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Human Resource Planning
It is the process for ensuring that the human resource requirements of an organization are identified and plans are made for satisfying those requirements. Bulla & Scott (1994)
Human resource planning
Right no. of people In the right place At the right time To deliver the organization Strategic plan
Attract & Retain sufficient staff with appropriate skills. Fully Utilization of staff employed. Meeting future Human Resource Requirement. Equal opportunities for promotion & Development. ( women, members of ethnic minorities & disabled) Control of HR costs ( staffing costs of any new initiatives)
People Unpredictable Individual differences. Need for careful & sensitive handling More Environmental conditions---office, car parks, canteen etc. Heterogeneous Reqd . Of Organization.
Human resource planning is said to consists of these simple steps
DEMAND FORECASTING---- Future staffing reqd.in terms of No. SUPPLY FORECASTING---future labour supply within org.as well as outside org.
Managerial judgment : Small organization involves Managers deciding future activities from Top- Down or Bottom -Up.
Problem: Not effective outside Managers Experience. Advantage: Relatively straightforward and can implemented Quickly.
Ratio Trend analysis: Reviewing the ratios between different groups of workers & Projecting the change for different levels of output.
Quick & easy to apply but rely on having accurate records & on accurate prediction of future workloads.
Work Study: Measures the time taken to complete the tasks.
Helps in calculating how many employees will be needed for achieving reqd. levels of productivity taking account of Absenteeism, & other factors.
Modeling : Simulation of a real – life situation built.
By feeding Personnel information into the model.
Like No & types of staff in various job categories Grades, pay range of various job. Ages and length of service employees. Assumption about future development.
Supply of employees to the organization need no. of factors. Existing staff levels categorized by function, department, job type & pay/grade. Job reqd. ---Knowledge, qualification, skills & experience. Attributes of individual post holders—age, length of service, qualification,traning etc.
Recruitment & retention rates, wastage rates & absence levels. Promotion rates Potential changes in working methods.
Although demand and supply forecasting describe the planning process but with very fast changes taking place in global market and every day changing technology has made the process of planning a complex one. Henery(1995) suggests, it to be a circular rather than linear, with the process starting anywhere in the cycle
Business strategic planning
Resourcing strategy Labour turnover analysis
Demand /Supply forcasting
Work environment analysis
Human Resource Plans
Operational effectiveness analysis
Flexibility Work environment
The process of human resource planning
Business strategic planning: defining future activity levels and initiative demanding new skills Resourcing strategy: planning to achieve competitive advantage by developing intellectual capital Scenario planning: assessing in broad terms where the organization is going in its environment and the implications for human resource requirements Demand / supply forecasting: estimating the future demands for people, and assessing the number of people likely to be available from within and outside organization
Labour turnover analysis: analyzing actual labour turnover figures and trends as an input to supply forecasts. Work environment analysis: analyzing the environment in which people work in terms of the scope it provides for them to use and develop their skills and achieve job satisfaction Operational effectiveness analysis: analyzing productivity, the utilization of people and the scope for increasing flexibility to respond to new and changing demands
Measure for staff turnover & wastage.
Turnover index: No. of leaves in year/average no of staff in post during year X100 = % wastage.
Stability index: Measures the degree of continuity in org. No. of staff with at least 1 yr service/No. of staff employed 1 yr ago x 100 = % stability.
Length of service analysis: Length of service in months over 2 yrs of all current staff added together/length of service in months over 2yrs of a full complement of staff added together x 100 = % stability. Cohort or Survival analysis: Keeping tract of a homogenous group within the org. to determine how many of that group remain after a certain period.
Not only recruitment & retention rates. Changes in working methods and practices. More flexible pattern of work. Introduction of new system of work ---Technology. Changing Org .structure Encouragement of home working & Tele working. Changing org. cultures, working hrs. overtime ,shift & Management training & Development.