Human resource

planning

UNIT 2

definition
Is

the process of forcasting

an organizations future
demand for and supply of the
right type of people in right
number
ALSO

CALLED STRATEGIC

MANPOWER PLANNING OR
EMPLOYEMENT PLANNING

definition
Process

by which an organization
ensures that it has the right number
and kind of people at the right place
an at the right time, capable of
effectively and efficiently completing
those task that help the organization
achieve its overall objectives.

definition
The

ongoing process of systematic

planning to achieve optimum use of an
organization's most valuable asset - its
human resources. The objective of
human resource (HR) planning is to
ensure the best fit between employees
and jobs, while avoiding manpower
shortages or surpluses. The three key
elements of the HR planning process
are forecasting labor demand,
analyzing present labor supply, and
balancing projected labor demand and
supply.

The

HR plan needs to be
flexible enough to meet
short-term staffing
challenges, while adapting to
changing conditions in the
business and environment
over the longer term. Human
resource planning is a
continuous process.

WHY HRP
If

organisations overdo the size

of their workforce it will carry
surplus or underutilised staff.
Alternatively, if the opposite
misjudgement is made, staff
may be overstretched, making
it hard or impossible to meet
production or service deadlines
at the quality level expected.

Importance of HRM

Part of strategic planning 2 way support

determines future personnel need

Helps organization get people with the required skill,

knowledge, education, aptitude.

to foresee the employee turnover and make the

arrangements for minimizing turnover and filling up
of consequent vacancies

to meet the needs of the program of expansion,

diversification

to foresee the impact of technology on work, existing

employees and future human resources requirements

to assess the surplus or shortage of human

resources and take measures accordingly.

Bases for other HR functions

Better selection of employees

Better planning to implement any legal requirement.

Important for International strategie

to minimize imbalances caused due to nonavailability of human resources of right kind ,right
number in right time and right place;

to make the best use of its human resources

to estimate the cost of human resources.

 To

reduce HR cost : Today the cost of HR is

about 25% to 45% of the cost of production
and this cost is increasing very quickly and
cost has to be reduced in order to face
competition. HRP helps to avoid both
shortage and surplus of labour. It helps to
make optimum utilisation of labour. It also
helps to reduce labour turnover. All this
helps to reduce labour cost.
To identify potential replacements : Each
year many employees either retire or leave
or are taken out of the organisation. HRP
helps to find replacements for these
employees. These replacements may be
either from inside or from outside the
organisation

To

avoid disturbance in the

production process : In HRP, the
manpower requirements of the
organisation are determined well
in advance. So the manpower is
supplied continuously to the
organisation. This helps the
production process to run
smoothly. Thus, HRP helps to
avoid disturbances in the
production process

Planning
process

Environment
HR Needs Forecast

Org objectives and policies

HR Supply Forecast

HR Programming

HRP Implementation

Control and Evaluation

Surplus

Shortage

Environment 1)
2)
3)
4)

5)

Economic factors
Technological Changes
Demographic changes( us
age vs india )
Political and legislative
issues (quotas , labor, child
labor)
Social concerns (inclusive
growth)

Organizational objectives
and policies-:
HR

plans need to be based on

organizational objectives.
Specifics requirements in
terms of numbers and
characteristics of employees
must be derived from
organizational objectives.

HR

demand Forecastestimating the quantity &

quality of people required to
meet future needs of the
organization.

Forecasting techniques
1.

Managerial judgment
top down & bottom up
Lower departments + HR
Top management+ HR
Ration Trend analysis- studying
past ratio say between the
number of workers and sales in
an organization

Delphi

technique- estimated
prepared first my sales
experts then submitted to HR
experts who give their
opinion and resend it back
and this continues till there
come to a common point of
agreement.
The distinguishing feature is
the absence of interaction
among the experts.

Supply forecast
Determines

whether the hr
department will be able to
procure the required number
of personnel .
It measures the number of
people likely to be available
from within & outside on
organization.
They also identify the outside
source.

Supply

forecast prevents
shortage
Management inventory and skill
inventory( related to non
managers) catalogue gives
planners a comprehensive
understanding of the
capabilities which can be found
within an organization.
External supply is important
for (a) new blood new
experience & additional number
and type of employees.

