HUMAN RESOURCE PLANNING PROCESS

INTRODUCTION

By: Nabeel Ashraf

THE HR PLANNING PROCESS CONSISTS OF THREE STEPS

Forecasting, Goal setting and strategic planning, And program implementation and evaluation

FORECASTING

Forecasts of labor demand Forecasts of labor supply Forecasts of labor surplus or shortage

By: Moeed Khan

The second step in human resources is GOAL SETTING AND STRATEGIC PLANNING. The purpose of setting specific quantitative goals is to focus attention on the problems and provide a benchmark for determining the relative success of any programs aimed at redressing a pending labor shortage or surplus

Options for reducing an expected labor surplus

Option Speed Human Suffering

Downsizing
Pay Reductions Demotions Transfer

Fast
Fast Fast Fast

High
High High Moderate

Work Sharing
Hiring Freeze Natural attrition Early Retirement

Fast
Slow Slow Slow

Moderate
Low Low Low

Retraining

Slow

Low

Options for Avoiding an expected labor shortage

Option Overtime Outsourcing Retrained transfers Turnover reductions New external hires Technologies innovation Speed Fast Fast Slow Slow Slow Slow Revocability High

Temporary employees Fast

High
High High Moderate Low Low

Downsizing
Downsizing is planned elimination of large numbers of personnel designed to enhance organizational competitiveness. The jobs eliminated in these downsizing efforts should not be thought of as temporary losses due to business cycle downturns or a recession but as permanent losses due to the changing competitiveness pressures faced by business today.

Reasons for Downsizing

First, many organizations were looking to reduce costs, and because labor costs represent a big part of a companys total costs. Second, in some organization, closing outdated plants or introducing technologies changes to old plants reduced the need for labor. Third reason for downsizing was that many mergers and acquisitions reduced the need for bureaucratic overhead, displacing many managers and some professional staff members. A fourth reason for downsizing was that, for economic reasons, many firms changed the location of where they did business. Some of this shift was from one area to another.

Failure of downsizing

One study shows that most firms that announce a downsizing campaign show worse, rather than better, financial performance in the following years.

Reasons of failure of downsizing

First, although the initial cost savings are a short-term plus, the long-term effects of an improperly managed downsizing effort can be negative. Downsizing not only leads to a loss of talent, but in many cases it disrupts the social networks needed to promote creativity and flexibility.

Reasons of failure of downsizing

Second, many downsizing campaigns let go of people who turn out to be irreplaceable assets. In fact, a survey indicated that in 80 percent of the cases, firm wind up replacing some of the very people who were let go.

Reasons of failure of downsizing

A third reason downsizing efforts often fail is that employees who survive the purges often become narrow-minded, self-absorbed, and riskaverse. Motivation levels drop-off because any hope of future promotions with the company dies out. Many employees also start looking for alternative employment opportunities. The negative publicity associated with a downsizing campaign can also hurt the companys image in the labors market

Early Retirement Programs

By: Noman Badar

During the last decade or so, it has been seen that older workers careers have become prolonged which have resulted in labour surplus in the market due to number of factors. Those factors include: 1. Improved health of older people has made working longer a viable option,

2. Option of not retiring is attractive for many workers because they fear Social Security will be cut,
3. Age discrimination and outlawing of mandatory retirement ages have created constraints on organizations ability to unilaterally deal with an aging workforce.

Disadvantages of older workforce

Older workforce are sometimes more costly than younger workers because of their higher seniority, higher medical costs, and higher pension contributions.

As older workers typically occupy the best-paid jobs, they sometimes prevent the hiring or block the advancement of younger workers.

Early Retirement Programs

Therefore in the this context popular means of reducing labour surplus is to offer an early retirement program. Although early retirement programs have some drawbacks as well but Phased Retirement programs allow the organization to tap into the experience of older workers while reducing the number of hours they work hence reducing the costs.

Employing Temporary Workers

Employing Temporary Workers

Hiring temporary workers and outsourcing has been the most widespread means of eliminating a labour shortage. Temporary employment affords firms the flexibility needed to operate efficiently in the face of swings in the demand for goods and services.

Advantages of Temporary Workers

There are some advantages of hiring temporary workers which include: 1. 2. Use of temporary workers frees the firm from many administrative tasks and financial burdens. Small companies that cannot afford their own testing programs often get employees who have been by a temporary agency. Many temporary agencies train employees before to sending them to employers, which reduces training costs and eases the transition for both the temporary worker and the company.

3.

Disadvantages of Temporary Workers

There is often tension between a firms temporary employees and its full-time employees. Surveys indicates that sometimes full-times employees perceive the temporary help as a threat to their own job security. Also, hiring of temporary workers can lead to low levels of cooperation and, in some cases, outright sabotage if not managed properly.

OUTSOURCING
Outsourcing is the act of one company contracting with another company to provide services that might otherwise be performed by in-house employees. Often the tasks that are outsourced could be performed by the company itself, but in many cases there are financial advantages that come from outsourcing.

By: Amon Godfrey (51)

Most Frequently Outsourced Business Tasks

Customer support
Accounting Tax preparation Web design Computer programming Manufacturing Data entry

Apple outsources in china where the iPods , I phones and the Mac are manufactured though all the designing process is done in the USA

Outsourcing is a logical choice when the firm simply doesn't not have certain expertise and is not willing to invest the tome and the energy to develop it .

Nike is extremely good at marketing but its core product is sneakers that are outsources from Asia (China, Indonesia, Vietnam) where there is skilled expertise on shoe making

Medical lien management

Technological advancements in computer networking and transmission have speeded up the out sourcing process

Medical lien management from Florida has its medical claims analyzed by Ensign communiqu here in Karachi Pakistan.

H.R also teams up with online outsourcing companies so as to save time and money when outsourcing for different services to independent contractors and build lucrative, long-term work relationships .

Disadvantages of outsourcing
Countries loose out on employment opportunities to low income countries

Companies loose out on the chance of developing expertise as the technicalities involved are handled by another company

Outsourcing has contributed a lot to counterfeiting as the parent company hands away its production process to agent companies who might unethically use it for devious means

overtime
Overtime is the amount of time someone works beyond normal working hours

Advantages and Disadvantages

BENEFITS

Recruiting costs for businesses are reduced

Additional income for the workers Increased productivity

DISADVANTAGES Fatigue may lead to burn out Higher labor costs for the employees

Reduced quality of life

By: Waleed Zafar (47)

STRATEGY IMPLEMENTATION
Strategic implementation put simply is the process that puts plans and strategies into action to reach goals.It is a critical aspect for a companys success. An indivisual is held responsible for the achievement of goals and is provided with the needed resources and authority to accomplish the goal . Timely reports are submitted on the implementation to be sure that all programs are in place by specified times.

EVALUATING THE STRATEGY

EVALUATING THE STRATEGY

Strategy Evaluation is as significant as strategy formulation because it throws light on the efficiency and effectiveness of the comprehensive plans in achieving the desired results . It also shows whether the company has successfully avoided potential labor shortages or surpluses. It is also important to see which parts of program contributed to success or failure.

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