MBA504 - 5 - HR Planning

Module Code: MBA504
Module Title: Human Resource Management
Session 5: Human Resource Planning
Delivered by:
Mr. Rajeev Prasad P

(E-mail: rajeev.ms.mc@msruas.ac.in)
1
Faculty of Management and Commerce © Ramaiah University of Applied Sciences
Session Objectives
At the end of this session, students will be able to :

– Discuss the objectives and process of HR planning
– Discuss the forecasting methods used in HR planning
– Analyse the elements of job description and job
specification
– Create job design for a given scenario
2
Session Contents
• Objectives of HR Planning
• HR Planning Process
• HR Inventory
• Job Analysis and its methods
• Job Design
• Job Evaluation
• Performance Standards
3
Human Resource Planning (HRP)
4
Definition of HRP
• A process to ensure that the human resource

requirements of an organization are identified and
plans are made for satisfying those requirements
• A process to estimate the demand for labour in an

organisation and evaluate the size, nature and sources
of supply which will be required to meet the demand
5
Objectives of HRP
• Get the right number of qualified people into the

right job at the right time, to meet organisational
objectives
• System of matching the supply of people (existing

+ hiring) with openings over a period of time
• A forward-looking function; integral to corporate

plan
6
Objectives of HRP Contd….
• Takes into account production schedules, market

fluctuations, demand forecasts etc
• Gives accurate estimate of :
– number of employees required
– with matching skill requirements
– lead time to select & train
• Revised from time to time
7
Importance of HRP
• Constant reserve of talent
• People prepared for future – trained, motivated,

developed in advance
• Expand or contract operations
• Control manpower costs
• Succession planning – fast track etc.
8
HR Planning Process
9
HR Planning Process
HR Strategies :
• The means used to anticipate and manage the supply of and
demand for human resources
• Provide overall direction to the way in which HR activities will
be developed and managed
Overall
Strategic Plan
Human Resources
Strategic Plan
HR Activities
10
Human resource planning process
11
HR Planning Process
1
2 3
4
6
5
7
12
Environmental Scanning
• Environmental Scanning: The process of studying the

external environment of the organisation to pinpoint
opportunities and threats
• Environment Changes Impacting HR:

a) Governmental regulations
b) Economic conditions
c) Geographic and competitive concerns
d) Workforce composition
13
Environment of HRM
14
Internal Assessment
• Organisational Capabilities Inventory (HR
Inventory) :
– HRIS Databases: Sources of information about
employees’ Knowledge, Skills, and Abilities (KSAs)
• Components of an Organisational Capabilities
Inventory
– Workforce and individual demographics
– Individual employee career progression
– Individual job performance data
15
Forecasting
• Forecasting: The use of information from the past and

present to identify expected future conditions
16
Forecasting Methods
FORECASTING METHODS
JUDGMENTAL MATHEMATICAL
– 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

17
Forecasting Methods Contd….
– Mathematical
• Statistical regression analysis
• Simulation models
• Productivity ratios—units produced per employee
• Staffing ratios—estimates of indirect labor needs
18
Forecasting Periods
1) Short-term—less than one year
2) Intermediate—up to five years
3) Long-range—more than five years
19
Steps in Forecasting
• Work-force analysis
– Past experience and historical data
– Promotions, transfers, retirement, turnover, absenteeism,
competition (last 5 years)
• Work-load analysis
– Calculate number of people required for various jobs with
reference to planned output (factoring in idle time,
absenteeism, etc.)
20
Steps in Forecasting Contd….
• Job analysis
– Job description : duties and responsibilities

– Job specification : attributes needed to perform
– Job evaluation : relative value of each job
21
Survey of People
Survey of the Human

Resources
External sources Internal sources
22
Factors Affecting External Supply
1. Net migration for an area
2. Individuals entering and leaving the workforce
3. Individuals graduating from schools and colleges
4. Changing workforce composition and pattern
5. Economic forecasts
6. Technological developments and shifts
7. Actions of competing employers
8. Government regulations and pressures
9. Other factors affecting the workforce

23
Internal Supply of Manpower
• Work-force analysis:
– up-to-date detailed profile, replacement charts,
succession plans, manpower audits etc.
• Some important forecasting techniques:

