Human Resource Planning 2019

 RAMAN
WHY Human Resource
Planning[HRP]?

▪ Assessing Future Recruitment Requirements

▪ Optimum Utilisation of Available Human Resource
▪ Developing Training and Retraining Programmes
▪ Formulating Compensation Policies
▪ Determining Management Development Programmes to train workforce for
coping with and leveraging future technological advantages.
▪ Gaining Competitive Advantage
▪ Shaping Future Plans and Strategies
CONSTRAINTS OR FACILITATORS TO
HRP

▪ Strategy of the organization,

▪ Culture of the organization,
▪ Competitive and financial environment,
▪ Current organizational circumstances
▪ Quantity and skills levels of human resources required
What is HUMAN RESOURCE
PLANNING

 Human resource planning is a process of identifying and

then matching the human resource requirements and
availability both internally and externally in order to
determine the future HR activities of the organisation on
the basis of the overall organizational objectives present
and future.
TYPICAL HRP PROCESS FLOW--

Steps in a HR planning process are:

.considering organisational objectives and strategies,
.assessment of external environment,
.preparation of in-house skill and competency inventory,
.HR forecasting—Need assessment,
.HR forecasting—estimation of availability, and
Developing HR plans and programmes.
 Key Terms you will learn

Strategic Priority - Strategy - Business-HR-Strategy

Linkage - HR Strategy - Value Chain - Key Function -
Bottleneck Function - Age Structure Analysis -
Workforce Demand - Strategic Workforce Planning -
Operational Workforce Planning - Planning with
leading Indicators - Task Analysis
 HRP CONSIDERATIONS

 Plans may need to be made concerning the timing and approach to recruitment or downsizing. For
example, it may have been decided that in order to recruit sufficient staff, a public relations campaign is
needed to promote the employer brand.
 Promotion, succession, transfer and redeployment and redundancy plans may be needed together with
plans for the retention of those aged over 50 and flexible retirement plans.

 Talent plans There is an increasing need to focus on plans to attract, develop and retain a talent pool to
draw on as required. For some organisations this will focus on leadership talent, for others it will focus
on critical jobs and skills on which the organisation is particularly dependent.
 BIG POINTS TAKEN FOR GRANTED BUT NEED FOCUS INDIVIDUALLY AND CUMULATIVELY
STEPS IN HRP

JOB ANALYSIS

JOB DESCRIPTION
 INTERNAL ORGANISATIONAL
STRUCTURE
 Organisation and structure plans ==Organisation and structure plans may concern
departmental existence, span and structure and the relationships between
departments. They may also be concerned with the layers of hierarchy within
departments and the level at which tasks are done, and the organisational groups
within which they are done.

 Employee utilisation plans Any changes in utilisation that affect HR demand will
need to be planned. Some changes will result in a sudden difference in the tasks
that employees do and the numbers needed, others will result in their gradual
movement over time.

 INTERNAL TASK VARIABILITY Other plans may involve the distribution of hours
worked, such as the use of annual hours contracts, or using functional flexibility
where employees develop and use a wider range of skills. The people potentially
affected will need to be consulted about the changes and be prepared and trained
for what will happen.
WHY DO YOU NEED NEW
POSITIONS?

 New tasks?---- For whom? -- What competencies needed?

 Relative importance of the team /individual behaviour?
 New or redundant tasks?

 How will managers need to manage?

 HRP Operational CONSIDERATIONS

 T&D Requirement of skills and training for specific new technology skills loses most of its impact if it is
done six months before the equipment arrives. If the organisation wishes to increase recruitment by
promoting the excellent development that it provides for employees, then clear programmes of what will
be offered need to be finalised and resourced so that these can then be used to entice candidates into the
organisation. Decisions on whether to buy in talent and skills or develop them internally will affect the
emphasis on and approach to development.

