Human Resource Planning Unit 2

7/29/2019 Human Resource Planning Unit 2

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Human Resource Planning


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HR Planning

HR Planning is the process of examining anorganizations future human resource need.

It involves:

Identifying and acquiring the right number of peoplewith the proper skills

Motivating them to achieve high performance

Creating interactive links between business

objectives and resource planning activities


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introduction

Human Resource Planning (HR Planning) is botha process and a set of plans.

It is how organizations assess the future supply of

and demand for human resources.

An effective HR plan also provides mechanisms

to eliminate any gaps that may exist between

supply and demand. Thus, HR planning

determines the members and types of employees

to be recruited into the organization or phased out

of it.


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meaning

Human resource planning is a forward lookingfunction. It tries to asses human resource

requirements in advance keeping the production

schedules, market fluctuations, demand forecast

etc. It is an integral part of the overall corporateplans and reflects the broad thinking of

management about manpower needs with in the

organization.


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How to fill openings?

A big question arises in the mind of HR managerthat how to fill opening i.e. from with in the

organization or from outside the firm because

each one requires different personnel plans.

These are referred to build and buy

approaches to employment planning. For eg. SBI

apply build approach and the new generation

banks apply buy approach. And most of the firm

follow mixed approach.


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Employment planning should flow from the firmstrategic planning on the basis of strategic plans

the HR Manager able to understand that what is

the requirement of the firm.


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Definition

HRP is a process by which an organizationensures that it has the right number and kind of

people at the right place and at the right time,

capable of effectively and efficiently completing

task that help the organization achieve its overallobjectives.


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Objectives of HRP

Forecast personnel requirements

Cope up with changes

Use existing manpower productively

Promote employees in a systematic manner To meet the needs of expansion and

diversification programmes


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Need

Even an imperfect forecast is better than none atall.

Address potential problem avoid skill

deficiencies.

Each organization needs personnel with

necessary qualification, knowledge, experience,

skills and aptitude.

Need for replacement of personnel. Meet man power shortages due to labour

turnover.

Cater to future personnel needs- avoid surplus ordeficienc of labour. e . Infos s


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Benefits

Create reservoir of talent

Prepare people for future

Expansion

Cut cost Succession planning


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Technological forecasts

Economic forecastsMarket forecasts

Organizational planning

Investment planning

Annual operating plans

Annual employment

requirementsNumbers

Skills

Occupational categories

Existing employment

inventoryAfter application of expected

loss and attrition rates

Variances End

If surplus If shortage

Decisions

Layoff,

retirement,

etc.

Decisions

Overtime,

recruitment,

etc.

End End

Strategic Planning Human Resource Demand Human Resource Supply

Compared

with

If none

Action

Decisions

HRP Process


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All effective HR planning shares certain features. It is generally agreed that HR

planning involves four distinct phases or stages:

Situation analysis or environmental scanning

Forecasting demand for human resources

Analysis of the supply of human resources

Development of plans for action

The HRP Process


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Analysing organizational plans

First of all, the objectives and strategic plans ofthe company are analysed. It is necessary to

study business plans because all man power

plans stem from business plans. A companys

plans are based on economic forecast,companys sales, and expansion forecast and

labour market forecast


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Forecasting demand for HR

On the basis of corporate and functional plans,and future activity levels, the future needs for

human resources in the organization are

anticipated. There are various forecasting

techniques avaailable to forecast the demand ofworkforce.


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Forecasting techniques

Managerial judgement: Managers discuss andarrive at a figure of inflows and outflows which

would cater to future labour demand.

Ratio trend analysis: studying past ratio i.e. no. of

workers vs volume of sales, forecasting future

ratios and adjusting for future changes in the

organization.

Work study technique: used when length of

operations and amount of labour required can be

calculated.

Delphi technique:from a group of experts the

personnel needs are estimated


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Forecasting techniques

Work force analysis: all the existing workersare not likely to be available for work

throughout the year due to absenteeism and

turnover. In Order to estimate the loss of

current man power, analysis of the present

work force is made.


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HR Supply forecast

It is the process of estimating future quantityand quality of manpower available internally

and externally to an organization.

Existing human resourcesInternal sources of supply

External sources of supply


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Cont..

Internal supply

Inflows and outflows: the number of losses and

gains of staff is estimated.

External supply: external recruitment,selection and placements, advertisements,

manpower consultants, campus recruitment,

employee referrals.


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Estimating man power gaps

Net HR requirements or manpower gaps canbe identified by compairing demand forecast

and supply forecast


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Formulating Action Plan

Once the man powers gaps are identified, plansprepared to bridge the gap .As Organization

operates in a changing environment, similarly

human resource requirement change so the

HR manager have to change their policies

programmes and strategies according to the

needs of the organization.


