Chapter 4 (HRM 411, Sec 02)

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Human Resource

Planning

Chapter 3

Human Resource Planning

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Introduction

Comparison of the present human resources to futureneeds of an organization, duly identifying skill and

competency gaps and subsequently developing plans

for building the human resources needed in future is

the basic process of Human Resource Planning (HRP).

HRP tries to ensure that the required competency is

maintained in line with organizational mission, vision

and strategic objectives.

HRP provides a strategic basis for taking HR decisions,and anticipating change.

HRPhelps to plan replacement and changes in

manpower competencies in a systematic manner.

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Human Resource Planning1. What Is HRP?

HRP is a planning process by which an

organization can move from its current manpower

position to its desired manpower position.

Through manpower planning, an organizationstrives to have the right number and the right kinds

of people at the right places at the right time. More

appropriately manpower planning may be defined

as a strategy for acquisition, utilization,improvement and retention of human resources.

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Optimum manpower planning aims at:

1.Balancing demand, supply,

distribution and allocation of manpower,

2.Controlling cost of human resources

3.Formulating policies on transfer,succession, relocation of manpower.

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Human Resource PlanningActivities required for HRP

1.Forecast ing future manpower requirement

1)Mathematical projections

a) Economical environment

b) Development trends in industry

2) Judgmental estimates

Future managerial decision

Factors influence manpower forecastinga) Volume of output (Analysis of performance)

b) Level of productivity (Analysis of productivity)

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2.Prepar ing an invento ry of manpower

a) Employees skill

b) Abilities

c) Work preferences

3. An t ic ipat ing prob lems o f manpower

a) Project present resources into the future

b) Compare with the forecast of manpowerrequirement

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Human Resource Planning4. Meet ing manpower requ irement

a) Planning

b) Recruitment & selection

c) Training & development

d) Induction & placement

e) Promotion and transfer

f) Motivation and compensation

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Human Resource PlanningResponsibilities of HR Department in HRP

a) To put pressure on operating management toestablish goal and objectives

b) Collect data in total organization terms,

Provide information on manpower utilization in the

present and in the past.c) Ensure that manpower planning carried out

and keep pace with long term objectives of the

organization

d) Measure and monitor performance against

plan and provide feedback to the top management.

e) To carry out research for effective manpower,

organizational planning and forecasting techniques

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Human Resource PlanningSteps for HRP

A. Job AnalysisJob Analysis provides the following information:a) Job identification, done by providing a title or code number for each

job.

Job characteristics, location, physical setting, hazards and discomforts

of a job

b) Job assignment, specific operations and tasks which make an

assignment, its importance, simplicity, complexity, and the responsibility

c) Materials, tools and equipments required for a job.

d) Job performance, nature of operations (lifting, handling, drilling etc.)

e) Personal attributes, like experience, training, physical strength, mentalcapabilities, aptitudes, other skills etc. required for efficient

performance of the job.

f) Job relationship, scope for advancement, patterns of promotions,

direction or leadership form etc.

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Sources of Information for JobAnalysisInformation on a job is usually obtained from

four principal sources as follows:

a) From supervisors and foreman.

b) From job analyst

c) From technology vendors, who

define jobs in their literature.

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Human Resource PlanningPurposes of Job AnalysisApart from HRP, job analysis serves the following

important purposes of Human Resource Management:a) Recruitment and Selection

b) Wage and Salary Administration

c) Job Re-engineering/Job Design

d) Industrial Engineering Activity

e) Employees Training and Management Development

f) Performance Appraisal

g) Health and Safety

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Human Resource PlanningJob Description and Job Specification

a) It is appropriate to distinguish the term

description to cover job content (conditions, tasks and

responsibilities)

b)And specification to denote jobrequirements (qualities necessary) in the worker for

satisfactory performance of the job.

c) Thus, job specifications translate job

descriptions into human qualifications, required for

successful performance of a job.

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Human Resource PlanningObjectives of HRP

a)First objective of HRP is to integrate planning andcontrol of manpower with organizational planning toensure best possible utilization of all resources.b) Next objective is to coordinate manpower policies of

the organization.c) Achieve efficiency of work in all spheres of thecorporate body.d) Ensure cost minimizatione) Eliminate all types of wastages including of timef) Maintain required level of skill and competency,matching present and future needs of theorganization.

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Need for Manpower Planning

a) Manpower planning is deemed necessary for all

organizations for one or the other of the following

reasons:

b) To carry on its work, each organization needs employeeswith necessary qualifications, skills, knowledge, work

experience and aptitude for work. These are provided

through effective manpower planning.

c) There is constant need for replacing employees due toretirement, death and other constraints. HRP can make

an effective assessment of the situation and bridge-up

the gap.

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Need for Manpower Planning

d) To address external factors among the employeeslike voluntary quits, discharges, change of placedue to marriage, seasonal and cyclical fluctuations

in business/economy.e) To meet the needs of expansion programs of the

organization.

f) To meet the challenges of new and changingtechnologies.

g) To assess the optimum strength of different unitsand make necessary adjustment.

h) To adhere to the cost aspects of various units andoptimization of resources.

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Manpower Demand Forecasting

Analysis of Performance

a) Direct Analysis (using two variablesworkload &certain manpower category)

b) Indirect Analysis ( Using past experience & less

systematic)

Analysis of Productivity: two major components liketechnological change and manpower utilization.

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Manpower Demand Forecasting

Analysis of Performance- In order tocalculate manpower calculation in relation to

workload, first organizations each unit of

manpower requirement for different jobcategories of job to be determined. After that

total workload is related with manpower units of

different categories and finally the total

requirement of manpower of different categories

is determined. is determined.

Chapter 4 (HRM 411, Sec 02)

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Transcript of Chapter 4 (HRM 411, Sec 02)