HUMAN RESOURCES PLANNING

-An Introduction

The Evolution of HRP

1800 B.C. Babylonian codes of Hammurabi Min wage & Incentive Plans 1650 B.C. Chinese originated Div.of Labour 1200 B.C. Span of Mgmt : Moses 400 B.C. Systematic Management : Kautilya Slavery , Serfdom & Guild system (craftsman, journeyman & apprentice) Industrial revolution factory system

What is HPR?
HRP is a planning process by which an organization can move from its current manpower position to its desired manpower position. Decenzo & Robins, HRP is a process by which an organization ensures that it has the right number and kind of people , at the right place, at the right time capable of effectively and efficiently completing those tasks that will help the organization achieve its overall objectives

Nature of HRP
Ascertains manpower needs of the organisation, both in number and kind. Presents inventory of existing manpower Determines shortfall/ surplus of manpower It is concerned with initiation of various organisation programmes, depending upon the demand & supply of manpower

Concept of HRP
Human Resources planning may then be interpreted as a process of preparing a set of decisions on human resources development for action by human resources in future. The actions : Availing the employment opportunities and Evolving new technologies to enhance economic development.

Concept of HRP
There are 3 types of investments which have the potential to contribute to human resources development
health and nutrition,
social and economic equity education and training

Human Capital Approach

Why HRP? ( Benefits/ Advantages/ Importance/ Merits)

Manages shortfalls/ surplus, reducing labour cost Optimum usage of workers skill Foundation for personnel functions Creating highly talented personnel Enables identification of existing gaps in HR Leads to improvement in the overall business planning process, part of strategic planning Facilitates in the decision of succession planning Tool to evaluate effect of manpower actions

Objectives of HRP..( aim/ goal)

To ensure optimum use of HR To forecast future skill requirements To control cost aspect of HR To formulate transfer & promotion policies To provide control measure to ensure availability of necessary resources

Scope/ Elements of HRP

Ascertaining current manpower of the organisation Assessing the extend to which current manpower is utilized in the orgn Phasing out surplus manpower, if any Analyzing requirements for future Making manpower procurement plans Designing training programmes

Macro HRP
Population Planning & control Literacy & Education Health & Medical care Housing

The Basic Elements of Human Resource Planning

(3) Conduct Environmental Scans

(1) Forecast Labor Requirements

Compare

(4) Determine Gaps

(5) Develop Action Plans

(2) Forecast Labor Availabilities

THE PLANNING PROCESS

Environmental scanning* SLEPT Organisational Objectives & Policies HR demand forecast process of estimating the quantity & quality of the people required to meet the future needs of the orgn.

Forecasting Techniques
Managerial judgement Ratio trend analysis Regression analysis Time Series analysis Moving average method Exponential Smoothing Work study techniques Delphi technique Nominal Group technique

HR Supply forecast
It measures the number of personnel likely to be available from within and outside an orgn., after making allowance for absenteeism, internal movements and promotions, wastages and change in hours and other conditions of work.
Helps to find the number of personnels and positions expected to be available in future To clarify likely staff mixes in future To know existing staff levels in the orgn Prevents shortage of people To know internal & external sources of supply

Present employees analysis

HR audit analysis of present employees Skills inventory: non managers
Personal data age, sex, marital status
Skills education, job, experience, training Spcl qualification membership of professional bodies, special achievement Salary and job history present & past salary, dates of pay raises, various jobs held

Company data benefit plan data,retirement info, seniority

Capacity of individual scores of tests

Special preference - location, type of job

Management inventories
Work history Strengths Weakness Promotional potential Career goals Personal data Number and types of employees supervised Total budget managed Previous management duties

Internal supply
Inflows and Outflows Turnover rates = no of separation in 1 yr X 100
avg no. of ees during the yr Conditions of work & absenteeism = no. of persons days lost X 100 avg no of persons X no of working days Productivity level Movement along jobs

