Description
This is a presentation describes human resources planning, its need and manpower planning process.
• A systematic analysis of HR needs in order to ensure that correct number of employees with the necessary skills are available when they are required.
• getting the right people • at the right place • on the right time
– Helps to avoid sudden disruption of the production run of an enterprise enabling management to adopt suitable strategies – To prepare for fresh demands in terms of numbers , skills and occupation to meet increasing demand due to updated technology and expansion / growth – To cope with changing job requirement due to technological change & growing complexity in business – Helps to give an overall corporate picture at the corporate level for identification of surplus / shortage of personnel
• Key to managerial functions- The four managerial functions, i.e., planning, organizing, directing and controlling are based upon the manpower. Human resources help in the implementation of all these managerial activities. Therefore, staffing becomes a key to all managerial functions. • Efficient utilization - Efficient management of personnels becomes an important function in the industrialization world of today. Seting of large scale enterprises require management of large scale manpower. It can be effectively done through staffing function. • Motivation- Staffing function not only includes putting right men on right job, but it also comprises of motivational programmes, i.e., incentive plans to be framed for further participation and employment of employees in a concern. Therefore, all types of incentive plans becomes an integral part of staffing function.
• Better human relations- A concern can stabilize itself if human relations develop and are strong. Human relations become strong through effective control, clear communication, effective supervision and leadership in a concern. Staffing function also looks after training and development of the work force which leads to co-operation and better human relations. • Higher productivity- Productivity level increases when resources are utilized in best possible manner. higher productivity is a result of minimum wastage of time, money, efforts and energies. This is possible through the staffing and it's related activities ( Performance appraisal, training and development, remuneration)
1. Forecasting
2. Developing 3. Controlling
6
• Systematic process of studying & monitoring the external environment of the organization in order to pinpoint opportunities & threats • Involves long range analysis of employment • Factors include economic factors, competitive trends, technological changes, socio-cultural changes, politico-legal considerations, labour force composition & supply, & demographic trends
8
• Eg., competitive pressures are likely to increase resulting in enhanced productivity requirements & HRP objective may be ‘to increase employee productivity by 5% in 2 yrs.’ which will require the firm to determine current employee productivity (output / employees) • Attempts to answer 2 questions:
– Which jobs need to be filled (or vacated) during the next 12 months? – How & where will we get people to fill (or vacate) these jobs?
• Demand & supply of labour in loose & tight labour market
– Major impact of the shortage of skilled workforce (tight labour market) in India has been on staff cost (increased by 35% in 2005) – Fast growing sectors like retail, telecom are new & do not have historical talent to bank on & hence they are hiring from other sectors with skill sets that are relevant to their industries
9
• FORECASTING ‘makes use of information from the past & present to identify expected future conditions’. • Forecasts are not perfectly accurate & as the planning scope becomes shorter the accuracy of forecasts increases • HR demand forecasts may be internal / external
10
• Policies and strategies of the company.
• Human resource policy of the company. • Formal and Informal groups. • Time Horizons (long term or short term). • Company’s production operations policy.
• Trade Unions
11
1. Government’s policies. 2. Business environment.
3. Level of Technology.
4. Social Factors. 5. International Factors.
12
Method
Estimation People in position estimate the number of people the firm will require in the next yr.
Advantages
Incorporates knowledge of corporate plans in making estimates
Disadvantages
May be subjective
Expert opinion Delphi
Panel of experts forecast HR requirements for particular future business scenarios. For this method, there may be a single expert, or estimates of several experts may be pooled together Experts go through several rounds of estimates with no face-to-face meeting Incorporates future plans & knowledge of experts related to mkt., industry & technical development Subjective, time consuming & may ignore data
Group brainstor ming
Nominal group technique Simple averaging
Face-to-face discussion based on multiple assumptions about future business direction
Face-to-face discussion
Generates lot of ideas
Does not lead to conclusion
Subjective which may ignore data Extremes views are masked when averaged
13
Group exchanges facilitate plans Diverse view points taken
Simple averaging of viewpoints
Ratio Analysis
Another approach , Ratio analysis , means making forecasts based on the ratio between.
1. Some causal factor (like sales volume)
2. The number of employees required
Expert Forecasts: These are based on the judgments of those who possess good knowledge of future human resource needs
Trend Analysis: This is based on the assumption that the future is an extrapolation from the past. Human resource needs, as such, can be estimated by examining pas trends.
Workload analysis: Based on the planned output, a firm tires to calculate the number of persons required for various jobs.
