chapter-5, hrp process (fall-14)

8/10/2019 Chapter-5, HRP Process (Fall-14)

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Human ResourcePlanning

Chapter 5 (Dipak Kumars Book) Human Resource Planning Process

HRM - 411 (Human Resource Planning)

Sec-02 & 3, Fall-2014

MARS


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HRP Process

HRP process is a strategy for theacquisition, utilization and retention of anenterprise's human resources. It seeks tolink policy and practice in day to daydecision making. HRP process cannot beapplicable universally. It varies from

organization to organization.


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HRP Process Outline

We can broadly outline the HRP process intofour

different stages as under:

Stage 1: InvestigationIt is the primary stage of HRP in any organization.In this stage, organizations try to develop theirawareness about the detailed manpower scenarioby looking at their current manpower.

A SWOT analysis can reveal a better picture withdue consideration of the external environment,performance, productivity trends, workingpractices, operational and strategic plans.


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Stage 2:ForecastingAfter adequate investigation, in the next phase of

HRP process, analysis of demand and supply ofmanpower is done.There are different models of demand forecasting.Manpower supply analysis is done considering bothinternal and external supply. While doing internalsupply analysis , career planning and development,training and succession plan aspects areconsidered along with corporate policies andprocedures. Like in case of promotional policy- willit be done on merit basis or seniority basis.External supply analysis is done considering macrolevel issues to understand their availability . It helpsto identify the status of employment (permanent,contracting, sub-contracting)


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Forecasting as a Part of Human ResourcePlanning

DEMAND

FORECASTING

SUPPLY

FORECASTING

Determineorganizational

objectives

Demandforecast for

each objective

Aggregate

demandforecast Does aggregatesupply meetaggregatedemand?

Go to feasibility analysis steps

Choose humanresource programs

External programs

Recruiting

External selection

Executiveexchange

Internal programs

Promotion

Transfer

Career planning

Training

Turnover control

Internal supply forecast External supply forecast

Aggregate supplyforecast

No

Yes


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Stage 3: Planning and Control of Manpower

At this stage, forecasts of manpower are translatedinto HR policies, which encompass all HRP relatedissues like recruitment, training, and development.While going for recruitment, it is necessary tounderstand the job descriptions and job roles. Toaddress the problem of knowledge and skillobsolescence in the context of changingtechnology, training and development policies ofthe organizations should be made accordingly.While doing HRP, flexibility and inter-relationshipof all other policies also need to be considered.Control must be there to correct any observeddeficiency in such plans.


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Stage 4: UtilizationIn this final stage of HRP process, success ismeasured in terms of achievement trend, both inquantitatively and qualitatively.

While quantitative achievement is visible fromproductivity trend, manpower cost, etc.

Qualitative achievement is a subjective appraisalon achievement of organizational objectives.Reflection of qualitative achievement can also be

studied in the context of prevailing industrialrelations, level of motivation and morale,grievance pattern etc.


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Forecasting of Demand(Quantitative Tools)

Time Scale of HRP Forecasts- Determining time scale ofhuman resource forecast is very important to decide abouttheir availability and chart the possible action to meet therequirement. Depending on time frame , which again dependson the basis of requirement, nature of analysis of external-internal source , keeps on changing.

Analysis of Workload FactorsTo forecast the manpower requirements at different pointsof time.

Analysis of present and future workload depends on thepossibility of quantifying the work content in every area ofan organizational activity.


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Steps of workload analysis: 1. Class i f ic a t ion of Work

Classification of work is done by identifying the work or job content and time requirement for such job or workunit. It helps in breaking jobs in different components,which together completes an operation.

2. Forecas t ing the Numb er of Jo bs

After classification of jobs and work content and its timerequirement, in the next phase, job forecasting inquantitative terms for a number of jobs is done for a timeperiod.

3. Conver t ing the Pro jec ted Job s in Man-hours

Multiplying the time requirement of each job with thenumber of projected jobs, man-hours for jobs arecomputed.

4. Conv er t ing the Man-hou rs in to Manp ow er Requ irement In the final phase of workload analysis, aggregate man-hours are converted into manpower requirements.


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Time Series AnalysisEmployment data over a time period (time series) areused under this method as the basis for manpowerforecast . It has five distinct elements-Trend: Fluctuations in level of employment over atime period. Cycl ical Effects : Change in employment in relation tosome particular event. Seasonali ty: Seasonal fluctuations occur more thanonce in a given time period. Step: This is a sudden change in employment level

due to economic environment or increased marketshare or procurement of some new machines, etc. Rand om Fluc tu a tions : These are fluctuations inemployment level which are random in nature, i.e.,such fluctuations do not follow any obvious pattern.


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Time Series Analysis

Moving Average MethodWeighted Moving Average MethodExponential Smoothing


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Managerial Judgment

A manager has to make a judgmentabout the future employment levels.Such judgmental decision is based onhis past experience, which he relates topast occurrences of some events and itseffects on manpower plans. Combining

quantitative tools with judgment yieldbetter results.


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Analysis of Manpower SupplyWastage Analysis

Manpower wastage is an element of labour turnover.It is not labour turnover by itself. It includes-voluntary retirement, normal retirement,resignations, deaths and dismissals.

Wastage Analysis Curve identifies three differentphases-

During induction phase, marginal employeesleave.During differential transit period, an employeelearns about the organization and identifies hisrole in it.During the period of settled connection, anemployee settles down and decides to stay long.


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Analysis of Manpower SupplyWastage Analysis

Wastage decreases with the increase of length ofservice.Wastage also decreases with the increased skillexercises and age of employees.Characteristically wastage of manpower is more infemale than male employees.It varies with the level of employment and alsoexhibits seasonal variations.Working conditions and size of the firm are alsoimportant variables of manpower wastage.


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Different Methods of Wastage Analysis

Labour Turnover IndexIndicates the number of leavers aspercentage of average number of employees.

Average number of employees employed in agiven time period is decided by adding theemployees at the beginning and end thendividing the same with two.

Stability IndexIndicates stable workforce percentage for agiven period.


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Different Methods of Wastage Analysis

Cohort analysisCohort analysis takes into account thelength of service, which is an importantvariable of wastage analysis. It is moreaccurate for a small homogenous group.But changing social and economicconditions can invalidate this analysis.

chapter-5, hrp process (fall-14)

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