Unit iv

Career Planning:-
Succession Planning:-

Concept:

Succession planning is a process for identifying and developing new leaders who can replace old leaders
when they leave, retire or die. Succession planning increases the availability of experienced and capable
employees that are prepared to assume these roles as they become available. Taken narrowly, "replacement
planning" for key roles is the heart of succession planning.

In other words, Succession planning is part of a broader talent management program. Succession
planning aims to attract the best talent, retain those individuals, and develop them through well-
targeted development efforts. Succession planning helps build the bench strength of an organization to
ensure the long-term health, growth and stability.
Objectives:

 An agreed-upon succession plan for potential successors.

 Identified successors for each key position.
 Leadership development is a formalized aspect of every leader’s accountabilities (i.e., not just
identified successors).
 Successor development is viewed as the responsibility of the entire executive team, rather than
one executive responsible for a specific functional area.
 Identify successors Exhibit High Potential.
 Retention of identified Personnel.

Process:

 P1. Identify key areas and positions.

 P2. Identifies capabilities for key areas and positions.
 P3. Identifies interested employees and assess them against capabilities.
 P4. Develop and Implement succession and knowledge transfer plans.
 P5. Evaluate effectiveness.

Career Planning and Development:-

Career development is the continual process of managing your learning, leisure and work to progress
through your life. It includes gaining and using the skills and knowledge you need to plan and make
informed decisions about education, training and work. With so many choices, it can be challenging to
know what direction you should take.

In other Words, whether you’re thinking about taking your first steps into the world of work, looking for
a career change or striving for bigger and better things in your current occupation, having a career plan
will help you reach your goals.
Career planning consists of activities and actions that you take to achieve your individual career goals.
Career planning is the ongoing process where you:

 Explore your interests and abilities;

 Strategically plan your career goals; and

 Create your future work success by designing learning and action plans to help you achieve your
goals.

Stages of career:-

Career stages are the various phases which an employee or a business professional goes through. These
career stages highlight the beginning of the job, growth in the organization, middle stages of the career
and the last & decline stages of the career.

1. Exploration: A career stage that generally ends in the mid-twenties when one makes transition from
formal education to job .We start exploring about different career opportunities. Our decision for career
gets influenced by parents, peers and the financial resources. It is a time when a number of expectations
about one’s career are developed, many of which are unrealistic.

2. Establishment
 This period begins when we start the search of work and also includes accepting the first job,
acceptance by peers, learning about the job and gaining the first taste of success or failure in the real
world.
3. Mid-career
This Period reflects continuous improvements in the performance. In this stage of career path it so case
levelling off in the performance. And beginning of deterioration process.
4. Late career
A career stage in which neither the person is learning about their jobs nor they are expected to outdo
their level of performance from previous years. It also has two effects on:
i) Individuals who have grown in mid-career stage.
ii) Individuals who have stagnated or deteriorated.

5. Decline
This the final stage in one’s career which is usually marked by retirement. This is the difficult stage for
everyone but hardest for those who have had continued successes in the earlier stages and then comes
the time has come for retirement.

Types of career development programs:-

In an organization, there are different types of development programs to enrich different skills of human
resource. These include organization development, employee development, management development,
and career development. Organizational development programs are planned and managed from the
top, so as to bring about planned organizational changes and for increasing the organizational
effectiveness. Management development is concerned with upgrading the manager's skills, knowledge,
and ability of the employees to enable them to accomplish additional process of guiding the movement
of human resources through different hierarchical level.

Followings are the best practices of career development programs:-

 Career direction finding chain
 My path direction UC career
 Professional development program
 Staff enrichment programs

Career Anchors:-
Career Anchors is a combination of perceived areas of competence, motives, and values relating to
professional work choices. Often, people select a career for all the wrong reasons, and find their
responses to the workplace are incompatible with their true values. This situation results in feelings of
unrest and discontent and in lost productivity. To help people avoid these problems, Career Anchors
help people uncover their real values and use them to make better career choices.

It also includes talents, motives, values and attitudes which give stability and direction to a person’s
career it is the ‘motivator’ or ‘driver’ of that person. A career anchor is the one element in your self-
concept that you will not give up, even in the face of difficult choices.