 External supply HR Programming balancing dd & ss HR Plan Implemetnation

Analysis of manpower supply

Techniques: Wastage analysis
Labour Turnover Index = No.of ees leaving X 100 avg no.of ees employd

Stability Index = no.with > 1 yr service X 100

total empld 1 yr ago Census analysis

Staffing Alternatives to Deal with Employee Surpluses

Staffing Alternatives to Deal with Employee Shortages

Alternative Scheduling Options

Alternative Percent Using (N = 427 companies)

The following definitions were used in this survey for alternative scheduling strategies:
Part-time: A regular employee who works fewer than 35 hours per week. Flextime: A system than enables employees to vary their schedules: Usually, the flexibility applies to starting and finishing times. Compressed workweek: A full-week schedule (usually 40 hours) than occurs in fewer than five days, such as four 10-hour days.

84%

40%

23%

Job sharing: Two or more employees split a full-time position, diving the responsibilities, and, to some degree, the compensation.
Work-at-home: A program that enables employees to complete work at home (or at a remote office closer to home) on a regular basis. It is often referred to as flexplace or telecommuting.

18%

13%

Analysis of Manpower Supply

Wastage Analysis: Wastage is severence from orgn, which includes VRS, normal retirement, resignations, death & dismissals. Recruitment decisions without wastage anaylsis leads to inaccurate HRP. Wastage decreases with the length of service Decreses with increased skill exercise and ees age Wastage of manpower is more in female Varies with level of employment , seasons, working conditions and size of firm

Tavistock Institute of Human Relations, suggested wastage analysis using the foll curve:

Tools & Techniques

Labour Turnover Index = No.of ees leaving X 100 Avg.no.of ees employed

Stability Index
= no. with more than 1 yr service now X 100 Total employed 1 yr ago Indicates stable workforce for a period.

Cohort Analysis
Cohort means homogenous groups. Takes into account the length of service, eliminating the defect of labour turnover index

 Census analysis Skill inventory

Employee Replacement Chart for Succession Planning

Career management
Career : Succession of related jobs, arranged in hierarchical order, through which a person moves in an organization. External career refers to objective categories used by orgns, to describe the progression of steps through an occupation Internal career set of steps/ stages which make the individuals own concept of career progression within an occupation Career mgmt relates to specific HRM activities to facilitate career development

Career Development
It means process of increasing an ees potential for advancement and career change. It is a systematic process of guiding the movement of HR of an orgn through different hierarchical positions

Importance of CDP
Enables ees to be better prepared for future positions in an orgn Enables orgn to receive max participation from ees CDP makes ees more adaptable to changing business envt CDP avoids promotion by discretion Equal employment for all Helps to acquire more skills, obtain dream jobs, share increased responsibilties, enjoy scope of job mobility, incresed job satisfaction

Significance/ advantages
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Objectives of Career development

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Stages/ cycle of CDP

Career development Initiatives

Career planning workshops Career counselling Mentoring Sabbaticals Personal Development Programme Career workbooks

Career Anchors
Syndrome of talents, motives & values which gives stability and direction to a persons career. 5 career anchors, acc to Edgar H Schein, Managerial competence interpersonal, analytical, emotional technical/ functional competence Security and stability Creativity & challenge Freedom & autonomy

Career planning
Career planning is a process whereby an individual sets career goals and identifies the means to achieve them. Organizational career planning is a planned succession of jobs by the firm to develop its employees Evaluates ones abilities and interests considering the alternative career opportunities establishing career goals

Steps in Career planning

Prepare personnel skill inventories

Develop Career Paths Put the right man in the right place
Impart training Review & conselling

CAREER PATH FOR PRODUCTION DEPT

Works manager Asst manager (production)

Junior works mgr (Assembly)

Junior works mgr (spares)

Supervisor Operators grade 1

Supervisor Operators grade 1

Fitter

turner

grinder

mechanist

welder

miller mechanist fitter