ACQUIRING HUMAN RESOURCES

HUMAN RESOURCE PLANNING

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Human Resource Planning
 “An effort to anticipate future business and environmental demands upon and organization and to provide personnel to fulfill that business and satisfy that demand”

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HUMAN RESOURCE PLANNING
 Definition: It is the process by which management determines how an organisation should move from its current manpower position to its desired manpower position. Through it management strives to have the right number and the right kind of people at the right places, at the right time, doing things which result in both the organisation, and the individual receiving, maximum long-rang benefit”

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Purpose of HR Planning

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Strategic Planning
The process by which top management determines overall organizational purposes and objectives and how they are to be achieved.
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Strategic Importance
 Human resources management (HRM): the philosophies, policies, and practices that an organization uses to affect the behaviors of people who work for the organization  Strategic use of HRM activities can improve organizational effectiveness

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Objectives of HRP
 To ensure optimum use of existing HR  To forecast future requirements for HR  To provide control measures  To link HRP with Organizational Planning  To determine levels of Recruitment and Training
 To estimate cost of Hr and Housing needs of Employees  To provide a basis for MDP  To facilitate productivity Bargaining  To meet the needs of Expansion and Diversification programmes  To assess shortage and surplus of Hr

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Need and Importance of HRP
 To carry on its work and  to achieve its objectives  HRP identifies gaps  There is need to replace employees   HRP facilitates expansion and growth  HRP helpful in effective  utilization of HR and Technology

HRP is useful in anticipating Cost of HR which facilitates budgeting easier HRP facilitates Career and succession planning HRP helps in planning for physical facilities like canteen staff quarters etc
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Why HRP gained so much focus in recent times…
 Employment situation  Technological Changes  Organizational Changes  Demographic Changes

 Lead time  Hiring costs  Increased Mobility  Shortage of Skills  Legislative Controls  Pressure Groups  Systems Concepts

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Human Resource Planning
Assessing Current Human Resources Assessing Future Human Resource Needs

Developing a Program to Meet Needs
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Human Resource Planning
Strategic Formulation Strategic Implementation

SWOT tells us how well our workforce is deployed

Deploying human capital is one of ‘musts’ of strategic implementation
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HR PLANNING PROCESS

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Scanning the External Environment
 Environmental Scanning
 The process of studying the environment of the organization to pinpoint opportunities and threats.

 Environment Changes Impacting HR
    Governmental regulations Economic conditions Geographic and competitive concerns Workforce composition

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Internal Assessment of the Organizational Workforce
 Auditing Jobs and Skills
What jobs exist now? How many individuals are performing each job?  How essential is each job?  What jobs will be needed to implement future organizational strategies?  
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Process of HRP
1. Analyzing Organizational Plans 2. Forecasting Demand for HR 3. Forecasting supply of HR 4. Estimating Manpower Gaps 5. Action Planning 6. Monitoring and Control
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The HRP Process
Strategic plans & Organizational design Resultant Labor Demand Current supply situation (internal & external) Staffing plans How many? What quality? Where? Forecasti ng

1. Current (internal) supply 2. Surplus / shortage?

Implementati on 17

HRP Process
Organizational Objectives HR Needs Forecast HR Supply Forecast HR Programming HRP Implementation Control & Evaluation Surplus - Restricted Hiring, Lay Off, VRS, Reduced Hours Shortage - Recruitment & Selection

Human Resource Planning Process
External Environment Internal Environment
Strategic Planning Human Resource Planning
Forecasting Human Resource Requirements

Comparing Requirements and Availability Surplus of Workers Restricted Hiring, Reduced Hours, Early Retirement, Layoff, Downsizing

Forecasting Human Resource Availability Shortage of Workers Recruitment Selection
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Demand = Supply No Action

Demand for Labor Strategy / Design Primary demand for labor Demand for X number of employees, of certain types / quality, in particular parts of organisation Short term (static) demand Long term (fluid) demand Forecasting

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Labour Supply Current supply Forecasted supply

Assess internal supply against demand

Based on current supply, is there a shortage / surplus? Staffing plans Shortage: •Overtime •Outsourcing •Retrained transfers •New hires •Technological innovation Surplus: •Downsizing •Transfers •Work sharing •Retirement •Natural attrition •Retraining

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Forecasting HR Supply and Demand
 Forecasting

The use of information from the past and present to identify expected future conditions.
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Forecasting HR Supply and Demand …

Forecasting Methods
Judgmental  Estimates—asking managers’ opinions, top-down or bottom-up  Rules of thumb—using general guidelines  Delphi technique—asking a group of experts  Nominal groups—reaching a group consensus in open discussion  Ratio trend analysis  Regression analysis  Work study techniques  Delphi technique
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Forecasting HR Supply and Demand

 Forecasting Periods  Short-term—less than one year  Intermediate—up to five years  Long-range—more than five years  Forecasting the Supply for Human Resources  External Supply  Internal Supply

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Forecasting HR Supply and Demand
 Forecasting the Demand for Human Resources  Organization-wide estimate for total demand  Unit breakdown for specific skill needs by number and type of employee  Develop decision rules (“fill rates”) for positions to be filled internally and externally.  Develop additional decision rules for positions impacted by the chain effects of internal promotions and transfers.
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Forecasting HR Supply and Demand
 Forecasting External HR Supply  Factors affecting external  Individuals entering and leaving the workforce  Individuals graduating from schools and colleges  Changing workforce composition and patterns  Economic forecasts  Technological developments and shifts  Actions of competing employers  Government regulations and pressures  Other factors affecting the workforce

