rect sel -human resource planning
DESCRIPTION
helps in the recuirtment course.TRANSCRIPT
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HUMAN RESOURCE PLANNING
“Throughout history it is the quality of the country’s manpower that has distinguished or
disgraced it in the comity of nations.” Anonymous
Definitions
• HRP is the process by which an org ensures that it has the right number and kind of people, at the right place, at the right time, capable of effectively and efficiently completing those tasks that will help the org achieve its overall obj.
• HRP translates the org’s objectives and plans of workers needed to meet those objectives. Without a clear-cut planning, estimation of an org’s human resource need is reduced to mere guess work.
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AIM OF HRP
• Attract and retain people with appropriate skills, expertise and competencies
• Anticipate the problems of potential surpluses and deficits of people
• Develop a well trained and flexible work force
• Have an appropriate retention policy
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Potential benefits
• Upper management better aware of the HR current configuration.
• Personnel cost is controlled.
• More time provided to locate talent.
• Affirmative Action Plan implemented
• Time to develop employees
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Sequencing-Human resource planning
• Planning Process related to Strategy• Resourcing strategy as employer of
choice.• Scenario planning-Trends• Demand/ Supply forecasting-Techniques. Advertisement• Recruiting Documentation
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HUMAN RESOURCE PLANNING PROCESSHUMAN RESOURCE PLANNING PROCESS
Forecast of Forecast of labour labour
demandsdemandsForecasts of Forecasts of
labour supplylabour supply
Forecasts of Forecasts of labour surplus labour surplus
or shortageor shortage
Goal setting Goal setting and strategic and strategic
planningplanning
Program Program implementation implementation and evaluationand evaluation
A procedure for estimating Human Resource shortage or surplus for a job or Occupation category
Start with
Current CensusThe number of people now in the group being studied
Current CensusThe number of people now in the group being studied
Expected LossesThe number of people expected to leave the group
between now and the planning horizon due to retirements, quits, promotions, and deaths
Expected LossesThe number of people expected to leave the group
between now and the planning horizon due to retirements, quits, promotions, and deaths
Replacement NeedsReplacement Needs
To the remaining number add
Expected promotions. In light of human resource
objective.
Expected promotions. In light of human resource
objective.
To the resulting number add
Growth NeedsAs determined by
organizational objectives.
Growth NeedsAs determined by
organizational objectives.
The resulting number is
The resulting number is
Replacement NeedsReplacement Needs
Predicted DemandsPredicted DemandsSurplusSurplus
ShortageShortage
To be met by external supplyTo be met by external supply
1.1. Number currently employedNumber currently employed 70702.2. Annual wastage rate based on past records Annual wastage rate based on past records 10 10
percentpercent3.3. Expected losses during the yearExpected losses during the year 07074.4. Balance at end yearBalance at end year 63635.5. Number required at end yearNumber required at end year 75756.6. Number to be obtained during year (5-4)Number to be obtained during year (5-4) 1212
Human Resourse Management
FACTORS AFFECTING HRP
1. Strategy to be followed.
2. Growth cycle of firm.
3. Environmental Uncertainties.
4. Time Horizons
5. Type and Quality of Forecasting.
6. Nature of Jobs to be filled.
7. Off-Loading of Jobs.
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REASONS FOR DEMAND FORCASTING:
1. Quantify the jobs necessary for producing goods.
2. Determine staff-mix desirable in the future.
3. Assess appropriate staffing levels in different parts organisation to avoid unnecessary costs.
4. Prevent shortage of people when they are needed most.
5. Monitor compliance with legal requirements.
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ENVIRONMENTAL SCAN
• Tight Labor Market• Recession• Skill shortage• High Turnovers• High Tech Positions• Stable Environs• Expanding Environs
• Employee choice wide• Employer choice wide• Employee choice wide• Buy not make
• Buy not Make• Attrition made up• Aggressive Recruiting
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Peripheral group I Secondary labour markets Flexibility
through quantitative adjustment
Short term contracts Public
subsidy trainees
Delayed recruitment
Job sharing
Part timers
Peripheral group II
Core group
Primary labour markets
Flexibility through utilization
Age
ncy
tem
pora
ries
Sub
cont
ract
ing
Out-sourcing
Self-employment
The flexible firm
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OPTIONS
• Category A- Directly employed– Full time– Part time workers– Job sharers– Flexitime– Annual hour contracts
Category B- Self employed- Free lance
Category C- Agency workers- Subcontracts
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Average core combined with Category A overtime and Category B own-pool temporaries
Small core workforce (inc. Category A home workers and part-timers) and Category C workers
Large core combined with Category A part-time
Average core combined with Category A part-timers, shift workers, home workers and Category C agency and/or subcontracts
HUMAN RESOURCING:Planning and performanceFluctuations in demand
High
High
Low
Low
Labour costs
Risk assessment model of flexible working patterns
FORECASTING METHODS
QUALITATIVE QUANTITATIVE OTHERS
Managerial Judgment Extrapolation/ Trend Budget Analysis
Delphi Technique Indexation Transitional Analysis
Nominal Group Technique
Markov Analysis Computerized
Expert Survey Regression
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PROGRAMME PLANNING OPTIONSPROGRAMME PLANNING OPTIONS
Do not replace employees who leave Do not replace employees who leave Offer incentives for early retirementOffer incentives for early retirementTransfer or re-assign excess employeesTransfer or re-assign excess employeesUse slack time for employees training or Use slack time for employees training or equipment maintenanceequipment maintenanceReduce work hoursReduce work hoursLay-off employeesLay-off employees
If a surplus of employees If a surplus of employees is expected ….is expected ….
