Human resource planningUNIT 2

definitionIs the process of forcasting an organizations future demand for and supply of the right type of people in right numberALSO CALLED STRATEGIC MANPOWER PLANNING OR EMPLOYEMENT PLANNING

definitionProcess 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.

definitionThe 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 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 HRMPart of strategic planning 2 way supportdetermines future personnel needHelps 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 vacanciesto meet the needs of the program of expansion, diversificationto 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 functionsBetter selection of employeesBetter planning to implement any legal requirement.Important for International strategieto 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

EnvironmentOrg objectives and policiesHR Supply Forecast

Environment -Economic factorsTechnological ChangesDemographic 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 techniquesManagerial judgment top down & bottom upLower departments + HRTop 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 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 shortageManagement 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 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 planIncludes training programmes and series of job assignments leading to top positions.

Managerial succession plan-TATA MotorsFast 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 & JobNeed information about the Person & about the Job*

Person

KSAsTalents & InterestsMotivation

Job

Tasks & DutiesRewards

Job Outcomes

PerformanceSatisfaction

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 salesIdentifying target customerTele callingVisiting customerSelling a productPreparing sales reportTraining subordinatesGiving testMaintaining customer database

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

Job DescriptionA 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 forDescribing the job to potential candidatesGuiding new hired employees in what they are specifically expected to doProviding a point of comparison in appraising whether the actual duties align with the stated duties.

*

Job specificationJob 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

Process of job analysis

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

No. of job/employees to be considered. Time limitCost factorsEducation levels of incumbentsType of data required.

Decide purposes of the job analysis project

How do you want to use the Job Descriptions?Job designRecruitingSelectionPerformance appraisalTrainingCompensationAt a minimum, for each job being analyzed, we need data on:Tasks & duties performed on the jobQualifications required by the job

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Identify sources of job data

Job incumbents:Supervisor of jobTraining manualsFrom equipments usedMagazines , newspaperOther sources

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Methods of Job AnalysisObservationInterviewIndividualGroupQuestionnairesDiary method

Methods of Job AnalysisObservation MethodAnalyst observes incumbent DirectlyVideotapeUseful when job is fairly routinemanagerial positions are difficult to observe using this method. workers will not perform their tasks to their actual capabilities.

Interview Method

IndividualSeveral workers are interviewed individuallyThe answers are consolidated into a single job analysisGroupEmployees are interviewed simultaneouslyGroup conflict may cause this method to be ineffective

Methods of Job AnalysisQuestionnairesEmployees answer questions about the jobs tasks and responsibilitiesEach question is answered using a scale in- close ended -that rates the importance of each taskBest questionnaires is combination of both close & open endedTime consuming and expensive

Methods of Job AnalysisDiary MethodEmployees record information into diaries of their daily tasksRecord the time it takes to complete tasksMust be over a period of several weeks or months

KSA- KNOWLEDGE , SKILL & ATTITUDE***If the observation method is used to analyze a job, then all tasks involved with that job must be observable within a certain amount of time. Thus, jobs such as managerial positions are difficult to observe using this method. Also, if the workers are aware that they are being observed, they may feel under pressure and will not perform their tasks to their actual capabilities.*The interview method requires that all employees are asked the same questions in the same order. The individual interview method is useful to obtain a group consensus about the job. *Not all jobs are the same, so questionnaires may overlook certain aspects of the job. Also, follow-up methods are not usually organized to gather extra information. *This method can be very expensive because of the time it takes to complete it.