HRP- Micro

HUMAN RESOURCE PLANNINGMicro – level aspects

Presented By,Femin Francis3rd SemesterMBA@JMC

Human Resource Planning

“Through planning management strives to have the right number and right kind of people at the right places at the right time, doing things which results in both the organization and the individual receiving maximum long-run benefit”.

Micro level aspect of HRP

At micro level or organizational level, HRP is more influenced by technology changes, organizational restructuring, skill & competency gap, strategic objectives, trade union pressure, lead time for manpower procurement etc. Micro level issues are controllable by the organization.

HRP at micro level include

I. HR demand Forecasting TechniquesII. Analysis of Manpower SupplyIII. Manpower planning Models

I. HR demand Forecasting Techniques

A. Delphi technique:- It is a group process to achieve a consensus forecast.

This method calls for selection of experts either from within or outside the organization. There will be a coordinator who circulates questionnaire to each expert in the group. Group members are not allowed to communicate each other. Group members then write their observations. Coordinator then edits these observations & develops a new questionnaire & give it to group members. They answer it. The process continues till the coordinator is able to synthesize from the opinion of experts.

I. HR demand Forecasting Techniques

B. Nominal group method:- Like Delphi method, nominal group method also

involves a panel of experts. Under nominal group method the members are given the opportunity to discuss among themselves. The coordinator assumes the role of a facilitator, allowing the experts to sit together to discuss their ideas & records are made on a flip chart. The process therefore affords creativity & facilitates scientific group consensus.

I. HR demand Forecasting Techniques

C. Time series analysis:- Employment data over a time period are used under

this method as the basis for manpower forecast. However mere projecting the past into the future without considering endogenous & exogenous changes will increase the forecasting errors-either under forecasting or over forecasting manpower requirement. When we use time period we have to consider trend, cyclical effects, seasonality, step(sudden change), random fluctuations etc.

II. Analysis of Manpower Supply

A. Wastage analysis:- Wastage is severance from the organization

which include voluntary retirement, retirement, resignation, death & dismissal. Wastage decreases with the increase of length of service, skill exercises & age of employee. Wastage of manpower is more in female employees than male employees.

Various techniques of wastage analysis are:-(a) Labour turnover index =

No. of employees leaving 100Avg. no. of employees employed

(b) Stability index =(No. of employees with more than 1 year service now.) 100

total employed 1 year ago

II. Analysis of Manpower Supply

Various techniques of wastage analysis are:-(c) Cohort analysis:-

Considers length of service which is an important variable in wastage analysis. This therefore eliminates the defect of labour turnover index.

(d) Census analysis:-Collects information about:-1.No. of employees at the beginning of census2.No. of employees at end of census3.No. of leavers during the period of census.

II. Analysis of Manpower Supply

B. Skills InventorySkills inventory containing various information about individuals and their suitability for different jobs. It includes name of the employee and a listing of job related skills, training and/or experience which would prove useful in a future assignment.

II. Analysis of Manpower Supply

III. Manpower planning Models

A. Markov models:- The basic assumption of this model is that an employee in a particular grade or a status group has a fixed chance of promotion in a given year, independent of vacancy. The central equation is n(t+1)=n(t)P+R(t+1)r where n(t)=no. of employees in each status group, P=matrix of transition probabilities between each of status group, r=vector of probabilities of a recruit starting in particular status group, R(t)=no. of new recruits at time ‘t’.

B. Renewal models:- This model is issued to predict the various

flows in the organization when size of the stocks is fixed in advance.L(T) = f(t) +(t) L(T-t) dtWhere f(t) = frequency by length of service or leavingL(T) = leaving rate at time T

III. Manpower planning Models

C. Cambridge model:- Evaranuz developed it in 1975. This model

concentrates on steady–state age distribution i.e., staff distribution by age, which remained unchanged year to year. Steady state is a stable equilibrium. Thus if the system is affected i.e., if it goes beyond equilibrium it will tend to return it.

III. Manpower planning Models

D. Simulation:- Involves four phases.

a. Definition of the problem & statement of objectives.

b. Construction of an appropriate modelc. Experimentation with the model constructedd. Evaluation of the results of simulation

III. Manpower planning Models

E. Replacement Theory:- A replacement is called for whenever new equipment offers more efficient or economical service than the old existing one. For e.g.:- the old equipment might fail & work no more or is worn out & needs higher expenditure on its maintenance. The problem in such situations is to determine the best policy to be adopted w.r.t. replacement of the equipment. The replacement theory provides answer to this question in terms of optimal replacement model.

III. Manpower planning Models

CONCLUSION

HRP process considers both macro & micro level issues. The problem of human resource planning is not unique for Indian organizations. Without proper HRP, organizations would continue to make manpower redundancy decisions on short term operational results.