An example of workload analysis
Planned output for the year Standard hours per piece 10,000 pieces 3 hours
Planned hours required
Productive hours per person per year (allowing for absenteeism, turnover, idle time etc.) No. of workers required
30,000 hours
1,000 hours (estimated on annual basis)
30
If span of control in the unit is 10 per officer, then 3 officers are also required.
Supply Forecasting
A) Internal labour supply: a manpower inventory in terms of the size and quality of personnel available (their age, sex, education, training, experience, job performance, etc) is usually prepared by HR departments. Several techniques are used while ascertaining the internal supply of manpower (a supply of employees to fill projected vacancies can come from within the firm or from new hires )
Estimated internal labour supply for a given firm
Sources of Inflows The Firm Projected Outflows ? Promotions ? Transfers ? Promotions ? New Recruits ? Recalls Employees In Current Staffing Level Employees Out ? Quits ? T erminations ? Retirements ? Deaths ? Layoffs
Current staffing level
–
Projected outflows this year
+
Projected inflows this year
=
Firm’s internal supply for this time next year
Staffing table: Shows the number of employees in each job, how they are utilised and the future employment needs for each type of job.
Skills inventory: It is a summary of the skills and abilities of non managerial employees used in forecasting supply.
Replacement chart: It is a visual representation of who will replace whom in the event of a job opening.
General Manager V. K. Garg A/2 P A to General Manager L. Mathews B/1 Assistant General Manager R.K. Arora A/2 B.K. Nehru B/3
Key Names given are replacement candidates A. Promotable now B. Needing development C. Not suitable to position 1. Superior performance 2. Above Average performance 3. Acceptable performance 4. Poor performance
Division: HR Manager C.P Thakur . A/1
Division: Accounting & T axation Manager A.T Roy . C/2 Central Region Manager S.P Kumar A/1 . R. Pandey B/3
Division: Planning Manager A.N. Gupta A/1 K.P Rao . B/1
T echnical Advisor N.R. Murthy B/3
Northern Region Manager L.C. Srivatsav A/2 A. Thapar C/4
Southern Region Manager A. Subramanyam B/2 B.K. Menon B/1
Eastern Region Manager R. Krishna B/3
B) External Labour supply: External hires need to be contacted when suitable internal replacements are not available. A growing number of firms are now using computerised human resource information systems to track the qualifications of hundreds or thousands of employees. HRIS can provide managers with a listing of candidates with required qualifications after scanning the data base.
1. 2.
Net migration into and out of the area Education levels of workforce
3.
4. 5. 6.
Demographic changes in population
Technological developments and shifts Population Mobility Demand for specific skills
7.
8. 9. 10.
National, regional unemployment rates
Actions of competing employers Government policies, regulations, pressures Economic Forecasts for the next few years
11.
12.
The attractiveness of an area
The attractiveness of an industry in a particular place
Once supply and demand for labour is known adjustments can be made formulating requisite HR plans
A variety of HR plans
? Recruitment plan ? Redeployment plan ? Redundancy plan ? Training plan ? Productivity plan ? Retention plan
HRP is a top management job. HR plans are usually made by the HR division in consultation with other corporate heads. Any deviations from the formulated plans and their causes must be looked into, from time to time in order to assess whether the plans require revision or modification.
HR plans must fit in with overall objectives of a firm. They must get consistent support from top management. Computerised human resource information systems must be used for applicant tracking, succession planning, building skills inventories etc. The whole exercise must be carried out in coordination with operating managers.
• • • •
Freeze hiring Restrict overtime Retrain/redeploy Switch to part-time employees • Use unpaid vacations
• Use a shorter workweek • Use pay reductions • Use sabbaticals • Encourage early retirements
• Hire additional workers • Improve productivity through training • Use overtime • Add additional shifts
• Reassign jobs • Use temporary workers • Improve retention
Option 1.Downsizing 2.Pay Reduction 3.Demotions 4.Transfers 5.Work sharing 6.Retirement 7.Natural attrition 8.Retraining
Speed Fast Fast Fast Fast Fast Slow Slow Slow
Human Suffering High High High Moderate Moderate Low Low Low
Option 1.Overtime 2.Temporary employees 3.Outsourcing 4.Retrained transfers 5.Turnover reductions 6.New external hires 7.Technological innovation
Speed Fast Fast Fast Slow Slow Slow Slow
Revocability High High High High Moderate Low Low
doc_948629736.pptx
This is a presentation describes human resources planning, its need and manpower planning process.