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Factors affecting HRP

Technical changes in the society

Organizational changes

Shortage of skills due to labour turnover

Multicultural workforce Organizational growth cycle and planning

Out sourcing

Nature of jobs being filled


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Limitations

Future is uncertain

Conservative attitude of top management

Time consuming and expensive activity

Ineffective information system People are unpredictable


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Job Analysis

Job analysis deals with the anatomy of the job

. It is the complete study of the duties andresponsibilities involved in its performance;

the conditions under which performance is

carried on; the nature of the tasks; the

qualifications required in the worker; and theconditions of employment such as pay, hours,

opportunities and privileges.

The process of studying and collecting

information relating to the operations and

responsibilities of a specific job.


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Cont..

Job Analysis is not a one time activity as jobsare changing constantly

The job and not the person an importantconsideration in job analysis is conducted ofthe job and not of the person

It simply highlights what are the minimumactivities that are entailed in a job.


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Meaning

Job analysis is the procedure through whichyou determine the duties of these position and

the characteristics of the people to hire for

them.

It refer to formal study of jobs which attempts

to collect information related to two sets of

data: Job Description and Job

Specification


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Tasks Responsibilities Duties

Job

Analysis

Job Descriptions

Job Specifications

Knowledge Skills Abilities


Recruitment

Selection

Training and Development

Performance Appraisal

Compensation and Benefits

Safety and Health

Employee and Labor

Relations

Legal Considerations

Job Analysis for Team

Job Analysis: A Basic Human Resource Management Tool


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Importance of Job Analysis


Recruitment and Selection

Performance Appraisal

Placement and Orientation Training and Development

Job Evaluation

Job Design Safety and Health of workers

Compensation Determination

Career Planning


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Process of Job Analysis

Organisational Job Analysis

Selection of Representative Jobs for Analysis

Obtaining Information about the Job

Sources of Jobs are Existing Job Description

and SpecificationEquipment Maintenance Records

Training Manuals.

Films of Employee working Newspaper, Magazines

Development of Job Descriptions

Preparing Job Specifications


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Organization analysis

OrganizationalCharts

Class Specification

Work Flow Charts

Selecting the

representative job

Number of Jobs to be

analysed

Priorities of different

Jobs

Collection of

JobInformation Job Specification

Job Description

Techniques of Data

Collection

Direct Observation

InterviewsQuestionnaire

Past Records

Critical Incidents

The job analysis process


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Competancy based Job analysis

What is competancy? Competencies can be simply defined as

demonstrable characteristics of the person that

enable performance.


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Definition

Competency-based job analysis meansdescribing the job in terms of the measurable,

observable, behavioral competencies

(Knowledge, skills and/or behaviors) that an

employee doing that job must exhibit to do the jobwell.


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.Competency-based job analysis differs from

task-based job analysis

The focus of the competancy based job analysisis on the desirable and essential behaviours

required to perform a job, while the focus of the

task based job analysis is on the tasks, roles and

responsibilities associated with a job.


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Why use Competency Analysis? There are three reasons to describe jobs in terms of

competencies rather than duties:

First as mentioned earlier, traditional job descriptions

with their lists of specific duties may actually backfire

if a high performance work system is the employer

goal. The whole thrust of these systems is toencourage employees to work in a self-motivated

way, by organizing the work around teams.

Employees here must be enthusiastic about learning

and moving among jobs. Giving someone a jobdescription with a list of specific duties may simply

breed a that-is-not-my-job attitude. The inportant

thing is to ensure that each worker has the skills he or

she needs to move among the Jobs


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Cont..

Second, describing the job in terms of theskills, knowledge, and competencies the

worker needs to be more strategic.


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Third, measurable skills, knowledge, andcompetencies are the heart of any companys

performance management process. Performance

management means basing employees training,

appraisals, and rewards on fostering andrewarding the skills and competencies he or she

needs to achieve his or her goals. Describing the

job in terms of skills and competencies facilitates

this.


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Examples of Competencies: In practice,managers often write paragraph-length

competencies for jobs, and organize these

into two or three clusters. For example,

general competencies such as reading,

writing, and mathematical reasoning,

leadership competencies such as

leadership, strategic thinking, and teachingothers

technical competencies which focus on the

specific technical competencies required for

specific types of job and/or occupations.


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Illustrations: Some technical competencies for the job of

systems engineers might include the following:

1. Design complex software applications,

establish protocols, and create prototypes.

2. Establish the necessary platform requirements

to efficiently and completely coordinate data

transfer.

3. Prepare comprehensive and complete

documentation including specifications, flow

diagrams, process, and budgets.


