Chapter 3-Part A

Human Resources Planning

Prof.Sujeesha Rao
TOPICS TO BE COVERED
 Definition of HRP
 Importance of HRP
 Job Analysis
 HRP Process- In detail
-Organizational objectives
-HRP Demand forecasting
-HRP Supply forecasting
-HR Programming
-HR Plan Implementation
-Control & Evaluation
Prof.Sujeesha Rao
Definition :
 process by which an organization
ensures that it has the right number &
kind of people at the right place and at
the right time, capable of effectively and
efficiently completing those tasks that
help the organization achieve its overall
objectives.

Prof.Sujeesha Rao
Importance
 1) Each Organisation needs personnel with necessary
qualifications, skills, knowledge, experience & aptitude .
 2) Need for Replacement of Personnel - Replacing old,
retired or disabled personnel.

 3) Meet manpower shortages due to labour turnover -

Indian Airlines, Gas Authority of India headless for 10 months.

 4) Meet needs of expansion / downsizing programmes

- As a result of expansion of IT companies the demand for IT professionals
are increasing. PSU’s offering VRS to employees to retrench staff and
labour costs. DOT.COMs firing staff.

Prof.Sujeesha Rao
 5) Cater to Future Personnel Needs - Avoid surplus or
deficiency of labour.
75% of organisations are overstaffed. Redeployment of staff to other
units.

 6) Nature of present workforce in relation with

Changing Environment - helps to cope with changes in
competitive forces, markets, technology, products and
government regulations.
Shift in demand from ERP to internet programming has increased
internet programmers demand at Wipro, Infosys etc. ITI retrained its
existing workforce in the new electronic telephone system.

Prof.Sujeesha Rao
Other uses
i) quantify job for producing product / service
ii) quantify people & positions required
- determine future staff-mix
iii) assess staffing levels to avoid unnecessary
costs
iv) reduce delays in procuring staff
v) prevent shortage / excess of staff
vi) comply with legal requirements

Prof.Sujeesha Rao
HRP Process - Determination of Quality of Personnel
Job Analysis
 process of collecting and studying information relating to
the operations and responsibilities of a specific job.
 determination of tasks which comprise the job and of skills,
knowledge, abilities and responsibilities required of the
worker for a successful performance and which differentiates
one job from all others.
 products of Job Analysis are Job Description & Job
Specification

Prof.Sujeesha Rao
 JOB ANALYSIS INFORMATION HIERARCHY

Smallest
unit into
Distinct
which Number
work CAREER
work can of tasks
activity
be JOB OCCUPATION
divided
JOB FAMILY
POSITION
DUTY
ELEMENT TASK

Prof.Sujeesha Rao
Steps in Job Analysis
Collection of Organisational Structure Information

Selection of Representative Position to be Analysed

Collection of Job Analysis Data

Developing Job Description

Developing Job Specification

Prof.Sujeesha Rao
Collection of Data
 Who Collects ?
- On-the-job Employees, Supervisors,
Consultants / trade job analyst

 What to Collect
- Physical & Mental activity involved
- Each task essential to achieve overall result
- Skill / Educational factor needed for the job

 How to Collect ?
- Checklist, Interview, Observation, Participation,
Technical Conference, Diary Method, Quantitative
techniques
Prof.Sujeesha Rao
Areas in which information may be gathered :
Job title
Alternative title
Work performed
Equipment, Tools & Materials used
Reports & records made
Relation of the job to other jobs
Education & experience required
Physical, Mental& Visual effort required
Responsibility (for equipment, reports, performance)
& duties
Supervision given & received
Hazards, Discomfort & Safety
Prof.Sujeesha Rao
Job Analysis
Process of Obtaining all pertinent Job Facts

Job Description Job Specification

A proper definition & design A statement of human
of work. A statement qualifications necessary to
containing: do the job containing:

Job Title Education & Qualifications

Location
Job Summary
Duties & Responsibilities
Materials, Tools & Equipment
used
Forms & reports handled
Supervision given / received
Working conditions
Hazards & Safety precautions
Experience & Training
Knowledge & Skills
Communication skills
Physical requirements - Height,
Weight, Age
Personality requirements -
Appearance, Judgement,
Initiative, Emotional stability

Prof.Sujeesha Rao
JOB ANALYSIS METHODS
There are 6 widely used methods for JA:
 Observation method
 Individual interview method
 Group interview method
 Structured questionnaire method
 Technical conference method
 Diary method

Prof.Sujeesha Rao
Purpose / Use Of Job Analysis
 Organisation & Manpower planning
 Recruitment & Selection
 Job Evaluation & Wage, Salary administration
 Job Re-engineering
 Employee Training & Managerial Development
 Performance Appraisal
 Health & Safety