• A systematic analysis of HR needs in order to ensure that correct number of employees with the necessary skills are available when they are required.
• getting the right people • at the right place • on the right time
– Helps to avoid sudden disruption of the production run of an enterprise enabling management to adopt suitable strategies – To prepare for fresh demands in terms of numbers , skills and occupation to meet increasing demand due to updated technology and expansion / growth – To cope with changing job requirement due to technological change & growing complexity in business – Helps to give an overall corporate picture at the corporate level for identification of surplus / shortage of personnel
• Key to managerial functions- The four managerial functions, i.e., planning, organizing, directing and controlling are based upon the manpower. Human resources help in the implementation of all these managerial activities. Therefore, staffing becomes a key to all managerial functions. • Efficient utilization - Efficient management of personnels becomes an important function in the industrialization world of today. Seting of large scale enterprises require management of large scale manpower. It can be effectively done through staffing function. • Motivation- Staffing function not only includes putting right men on right job, but it also comprises of motivational programmes, i.e., incentive plans to be framed for further participation and employment of employees in a concern. Therefore, all types of incentive plans becomes an integral part of staffing function.
• Better human relations- A concern can stabilize itself if human relations develop and are strong. Human relations become strong through effective control, clear communication, effective supervision and leadership in a concern. Staffing function also looks after training and development of the work force which leads to co-operation and better human relations. • Higher productivity- Productivity level increases when resources are utilized in best possible manner. higher productivity is a result of minimum wastage of time, money, efforts and energies. This is possible through the staffing and it's related activities ( Performance appraisal, training and development, remuneration)
1. Forecasting
2. Developing 3. Controlling
6
• Systematic process of studying & monitoring the external environment of the organization in order to pinpoint opportunities & threats • Involves long range analysis of employment • Factors include economic factors, competitive trends, technological changes, socio-cultural changes, politico-legal considerations, labour force composition & supply, & demographic trends
8
• Eg., competitive pressures are likely to increase resulting in enhanced productivity requirements & HRP objective may be ‘to increase employee productivity by 5% in 2 yrs.’ which will require the firm to determine current employee productivity (output / employees) • Attempts to answer 2 questions:
– Which jobs need to be filled (or vacated) during the next 12 months? – How & where will we get people to fill (or vacate) these jobs?
• Demand & supply of labour in loose & tight labour market
– Major impact of the shortage of skilled workforce (tight labour market) in India has been on staff cost (increased by 35% in 2005) – Fast growing sectors like retail, telecom are new & do not have historical talent to bank on & hence they are hiring from other sectors with skill sets that are relevant to their industries
9
• FORECASTING ‘makes use of information from the past & present to identify expected future conditions’. • Forecasts are not perfectly accurate & as the planning scope becomes shorter the accuracy of forecasts increases • HR demand forecasts may be internal / external
10
• Policies and strategies of the company.
• Human resource policy of the company. • Formal and Informal groups. • Time Horizons (long term or short term). • Company’s production operations policy.
• Trade Unions
11
1. Government’s policies. 2. Business environment.
3. Level of Technology.
4. Social Factors. 5. International Factors.
12
Method
Estimation People in position estimate the number of people the firm will require in the next yr.
Advantages
Incorporates knowledge of corporate plans in making estimates
Disadvantages
May be subjective
Expert opinion Delphi
Panel of experts forecast HR requirements for particular future business scenarios. For this method, there may be a single expert, or estimates of several experts may be pooled together Experts go through several rounds of estimates with no face-to-face meeting Incorporates future plans & knowledge of experts related to mkt., industry & technical development Subjective, time consuming & may ignore data
Group brainstor ming
Nominal group technique Simple averaging
Face-to-face discussion based on multiple assumptions about future business direction
Face-to-face discussion
Generates lot of ideas
Does not lead to conclusion
Subjective which may ignore data Extremes views are masked when averaged
13
Group exchanges facilitate plans Diverse view points taken
Simple averaging of viewpoints
Ratio Analysis
Another approach , Ratio analysis , means making forecasts based on the ratio between.
1. Some causal factor (like sales volume)
2. The number of employees required
Expert Forecasts: These are based on the judgments of those who possess good knowledge of future human resource needs
Trend Analysis: This is based on the assumption that the future is an extrapolation from the past. Human resource needs, as such, can be estimated by examining pas trends.
Workload analysis: Based on the planned output, a firm tires to calculate the number of persons required for various jobs.