Issue in career development process:-

Integrating career development and work force planning:-

This relationship between career development and workforce planning is obvious career development
provides a supply of talents and abilities workforce planning projects the demand for talents and
abilities. It would seem that organization3 undertaking one of these activities would undertake the
other. Surely it makes little sense to develop people and then have no place to put them or to project
needs for people, but have no programs to supply them. In fact, though, some organizations do have
one or the other but not both.

Managing Dual careers:-

As more and more female enter the labor force and pursue careers, organizations will increase confront
the problems of duel careers. In the past many companies would not employed both husband and wife.
Now there are so many dual career couples in the workplace that organization are actively seeking ways
to accommodate the unique pressures that’s exists when both members of household are employed.

Career Planning and equal employment opportunity:-

This concept reflect the equal employment opportunities to all the cast, creed, gender and religion.
Downsizing and job loss
This method reflect

Managerial responses to layoffs and job loss

Consistently strong performance is one of effective way to guard against the need of job layoff or job
loss. An efficient performance appraisal system can help management pinpoint poor performance and
initiate corrective steps. Even when managers use performance appraisal systems, there may be other
uncontrollable events such as cutback in market demand reduced availability of resources, and
competitive forces that requires some form of cut back.
HR Accounting and Audit Concepts:-
Human resource accounting is the procedure to recognize and report the investments made in the
Human Resources of an Organization th
at are currently not accounted for in the conventional accounting practices. It is an expansion of the
Accounting Principles of matching the costs and revenues and of organizing data to converse significant
information. Normally, human resource Accounting (HRA) engages accounting for the organization's
management and employees as human capital that provides future benefits. In the human resource
accounting approach, expenditures associated with human resources are reported as assets on the
balance sheet in contrast to the conventional accounting approach which treats costs related to a
company's human resources as expenses on the income statement that decrease profit.

Methods and tools for strategic manpower:-

Tools:-
From Demand side:-
Analyzing, reviewing and attempting to predict the numbers, by kind, of the manpower needed by the
organization to achieve its objectives.

From the supply side:-

Attempting to predict what action is and will be necessary to ensure that the manpower needed is
available when required and finally.

Designing the interaction between demand and supply:

So that worker skills are utilized to the best possible advantage of the organization and genuine needs
and desires of the individual employees are taken into account. The manpower plan represents a
response of the personnel function to ensure that the necessary supply of people is forthcoming to
allow the targets to be met.

Method:-

1. Forecasting Staffing Needs

The first step in the manpower planning process involves forecasting staffing needs and determining the
actions needed to fulfill those needs. The most important step in forecasting staffing needs is a review of
the organization’s objectives and strategies. This includes reviews at both the corporate enterprise level
and the business unit level. If the organization is pursuing growth objectives then there may be a need
to expand the size of the firm’s human resources.

2. Forecasting Internal Supply:

Once staffing needs have been forecast, managers are in a position to forecast the internal supply of
human resources. A forecast of internal supply is derived from examining the kinds of human resources
internal to the organization, the demographics of those resources (especially years until retirement),
and the stability of the people presently employed.

3. Forecasting External Supply:

Once managers have forecast internal supply, they are in a position to forecast external supply. As with
forecasting internal supply, this includes a review of skills, abilities, education, experience, and other
qualifications needed for the job. Especially if the organization has always hired locally, this forecast may
have implications for training to fill gaps.

4. Correcting Shortage or Surplus:

From the forecasts and the comparisons of supplies and needs, the organization is in a position to
correct the imbalances. If there is a surplus in the organization, management needs to decide the value
of the human resources to the enterprise and if it will carry a surplus until normal turnover and
retirements correct the situation. If there is a huge imbalance and if management cannot tolerate the
costs of carrying the surplus personnel then it might resort to involuntary pay cuts, part-time work, early
retirements, and terminations. Alternatively, if there is a shortage of human resources in certain areas,
cross training and hiring seem to be the only alternatives.

Key steps for strategic Human Resource Planning:-

1. Assess current HR capacity

The first step in the human resources planning process is to assess your current staff. Before making any
moves to hire new employees for your organization, it’s important to understand the talent you already
have at your disposal. Develop a skills inventory for each of your current employees. You can do this in a
number of ways, such as asking employees to self-evaluate with a questionnaire, looking over past
performance reviews, or using an approach that combines the two.