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Managing Human Resource Surplus or Shortage
 Workforce Reductions and the WARN Act  Identifies employer requirements for layoff advance notice.  60-day notice to employees and the local community before a layoff or facility closing involving more than 50 people.  Does not cover part-time or seasonal workers.  Imposes fines for not following notification procedure.
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Managing Human Resource Surplus or Shortage
 Workforce Realignment “Downsizing”, “Rightsizing”, and “Reduction in Force” (RIF) all mean reducing the number of employees in an organization.
 Causes
 Economic - weak product demand, loss of market share to competitors  Structural - technological change, mergers and acquisitions

 Positive consequences
Increase competitiveness Increased productivity

 Negative consequences
Loss of specialized skills and experience Loss of growth and innovation skills
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Managing Human Resource Surplus or Shortage
 Downsizing approaches
 Attrition and hiring freezes  Not replacing departing employees and not hiring new employees.  Early retirement buyouts  Offering incentives that encourage senior employees to leave the organization early.  Layoffs  Employees are placed on unpaid leave until called back to work when business conditions improve.  Employees are selected for layoff on the basis of their seniority or 29 performance or a combination of both.

Assessing HR Effectiveness
 Diagnostic Measures of HR Effectiveness
       HR expense per employee Compensation as a percent of expenses HR department expense as a percent of total expenses Cost of hires Turnover rates Absenteeism rates Worker’s compensation per employee
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HR Evaluation Process

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Assessing HR Effectiveness
 HR Audit  A formal research effort that evaluates the current state of HR management in an organization  Audit areas:  Legal compliance (e.g., Legal Audits, ISO etc)  Current job specifications and descriptions  Valid recruiting and selection process  Formal wage and salary system • Benefits  Employee handbook  Absenteeism and turnover control  Grievance resolution process  Orientation program • Training and development  Performance management system
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Using HR Research for Assessment
 HR Research  The analysis of data from HR records to determine the effectiveness of past and present HR practices.  Primary Research  Research method in which data are gathered first-hand for the specific project being conducted.  Secondary Research  Research method using data already gathered by others and reported in books, articles in professional journals, or other sources.
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HR Performance and Benchmarking
 Benchmarking  Comparing specific measures of performance against data on those measures in other “best practice” organizations

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JOB ANALYSIS & HUMAN RESOURCE PLANNING

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Definitions
 Job - Consists of a group of tasks that must be performed for an organization to achieve its goals.  Position - Collection of tasks and responsibilities performed by one person; there is a position for every individual in an organization.
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Job Analysis
A Basic Human Resource Management Tool

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Tasks

Responsibilities

Duties

Human Resource Planning Recruitment Selection

Job Descriptions Job Analysis Job Specifications

Training and Development Performance Appraisal Compensation and Benefits Safety and Health Employee and Labor Relations

Knowledge

Skills

Abilities

Legal Considerations
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Definitions
 Job analysis - Systematic process of determining the skills, duties, and knowledge required for performing jobs in an organization.
 Job description – document providing information regarding tasks, duties, and responsibilities of job.  Job specification – minimum qualifications to perform a particular job.
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Job Analysis
 Job analysis is a formal and detailed study of jobs  It refers to a scientific and systematic analysis of a job in order to obtain all pertinent facts about the job  It is essentially a process of collecting and analyzing all pertinent data relating to a job

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Objectives of Job Analysis
        Job Redesign Work Standards Recruitment Selection Training Performance appraisal Job evaluation Safety
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Benefits of Job Analysis
1. Organizational Design 2. Human Resource Planning 3. Recruitment and Selection 4. Placement and Orientation 5. Training and Development 6. Performance Appraisal

7. Career Path planning 8. Job Design 9. Job Evaluation 10 Labor Relation 11. Employee Counseling 12. Health and Safety

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The process of Job Analysis
1. Organisational Analysis 2. Organising Job Analysis Programme 3. Deciding the uses of Job Analysis Information 4. Selecting Representative Jobs for analysis 5. Understand Job Design 6. Collection of Data 7. Developing a Job Description 8. Preparing a Job Specification
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Differentiate between
Job Description  Job Description is a functional description of what the job entails. And define the purpose and scope of a job. It is a written record it contains title, location, duties, responsibilities, working conditions, hazards and relationship with other jobs. Job Specification  Job specification is a statement of the minimum acceptable human qualities required for the proper performance of a job.  It includes physical, mental, social, psychological and behavioral characteristics of a person
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Job Evaluation
 Job evaluation is “the process of analysis and assessment of jobs to ascertain reliably their relative worth using the assessment as the basis for a balanced wage structure.”  Job evaluation begins with job analysis and ends up with the classification of jobs according to their worth. A job cannot be evaluated unless and until it is analyzed.
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 Job evaluation is aimed at determining a job’s relative worth. It is a formal and systematic comparison of jobs to determine the worth of one job relative to another, and eventually result in a wage or salary structure or hierarchy.  The basic principle of job evaluation is that:- Jobs that require greater qualifications, more responsibilities, and more complex job duties should be paid more highly than jobs with lesser requirements.

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Objectives of Job evaluation
1. To Determine equitable wage differentials between different jobs in the organization 2. To eliminate wage inequities 3.To develop a consistent wage policy 4. To provide a framework for periodic review and revision of wages 5. To provide a basis for wage negotiations 6. To enable management to gauge and control the payroll costs 7. To minimize wage descriptions on the basis of age, sex, caste, region, religion , creed etc 47

Preparing for the job evaluation
 Identify the need for job evaluation should not be difficult  Getting employees to cooperate in the evaluation of their jobs.  Choose a job evaluation committee.

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By Nadeem The Killer Gr.7B

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