 Performance management and engagement plans These plans may include the development or renewal of a
performance management system, and ensuring that employees are assessed on objectives or criteria that
are key to organisational success, and which may then be linked to reward. The plans may also include
setting performance and quality standards; culture change programmes aimed at encouraging specified
behaviour and performance; or empowerment or career support to improve engagement and motivation.
FACTORS THAT AFFECT HRP

 Introducing new materials or equipment, particularly new technology Introducing

changes in work organisation, such as: — quality circles — autonomous work groups —
job rotation — outsourcing — job enlargement — high-performance teams — job
enrichment — participation — empowerment
 Organisation development Introducing changes in organisation structure, such as: —
centralisation/decentralisation — relocation of parts of the organisation — new
departmental boundaries — flexible project, matrix and network structures Introducing
productivity schemes, bonus schemes or other incentive schemes

 Encouraging greater staff flexibility, multiskilling and work interchangeability Altering

times and periods of work Training and appraisal of staff Developing managers and use
of performance management and the type used.
Assessment of external
environment Source Pravin Durai HRM
 Setting Organizational
objectives & strategies

Scanning the environment

Preparing in-house skill and

competency inventory

HR forecasting-- HR forecasting -- estimation of

need assessment availability

Developing HR plans and Programmes

Recruitment/reduction
WHAT IS FORECASTING?

▪Forecasts involve estimating the

future requirements of the
organisation in terms of the nature
and the number of people .
HR Forecasting—Need Assessment-continued
Revisiting the techniques discussed in
the recruitment and selection module

1-Ratio Analysis-Determine the ratio between Performance and required

numbers of employees based on programmatic assumptions (e.g.,
professors/students, nurses/patients).
2.Trend Analysis Matching present requirements with past employment
patterns by analysing qualitative and quantitative data objectively that predict
labour demand for the future by analysing objective statistics from the previous
year that affected employee numbers, such as the company's performance or
developments in the industry sector, across a given period
3.Task Analysis Tasks are identified and quantified in terms of appearance and
workload
4.Conclusion by Analogy Determine workforce requirements according to
those of similar organizational units or companies
 Preparation of In-House Skills and Competency
Inventory

▪ A compilation of skills, and qualifications of the entire workforce is described as a skill inventory— What they mean
Skill and Competency Inventory can be prepared through
(i) Skills Audit (assessing the current skill levels of a firm and of individual skills). It involves assessing the performance of the
employees from the task perspective as an outcome approach-skills brought into the table plus outcomes of those skills Recall class
discussion.
(ii)Competency Inventory-[different from the common sense understanding of the word competency or ability ] combining
this traditional static aspects of recording the ability employees’ Knowledge Skills . By moving beyond mere outcome based records and
Abilities to a detailed robust review an employees’s work based on her or his personal functional qualities, talents, team-spirit , technical
abilities based on past, current and potential achievements, extra talents that are observed and can be tapped into later. Process
based qualitative organic approach based on continuous evaluation of the employees. Recall personal knowledge of employees which
combines intuition and much deeper understanding of an employee on your part as a HR manager rather than just relying on
quantitative analytic data.

(iii) Core Competency Analysis (assessing the extra-ordinary abilities of the firm). These abilities may be its advanced
technology, well-reputed management, problem-solving Combining and collating individual skills and abilities based on this careful study
and matching the gaps with requirement of the organisation and seeing whether there needs to be recruitment or layoff of unproductive
employee or those who are no longer aligned with future skill sets.
HR Forecasting— Ratio Analysis

▪ Ratio analysis is the analysis of the

relationship between any two numerical
variables of a casual factor —production
volume-and number of employees required.
▪ It presumes a certain relationship between
two given variables and, using that
relationship, predicts the future HR
requirements assuming that the ratio
between the causal factor and the staffing
need is constant.
HR Forecasting—Delphi Technique

▪ The Delphi technique is basically a group-based systematic

forecasting method with an objective of arriving at a
consensus.
▪ This technique does not require any face-to-face participation
by the experts
▪ This method aims at maximising the benefits and minimising
the dysfunctional aspects of group decision-making as it
eliminates group dynamics and individual dominance from the
process
▪ Refer
https://www.projectsmart.co.uk/Delphi-technique-a-step-by-st
ep-guide.php
HR Forecasting—Nominal Group Technique

▪ It is an interactive and structured mode

of decision-making
▪ Each expert in a group independently
develops HR requirements and presents it
before other experts in the group
▪ Each member’s proposal is relatively
graded and the top-ranked proposal is
selected as the final HR forecast
 NOMINAL DECISION MAKING
METHOD

