the process of hrp

8/2/2019 The Process of HRP

1/22

The process of HRP


2/22

The process

of HRP


3/22

Business strategic plans: defining future activity levels and initiatives demandingnew skills.

Resourcing strategy: planning to achieve competitive advantage by developing

intellectual capital employing more capable people than rivals, ensuring that

they develop organization specific knowledge and skills, and taking steps to

become an employer of choice.

Scenario planning: assessing in broad terms where the organization is going in

its environment and the implications for human resource requirements.

Demand/supply forecasting: estimating the future demand for people (numbers

andskills), and assessing the number of people likely to be available from within

and outside the organization.

Labour turnover analysis: analysing actual labour turnover figures and trends as

an input to supply forecasts.

The concepts in the process of HRP


4/22

Work environment analysis:

analysing the environment in which people work in terms of

the scope it provides for them to use and develop their skills

and achieve job satisfaction.

Operational effectiveness analysis:

analysing productivity, the utilization ofpeople and the

scope for increasing flexibility to respond to new and

changing demands.



5/22


Resourcing: Hiring the desired No and competency of employees.

Retention: Retaining the hired employees in the organization.

Flexibility: Flexibility in the use of human resources to enable the organization tomake the best use of people and adapt swiftly to changing circumstances.

Productivity: Rate of production per employee

Work environment: the environment in which the employee performs the job.


6/22

RESOURCING STRATEGY

Resourcing strategy:planning to achieve

competitive advantage

by developing

intellectual capital

employing more

capable people thanrivals, ensuring that

they develop

organization specific

knowledge and skills,

and taking steps to

become an employer

of choice.

Resourcing plans: preparing plans for finding

people from within the organization

and/or for training programmes to help people

learn new skills. Or preparing longer term

plans for attracting high quality candidates as

the employer of choice.Flexibility plans:planning for increased

flexibility in the use of human resources to

enable the organization to make the best use

of people and adapt swiftly to changing

circumstances.

Retention plans: preparing plans forretaining the people the organization needs.


7/22

In the light of the business plan, how many people are likely to be needed in

each of our key operational or functional areas in the short and longer term?

What skills are likely to be needed in the future?

Will it be possible to meet the needs from our existing resources?

If not, where to find the resources? What do to do to develop or extend our skills base?

What should we done about identifying people with potential and

developing their competency?

Do the organization has a problem in attracting or retaining key staff? If so,

what needs to be done?

Is there scope to make better use of people by increasing employmentflexibility?

Is there any danger of downsizing? If so, how to manage it?

The Checklist of resource strategy.


8/22

SCENARIO PLANNING

Scenario

planning:

assessing in

broad terms

where the

organization isgoing in its

environment

and the

implications

for human

resourcerequirements.

The Aim: The aim is to obtain a better understanding of the possible

situations that may have to be dealt with in the future.

Whatto do for this?

-Find out possibilities that organizations may have to confront.

-Ordered the possibilities to produce a series of internally

consistent pictures of alternative futures- Identify issues and examine the possible consequences of events.

An Example: Thomson Press has got a new business in graphic designing which

needs the skills sets identical to the skill sets Uptra uses for one of their clients.


9/22

Forecasting involves:a. forecasting the demand for labor

b. forecasting the supply of labor

c. balancing supply and demand considerations.

FORECASTING


10/22


11/22

ESTIMATING FUTURE HUMAN RESOURCE

REQUIREMENTS ( DemandSupply Forecasting)

Demand Forecasting: Demand forecasting

is the process of estimating the future

numbers of people required and the likely

skills and competences they will need.

The ideal basis of the

forecast is an annual

budget and longer

term business plan,

translated into activity

levels for each functionand department, or

decisions on

downsizing.

For example setting up a new regional organization, creating a new sales

department, carrying out a major project or developing new products or services.

So far as possible, plans should also be reviewed that could result in

rationalization, and possibly downsizing, as a result of a cost reduction drive, a

business process re-engineering exercise, new technology leading to increased

productivity, or a merger or acquisition.

Demand Forecasting


12/22

1. Managerial or expert judgments: managers or specialists to sit down, think about

future workloads, and decide how many people are needed. This can be no more than

guesswork unless there is reliable evidence available of forecast.

2. Ratio trend analysis: This is carried out by studying past ratios between, say, the

number of direct (production) workers and indirect (support) workers in a manufacturing

plant, and forecasting future ratios, having made some allowance for changes in

Organization. There can be other ratios also.

3. Work study techniques : Work study techniques is used when it is possible to apply

work measurement to calculate how long an operation takes and the number of people

required.

Work study techniques fordirect workers can be combined with ratio trend analysis to

calculate the number ofindirectworkers needed.

Methods of Demand Forecasting


13/22

QUANTITIVE FORECASTING TECHNIQUES

A. Analysis of workload factors.

Steps for workload analysis:

1. Classification of the work.: Identification of the job or

work containt and the time required for such job or work.

2. Forecasting the number of jobs.

3. Converting the projeted job into man-hours.

4. Converting the man-hours into manpower requirement.

5. Converting man-hours into manpower required per day.

The analysis of the

presentand the future

workload

depends on the

possibilities

of quantifying the

workcontent.

B. Time series analysis:

Analysis of manpower utilization data over a period (time series)

Helps in manpower forecasting. The elements of Time Series

Analysis:

1. Trend: Fluctuation level of employment over a time.2. Cyclical effect: the cyclical fluctuations. ( causing out of some

particular event.)