Prof.Sujeesha Rao
HRP Process - Determination of Quantity of Personnel

Organisational Objectives

HR Needs Forecast HR Supply Forecast

HR Programming

HRP Implementation

Control & Evaluation

Surplus - Restricted Hiring, Shortage - Recruitment &

Lay Off, VRS, Reduced Hours Selection

Prof.Sujeesha Rao
Human Resource Planning Model
FORECASTING DEMAND BALANCING
Considerations Techniques SUPPLY AND
DEMAND
• Technology • Trend analysis
• Financial resources • Managerial (Shortage)
• Organizational growth estimates Recruitment
• Mgmt. philosophy • Delphi technique Full-time / Part-time

Techniques External (Surplus)

• HR inventories Considerations Reductions
• Markov analysis • Wkforce changes
• Layoffs
• Skill inventories • Mobility
• Terminations
• Replacement charts • Govt policies
• Demotions
• Succession Planning • Unemployment
• Retirements
FORECASTING SUPPLY
Organisational Objectives & Policies
 Downsizing / Expansion
 Acquisition / Merger / Sell-out
 Technology upgradation / Automation
 New Markets & New Products
 External Vs Internal hiring
 Training & Re-training
 Union Constraints

Prof.Sujeesha Rao
HR Demand Forecast
process of estimating future quantity and quality of manpower
required for an organisation.

 External factors - competition, laws &

regulation, economic climate, changes in
technology and social factors

 Internal factors - budget constraints,

production levels, new products & services,
organisational structure & employee separations

Prof.Sujeesha Rao
Forecasting Techniques
Managerial Judgement - Managers discuss and arrive at
a figure of inflows & outflows which would cater to
future labour demand. #

 Ratio-Trend Analysis - Studying past ratios, ie No. of

Workers Vs Volume of Sales, forecasting future ratios
and adjusting for future changes in the organisation..

 Work-Study Technique - Used when length of

operations and amount of labour required can be
calculated. #

 Delphi Technique - From a group of experts the

personnel needs are estimated.

Prof.Sujeesha Rao
HR Supply Forecast
process of estimating future quantity and quality of
manpower available internally & externally to an
organisation.

Supply Analysis
 Existing Human Resources
 Internal Sources of Supply
 External Sources of Supply

Prof.Sujeesha Rao
Existing Human Resources
Capability / Skills Inventory using HR Information System
General Information -
Name: Present Address: Department:
Sex: Designation:
DOB: DOJ:
Marital Salary:
Status: Permanent Address: Grade:

Qualification -
Degree/Diploma Institution Class Year of Pass

Experience/Skills -
Job Title/ Organisation Brief Skill/
Appointment Responsibilities Specialisation

Outstanding Achievement / Additional Information -

Awards Performance Disciplinary Action
Promotions Merit Rating Absenteeism
Achievements
Career Plans:
Prof.Sujeesha Rao
Internal Supply
 Inflows & Outflows - The number of losses & gains of
staff is estimated. ###

 Turnover Rate - refers to rate of employees leaving.

= ( No. of separations in a year / Avg no. of
employees during the year ) x 100

 Absenteeism - unauthorised absence from work.

= ( total absentees in a year / Avg no. of
employees x No. of working days) x 100

 Productivity Level - = Output / Input. Change in

productivity affects no. of persons per unit of output.

 Movement among Jobs - internal source of

recruitment, selection and placement
Prof.Sujeesha Rao
 External Supply
 External recruitment, selection & placement -
Advertisements, Manpower Consultants, Campus
Recruitment, Unsolicited Applications, Employee
Referrals

 Yield ratios - are estimated in the process of hiring

applications.
Hiring Process Ratio
 Ad generates 2000 applications. 200 are potential 10:1
 Out of 200, 40 attend interview 5:1
Out of 40, 30 were offered jobs 4:3
Out of 30, 20 accepted 3:2
Overall Yield Ratio (2000:20) 100:1
Prof.Sujeesha Rao
Forecasting Supply of Employees: External
Labor Supply
 Factors Influencing the External Labor
Supply:
 Demographic changes in the population
 National and regional economics
 Education level of the workforce
 Demand for specific employee skills
 Population mobility
 Governmental policies
HR Programming
Balancing supply and
demand

 Vacancies filled in by the right employee at the

right time
Prof.Sujeesha Rao
 Elements of The HR Plan
 Acquisition of personnel
 Effective Utilization
 redeployment
 methods improvement
 training to prevent obsolescence
 Development and Improvement
 broad-based training and development
 performance management systems
 Retention
 proper remuneration
 long-term career planning
 healthy employee relations
 good working environment
 Downsizing Plan
Control & Evaluation
 Are Budgets, Targets & Standards met?
 Responsibilities for Implementation &
Control
 Reports for Monitoring HR Plan

Prof.Sujeesha Rao
 Requisites for Successful HRP
 HRP must be seen as equally vital as business planning
 Top-management support
 Periodic review and revision of the forecasting
techniques and the forecasts
 Without long range planning concentration becomes
focussed on short-term needs resulting in “crisis
management” reactions
 An excellent and up-to-date HRIS
 Active involvement of line managers and co-ordination
between line mgrs and HR function