Chapter -5 Human Resource Planning

7/28/2019 Chapter -5 Human Resource Planning

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Chapter-5Human ResourcePlanning.

By-Prof Priyanka kedia.


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The Process of Human Resource

Planning

Organizations need to do humanresource planning so they can meetbusiness objectives and gain acompetitive advantage overcompetitors.

Human resource planning compares the

present state of the organization with itsgoals for the future.

Then identifies what changes it must makein its human resources to meet those

goals.


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Overview of the Human Resource Planning

Process


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HR Planning Process


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HR Planning Model

FORECASTINGDEMAND

CONSIDERATION

Product/ServicesTechnology

Economics

TECHNIQUES

Trend analysis

Managerial estimate

Delphi Method

BALANCE SUPPLYAND DEMANDRECRUITMENT

Full TimePart Time

Recalls

REDUCTIONS

Terminations

Layoffs

FORECASTSUPPLYINTERNAL

Staffing tables

Skills inventories

Succession Planning

EXTERNAL

Demographicchanges

Labor Mobility

F H R


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Formu at ng Human Resource

Planning.

Recruitment Plan.

Redeployment Plan

Redundancy Plan.

Training Plan.

Productivity Plan.

Retention Plan.

Check/review points.


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Responsibility of HRP

Assist and counsel operatingmanagers to plan and set objectives.

Collect and summarise manpower

data keeping long run objectives andbroad organizational interests in mind.

Monitor and measure performanceagainst the plan and keep top

management informed about it. Provide proper research base for

effective manpower and organisational

planning.


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Barriers to HRP

Time Consuming Financial forecasting takes precedence over HRP

Uncertainties

Non-involvement of operating managers

Inadequate Information system Trade unions

Employers


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Human Resources Information System

The human resources information system is a

systematic procedure for collecting, storing,

maintaining retrieving and validation data needed

by an organization about its human resources.

Pick your HRIS carefully based on the capabilities

you need in your company.


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Steps in implementation an HRIS

Step 1:Inception of idea

Step 2:Feasibility Study

Step 3:Selecting a Project team

Step 4:Defining the requirementsStep 5:Vendor AnalysisStep 6:Package Contract Negotiation

Step 7:TrainingStep 8:Tailoring the system

Step 9:Collecting the data


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Step 10:Testing the system

Step 11:Starting up

Step 12:Running in parallel

Step 13:Maintenance

Step 14:Evaluation

HRIS is not just useful in human resources planning.

Its uses extent to the whole gamut of HRM.


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Human Resource Forecasting

HR Forecast ing

attempts to determine

the supply and

demand for varioustypes of human

resources, and to

predict areas within the

organization wherethere will be labor

shortages or

surpluses.

There are three major

steps to forecasting:

1.Forecasting thedemand for labor

2. Determining labor

supply

3. Determining laborsurpluses and

shortages


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HUMAN RESOURCE PLANNING

FORECASTING HR REQUIREMENTS (DEMAND ANALYSIS)

(Trying to predict future staffing needs)Managerial Estim ates

Sales Project ions

Simulat ions

Vacancy An alysis (projected turno ver)

FORECASTING HR AVAILABILITY (SUPPLY ANALYSIS)

(Predicting worker flows and availabilities)

Succession o r Replacement Charts

Skil ls Inv entor ies (use of HRIS)Labor Market An alysis

Markov An alys is (Transi t ion Matr ix)

Personnel Ratios


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Forecasting the Demand for Labor

1) Expert Forecast

In this method managers estimate future human resource

requirements, using their experiences and judgments' to good

effect.

2) Ratio Analysis

A forecasting technique for determining future staff needs by

using ratios between a causal factor and the number of

employees needed. Assumes that the relationship between the causal factor and

staffing needs is constant.

for E.g.- Sales volume and no of employees needed.


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3) The Graphical Method ( Scatter plot).

A graphical method used to help identify therelationship between two variables.

SIZE OF HOSPITAL NUMBER OF NURSES

200 240300 260

400 470

500 500

600 620

700 660800 820

900 860


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516

Determining the

Relationship Between

Hospital Size and

Number of Nurses

Forecasting HR Needs

Scatter plot


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4)Trend Analysis

Constructing and applying statistical models that predict labor demand for thenext year, given relatively objective statistics from the previous year.

2001-02 Production of Units :5,000

2002-03 No. of Workers :100

Ratio :100:5000

2003-04 Estimated Production :8,000

No. of Workers required :8000 100/5000 = 160

If supervisors have a span of 20 workers, 8 supervisors are also needed in 2003-

04. ( 1 suprervisors - 20 workers, 160 workers how many ??)