3. Seasonal Fluctuations: variations due to seasonal

requirements.

4. Step: Sudden changes due to some initiatives.

5. Random fluctuations: Random changes.


14/22

C. Moving Average Method:

An Example

Co xyz, has the following manpower data from the period 2008 to 2011.

Year Manpower No2006 500

2007 600

2008 800

2009 1000

2010 11002011 1300

Average 883

Average for the 6 yrs is 833, average for the last 4 yrs is 1050.

So, lesser the tome period for consideration the results are close to accurate.



15/22

D. Weighted Moving Average Method: An Example

Assigning weights to more important aspects.

Manpower Forecasting: 1(500)+1(600)+1(800)+2(1000)+3(1100)+4(1300) = 1033

12

D. Exponential Smoothing: The carry forward of a large volume of historical data

is unscientific in the changing industrial scenario.

An assumed smoothing constant is used to draw a realistic projected manpower

requirement.

Assuming: a. assumed manpower requirement is 500, b. actual utilization during a period

is 480, Smoothening constant is considered to be .4.

The optimum requirement is : 500 + .4(480-500) =492



16/22


Delphi Technique:

The method calls for selection of a panel of experts from within and outside.

A coordinator coordinates for initiating and drawing conclusion of the process.

Steps:

1. Selection of coordinator and panel of experts ( out side & in-side)

2. Coordinator circulates written questioner.3. Experts gives their feed-back

4. Which is tabulated conclusions drawn.

5. Further questioner is prepared by the coordinator, from the tabulated data

and circulated to experts.

6. Feed-backs are re-tabulated for conclusions.

7. The process continues till the final synthesis is made out of the feed-backs.


17/22

Supply forecasting

Supply forecasting measures the number of people likely to be

available from within and outside the organization, having allowed forattrition (labour wastage and retirements), absenteeism, internal

movements and promotions, and changes in hours and

other conditions of work.

The forecast will be based on: an analysis of existing human resources in terms of numbers in each occupation,

skills and potential;

forecast losses to existing resources through attrition (the analysis of labour

wastage as described in the next main section of this chapter is an important

aspect of human resource planning because it provides the basis for plans to

improve retention rates);

forecast changes to existing resources through internal promotions;

effect of changing conditions of work and absenteeism;

sources of supply from within the organization;

sources of supply from outside the organization in the national and local labour

Markets.


18/22

Analyzing demand and supply forecasts

Deptt-1 Deptt-2 Deptt-3

SL NO Details of demand & Supply S-1 S-2 S-3 S-1 S-2 S-3 S-1 S-2 S-3

1 Number currently employed 70

2

Annual wastage rate based on past

records 10 per cent

3 Expected losses during the year 7

4 Balance at end year 63

5 Number required at end year 75

6

Number to be obtained during year (5

4) 12

S-2, S-2, S-3 represents the skill levels


19/22

LABOUR TURNOVER

Labour Turnover: Analysis of the numbers of people leaving

the organization.

Methods of measurement of labour turnover.

1. The labour turnover index: Number of leavers in a specified period (usually 1 year) 100

Average number of employees during the same period

2. Survival rate index: % of employees available after the end of a particular span.

An Example

Levels

Orig

Strength Yr-1 Yr-2 Yr-3 Yr-4 Yr-5A 30 25 24 20 20 18

B 35 35 32 30 27 25

C 15 15 15 12 10 10

D 20 20 20 18 15 14

E 50 46 40 39 36 34

Total 150 141 131 119 108 101

% 100 94.00 87.33 79.33 72.00 67.33


20/22

LABOUR TURNOVER

3. Half-life index: the time taken for a group to reduce to half its original

size through wastage.

4. Stability index: Number with 1 years service or more 100

Number employed 1 year ago

5. Length of service analysis: average length of service of people who leave.

Levels0-3

months3-6

months6-1yr

1yr-2yrs

2yrs -3yrs

3yrs-5yr

Total

noleaving

Avg No

employed

Index of

labourturnover

A 5 4 3 3 2 3 20 220 9

B 15 12 10 6 3 4 50 250 20

C 8 6 5 4 3 4 30 100 30

Total 28 22 18 13 8 11 100 570 18

An Example:


21/22

Reasons for turnover:

LABOUR TURNOVER An analysis of the reasons for leaving derivedfrom exit interviews will provide

useful information on which to base retention

plans.

more pay;

better prospects (career move);

more security;

more opportunity to develop skills;

better working conditions; poor relationships with manager/team

leader;

poor relationship with colleagues;

bullying or harassment;

personal pregnancy, illness, moving away

from area etc.


22/22

The cost of labour turnover

LABOUR TURNOVER

The following factors should be considered:

leaving costs payroll costs and personnel administration of leaver;

direct cost of recruiting replacements (advertising, interviewing, testing etc);

opportunity cost of time spent by HR and line managers in recruitment;

direct cost of introducing replacements (induction course, cost of inductionmanuals etc);

opportunity cost of time spent by HR and managers in introducing new starters;

direct cost of training replacements in the necessary skills;

opportunity cost of time spent by line managers and other staff in providing

training;

loss of the input from those leaving before they are replaced in terms ofcontribution, output, sales, customer satisfaction and support etc;

loss arising from reduced input from new starters until they are fully trained.

the process of hrp

Documents