INTRODUCTION

STRATEGIES TO MANAGE
HUMAN RESOURCE
SURPLUS

BY:SERWAT GHANI
 INTRODUCTION

 Determine the supply of human resource.

 Forecasting labor surplus.
 Determining in what position there will exist a labor
surplus
 Identifying the strategies to solve the problem of
surpluses
 Definition

SURPLUS:

 Something that remains above what is used or

needed.
 A quantity or amount in excess of what is required.
 That which remains when use or need is satisfied or
when a limit is reached; excess; over plus.

LABOR SURPLUS:
A manpower surplus is when there are more people
than jobs. This leads to a positive unemployment rate
within the nation.
 Analyzing Human Resource
Supply
Every organization has two sources of supply of
human resources.
 Internal
 External

Internally, human resources can be obtained for

certain posts through promotions and transfers.
Once the future internal supply is estimated,
supply of external human resources is analyzed.
 Determining Labor Supply

 Internal labor supply:

1. How many people are currently in various job
categories.
2. Transfers.
3. Promotions .
 

 A transitional matrix.
 IMPORTANCE OF
MANAGING HR SURPLUS
AND PROBLEMS OF
SURPLUS SITUATION

BY :
NAZIA MAQSOOD
WHY MANAGEMENT OF HR
SURPLUS IS IMPORTANT

How the surplus situation occurs?

What problems are accompanied with this situation?
Importance of the management of surplus workforce
HOW THE SURPLUS SITUATION
OCCURS ?

HR Surplus occurs when our workforce extends

beyond the required limit.
Introduction of automation causes an HR surplus
During recessions or low productivity periods
firms face HR surplus situation
Inefficient labor hiring due to political intervention
PROBLEMS OF HR SURPLUS

Increased production cost and decreased

profitability
Administrative problems
 Inefficient and inappropriate use of skills
IMORTANCE OF MANAGING
HR SURPLUS

Budget making
Product price determination
Labor cost and competitive advantage
Labor based economy
Strategies to Manage
Labor Surpluses

BY:
NABEEL AHMED KHAN
 Strategies to Manage Labor
Surpluses
The subsequent list are strategies you can implement within your
organization for managing surpluses. Strategies for managing shortages
include: recruiting new permanent employees, working current staff
overtime, rehiring retirees part-time, and redesigning job processes so that
fewer employees can temporarily fill-in, and hiring temporary employees
following can be an effective strategies for managing HR surplus.
 Hiring Freezes

 The pro for hiring freezes is that it compels managers to

align its workforce more efficiently, whereas the con for
hiring freezes is that it dumps additional work on
employees who already feel overburdened.
 Early Retirements

 This surplus management strategy has a pro of

cutting the organization’s high labor costs by
reducing its aging workforce in order to have one
that is more youthful and it can pay its employees
less (e.g. wage workers). The con is that the
organization would lose its veteran workers who
have a plethora of valuable experience.
Freeze salary and Benefit increases

Another strategy to manage HR surplus is to freeze

salary and benefits increases. This will be view as
less precise by the employees you really want to
retain than some of the other options
 Take Advantage of Normal
Employee Attrition

 The pro would be that the organization is cutting

labor costs. The con for this strategy is similar to
that for hiring freezes, but magnified. The
employees who stay would then have no choice
but to be tasked with more work due to the
reduction in the workforce.
Voluntary Severance and Leaves of Absence
Across the board Pay cuts
Reducing outsourced Work
Employee Training

BY:
MANSOOR HASSAN
 Leave Management

 HR administers all leave processes in accordance to

policy and law

 All leave are reported to HR for consistent

management of pay and benefits
 Leave Types

 Family medical leave of absence (FMLA) was implemented in 1993 to create

a balance between there family and career
 Personal leave of absence
 Annual leave
 Sick leave
 Maternity leave
 Family responsibility leave
 Study leave
 Religious leave
 Vacation leave
 Casual leave
 Earn leave
 Across-The-Board Pay Cuts

 If your company is in serious financial trouble staff will agree to a pay cut in
order that some or all jobs can be saved.
 You might decide to ask, e.g. only your senior staff above a certain level to take a
pay cut, or you might need to ask for a cut across the board.
 you will have to get agreement from each employee in writing which you must
then confirm by letter of variation to their employment contracts.
 To get them to agree it might be an idea to offer them some incentives which
could include:
 A promise to return pay to original levels once things start improving.
 Reduced hours.
 Flexible working arrangements.
 Allowing employees to buy extra holiday days.
 A pledge that if redundancy does become necessary after all their pay-offs will be
based on their original pay levels.
 Question?

 How Long Will the Reduction in Compensation

Last?
 Will the Decrease Adversely Affect Any of Your
Benefits?
 Will the Decrease Be Across the Board or Just
Within Certain Departments?
 When Will the Reduction Take Effect?
Reducing Outsourced Work.

 The pro for this surplus management strategy is

cost savings and the rebuilding of organizational
self-reliance, but the apparent con is the added
responsibility derived from the work the third
party was performing for the organization.
 Employee Training
 A competent workforce underpins the success of any
organization. It is crucial that staff possess the knowledge, skills
and competencies required for optimum performance.
Recognizing the training, development and learning needs
necessary to equip staff with the capabilities required to
contribute to business success and progress their careers is
therefore key
 Training fills the gaps when employees don’t know how to do
something
 Choose quality instructors and materials
 Stress training as investment
 Determine your needs
 Measure results
CONCLUSION

BY : RABIA IKRAM
 CONCLUSION

 HIRE TEMPORARY WORKERS.

 OFFER EARLY RETIREMENT.

 REDUCING WORK HOURS.

 EMPLOYEE TRAINING.

 LAYOFFS.
 TRANSFERS.
 COMPUTER TECHNOLOGY