Lecture 6 (Ch:6) – HRM

From the desk of Teacher

Sir Akhter Hasan (Lecturer)
Business studies & research

As more and more corporate strategies involve global operations, the need of HR
planning will grow in importance because of increased complexity of staffing
needs across foreign borders international education, cultural; linguistic and
development needs are considered. Short range plans point out job openings
that must be filled in coming year, while long range plans estimate HR needs for
the next two, five or more years.
HR planning is more common in large organizations because it allows them
to:
a) Integrate strategic demands with appropriate staffing trend.
b) Improve the effective utilization of HR.
c) Match the HR activities and future organizational objectives efficiently.
d) Achieve economies of scale in hiring new workers.
e) Expand the HR information.
f) Make major demands on local labor market more successfully.
g) Coordinate different HR programs such affirmative action plans and hiring
needs.
Small organization can expect similar advantages, but their gains are often
considerably less.
Many challenges influence the demand of HR, such as:
 External factors.
 Organizational factors. Fig (6-1)
 Work force diversity factors

Similarly, HR forecasts are attempted to predict an organization’s future demand

for employees. Fig(6-2)
There are two sources of supply internal and external. The internal supply
consists of present employees. The external supply consists of people who do not
work for the city. Fig(6-5)

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Lecture 6 (Ch:6) – HRM
From the desk of Teacher
Sir Akhter Hasan (Lecturer)
Business studies & research
In regard to external challenges, developments in organization’s environments
that affect the organization’s strategies are difficult to predict in the short-run and
sometimes impossible to estimate in the long-run.

Human Resource forecasts are attempts to predict an organization’s future

demand for employees. Fig:(6-2)
Expert forecasts are based on the judgements of those who are knowledgeable
about future HR needs. The quickest forecasting technique is to project past
trends. Extrapolation involve extending past rates of change into the future.
The supply of Human Resources depends upon the factors that determine
the future supply of Human Resource. They are;
 HR audit
 Succession planning
 Replacement charts

Implementation of HR plans comprised on short- and long-range HR plans that

are fulfilled through internal and external staffing processes. When the
internal supply of workers exceeds the firm’s demand, an HR surplus exist.
Voluntary departments called attrition, slowly reduce the surplus if the surplus
exist/persists, leaves of absence are encouraged.

CLASS ACTIVITY
Questionnaire:

1. What is the purpose of HR audit?

2. Why is HR planning is common in/among large organizations than among
small ones?