- 1. Chapter -2 HUMAN RESOURCE PLANNINGHuman resource planning is
a strategy for the acquisition, utilization, improvement and
preservation of an organization human resources. HRP is a plan of
action formulated to meet future human resources needs. HRP
contains the TWO important aspects:1. Estimating the required work
force2. Staffing polices and programmes
2. 1. Estimating the required work forceIt includes: Forecasting
the number of employees of various categories required by the firm
for a given period. This is a long range activity taken up bythe
firm & hence it should estimate thehuman resources required for
a specificperiod. 3. 2. Staffing polices and programmesIt
includesMode of selection of staff, maintaining human resourcesdata
periodical reporting of manpowerobjectives, develop measure for
utilization of humanresources, effective work allocation to improve
thequality of work& utilize the work to maximum.Policy also
emphasis to take up research activity for continuously assessing
the quality of work & find out underutilization of the capacity
of human resources& to suggest remedial measures to rectify
such underutilization, assessing the economic factors.. 4.
Definitions E.W. Vetter ----as a process by which an organization
should move from its current manpower position to its desired
manpower position. Through planning, management strives to have the
right number & right places at the right time, doing things
which result in both the organization & the individual
receiving maximum long-run benefit. P. Bruce Colemn--- the process
of determining manpower requirements & the means for meeting
those requirements in order to carry out the integrated plan of the
organization 5. Purposes of Human ResourcePlanning 1. Setting goals
and objectives 2. Examining the effects of alternative human
resource policies and programs 4.3 6. The Human Resource Planning
Process 1. Project future human resource supply 2. Forecast future
human resource needs 3. Compare forecast needs with projected
supply 4. Plan policies and programs to meet human resourceneeds 5.
Evaluate human resource planning effectiveness4.5 7. Objectives of
HRPTo recruit & retain the human resource of required quantity
& qualityTo forecast the employees turnover & make the
arrangements for minimizing turnover & filling up of consequent
vacanciesTo meet the needs of programmes of expansion,
diversificationTo foresee the impact of technology on work,
existing employees & future human resource requirementsTo
improve the standards, skill, knowledge, ability, discipline 8. To
assess the surplus or shortage of human resources & take
measure accordinglyTo maintain congenial industrial relations by
maintaining optimum level & structure of HRTo minimize
imbalances caused due to non-availability of human resources of
right kind, right number in right time & right placeTo make the
best use of its human resources to estimate the cost of human
resources. 9. Need For employee replacement of death, retirement
& transfer To provide skilled workers to increase productivity
to optimize the organizational resources to face the problem of
high labor turnover To meet the requirement of expansion and
diversification to meet the challenges of changing technology To
balance surplus-deficit manpower. 10. Advantages of HRP
Disadvantages HRPImproves productivityDisruption in flow
ofworkReduces excessive laborturnover Less job
satisfactionAbsenteeism is high cost of productionminimized
constant headache forOptimum utilization of management personnelHR
in organizationEnhances employeesmorale 11. External factors 1.
Government policesInternal factors 2. Level of economic1.
Strategies of the companydevelopment includingfuture supply of
HRs2. Human resource policy of thecompany 3. Business environment
3. Formal & informal groups 4. Information technology 4. Job
analysis 5. Natural factors5. Time horizons 6. Outsourcing6. Type
& quality of information 7. International factors7. Companys
productionoperations policy 8. Trade unions 12. Process of Human
resource planning1. Analyzing organizational plans2. Demand
forecasting: Forecasting the overall human resource requirements in
according with the organizational plans3. Supply forecasting:
Obtaining the data & information about the present inventory of
human resources & forecast the future changes in the human
resource inventory4. In case of future deficit forecast the future
supply of humanresources from all sources with reference to plans
of othercompanies 13. 5. In case of future surplus, plan for
redeployment, retrenchment & lay-off 6. estimating the net
human resource requirements 7. plan for recruitment, development
& internal mobility if future supply is more than or equal to
net human resource requirements 8. plan to modify or adjust the
organizational plan if future supply will be inadequate with
reference to future net requirements. 14. Job Analysis Job analysis
is a systematic investigation of thetasks, duties and
responsibilities necessary to doa job. Job analysis is the process
of collecting jobrelated information 15. Objectives/Purpose ofJob
Analysis 16. Process of Job analysis 17. Types of Job analysis
InformationWork Activities:Machines, Tools, Equipments and Work
Aids usedPersonal requirements Job context 18. Outcomes of Job
AnalysisJob descriptionJob specification Job evaluation 19. Job
DescriptionA job description is a written statement of theduties,
responsibilities, requiredqualifications and reporting
relationships of aparticular job.The job description is based
onObjective information obtained through jobanalysis 20.