 INTRODUCTION WELCOME AND EXPLANATION AND POSES THE QUESTION AND ITS RELATED SUB-THEMES
REGARDING ONE ASPECT OF HRP-stage 1
 MEMBERS SILENTLY FILL IDEAS IN A SHEET OF PAPER-stage 2
 FACILITATOR RECORDS ALL IDEAS AND MEMBERS ARE ENCOURAGED TO ADD ADDITIONAL IDEAS EMERGING
FROM OTHERS ATTEMPT IS TO CAPTURE ALL IDEAS 15=30 MINUTES— stage 3
 GROUP DISCUSSION MEMBERS ARE ENCOURAGED TO CLARIFY DOUBTS ON IDEAS COLLEAGUES HAVE
PRODUCED AND EVERY PERSON CONTRIBUTES AND RATHER THAN GETTING BOGGED DOWN ON A SINGLE IDEA
FURTHER NEW IDEAS MAY EMERGE OR ITEMS MAY BE CLUBBED INTO CATEGORIES AND LOGICALLY ORDERED
INTERNALLY. AT THIS STAGE A NEUTRAL TONE MUST ALWAYS BE MAINTAINED BY THE FACILITATOR AND NO
DEPRECATING OR JUDGMENTAL COMMENTS ARE ALLOWED EITHER BY THE FACILITATOR OR DISCUSSANTS. —
stage 4
 IDEAS ARE PRIORITISED AND VOTED UPON Immediate results in response to the question is available to
participants so the meeting concludes having reached a specific outcome.—stage 5

 The number of nominal group meetings to be held will depend on the nature of the question and accessibility
to the key stakeholders best suited to help address the problem.-stage 6
 Unstructured ideas are catalogued and categorised and taken up topic by topic for discussion.
One main question at a time can be taken-stage 7
HR Forecasting— Managerial Judgement

▪ The forecasting in Managerial

Judgement is based on the managers’
subjective views on the possible human
resource requirements in the future
▪ Forecasts are made about the HR
requirements usually by the senior
managers of the organization based on
their experience.
 Types of Managerial Judgement

 (i) Bottom-up approach-[TATA MOTORS OR AL PRODUCTION MANAGER EXAMPLE IN

CLASS]
 In this method, The process of HR forecasting begins with the lowest level of the
managerial hierarchy. The managers in charge of each division or department forecast
the HR requirements because it is assumed that line managers know the work process
and the present and projected workforce requirements.
 This forecasting process is then moved up gradually to the higher levels of the
management
(ii) Top-down approach-[COO AND TOP LEVEL MANAGEMENT TEAM-GRIZZLED VETERANS WHO
HAVE A GOOD UNDERSTANDING OF MANAGEMENT AND PEOPLE]
(iii) In this method, experts working at the highest levels of the management forecast the
HR needs of the organization on the basis of the information available and the field
expertise.
WORK STUDY METHOD

 The work-study method is based on a thorough analysis of the tasks to be done and
the time each takes. From this the person-hours needed per unit of output can be
calculated, and standards are developed for the numbers and levels of employees
required. TIME AND MOTION STUDIES.

 These are most useful in production work, but need to be checked regularly to make
sure they are still appropriate. Work study is usually classified as an objective
measure; however, it is often accepted that since the development of standards and
the grouping of tasks is partly dependent on human judgement, it could be considered
as a subjective method.RECALL CLASS DISCUSSION BECAUSE IT TAKES A HUMAN
BEING TO COMPILE COLLATE AND INTEGRATE THE DATA WHICH THEN BRINGS IN
SUBJECTIVITY ELEMENT]
HR Forecasting— Work Study
Technique

▪ It aims at examining the business

operations to achieve the optimum
utilisation of the human and physical
resources available.
▪ The major purpose of this technique is to
improve the employees’ productivity and
the organisational efficiency.
▪ This technique is normally carried out
through method study and work
measurement techniques
HR Forecasting— Zero-Base Forecasting

▪ Zero-base forecasting requires lines managers to

justify the need to continue with the positions or
jobs that fall vacant in their department.
▪ It does not consider any position as eligible for
routine continuance-no position is taken for
granted
▪ This method requires managers to conduct a
comprehensive study of the utility of each
vacancy before seeking replacements. This
technique is derived from the widely popular
concept of zero-base budgeting
What are statistical models of HRP?