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5)SIMULATION MODEL/REGRESSION FORECAST

TARGET STORES STAFFING FORECAST

MODEL

Y = 8 + .0011(X1) + .00004(X2) + .02(X3)

Y = Number of emp loyees needed to staf f the store

X1 = Square feet of sales spaceX2 = Popu lat ion of m etropol i tan area

X3 = Projected annual dispo sable income in mi l l ions of d ol lars

Y = 8 + .0011(50,000sq ft) + .00004(150,000popul) + .00000002($850million)

Y = 8 + 55 + 6 + 17

Y = 86 employees needed at this store

6)VACANCY ANALYSIS


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6)VACANCY ANALYSISHistoric departures used to project turnover

LEVEL # EMPL TURN % Expected Vacancies Expected toRemain

TOP MGMT 100 20 % 20 80

MID MGMT 200 24 % 48 152

LOW MGMT 600 22 % 132 468

SKILLED W 600 16% 96 504

ASSY WKRS 2000 12 % 240 1760

TOTALS 3500 5362964

AVERAGE TURNOVER PERCENTAGE = 536 / 3500 =.1531


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7)Workload analysis: Based on the planned output, a firm tires tocalculate the number of persons required for various jobs.

An example of workload analysis

Planned output for the year 10,000 pieces

Standard hours per piece 3 hours

Planned hours required 30,000 hours

Productive hours per person per year 1,000 hours (estimated on annual

basis)

(allowing for absenteeism, turnover, idle time etc.)

No. of workers required 30

If span of control in the unit is 10 per officer, then 3 officers are also required.


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8)Workforce Analysis: All relevant factors in planning manpower

flows in a firm such as transfers, promotions, new recruitments,

retirement, resignation, dismissal etc are taken into account while

estimating HR needs

Manpower flows in a bankPromotions out

Transfers In > > Job Hopping

> Transfers Out

> Retirement

> VRS Scheme (Golden handshake)

Recruits In > > Discharge or Dismissal

> Terminations

> Resignations

Promotions In > > Retrenchment

> Attractions in Other Banks, etc.


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9)Delphi Technique

This technique calls for a facilitator to solicit andcollate written, expert opinion on labor forecast.

After answer are received, a summary of the

information is developed and distributed to theexpert, who are than requested to submit revised

forecast.

Expert never meet face-to-face, but rather

communicate through the facilitator.


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10)Computerized Forecast

The determination of future staff needs by

projecting a firms sales, volume of production,

and personnel required to maintain this required

volume of output, using computers and software

packages. Employers also used computerized

system to personnel requirements .


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11) Job Analysis

Job analysis helps in finding out the abilities or skills

required to do the jobs efficiently. A detailed study of

jobs is usually made to identify the qualification and

experience required for them.


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Determining Labor SupplyPredicting Worker Flows and AvailabilitiesA) Internal Labor Supply) a manpower inventory in terms of the size and

quality of personnel available (their age, sex,

education, training, experience, job performance,

etc) is usually prepared by HR departments.

Several techniques are used while ascertaining

the internal supply of manpower (a supply of

employees to fill projected vacancies can come

from within the firm or from new hires ).


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Internal Supply Techniques.

1)Staffing table:

Shows the number of employees in each job, how they are utilized

and the future employment needs for each type of job.

2)Succession or Replacement Charts

Who has been groomed/developed and is ready for promotion right

NOW?

3)Transition Matrices (Markov Analysis)

A chart that lists job categories held in one period and shows the

proportion of employees in each of those job categories in a future

period.

It answers two questions:

1. Where did people in each job category go?

2. Where did people now in each job category come from

4) Skills inventory:

A skills inventory is an assessment of the knowledge, skills and

abilities of the current employees. This record should beupdated every 2 years and shou ld include the changes.

12


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Estimated internal labour supplyfor a given firm

The FirmSources of Inflows

Transfers

Promotions

New Recruits

Recalls

Promotions

Quits

Terminations

Retirements

Deaths

Layoffs

Employees In Employees Out

Current

staffing

level

Projectedoutflows

this year

Projected

inflows

this year

Firms internal

supply for this

time next year

+ =

Projected Outflows

Current Staffing

Level


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SUCCESSION PLANNING

REPLACEMENT CHARTFOR EXECUTIVE POSITIONS

POSITION REPLACEMENT CARDSFOR EACH INDIVIDUAL POSITION

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

POSITION WESTERN DIVISION SALES MANAGER

DANIEL BEALER Western Division Sales Mgr Outs tanding

PRESENT PROMOTION

POSSIBLE CANDIDATES CURRENT POSITION PERFORMANCE POTENTIAL

SHARON GREEN Western Oregon Sales Manager Outstanding

Ready NowGEORGE WEI N. Californ ia Sales Manager Outs tandin g

Needs Trainin g

HARRY SHOW Idaho/Utah Sales Manager Satisfacto ryNeeds Trainin g

TRAVIS WOOD Seattle Area Sales Manager Satisfacto ryQuestionable

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -


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529

Management

Replacement ChartShowing

Development Needs

of Future Divisional

Vice President

Manual System and Replacement Chart (contd)