Hire new full-time employeesHire new full-time employeesOffer incentives for postponing retirementOffer incentives for postponing retirementRe-hire retired employees on part-time basisRe-hire retired employees on part-time basisAttempt to reduce turnoverAttempt to reduce turnoverBring in overtime for present staffBring in overtime for present staffSubcontract work to another companySubcontract work to another companyHire temporary employeesHire temporary employeesRe-engineer to reduce needs.Re-engineer to reduce needs.
If a shortage of If a shortage of employees is expected employees is expected ….….
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OPTIONS FOR REDUCING AN OPTIONS FOR REDUCING AN EXPECTED LABOR SURPLUSEXPECTED LABOR SURPLUS
Option SpeedHuman
SufferingDownsizing Fast High
Pay reductions Fast High
Demotions Fast High
Transfers Fast Moderate
Work sharing Fast Moderate
Retirement Slow Low
Natural attrition Slow Low
Retraining Slow Low
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OPTIONS FOR AVOIDING AN OPTIONS FOR AVOIDING AN EXPECTED LABOR SHORTAGEEXPECTED LABOR SHORTAGE
Option Speed Human Suffering
Overtime Fast High
Temporary employees
Fast High
Outsourcing Fast High
Retrained Transfers Slow High
Turnover reductions Slow Moderate
New external hires Slow Low
Technological innovation
Slow Low
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DOWNSIZINGDOWNSIZING
• Planned elimination of large number of personnel with goal of enhancing the organisational’s competitiveness
• Does this option destroy the firm’s reputation in the labor market?
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DOWNSIZING
• Reducing costs• Replacing Labor by
Tech• Mergers &
Acquisitions• Moving to more
economical locations
• Loss of talent• Social network
effected• Drop of motivation• Hurt image building• Only as a last resort• Improve forecasting
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TELE WORKINGTRADE OFFS
• ADVANTAGES– Gains in productivity– Reduction of overhead– Retention of rare skills– Penetration of unusual
labor markets
• DISADVANTAGES– Lack of commitment– Problems in
communication– Problems in
supervision
RETENTION PLANS
• Compensation plans made attractive.
• Fair Appraisal management
• Advancement opportunities
• Congenial working climate.
• Compatibility job and person
• HR Audit.
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BARRIERS TO HRP
• Principle of “Employment at Will”• HR taking a back seat on “Strat partner” role.• Financial forecasting takes precedence.• Conflict between short and long term goals.• Conflict between Qualitative and Quantitative
methods of forecasting.• Mis-coord between operations and HR
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Cost of Labor Turnover
• Leaving cost
• Direct costs: Ad, Selection cost/time, Orientation/training costs
The Labour turnover index
Human Resourse Management
Stability index
Number of leavers in a specified period (usually 1 year) X 100Average number of employees during the same period
Number 1 year’s service or more X 100Number employed 1 year ago
04/11/23 2604/11/2304/11/23 09:4709:47 IBP PRESENTATIONIBP PRESENTATION 2626
A HYPOTHETICAL TRANSITIONAL A HYPOTHETICAL TRANSITIONAL MATRIX FOR AN AUTO PARTS MATRIX FOR AN AUTO PARTS
MANUFACTURERMANUFACTURER
2005200520092009
(1) (2) (3) (4) (5) (6) (7) (1) (2) (3) (4) (5) (6) (7) (8) (8)
1. Sales manager1. Sales manager .95 .05.95 .05
2. Sales 2. Sales representativerepresentative
.05 .60 .35.05 .60 .35
3. Sales apprentice3. Sales apprentice .20 .50 .30.20 .50 .30
4. Assistant plant 4. Assistant plant managermanager
.90 .05 .05.90 .05 .05
5. Production 5. Production managermanager
.10 .75 .15.10 .75 .15
6. Production 6. Production assemblerassembler
.10 .80 .10.10 .80 .10
7. Clerical7. Clerical .70 .30.70 .30
8..Not in 8..Not in organizationorganization
.00 .20 .50 .00 .10 .20 .30.00 .20 .50 .00 .10 .20 .30
Survival rate analysis
Human Resourse Management
Entry Cohort
Original Strength
Number surviving to end of year after engagement
Year 1 Year 2 Year 3 Year 4 Year 5
A 40 35 28 26 22 20
B 32 25 24 19 18 17
C 48 39 33 30 25 23
D 38 32 27 24 22 19
E 42 36 30 26 23 21
Total 200 167 142 125 110 100
Average survival
rate100 % 83 % 71% 62% 55% 50%
Leavers by length of service
Human Resourse Management
Occupation
Leavers by length of service Total number leaving
Average number
employed
Index of labour
turnover %
Less than 3 months
3-6 months
6 month
s
1-2 years
3-5 years
5 or more years
A 5 4 3 3 2 3 20 220 10
B 15 12 10 6 3 4 50 250 20
C 8 6 5 4 3 4 30 100 30
Totals 28 22 18 13 8 11 100 550 18