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Similarly, for a corporate treasurer, technicalcompetencies might include:

1. Formulate trade recommendation, by

studying several models for currency trends,

and using various quantitative techniques todetermine the financial impact of certain

financial trades.

2. Recommend specific trades and when to

make them.

3. Present recommendations and persuade

others to follow the recommended course of

action (Note that exhibiting this competency


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Competancy based analysis usually comes

down to identifying the basic skills an

employee needs to do the job.

Mathematics: using mathematics to solve

problems. Speaking: talking to others to convey

information effectively.

Complex problem solving: identifying complex

problems and reviewing related information to

develop and evaluate options and implement

solutions.

Negotiation: bringing others together and


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Job Description

It is descriptive in nature which includes a

statement of the purpose , scope, duties and

responsibilities of a specific job, the

relationship of job with other jobs, machines,

materials and tools involved , the nature ofsupervision ; working conditions and so on.

Thus job description is a written statement of

what a jobholder is required to do, how it is to

be done and why it is to be done.


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Job Description components

Job title General summary of job

Key relationships

Education and Experience (Minimumqualifications)

Knowledge, skills and abilities

Principal duties & essential functions

Major challenges

Physical, mental requirements

Working conditions


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Writing Job Description

No standard format This information is used to write Job

Specification

Section of a Typical Job Description may be:Job Idntification

Job summary

Relationship

Responsibilities and Duties

Standard of Performance

Working Conditions


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Job Identification

Contains several type of Information:Job title

Salary/pay scale

Job familyDepartment

Location

Level of job


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Job summary

Summarize the essence of the Job Includes only Jobs major functions or

activities.

Make clear that the employer expects the jobincumbent to carry out his or her duties

efficiently and attentively.


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Relationship

Show the job holder relationship with otherinside and outside the company.


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Responsibilities and Duties

Heart of Job DescriptionA listing of the Job major responsibilities and

duties

Define limits of Job Holder decision makingauthority, direct supervision and budgetary

limitation.

A manager may know about his job duties

from the job analysis or from various sourcesof Standardized job description.


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Standard of Performance

List standard the employee is expected toachieve under each of the Job description

main duties and responsibilities

Standard must be specific

Straight forward way of setting standard is to

finish the statement


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Working conditions

Conditions involved in Job. Environment outside the organization.

Noise level, Hazardous condition etc.


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Job specification

Job Description focuses on the job, while jobspecification focuses on the jobholders. It is a

statement of minimum level of qualification, skills,

physical and mental attributes , experience,

training , essential to do the job effectively.

A statement of human qualification necessary to

do the job effectively usually contains items such

as:

Education, Experience, Training, Judgement,

Initiative, Physical efforts, Responsibilities ,

Communication skills , Emotional Characteristics ,

Unusual sensor demands such as si ht, smell,


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Compiling a person specification

Attainment: What educational requirements

and specialist knowledge are really required

for successful completion of the task.

Experience: What roles and tasks should

have been occupied to ensure that the postholder is adequately equipped?

Abilities: What skills need to be deployed for

the competent performance of the tasks?

Aptitude: Where will the post-holders

strengths lie;what particular talents do they

need to possess?

Interests: What interest relevant to the work

What is a Talent? How to define talent


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What is a Talent? How to define talent

management? Talent is a term used to define highly skilled

workers. These individuals possess significantjob experience in their functional areas and a

strong knowledge of the industry they work in.

Talent management is a set of entrepreneurial

human resources processes and practicesensuring the sustainable effectiveness of the

most skilled workers within an organization.

Talent Management, as the name itselfsuggests is managing the ability, competency

and power of employees within an

organization.

Talent management comprises three major


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If talent management is executed correctly it

can have a strategic impact on an

organization. Good talent management

involves much more than simply "attracting,

developing and retaining" talent. The Human Resources function is a

patchwork of several specialty functional

areas of expertise each requiring a solid

understanding and discipline. Thesefunctional areas are typically considered to

be:

Workforce & Succession Planning (Talent

Attraction & Recruitin


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To manage talent successfully, all theses silosneed to be fully integrated and have to work

together.

At first Workforce and Succession Planning

defines future talent needs by quantify and

qualifying needs according to the business

strategy of an organization. Performance

Management delivers an overview of thealready existing talent while Talent Acquisition

and Recruiting should close the identified

gaps in the "Talent map". Talent Acquisition

should also include areas like Employer


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Learning and Development programsshould coach and train existing talent to

become the future leaders of an organization

who are able to use their talent to deliver

excellence in performance.

In line with all of these programs there has to

be an effective compensation policy. High

performance talent requires an adequatecompensation package which demonstrates

that their commitment and accomplishments

(achieved results) is also being acknowledged

Human Resource Planning Unit 2

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