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Human Resource Planning Unit 2
Human Resource Planning Unit 2
HR Planning
HR Planning is the process of examining
people with the proper skills Motivating them to achieve high performance Creating interactive links between business objectives and resource planning activities
introduction
Human Resource Planning (HR Planning) is
both a 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.
meaning
Human
resource planning is a forward looking function. 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 corporate plans and reflects the broad thinking of management about manpower needs with in the organization.
manager that 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.
firm strategic planning on the basis of strategic plans the HR Manager able to understand that what is the requirement of the firm.
Definition
HRP is a process by which an organization
ensures 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 overall objectives.
Objectives of HRP
Forecast personnel requirements Cope up with changes Use existing manpower productively Promote employees in a systematic
Need
Even an imperfect forecast is better than
none at all. 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 or deficiency of labour.(eg. Infosys)
Benefits
Create reservoir of talent Prepare people for future Expansion Cut cost Succession planning
HRP Process
Strategic Planning Technological Technologicalforecasts forecasts Economic forecasts Economic forecasts Market Market forecasts forecasts Organizational Organizationalplanning planning Investment planning Investment planning Annual Annualoperating operatingplans plans Human Resource Demand Annual Annualemployment employment requirements requirements Numbers Numbers Skills Skills Occupational Occupationalcategories categories Human Resource Supply Existing Existingemployment employment inventory inventory After Afterapplication application of of expected loss and expected loss and attrition attrition rates rates Compared with
Variances Variances
If none
End End
If If surplus surplus
If If shortage shortage
Decisions Decisions Action Decisions Layoff, Layoff, retirement, retirement, etc. etc.
End End
End End
Forecasting Forecasting demand demand for for human human resources resources
Analysis Analysis of of the the supply supply of of human human resources resources
plans of the 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
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 of workforce.
Forecasting techniques
Managerial judgement: Managers discuss
and arrive 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
Forecasting techniques
Work
force analysis: all the existing workers are 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.
HR Supply forecast
It is the process of estimating future
quantity and quality of manpower available internally and externally to an organization. Existing human resources Internal sources of supply External sources of supply
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.
Limitations
Future is uncertain Conservative attitude
of
top
management Time consuming and expensive activity Ineffective information system People are unpredictable
Job Analysis
Job analysis deals with the anatomy of
the job . It is the complete study of the duties and responsibilities involved in its performance; the conditions under which performance is carried on; the nature of the tasks; the qualifications required in the worker; and the conditions of employment such as pay, hours, opportunities and privileges.
The process of studying and collecting
Cont..
Job Analysis is not a one time activity as
important consideration in job analysis is conducted of the job and not of the person minimum activities that are entailed in a job.
Meaning
Job analysis is the procedure through
which you 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
Tasks
Responsibilit ies
Duties
Knowled ge
Skills
Abilities
Analysis Obtaining Information about the Job Sources of Jobs are Existing Job Description and Specification Equipment Maintenance Records Training Manuals. Films of Employee working Newspaper, Magazines Development of Job Descriptions Preparing Job Specifications
Selecting the representative job Number of Jobs to be analysed Priorities of different Jobs
Techniques of Data Collection
Definition
Competency-based job analysis means
describing 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 job well.
.
Competency-based job analysis differs from task-based job analysis
The focus of the competancy based job
analysis is 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.
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 to encourage 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 job description 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
Cont..
Second, describing the job in terms of
the skills, knowledge, and competencies the worker needs to be more strategic.
competencies are the heart of any companys performance management process. Performance management means basing employees training, appraisals, and rewards on fostering and rewarding 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.
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 teaching others technical competencies which focus
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.
Similarly,
for a corporate treasurer, technical competencies might include: 1.Formulate trade recommendation, by studying several models for currency trends, and using various quantitative techniques to determine 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
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
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 of supervision ; 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.
Specification Section of a Typical Job Description may be: Job Idntification Job summary Relationship Responsibilities and Duties Standard of Performance Working Conditions
Job Identification
Contains several type of Information:
Job title Salary/pay scale Job family Department Location Level of job
Job summary
Summarize the essence of the Job Includes only Jobs major functions or
activities. Make clear that the employer expects the job incumbent to carry out his or her duties efficiently and attentively.
Relationship
Show the job holder relationship with
and duties Define limits of Job Holder decision making authority, direct supervision and budgetary limitation. A manager may know about his job duties from the job analysis or from various sources of Standardized job description.
Standard of Performance
List standard the employee is expected
to achieve 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
Working conditions
Conditions involved in Job. Environment outside the organization. Noise level, Hazardous condition etc.
Job specification
Job Description focuses on the job, while
job specification 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
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 post holder 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
skilled workers. These individuals possess significant job 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 practices ensuring the sustainable effectiveness of the most skilled workers within an organization. Talent Management, as the name itself suggests is managing the ability, competency and power of employees
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. These functional areas are typically considered to be: Workforce & Succession Planning
To
manage talent successfully, all theses silos need 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 the already existing talent while Talent Acquisition and Recruiting should close the identified gaps in the "Talent map".
should 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 adequate compensation package which demonstrates that their commitment and accomplishments