 STATISTICAL MODEL--Statistical models generally relate employee number

demand to specific organisational circumstances and activities. Models can
take account of determining factors, such as production, sales, passenger
miles, level of service, finance available.

 Sophisticated models can take account of economies of scale, and other

relevant factors such as employee utilisation, resulting from the introduction
of new technology, or alternative organisational forms, such as high-
performance teams, or simply expecting people to work harder and for longer
hours
HR Forecasting— HOW IS IT DONE BY
SIMULATION

▪ Simulation model is a mathematics-oriented, software-enabled

technique
▪ This model simulate the HR requirement sceniaro[ HLL
detergent requirement in a particular territory in Banda near
Kanpur recruiting the a semi rural specialist sales force and
modelling against competitors such as Nirma and Patanjali
detergent] some and availability to determine the likely gap
between the demand for and the supply of human resources
▪ The working of the simulation model involves asking several
what-if questions to develop alternatives in the forecasting
process.
 HR Forecasting— Human Resource Allocation
Approach

▪ THIS METHOD HAS FOUR COMPONENTS.

▪ 1.EMPLOYEES INCLUDING EDUCATION EXPERIENCE AND COMPETENCIES.2.JOB FUNCTIONS

INCLUDING JOB STRUCTURE AND CHANGES IN THEM, 3.A FORMAL RULE STRUCTURE COMPRISING
THE FORMAL ALLOCATION, 4. WORKING TOWARDS A MATCHING MODEL
▪ THE MATCHING MODEL DEALS WITH ALLOCATION OF DIFFERENT JOBS TO EMPLOYEES. IT
EQUATES COMPETENCIES OF EMPLOYEES WITH THE COMPETENCIES OF THE JOBS. DEPENDING ON
THE OUT COME OF THE MATCHING MODEL AN ORGANISATION CAN FORECAST ANY ONE OF
THESE SITUATIONS GIVEN BELOW.

▪ THE ORGANISATION HAS THE NUMBER OF EMPLOYEES WITH THE APPROPRIATE COMPETENCIES.
THE ORGANISATION HAS A SHORTAGE OF EMPLOYEES TO FILL ALL JOBS THE ORGANISATION HAS
EMPLOYEES WHO HAS INAPPROPRIATE COMPETENCIES OR RENDERED SURPLUS DUE TO NON-
AVAILABILITY OF JOBS.
▪ AN ORGANISATION WILL HRF BASED ON THE SPECIFIC OUTCOME OF MATCHING MODEL. THE
METHOD PERMITS AN IN DEPTH ANALYSIS OF THE FACTORS AFFECTING THE HR FORECASTING OF
THE ORGANISATION.
▪ IT INVOLVES A COMPREHENSIVE ESTIMATION AND IS EASIER SAID THAN DONE AND IS DIFFICULT
TO IMPLEMENT.
HR Forecasting—Estimation of Availability
supply side

 This process involves the estimation of the availability of the

required number of employees
 The techniques for forecasting HR availability through internal
sources are
▪ Replacement Charts (These are Records that contain details
about the currently serving employees and the possible
replacements for them in their position)
▪ Turnover Rate,
▪ Human Resource Management Information System (HRIS),
▪ Productivity Level,
▪ Overtime and absenteeism, and
▪ Succession Planning
Developing HR Plans and Programmes

▪ The estimated HR needs are matched with

the estimated HR availability to identify
the skill shortage or surplus
▪ Based on the outcome, an appropriate HR
plans are developed
▪ The outcome of such comparisons would be
either the recruitment of more employees
or a reduction of the existing workforce.
Barriers to HR Planning Process

▪ Insufficient Realisation of the Importance

of HR Plans
▪ Glut in the Indian Labour Market
▪ Union Resistance
▪ Cost–Benefit Misconceptions
▪ Absence of Coordination
▪ Future Uncertainty
Right sizing and downsizing check the
difference

 http://ambler.com/article-
library/rightsizing-vs-downsizing-big-
difference/