Hr

programming- creating demand

and supply balance

Hr

plan implementation- recruitment,

selection placement, training no of
training ,type, entire calendar is
prepared.
Control & evaluation
Surplus restricts hiring, reduced
hours (VRS, lay off etc)
Shortage recruitment and selection

Downsizing plan
Who

is made redundant when and where.

Plan for re development and retraining
where this has not been covered in
redevelopment,
Planning for outplacement
Policy for declaring redundancies and
making payment.
Program for informing those affected.
Reduced working hours
Forced leave
VRS

Managerial succession
plan
Includes

training
programmes and series of job
assignments leading to top
positions.

Managerial succession planTATA Motors

Fast

track selection- any one from

management grade has been in tata motor
for more than two years can apply.
Boss recommendation
15 people from all over India, all or no one
may be selected
Written test, 2 aptitude test one on tata
motors, GD, interview
3 day residential assessment- case study,
group activities, debates
Reaches MT grade 5 straight away
Ess-

executive selection scheme

Goal: Match Person & Job

Need

information about the Person & about the Job

26

JOB is..
JOB-

A BUNDLE OF RELATED Task

SYNONYM OF JOB IS WORK
WORK IS UNDERSTOOD AS
PHYSICAL AND MENTAL
ACTIVITY THAT IS CARRIED OUT
AT A PARTICULAR PLACE & TIME
ACCORDING TO INSTRUCTIONS
IN RETURN FOR MONEY.
MONEY IS IMPORTANT TO
CONSIDER IT WORK.

Example of task in
sales
Identifying
Tele

target customer

calling
Visiting customer
Selling a product
Preparing sales report
Training subordinates
Giving test
Maintaining customer
database

Definitions
Job

Analysis: the process of

collecting & analyzing
information about jobs
Job Description: a document that
identifies the tasks & duties
performed by a job
Job Specification: a document that
identifies the human qualifications
required for a job
29

Job Description

A job description is a written statement of the tasks,

duties, machine tools, equipments, supervision given or
received, working conditions, hazards required and
reporting relationships of a particular job.

The job description is based on objective information

obtained through job analysis.

Job description acts as an important resource for

Describing the job to potential candidates

Guiding new hired employees in what they
are specifically expected to do
Providing
a
point
of
comparison
in
appraising whether the actual duties align
with the stated duties.

31

Job specification
Job specifications specify the minimum
acceptable qualifications required by the
individual to perform the task efficiently.
Based on the information obtained from the
job analysis procedures, job specification
identifies the qualifications, appropriate
skills,
knowledge,
and
abilities
and
experience required to perform the job.
Job specification is an important tool in the
selection process as it keeps the attention
of
the
selector
on
the
necessary
qualifications required for that job.

Objectives/Purpose of Job
Analysis

Process of job
analysis

Which method to use ?

Factors

to be considered
before choosing the method
of collecting data are:
No. of job/employees to be
considered.
Time limit
Cost factors
Education levels of incumbents
Type of data required.

Decide purposes of the

jobdo
analysis
project
How
you want to
use the Job
Descriptions?

Job design
Recruiting
Selection
Performance appraisal
Training
Compensation

At a minimum, for each job being

analyzed, we need data on:
Tasks & duties performed on the job
Qualifications required by the job

37

Identify sources of job data

Job incumbents:
Supervisor of job
Training manuals
From equipments used
Magazines ,
newspaper
Other sources
38

Methods of Job Analysis

Observation
Interview

Individual
Group
Questionnaires
Diary

method

Methods of Job Analysis

Observation

Method

Analyst observes incumbent

Directly
Videotape

Useful when job is fairly routine

managerial positions are difficult to
observe using this method.
workers will not perform their
tasks to their actual capabilities.

Interview Method
Individual
Several workers are interviewed
individually
The answers are consolidated into a
single job analysis

Group
Employees are interviewed
simultaneously
Group conflict may cause this method
to be ineffective

Methods of Job Analysis

Questionnaires

Employees answer questions about

the jobs tasks and responsibilities
Each question is answered using a
scale in- close ended -that rates the
importance of each task
Best questionnaires is combination
of both close & open ended
Time consuming and expensive

Methods of Job Analysis

Diary

Method

Employees record information

into diaries of their daily tasks
Record the time it takes to complete
tasks

Must be over a period of several

weeks or months