– Staffing table: number of employees in each job,
classified on basis of age, etc
– Markov Analysis: probabilities based on historical data
– Skills inventory
– Replacement chart (succession planning)
24
25
Faculty
©M. S. of Management
Ramaiah andofCommerce
University Applied Sciences © Ramaiah University of Applied Sciences
26
Faculty
Factors Influencing HR Planning
27
Benefits of HR Planning
• Better view of the HR dimensions of business decisions

• Lower HR costs through better HR management
• More timely recruitment for anticipated HR needs
• More inclusion of protected groups through planned
increases in workforce diversity
• Better development of managerial talent
28
Job Analysis
29
A Job is……
• A basic unit of structure
• A building block of an
organisation
• Link between employee

and employer
• Independent of holder
30
Job Analysis
• A technical procedure
• A formal and detailed examination of a job
• Systematic investigation into tasks, duties,
responsibilities of that job
• Identifies what people do on their jobs and what
they require to perform
• Precise identification of tasks, knowledge and
skills required
31
Job Analysis: A Basic Human Resource
Management Tool
32
Components of Job Analysis
Job Description Job Specification Job evaluation
K,S,A, education,
Written Relative value of
experience,
statement each job
certification needed
Important part of
Important selection
What, how, why Costing &
tool
Budgeting
Defines purpose
& scope
Content, features,
environment, authority,
responsibilities
33
Job Description
JOB DESCRIPTION
Job Title:
• It is a writtenWork
Yes
Team Leader?
statement No
of whatDivision/Department:
the employee actually
Location:does, or how he/she doesHrs.
:Part-time: it and Date
what the working
Written:
:Full-time
conditions
Reports to: of the job are Title:
Salary Grade: Salary Range: Shift:

• Job description is utilised to write a job specification
Purpose:
• This lists knowledge, abilities, and skills required to
Essential Duties:
perform the job satisfactorily
General Description:
Minimum Requirements:
I have reviewed this job description and have determined that it accurately reflects the
position.
Team leader: Employee: Date:
34
Contents of Job Description
1. Job identification 5. Authority of incumbent

2. Job summary 6. Standards of performance
3. Relationships 7. Working conditions
4. Responsibilities and duties 8. Job specifications
35
Job Description
• Job Identification: Details such as name of the job, job

family, grade level division, department, reporting to,
location, etc.
• Job summary: Description of general nature of the job, and
include its main functions or activities
• Authority and Relationships: Describes job holder’s
relationship with others inside and outside the
organisations. Reports to/supervises/works with/outside the
company, etc.
36
Job Description Contd…
• Responsibilities and Duties: Presents a list of the job’s

major responsibilities and duties
• Standards of Performance and working conditions: Lists
the standards the employee is expected to achieve under
each of the job description’s main duties and
responsibilities
• Job specifications: A list of job’s “human requirements”,
that is the requisite education, skills, personality, and so on
37
Job Specification
• The job specification answers the question, “what

human traits and experience are required to do the job
well?”
• The job specification shows what kind of person to
recruit and for what qualities that person should be
tested
38
Job Specification Contd….
Personal attributes can be classified as :
• Essential attributes: KSAs must possess
• Desirable attributes: should preferably possess
• Contra-indicators: handicap to successful job

performance
39
The Nature of Job Analysis
40
The Nature of Job Analysis
• HR specialist collects the following details:

1. Work activities: Such as cleaning, selling, teaching, etc,. This
may also include how/why/when the worker performs each
activity
2. Human behaviour: Such as sensing, communicating,
deciding, writing, lifting weights, walking, etc.
3. Machines, tools, equipment, and work aids: Information
about the tools used, knowledge dealt with and applied
41
The Nature of Job Analysis Contd….
4. Performance standards:
– In terms of quality and/or quantity
– Standards are used to appraise employee
5. Job context: Such as physical working conditions, work
schedules, number of employees who normally
interact
6. Human requirements: skills, education, training,
experience, aptitude, physical characteristics,
personality, interests etc.
42
Methods of Collecting Information
1. Interview 2. Questionnaire
3. Observation 4. Participant’s diary / log book