Characteristics1.Should indicate the scope & nature of the work
includingall important relationships.2. Should be clear regarding
the work of the position, duties..3. More specific words should be
selected The kind of work The degree of complexity The degree of
skilled required The extent to which problems are standardized The
extent of workers responsibility fro each phase of thework The
degree & the type of accountabilityAction words such as
analyze, gather, plan, confirm, deliver, maintain, supervise &
recommend should be used. 21. 4. Supervisory responsibility should
be shown tot theincumbents5. Utility of the description in meeting
the basicrequirements should be checked from the extent
ofunderstanding the job by reading the job description bya new
employee.The content of job Description the job Description
normally contains the informationon the following lines Job title
Organizational location of the job Supervision given & received
22. Materials, tools, machinery & equipment workedDesignation
of the immediate superiors & subordinatesSalary levels: Pay,
D.A., other allowances, bonus, incentive wage, method of payment,
hours of work, shift, break.Complete list of duties to be performed
separated according to daily, weekly, monthly & casual,
estimated time to be spent on each duty. 23. Example of Job
DescriptionJOB
TITLE:-------------------------OCCUPATIONALCODE:---------------------------------REPORTS
TO:------------------------------------------------JOB NO.
:----------------------------------------------SUPERVISES:------------------------------------------GRADE
LEVEL:-------------------------------------AS ON DATE
:--------------------------------------------FUNCTIONS:__________________________________________________________DUTIES
ANDRESPONSIBILITIES:_______________________________________________________JOBCHARACTERISTICS:_________________________________________________________
24. Job description form of credit manager Mr.Ravikanth in SBI in
INDIA 1. Job grade: Middle management 2. Job title: Credit manager
3. Reporting to: regional manager 4. Definition of job purpose: To
be a link between the branch managers & regional manager in
appraising credit proposals 5. Definition of job duties: Receiving
credit proposals processes by field officers at all branch level
with specific remarks of the branch manager Evaluating the
proposals from the lines of technical feasibility, commercial
viability, financial soundness Securing additional information
required from the applicant Visiting the industry/filed before
taking final decision Making final decision & informing the
same to all parties 25. 6. Additional responsibility
requirementsRepresenting the bank in district
developmentcommitteesMaintaining sound employee relations in
hisdepartments7. Extent & limits of authorityFinalizing the
projects requiring the loan up to Rs. 30lakhsFinalizing the
projects owned purely by privatelimited companies8. Salary : Rs.
4500 per month (pay Rs. 3500 + HRA Rs.700)9. Working conditions 26.
Job specificationJob specifications specify theMinimum acceptable
qualificationsrequired by the individual to performthe task
efficiently. Based on theinformation obtained from the jobanalysis
procedures, job specificationidentifies the qualifications,
appropriateskills, knowledge, and abilities andexperienced required
to perform the job. Job specification is an important tool inthe
selection process as it keeps theattention of the selector on
thenecessary qualification required.. 27. Job specification form
Job grade: Middle Management Job title: Credit manager Physical
& Health: Normal health, able to visit factories,fields----able
to walk extensively Energy level & temperature: High, ability
to adjust toincreasing temperature Appearance, Dress:
Neat----suitable for travelling Mental abilities: Alertness,
ability to read & perceiveaccurately Special abilities:
Flexibility, adaptability 28. Special knowledge or skills: must
know local language, skills ofconciliation & appreciation Skill
in operating special equipment: Driving two wheelers &
lightvehicles Degree of personal traits Maturity: Must be capable
of accepting responsibility to recover Self reliance: Stick to own
appraising decisions Dominance: Must dominate the filed officers
& branch mangers Creativeness: Creative thinking in developing
new schemes ofadvances & recovery 29. Particular skills:
Calculating, analytical, interpretation,appraising etc Others: 1.
age 2. sex 3. educational qualifications 4. experience 5. physical
specification: Height, weight 6. social background 7. family
background 8. extra-curricular activites 9. hobbies 30. Job
EvaluationJob evaluation provides the relative value ofeach job in
the organization. It is an importanttool to determine
compensationadministration.If an organization is to have an
equitablecompensation program, jobs that have similardemands on
terms of skills, education andother characteristics should be
placed in thecommon compensation groups 31. Job DesignJob design is
the process:---of deciding the content of a job in terms of
itsduties & responsibility----on the methods to be used in
carrying out thejob, in terms of techniques, systems &
procedures &on the relationships that should exist between
thejob holder & his superiors & colleagues 32. Two
important goals of job design are:1. To meet the organizational
requirements such ashigher productivity, operational efficiency,
qualityof product/ service2. To satisfy the needs of the individual
employeeslike interests, challenge, achievement
oraccomplishment..Finally the goal of job design is to integrate
the needs of the individual with organizational requirements 33.