2. Forecast HR requirements

Once you have a full inventory of the resources you already have at your disposal, it’s time to begin
forecasting future needs. Will your company need to grow its human resources in number? Will you
need to stick to your current staff but improve their productivity through efficiency or new skills
training? Are there potential employees available in the marketplace?

It is important to assess both your company’s demand for qualified employees and the supply of those
employees either within the organization or outside of it.

So need to see the demand and supply forecast and necessity to match into equilibrium point for
effective operation and achieve goal.

3. Develop talent strategies

After determining your company’s staffing needs by assessing your current HR capacity and forecasting
supply and demand, it’s time to begin the process of developing and adding talent. Talent development
is a crucial part of the strategic human resources management process .

This process includes:-

  Recruitment & Selection
 Hiring
 Training & Development
 Employee remuneration and benefits
 Performance management
 Employee relations.

4. Review and evaluation

Once your human resource management process plan has been in place for a set amount of time, you
can evaluate whether the plan has helped the company to achieve its goals in factors like production,
profit, employee retention, and employee satisfaction. If everything is running smoothly, continue with
the plan, but if there are roadblocks along the way, you can always change up different aspects to better
suit your company’s needs.

A Business process approaches to Human resource planning

Successful and stable Organization

The first approach starts with internal information that is examined and utilized by a small group of
expert planners at the top the organization. They set strategic goals based on historical performance
and cascade these goals down through the corporate hierarchy. Reporting of goal accomplishment flows
back up through hierarchy to the originating experts. This traditional approach to strategic planning was
popularized in the 1970s and 1980s.This approach tends to be found in traditionally successful
organizations in stable environments that are frequently monopolistic or oligopolistic.

Organization with portfolio diversification:-

The second approach starts with information that originates from the outside and is then translated into
goals and organization-wide initiatives. Frequently this approach emphasizes industry analysis such as
the case Porter’s Five Forces. As in the first approach, the strategy formulation is done by a small group
of strategic planners who pass their goals and initiatives to strategy implementers through the
administrative hierarchy. The strategy planners will tend to have strong backgrounds in the economics
of industry analysis. They determine what configuration of businesses will comprise the corporate
portfolio along with the business activities will be insourced or outsourced. This approach tends to be
found in corporations with moderate to high levels of portfolios diversification.

Entrepreneur organization expanding core capabilities:-

The third approach begins with an examination of the internal capabilities which provide the starting
point for competitive advantage. Strategic capabilities are determined through the dynamic involvement
of large numbers of employees. The culture is entrepreneurial and engaging. Internal information is
widely shared and discussed. The goal is to make the information whole greater than the sum of the
parts. Since engagement is central to this approach, performance management not only focuses on
results but also on behaviors that generate and implement creative ideas. This approach to strategic
planning tends to be found in entrepreneurial organizations which build on existing core capabilities.

Organizations in fast moving eco system:-

The fourth and final approach to strategic planning is likewise dynamic and highly engaging but rather
than focusing on internal capabilities, the starting point of discussion is the requirement of the external
ecosystem. The culture is externally focused, dynamic, and highly engaging. Large numbers of
employees continually access and examine external information to develop the required internal
capabilities. Elimination of vertical silos is a priority as people across the organization priorities, share
and analyses external information. This approach will generally be found in companies in fast moving
ecosystems with short cycle time products and service.

Strategic HRP in Nepalese Organizations:-

Lecture concepts and Understanding (Practical Approaches as per today’s Practices).

Methods for valuation of Human Resources:-

There are different methods available for valuation of human resources. They have their own
advantages and limitations. There are two approaches toward HRA cost based approach and
value based or economic based approach. The cost approach which involves methods based on
the costs incurred by the company, with regard to an employee.

The economic value approach which includes methods based on the economic value of the
human resources and their contribution to the company’s gains. This approach looks at human
resources as assets and tries to identify the stream of benefits flowing from the asset.

The followings are the methods for Valuation of Human Resources:-

 Historical Cost Methods

 Replacements Cost Methods

 Economic Value Method

 Standards Cost Method

 Present Value Method

 Current Purchase Power Method

 Opportunities Cost Methods.

HRD Research:-

 Conceptual Issue

 Qualitative Research Method

 Quantitative Research Method

 Methodological Challenges.

HRD and National Planning:-

Lecture concepts and Understanding (Practical Approaches as per today’s Practices).