Human resource Human resource planningplanning

UNIT 2

definitiondefinition“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

definitiondefinition

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.

definitiondefinitionThe 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 short-term staffing challenges, while adapting to changing conditions in the business and environment over the longer term. Human resource planning is a continuous process.

WHY HRPWHY HRPIf 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 HRMImportance 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 Planning processprocess

HR Needs Forecast

HR Programming

HRP Implementation

Control and Evaluation

ShortageSurplus

Environment

Org objectives and policies

HR Supply Forecast

Environment -Environment -

1) Economic factors2) Technological Changes3) Demographic changes( us

age vs india )4) Political and legislative

issues (quotas , labor, child labor)

5) Social concerns (inclusive growth)

Organizational objectives Organizational objectives and policies-: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 techniquesForecasting techniques

1. Managerial judgment top down & bottom up Lower departments + HR Top management+ HR

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 forecastSupply forecastDetermines 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 implementation- recruitment, 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 planDownsizing planWho is made redundant when and where.Plan for re development and retraining

where this has not been covered in redevelopment,

Planning for outplacementPolicy for declaring redundancies and

making payment.Program for informing those affected.Reduced working hoursForced leaveVRS

Managerial succession Managerial succession planplanIncludes training programmes and series of job assignments leading to top positions.

Managerial succession plan-Managerial succession plan-TATA MotorsTATA Motors

Fast track selection- any one from management grade has been in tata motor for more than two years can apply.

Boss recommendation15 people from all over India, all or no one

may be selected Written test, 2 aptitude test one on tata

motors, GD, interview3 day residential assessment- case study,

group activities, debates Reaches MT grade 5 straight away

Ess- executive selection scheme

Goal: Match Person & Job

Need information about the Person & about the Job

Person

KSAsTalents & Interests

Motivation

Job

Tasks & DutiesRewards

Job Outcomes

PerformanceSatisfaction

26

JOB is………..JOB is………..JOB- A BUNDLE OF RELATED TaskSYNONYM OF JOB IS WORKWORK 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 customerTele callingVisiting customerSelling a productPreparing sales reportTraining subordinatesGiving testMaintaining customer database

DefinitionsDefinitionsJob 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

29

Job DescriptionJob 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.

2. Supervise operation of bar to maximize profitability, minimize legal liability, and conform to alcoholic beverage regulations.

3. Work with other management personnel to plan marketing, advertising, and any special restaurant functions.

4. Direct hiring, training, and scheduling of food service personnel.

5. Investigate and resolve complaints concerning food quality and service.

6. Enforce sanitary practices for food handling, general cleanliness, and maintenance of kitchen and dining areas.

7. Comply with all health and safety regulations.

8. Review and monitor, with bookkeeper or other financial personnel, expenditures to ensure that they conform to budget limitations. Work to improve performance.

9. Perform other duties as assigned by management.

Qualifications:

1. Bachelor of Science degree in hotel/restaurant management is desirable. A combination of practical experience and education will be considered as an alternate.

2. Good organizational skills for dealing with diverse duties and staff.

3. Pleasant, polite manner for dealing with public as well as staff.

Reports to: Department: Supervises: Division: Date: Approved: Source (revised from): http://www2.hrnext.com/Article.cfm/Nav/2.4.0.0.6719.0

31

Job specificationJob 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 Objectives/Purpose of Job AnalysisAnalysis

Process of job Process of job analysisanalysis

Which method to use ?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 Decide purposes of the job analysis projectjob 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 37

Identify sources of job data

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

38

Methods of Job AnalysisMethods of Job AnalysisObservationInterview◦Individual◦Group

QuestionnairesDiary method

Methods of Job AnalysisMethods of Job AnalysisObservation 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 AnalysisQuestionnaires◦Employees answer questions about the job’s 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 AnalysisMethods of Job AnalysisDiary 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