43
Uses of Job Analysis
• HR Planning – quality of human resources needed;

systematic promotion and transfer policy
• Recruitment – how and when to hire people for

future openings e.g. MBAs for equity research,
replace with graduates
• Selection – based on tasks and responsibilities
• Placement/orientation – clear definition helps
44
Uses of Job Analysis Contd…
• Training – for specific needs of job
• Career planning – development areas to grow
• Employee safety – enhanced
• Performance appraisal – required and actual

performance
• Job re-design : simplify, improve steps
• Job evaluation – relative worth of job

45
46
Faculty
Job Design
• The process by which managers decide individual job
tasks and authority
• Job design :
 Involves analysis of the way in which work needs to

be organized and what work needs to be done
 specifies the contents, methods and relationships of
jobs in order to satisfy work requirements for
productivity, efficiency and quality
 meets the personal needs of the job holder
 thus increases levels of employee engagement
47
Summary
• HRP is a process in which an organisation attempts to
estimate the demand for labour and evaluate the
size, nature and sources of supply which will be
required to meet the demand
• The main objective of HRP is to get the right number
of qualified people into the right job at the right
time, to meet organisational objectives
• The HRP process provides overall direction to the
way in which HR activities are developed and
managed
• There are several steps in the HRP process
48
Summary Contd….
• Environmental scanning and HR inventory enable the
process of manpower forecasting
• Methods of forecasting may be either judgmental or
mathematical
• Forecasting periods may be short-term,
intermediate, or long range
• The steps in forecasting are work-force analysis,
work-load analysis, and job analysis
• Job analysis consists of job description, job
specification, and job evaluation
49
Summary Contd….
• Some methods of collecting data for job analysis are

interviews, questionnaires, observation, and diary
• Job design is the process by which managers decide

individual job tasks and authority
50

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Module Code: MBA504

Module Title: Human Resource Management

Session 5: Human Resource Planning

Mr. Rajeev Prasad P

At the end of this session, students will be able to :

• A process to ensure that the human resource

• A process to estimate the demand for labour in an

• Get the right number of qualified people into the

• System of matching the supply of people (existing

• A forward-looking function; integral to corporate

• Takes into account production schedules, market

• Revised from time to time

• Constant reserve of talent

• People prepared for future – trained, motivated,

• Expand or contract operations

• Control manpower costs

• Succession planning – fast track etc.

• Environmental Scanning: The process of studying the

• Environment Changes Impacting HR:

• Forecasting: The use of information from the past and

• Estimates: Asking managers’ opinions, top-down or

• Rules of thumb: Using general guidelines

• Delphi technique: Asking a group of experts

• Nominal groups: Reaching a group consensus

• Statistical regression analysis

• Productivity ratios—units produced per employee

• Staffing ratios—estimates of indirect labor needs

1) Short-term—less than one year

2) Intermediate—up to five years

3) Long-range—more than five years

– Job description : duties and responsibilities

Survey of the Human

External sources Internal sources

2. Individuals entering and leaving the workforce

3. Individuals graduating from schools and colleges

4. Changing workforce composition and pattern

6. Technological developments and shifts

7. Actions of competing employers

8. Government regulations and pressures

9. Other factors affecting the workforce

• Some important forecasting techniques:

• Better view of the HR dimensions of business decisions

• A basic unit of structure

• Link between employee

Job Description Job Specification Job evaluation

Salary Grade: Salary Range: Shift:

1. Job identification 5. Authority of incumbent

• Job Identification: Details such as name of the job, job

• Responsibilities and Duties: Presents a list of the job’s

• The job specification answers the question, “what

Personal attributes can be classified as :

• Essential attributes: KSAs must possess

• Desirable attributes: should preferably possess

• Contra-indicators: handicap to successful job

• HR specialist collects the following details:

3. Observation 4. Participant’s diary / log book

• HR Planning – quality of human resources needed;

• Recruitment – how and when to hire people for

• Selection – based on tasks and responsibilities

• Placement/orientation – clear definition helps

• Training – for specific needs of job

• Career planning – development areas to grow

• Employee safety – enhanced