Providing a point of comparison in appraising whether the actual duties align with the stated duties.

Restaurant Manager
Job Summary: Plan, organize, direct, and coordinate the workers and resources of the restaurant for the efficient, well-prepared, and profitable service of food and beverages. Tasks and Duties: 1. Work with chefs and other personnel to plan menus that are flavorful and popular with customers. Work with chefs for efficient provisioning and purchasing of supplies. Estimate food and beverage costs. Supervise portion control and quantities of preparation to minimize waste. Perform frequent checks to ensure consistent high quality of preparation and service. Supervise operation of bar to maximize profitability, minimize legal liability, and conform to alcoholic beverage regulations. Work with other management personnel to plan marketing, advertising, and any special restaurant functions. Direct hiring, training, and scheduling of food service personnel. Investigate and resolve complaints concerning food quality and service. Enforce sanitary practices for food handling, general cleanliness, and maintenance of kitchen and dining areas. Comply with all health and safety regulations. Review and monitor, with bookkeeper or other financial personnel, expenditures to ensure that they conform to budget limitations. Work to improve performance. Perform other duties as assigned by management. Bachelor of Science degree in hotel/restaurant management is desirable. A combination of practical experience and education will be considered as an alternate. Good organizational skills for dealing with diverse duties and staff. Pleasant, polite manner for dealing with public as well as staff. Department: Division: Approved:

2. 3. 4. 5. 6. 7. 8. 9. 1.

Qualifications:

2. 3.

Reports to: Supervises: Date:

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Source (revised from): http://www2.hrnext.com/Article.cfm/Nav/2.4.0.0.6719.0

Job specification
Job specifications specify the minimum acceptable qualifications required by the individual to perform the task efficiently. Based on the information obtained from the job analysis procedures, job specification identifies the qualifications, appropriate skills, knowledge, and abilities and experience required to perform the job. Job specification is an important tool in the selection process as it keeps the attention of the selector on the necessary qualifications required for that job.

Objectives/Purpose of Job Analysis

Recruitment

HRP

Selection

T&D

Job Analysis

Performance appraisal

Job design

Placement

Job evaluation

Process of job analysis

Decide the purpose of analysis

Review Organizational Charts & Process Charts

Select a sample

Collect and analyze the information

Verify the analysis with the worker performing the job and with the supervisor

Develop job description & specification

Which method to use ?

Factors to be considered before choosing the method of collecting data are:

No. of job/employees to be considered. Time limit Cost factors Education levels of incumbents Type of data required.

Decide purposes of the job analysis project

How do you want to use the Job Descriptions?
Job design Recruiting Selection Performance appraisal Training Compensation

At a minimum, for each job being analyzed, we need data on:

Tasks & duties performed on the job Qualifications required by the job
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Identify sources of job data

Job incumbents: Supervisor of job Training manuals From equipments used Magazines , newspaper Other sources
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Methods of Job Analysis

Observation Interview

Individual Group

Questionnaires Diary method

Methods of Job Analysis

Observation Method
Analyst observes incumbent
Directly Videotape

Useful when job is fairly routine managerial positions are difficult to observe using this method. workers will not perform their tasks to their actual capabilities.

Interview Method
Individual
Several workers are interviewed individually The answers are consolidated into a single job analysis

Group
Employees are interviewed simultaneously Group conflict may cause this method to be ineffective

Methods of Job Analysis

Questionnaires
Employees answer questions about the jobs tasks and responsibilities Each question is answered using a scale in- close ended -that rates the importance of each task Best questionnaires is combination of both close & open ended Time consuming and expensive

Methods of Job Analysis

Diary Method
Employees record information into diaries of their daily tasks
Record the time it takes to complete tasks

Must be over a period of several weeks or months