An example of workload analysis
Planned output for the year Standard hours per piece 10,000 pieces 3 hours
Planned hours required
Productive hours per person per year (allowing for absenteeism, turnover, idle time etc.) No. of workers required
30,000 hours
1,000 hours (estimated on annual basis)
30
If span of control in the unit is 10 per officer, then 3 officers are also required.
Supply Forecasting
A) Internal labour supply: a manpower inventory in terms of the size and quality of personnel available (their age, sex, education, training, experience, job performance, etc) is usually prepared by HR departments. Several techniques are used while ascertaining the internal supply of manpower (a supply of employees to fill projected vacancies can come from within the firm or from new hires )
Estimated internal labour supply for a given firm
Sources of Inflows The Firm Projected Outflows ? Promotions ? Transfers ? Promotions ? New Recruits ? Recalls Employees In Current Staffing Level Employees Out ? Quits ? T erminations ? Retirements ? Deaths ? Layoffs
Current staffing level
–
Projected outflows this year
+
Projected inflows this year
=
Firm’s internal supply for this time next year
Staffing table: Shows the number of employees in each job, how they are utilised and the future employment needs for each type of job.
Skills inventory: It is a summary of the skills and abilities of non managerial employees used in forecasting supply.
Replacement chart: It is a visual representation of who will replace whom in the event of a job opening.
General Manager V. K. Garg A/2 P A to General Manager L. Mathews B/1 Assistant General Manager R.K. Arora A/2 B.K. Nehru B/3
Key Names given are replacement candidates A. Promotable now B. Needing development C. Not suitable to position 1. Superior performance 2. Above Average performance 3. Acceptable performance 4. Poor performance
Division: HR Manager C.P Thakur . A/1
Division: Accounting & T axation Manager A.T Roy . C/2 Central Region Manager S.P Kumar A/1 . R. Pandey B/3
Division: Planning Manager A.N. Gupta A/1 K.P Rao . B/1
T echnical Advisor N.R. Murthy B/3
Northern Region Manager L.C. Srivatsav A/2 A. Thapar C/4
Southern Region Manager A. Subramanyam B/2 B.K. Menon B/1
Eastern Region Manager R. Krishna B/3
B) External Labour supply: External hires need to be contacted when suitable internal replacements are not available. A growing number of firms are now using computerised human resource information systems to track the qualifications of hundreds or thousands of employees. HRIS can provide managers with a listing of candidates with required qualifications after scanning the data base.
1. 2.
Net migration into and out of the area Education levels of workforce
3.
4. 5. 6.
Demographic changes in population
Technological developments and shifts Population Mobility Demand for specific skills
7.
8. 9. 10.
National, regional unemployment rates
Actions of competing employers Government policies, regulations, pressures Economic Forecasts for the next few years
11.
12.
The attractiveness of an area
The attractiveness of an industry in a particular place
Once supply and demand for labour is known adjustments can be made formulating requisite HR plans
A variety of HR plans
? Recruitment plan ? Redeployment plan ? Redundancy plan ? Training plan ? Productivity plan ? Retention plan
HRP is a top management job. HR plans are usually made by the HR division in consultation with other corporate heads. Any deviations from the formulated plans and their causes must be looked into, from time to time in order to assess whether the plans require revision or modification.
HR plans must fit in with overall objectives of a firm. They must get consistent support from top management. Computerised human resource information systems must be used for applicant tracking, succession planning, building skills inventories etc. The whole exercise must be carried out in coordination with operating managers.
• • • •
Freeze hiring Restrict overtime Retrain/redeploy Switch to part-time employees • Use unpaid vacations
• Use a shorter workweek • Use pay reductions • Use sabbaticals • Encourage early retirements
• Hire additional workers • Improve productivity through training • Use overtime • Add additional shifts
• Reassign jobs • Use temporary workers • Improve retention
Option 1.Downsizing 2.Pay Reduction 3.Demotions 4.Transfers 5.Work sharing 6.Retirement 7.Natural attrition 8.Retraining
Speed Fast Fast Fast Fast Fast Slow Slow Slow
Human Suffering High High High Moderate Moderate Low Low Low
Option 1.Overtime 2.Temporary employees 3.Outsourcing 4.Retrained transfers 5.Turnover reductions 6.New external hires 7.Technological innovation
Speed Fast Fast Fast Slow Slow Slow Slow
Revocability High High High High Moderate Low Low
doc_948629736.pptx