Forecasting the Supply ofInside Candidates

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Figures in circles show the transition percentages

80%

12

20%

3

6%

2

11%

4

83%

30

11%

11

66%

63

8%

8

10%

29

72%

207

2%

6

16%

46

6%

86

74%

1066

20%

288

15%

14

2003-2004 Store Asst. Store Section Dept. Sales ExitManagers Managers Heads Heds Executives

Store Managers

(n = 15)

Asst. Store

Managers

(n = 36)Section

Heads

(n = 94)

Departmental

Heads

(n = 288)

SalesExecutives

(n = 1440)

Forecasted

Supply 16 41 92 301 1072 353

Markov Analysis


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Skills inventory

Name : A.K. Sen Date printed : 1-4-2004

Number : 429 Department : 41

Key words Work experience

Word Description Activity From To

Accounting Tax Supervision 1998 2000 Tax clerk ABC Company

and analysis

Book Keeping Ledger Supervision 2000 2002 Accountant XYZ Co.

Auditing Computer Analys is 2002 2003 Chief Accounts TT Bank

records Officer

Education Special Qualifications Membersh ips

Degree Major Year Course Date 1. AIMA

MBA Finance 1998 DBF 1996 2. ISTD

B.Com Accounts 1995 Risk Management 1999 3. ICA

Computer Languages Position Location HobbiesLiteracy preference choice

Tally French Accounting Kolkata Chess

Banking Auditing Delhi Football

Software Bangalore Boating

Employees Signature __________ HR Department________

Date _______________________ Date ________________


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B)External Labour supply:

External hires need to be contacted when suitable internalreplacements are not available.

A growing number of firms are now using computerized human

resource information systems to track the qualifications of

hundreds or thousands of employees. HRIS can provide managers

with a listing of candidates with required qualifications after

scanning the data base.

Human Resource Information Systems (HRIS)

An employee database that can be searched when vacancies occurs.

Personnel / Yield Ratios

How much work will it take to recruit one new accountant?

HUMAN RESOURCE INFORMATION SYSTEMS


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HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)

PERSONAL DATA

Age, Gend er, Dependents , Marital status , etcEDUCATION & SKILLS

Degrees earned, Lic enses , Cert if ications

Languages s pok en, Special ty s ki l ls

Ab i l i ty/kn ow ledge to operate specif ic

machines/equipment /sof tware

JOB HISTORY

Job Tit les held, Locat ion in Company, Time in each posit ion , etc.

Performance app raisals, Prom otion s received, Trainin g &

Development

MEMBERSHIPS & ACHIEVEMENTS

Profession al Ass ociat ions, Recog ni t ion and Notable

accompl ishments

PREFERENCES & INTERESTS

Career g oals, Types o f pos i t ions s oug ht

Geographic preferences

CAPACITY FOR GROWTH


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PERSONNEL / YIELD RATIOS

Past experience has developed these yield ratios for recruiting a CostAccountant:

FOR EVERY 12 APPLICATIONS RECEIVED, ONLY one LOOKSPROMISING ENOUGH TO INVITE FOR AN INTERVIEW

OF EVERY 5 PERSONS INTERVIEWED, ONLY one IS ACTUALLYOFFERED A POSITION IN THE ORGANIZATION

OF EVERY 3 JOB OFFERS MADE, ONLY 2 ACCEPT THEPOSITION

OF EVERY 10 NEW WORKERS WHO BEGIN THE TRAININGPROGRAM, ONLY 9 SUCCESSFULLY COMPLETE THEPROGRAM

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Manpower Gap Analysis

The existing no of personnel and theirskills from human resource inventory

are compared with the forecasted

needs ( demand forecasting), todetermine the qualitative and

quantitative gaps in the workforce.

A reconciliation of demand and supplyforecasts will give us the no of people

to be recruited or made redundant as

the case may be.

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Summary

HR plans must fit in with overallobjectives of a firm.

They must get consistent support from

top management. Computerized human resource

information systems must be used forapplicant tracking, succession

planning, building skills inventoriesetc.

The whole exercise must be carried

out in coordination with operating


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Chapter -5 Human Resource Planning

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