HR Planning Free Essays

HR Planning: * The process for ensuring that the HR requirements of an organization are identified and plans are made for satisfying those requirements. * Planning for the personnel needs of an organization based on internal activities and external environment * How many people? What sort of people? Definitions: * HRP determines the human resources required by the organization to achieve its goals. It is â€Å"the process of ensuring that the human resource requirements of an organization are identified and plans are made for satisfying those requirements† – Bulla Scott. We will write a custom essay sample on HR Planning or any similar topic only for you Order Now It is the process, â€Å"including forecasting, developing and controlling, by which a firm ensures that it has the right number of people and the right kind of people at the right places at the right time doing the work for which they are economically most useful† – E. B. Geisler. * It is a strategy for the acquisition, utilization, improvement and preservation of the human resources of an enterprise. It is the activity of the management to coordinate the requirements for and the availability of different types of employees. This involves ensuring that the firm has enough of the right kind of people at the right time and also adjusting the requirements to the available supply. Objectives of HR Planning: * To ensure quality and quantity of HR at the right time and the right place * To ensure optimum utilization of human resources * To avoid understaffing and overstaffing Importance: * Reservoir of Talent * Expansion/ Contraction * Cutting costs * Succession Planning MANPOWER PLANNING MAKES FOR DIFFERENT PURPOSES AT DIFFERENT LEVELS: MACRO-LEVEL NATIONAL SECTOR – WISE INDUSTRY – WISE MICRO- LEVEL ORGANISATION LEVEL Organizational Objectives Policies: * Downsizing / Expansion * Acquisition / Merger / Sell-out * Technology up gradation / Automation * New Markets New Products * External Vs Internal hiring * Training Re-training * Union Constraints HRP includes four factors: * Quantity- How many people do we need? * Quality- Which skills, knowledge and abilities do we need? * Space-Where do we need the employees? * Time-When do we need the employees and for how long do we need them? Steps in HRP: * Forecasting future people needs * Forecasting the future availability of people * Drawing up plans to match supply with demand HR Demand Forecast: Process of estimating future quantity and quality of manpower required for an organization. * External factors – competition, laws regulation, economic climate, changes in technology and social factors. * Internal factors – budget constraints, production levels, new products services, organizational structure workforce factors. Forecasting Techniques: * Expert forecasts * Trend Analysis * Workforce Analysis * Workload Analysis * Job Analysis Supply Forecasting: * Internal Supply ( Skill Inventory) * Age, gender, education, experience, training, job assignments, past performance, future potential. External Supply Important barometers of Labor Supply: * Net migration into and out of the area * Education Levels of the workforce * Demographic Changes in the population * Technological developments and shifts * National and regional employment rates * Actions of competing employers * Govt. policies, regulations and measures * Economic forecasts for the next few years * Attractiveness of the area/ industry THE PROCESS OF HUMAN RESOUCE PLANNIG GENERAL OVERVIEW: BUSINESS STRATEGIC PLANS RESOURCING STRATEGY PLANNING DEMAND / SUPPLY FORECASTING MANPOWER TURNOVER ANALYSIS WORK ENVIRONMENT ANALYSIS HUMAN RESOURCE PLANS OPERATIONAL EFFECTIVENESS ANALYSIS RESOURCING RETENTION FLEXIBILITY PRODUCTIVITY WORK ENVIRONMENT THE MANPOWER PLANNING PROCESS–FROM THE ORGANISATIONAL VIEW POINT: COMPANY OBJECTIVES AND STRATEGIC PLANS MARKET FORECASTS PRODUCTION OBJECTIVES / CAPITAL PROCESS FINANCE PLAN MANPOWER ANALYSIS INVENTORY EMPLOYMENT PRODUCTIVITY ORGANISATION MANPOWER FORECASTS (FUTURE SITUATION) OVERALL UNIT BUDGET MANAGEMENT MANPOWER MANPOWER APPROVAL MANPOWER FORECAST FORECAST ESTIMATES TOP MANAGEMENT APPROVAL MANPOWER OBJECTIVES AND POLICIES MANPOWER PLANS AND PROGRAMMES RECRUITMENT SELECTION, CARER PLANNING, PERFORMANCE MANAGEMENT, TRAINING, RETIREMENT ANALYSIS, REDUNDANCIES etc. Formulating HR Plans: * Recruitment Plans * Redeployment Plans * Redundancy Plans * Training Plan * Productivity Plan * Retention Plan Example of the Basic Human Resources Planning Model: Organizational Objectives Human Resource Requirements Human Resource Programs Feasibility Analysis 1 2 3 4 5 Example of the Basic Human Resource Planning Model: Open new product line Open new factory and distribution system Develop staffing for new installation Production workers Supervisors Technical staff Other managers Recruiting and training programs feasible Transfers infeasible because of lack of managers with right skills Recruit skilled workers Develop technical training programs Transfer managers from other facilities Develop new objectives and plans Recruit managers from outside Too costly to hire from outside 1 2 3 4 3 5 Forecasting as a Part of Human Resource Planning: DEMAND FORECASTING SUPPLY FORECASTING Determine organizational objectives Demand forecast for each objective Aggregate demand forecast Does aggregate supply meet aggregate demand? Go to feasibility analysis steps Choose human resource programs External programs Recruiting External selection Executive exchange Internal programs Promotion Transfer Career planning Training Turnover control Internal supply forecast External supply forecast Aggregate supply forecast No Yes Manpower flow in an organization: Inflow Outflow Job Transfers Job recruits Job Relocations Job Hopping Transfers(out) Retirement VRS Scheme Discharge/ Dismissal Termination of service Resignations HR Pool in the Organization Internal Labor Supply: * Analysis of Manning/ Staffing Tables. Replacement Charts- Present incumbents, potential replacements. * Skills Inventory-education, interests, experience, skills, etc. * Succession Planning. * Turnover Analysis. * Wastage Analysis- Retirements, resignation, deaths, dismissals- Labor turnover Index, Stability Index, etc. Trend Analysis: * Projections-Basing it on Organizational Sales * Workforce Analysis- l ast 5 years * Workload Analysis * Job Analysis Job Analysis: * A systematic process by which information is collected and analyzed with respect to tasks, duties and responsibilities of the jobs within the organization * Job Analysis: What is to be done? How is it to be done? * Under what conditions is the job to be done? * What skills, knowledge and competencies are required to perform the job? * Job Content: Duties, responsibilities, job demands, machines, tools, equipment, performance standard * Job Context: Physical, organizational ad social context, working conditions, work schedule * Human Requirement: Job related knowledge, skills, education, experience, personal attributes Components of Job Analysis: Job Description: written summary of the content and context of the job * Job Specification: Written statement of the knowledge, skills and abilities and other human requirements Questions in Job Analysis Interviews: * What is your job? * What are the major duties of your job? * W hat are the responsibilities of your job? * What physical locations do you work in? * Under what environmental conditions do you perform your job? * What are the skills, knowledge and experience requirements of your job? * What are the physical and emotional demands that the job makes on you? * What is the performance standards expected on your job? 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