human resources (hr) planning process

7/28/2019 Human Resources (HR) Planning Process

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HUMAN RESOURCEPLANNING PROCESS


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INTRODUCTION

By:Nabeel Ashraf


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THE HR PLANNING PROCESSCONSISTS OF THREE STEPS

Forecasting,

Goal setting and strategic planning,

And program implementation and evaluation


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FORECASTING

Forecasts of labor demand

Forecasts of labor supply

Forecasts of labor surplus or shortage


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By:Moeed Khan


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The second step in human resourcesis GOAL SETTING AND STRATEGICPLANNING. The purpose of settingspecific quantitative goals is to focusattention on the problems and providea benchmark for determining the

relative success of any programs aimedat redressing a pending labor shortageor surplus


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Options for reducing an expected laborsurplus

Option Speed Human Suffering

Downsizing Fast High

Pay Reductions Fast High

Demotions Fast High

Transfer Fast Moderate

Work Sharing Fast Moderate

Hiring Freeze Slow Low

Natural attrition Slow Low

Early Retirement Slow LowRetraining Slow Low


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Options for Avoiding an expected labor

shortage

Option Speed Revocability

Overtime Fast High

Temporary employees Fast HighOutsourcing Fast High

Retrained transfers Slow High

Turnover reductions Slow Moderate

New external hires Slow Low

Technologiesinnovation

Slow Low


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Downsizing

Downsizing is planned elimination of largenumbers of personnel designed to enhance

organizational competitiveness.The jobs eliminated in these downsizing

efforts should not be thought of as temporarylosses due to business cycle downturns or a

recession but as permanent losses due to thechanging competitiveness pressures faced bybusiness today.


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Reasons for Downsizing

First, many organizations were looking to reduce costs,and because labor costs represent a big part of acompanys total costs.

Second, in some organization, closing outdated plants orintroducing technologies changes to old plants reduced

the need for labor.Third reason for downsizing was that many mergers andacquisitions reduced the need for bureaucratic overhead,displacing many managers and some professional staffmembers.

A fourth reason for downsizing was that, for economicreasons, many firms changed the location of where theydid business. Some of this shift was from one area toanother.


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Failure of downsizing

One study shows that most firms that announce adownsizing campaign show worse, rather than better,

financial performance in the following years.


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Reasons of failure of downsizing

First, although the initial cost savings are a

short-term plus, the long-term effects of animproperly managed downsizing effort can benegative. Downsizing not only leads to a lossof talent, but in many cases it disrupts thesocial networks needed to promote creativity

and flexibility.


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Second, many downsizing campaigns let go of people who turnout to be irreplaceable assets. In fact, a survey indicated that in

80 percent of the cases, firm wind up replacing some of the verypeople who were let go.


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A third reason downsizing efforts often fail isthat employees who survive the purges often

become narrow-minded, self-absorbed, and risk-averse. Motivation levels drop-off because anyhope of future promotions with the company diesout. Many employees also start looking foralternative employment opportunities. The

negative publicity associated with a downsizingcampaign can also hurt the companys image inthe labors market


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Early Retirement Programs

By:

Noman Badar


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During the last decade or so, it has been seen that olderworkers careers have become prolonged which haveresulted in labour surplus in the market due to number offactors. Those factors include:

1. Improved health of older people has made working longera viable option,

2. Option of not retiring is attractive for many workersbecause they fear Social Security will be cut,

3. Age discrimination and outlawing of mandatory retirementages have created constraints on organizations ability tounilaterally deal with an aging workforce.


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Disadvantages of older workforce

Older workforce are sometimes more costly than

younger workers because of their higher seniority, highermedical costs, and higher pension contributions.

As older workers typically occupy the best-paid jobs,

they sometimes prevent the hiring or block the

advancement of younger workers.


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Early Retirement Programs

Therefore in the this context popular means of reducing

labour surplus is to offer an early retirement program.Although early retirement programs have some drawbacks

as well but Phased Retirement programs allow the

organization to tap into the experience of older workers

while reducing the number of hours they work hence

reducing the costs.


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Employing Temporary Workers


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Employing Temporary Workers

Hiring temporary workers and outsourcing has been the mostwidespread means of eliminating a labour shortage.

Temporary employment affords firms the flexibility

needed to operate efficiently in the face of swings in the

demand for goods and services.


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Advantages of Temporary Workers

There are some advantages of hiring temporary workerswhich include:

1. Use of temporary workers frees the firm from many

administrative tasks and financial burdens.2. Small companies that cannot afford their own testing

programs often get employees who have been by atemporary agency.

3. Many temporary agencies train employees before tosending them to employers, which reduces training costsand eases the transition for both the temporary workerand the company.


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Disadvantages of Temporary

Workers

There is often tension between a firms temporaryemployees and its full-time employees.

Surveys indicates that sometimes full-times employeesperceive the temporary help as a threat to their own jobsecurity.

Also, hiring of temporary workers can lead to low levelsof cooperation and, in some cases, outright sabotage if

not managed properly.


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OUTSOURCINGOutsourcing is the act of one company contracting with another company toprovide services that might otherwise be performed by in-house employees. Oftenthe tasks that are outsourced could be performed by the company itself, but inmany cases there are financial advantages that come from outsourcing.

By:Amon Godfrey (51)


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Most Frequently OutsourcedBusiness Tasks

Customer support

Accounting

Tax preparation

Web design

Computer programming

Manufacturing

Data entry


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Apple outsources in china where the iPods , I phones andthe Mac are manufactured though all the designing processis done in the USA


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Outsourcing is a logical choice when the firm simply doesn'tnot have certain expertise and is not willing to invest thetome and the energy to develop it .

Nike is extremely good atmarketing but its core product

is sneakers that areoutsources from Asia (China,Indonesia, Vietnam) wherethere is skilled expertise onshoe making


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Medical lien management

Technological advancementsin computer networking andtransmission have speededup the out sourcing process

Medical lien managementfrom Florida has its medicalclaims analyzed by Ensigncommuniqu here in Karachi

Pakistan.


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H.R also teams up with online outsourcing companies so asto save time and money when outsourcing for differentservices to independent contractors and build lucrative,

long-term work relationships .


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Disadvantages of outsourcing

Countries loose out onemployment opportunitiesto low income countries

Companies loose out onthe chance of developingexpertise as thetechnicalities involved arehandled by anothercompany


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Outsourcing has contributed a lot to counterfeiting as theparent company hands away its production process toagent companies who might unethically use it for devious

means


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overtime

Overtime is the amount of time

someone works beyond normalworking hours


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Advantages and Disadvantages

BENEFITS

Recruiting costs forbusinesses are reduced

Additional income for theworkers

Increased productivity

DISADVANTAGES

Fatigue may lead to burnout

Higher labor costs for theemployees

Reduced quality of life


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By:

Waleed Zafar

(47)


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STRATEGY IMPLEMENTATION

Strategic implementation put simply is the process that puts plans andstrategies into action to reach goals.It is a critical aspect for a

companys success. An indivisual is held responsible for the

achievement of goals and is provided with the needed resources and

authority to accomplish the goal . Timely reports are submitted on the

implementation to be sure that all programs are in place by specified

times.


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EVALUATING THE

STRATEGY


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EVALUATING THE

STRATEGYStrategy Evaluation is as significant as strategy formulation becauseit throws light on the efficiency and effectiveness of the

comprehensive plans in achieving the desired results . It also shows

whether the company has successfully avoided potential labor

shortages or surpluses. It is also important to see which parts of

program contributed to success or failure.


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K.E.S.C EmployeeFeedback


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