Job design process---has to start from what activity needs to be
done inorder to achieve organizational goals---it requires the use
of techniques like work-study,process planning, organizational
methods &organizational analysis---the retaining part of the
discussion on the processof job design involves the technical
aspects of jobdesign 34. Job Rotation---refers to the movement of
an employee from one job toanother.---job themselves are not
actually changed, only theemployees are rotated among various
jobs.---an employee who works on a routine/respective jobmoves to
& works on another job for somehours/days/months & backs up
to the first job.---this measures relives the employees from
boredom &monotony, improves employees skills regarding
variousjobs & prepares the competent employees to meet
thecontingencies. 35. Job loadingIncreasing workload, often a
result of redundancies. It maymean having to do more of the same,
but often entail one ortwo extra activities that have to be taken
onJob enlargement---means adding more & different tasks to a
specialized job to provide grater variety. This process is called
horizontal job loading or horizontal enlargement. It tackles
dissatisfaction & reduces monotony by increasing the variety
& scope of tasks. This techniques though leads to higher wages,
it improves worker satisfaction, quality of production &
overall efficiency of the organization 36. Job EnrichmentMeans
adding duties & responsibilities that will provide for skill
provide variety, task identity, task significance, autonomy &
feedback on jobs performance.It tries to deal with dissatisfaction
by increasing job depth as work activities from a vertical slice of
the organizational unit are combined in one job.As work becomes
more challenging & worker responsibility increases, motivation
& enthusiasm also increase 37. Advantages of Job EnrichmentJob
enrichment is useful to both the workers and the organization.The
worker gets achievement, recognition and self- actualization.The
worker gets a sense of belonging to the organization. The worker
finds the job meaningful. Job enrichment reduces absenteeism,
labor-turnover and grievances. It motivates the workers to give
best performance. 38. Techniques of Job enrichment Increasing the
responsibility of the activity Providing wider scope, more sequence
& increased pace ofthe work Giving a natural unit of work
either to an employee or groupof employees Providing the freedom of
work by minimizing controls whenthe employee are clearly
accountable for attaining definedgoals. Allowing the employees to
set their own standards or targets Encouraging employee
participation in planning,innovation & creations 39. Evaluation
types Job Ranking is the most simple form. Basically one justorders
the jobs according to perceived seniority. This is easyto do in a
small organization, but gets more and moredifficult as different
jobs exist within the company. Pair Comparison introduces more
rigor by comparing jobs in pairs, but really its a more structured
way of building a basic rank order. Benchmarking or slotting sets
up certain jobs that are analyzed in detail. These are then used
for comparison to slot jobs against these benchmarks. Job Matching
allocates benchmarks too, but when a position is matched the
elements of the job that differ are re- evaluated. Usually this
evaluation will be done with a Point Factor Analysis (PFA) or
classification system. 40. Point Factor Analysis Point Factor
Analysis (PFA) is the old-school (but fair)bureaucratic method for
determining a score for each job.Jobs are broken down into factors
such as knowledgerequired. A set of closed questions in each factor
break downto detail such as level of education. The responses to
thesequestions are given a score, and totaled for each factor.
Eachfactor is given a weight, and this effects the contributionmade
to the overall total score by that factor. Factors can be weighted
according to their significance to theorganization, and this allows
the pay scheme to be linked tothe organizations strategy. 41. Job
Simplification Job simplification is a design method whereby jobs
are divided into smaller components and subsequently assigned to
workers as whole jobs. Simplification of work requires that jobs be
broken down into their smallest units and then analyzed. Each
resulting sub-unit typically consists of relatively few operations.
These subunits are then assigned to the workers as their total job.
42. There appears to be two major advantages in using job
simplification. First, since the job requires very little training,
they can be completed by less costly unskilled labor. Second, job
speed increases because each worker is performing only a small
portion of the previously large job and thus is able to master a
smaller, less complicated job unit. On the negative side, job
simplification results in workers experiencing boredom,
frustration, alienation, lack of motivation and low job
satisfaction. This, in turn, leads to lower productivity and
increased cost.