Module 1 -

Human Resource Planning -(HRP)

Methods of HR Planning:
Job Analysis,
Job Description,
Job Specification
Job redesign
HRIS, HR Audit
5–2
Strategic Workforce Planning at Drexel Heritage Furnishings
Drexel Heritage Furnishings is a US-based, century-old manufacturer of
premium quality furniture. To plan its workforce needs in such a competitive,
volatile, and seasonally cyclical industry, the organization carefully monitors a
variety of internal and external indicators. The vice president of HR carefully
tracks incoming orders to monitor and project volume over the coming quarter.
In addition, the Purchasing Managers Index, a monthly measure of nationwide
business activity, is tracked. This index is a gauge of consumer sentiment about
the economy and is based on new orders, prices, inventories, and backlogs.
Additional indicators such as real estate activity—including construction
activity, mortgage rates, relocations, and market prices—are also monitored by
HR, as these factors can be tied to demand for home furnishings. Finally, trends
in employee compensation, including bonuses and stock options, are considered,
as such “add-on” compensation may be used as discretionary income for the
purchase of home furnishings
 Developing Talent at Procter & Gamble
Consumer goods conglomerate Procter & Gamble (P&G) has had a long, successful
history based on hiring at the entry level and developing and promoting its managers
and executives from within. The key to this success is the organization’s Build From
Within program, which tracks the performance of every manager within the
organization relative to his or her potential and next area for development.
Each of the organization’s top 50 jobs consistently has three internal replacement
candidates lined up and ready to assume responsibility.
Loyalty of employees is paramount to ensuring the success of such a program, and
P&G’s history of grooming and training its employees promotes such loyalty.
Fewer than 5 percent of the organization’s non-entry-level hires come from outside the
organization, and its rigorous and competitive screening process, in which fewer than 5
percent of applicants are hired, ensures that P&G hires those best suited for the
organization and its culture.
P&G’s 138,000 employees are tracked via monthly and annual performance reviews in
which managers discuss business goals, personal goals, and how they’ve trained others
to assume responsibility. The latter is a key factor in the upward mobility of any manager.
P&G prides itself in being able to fill any opening internally “in an hour.”
All executives are required to teach in the organization’s training programs, and the CEO
assumes direct responsibility for the development of the organization’s top 150
employees.

5–4
Human Resource Planning (HRP)
• HRP is the first component of HRM strategy
• All other functional HR activities are derived
from and flow out of the HRP process.
• Has its basis in considerations of future HR
requirements in light of present HR
capabilities and capacities.
• Is proactive in anticipating and preparing
flexible responses to changing HR
requirements.
• Has both an internal and external focus.
5–5
 Features of HRP
• Continuous Activity
• Clearly Specified Objectives
• Maintaining Inventory
• Assessing Staff Requirements
• Balancing Supply and Demand
• Developing Positive Work Environment
• Formulation of Policies

5–6
Five Major Objectives of HRP

5–7
 Types of HRP
On the Basis of Level:
Micro Level HRP- within the organization
Macro Level HRP - Done for Human Resource
Development at the national level by the Government -
similar to HRP in Corporates – Data.gov.in

On the Basis of Time Horizon

Short Term HRP - Quarterly & Annual Planning
Intermediate Term – about Two years
Long Term - More than Two years

On the Basis of Employment Level

Aggregate Planning –
Succession Planning
 Types of Planning
• Aggregate Planning
• unit forecasting (bottom-up planning)
• top-down planning
• Mixed method
• Markov Analysis
• Succession Planning
– Focuses on ensuring that key individual
management positions in the organization remain
filled with individuals who provide the best fit for
these critical positions.
5–9
5–10
5–11
HR Planning Process

5–12
Demand Forecasting- Methods

5–16
Example:
Total annual production Required – 3,00,000
Time Required for 1 unit = 2 hours
Time required for 3 lakh units – 6 lakh hours
Every worker 1500 hours/year
5–18
No. of workers required 6,00,000 / 1500 = 400 workers
Ratio-Trend Analysis
This is the quickest HR forecasting technique.
The technique involves studying·past ratios, say,
between the number of workers and sales in an
organisation and
forecasting future ratios, making some allowance
or changes in the organisation or its methods.

Example:
Let Ratio of Employee : Productivity be 1:200(According to Trends)
If the business needs to produce 2,00,000 units for the upcoming
year,
then the No. of employees required is 2,00,000 / 200 = 1000
HR Supply Forecasting

External Factors Affecting HR Supply

1. Supply and demand of jobs.

2. literacy rate of nation.

3. rate of population

4. industry and expected growth rate and levels

5. technological development.

6. compensation system based on education, experience,

skill and age.
HR Supply Forecasting

Internal Factors Affecting HR Supply

1. the possible movement of current employees through
promotions and transfers,
2. additional skills and capabilities acquired by current
employees from training and development
programmes
3. probability of utilisation of employees’ secondary and
tertiary skills and their unused and undeveloped
talents and aptitudes
4. actual or estimated trend of separation resulting from
superannuation, quitting, discharges and voluntary
retirement.
HR Supply Forecasting
Succession Planning -
Replacement Chart
https://youtu.be/YCdUmlOsP8w
HRIS- Human Resource Information System
HRIS
Features of HRIS systems include:

Applicant tracking systems (ATS) to help the

hiring process
HCM (human capital management)
Benefits administration software to manage
employee benefits
Payroll management tools for compensation
management
Tools to manage talent or manage employees
Workflow, scheduling, or resourcing tools

Ex: SAP SuccessFactors, Workday, Oracle

Fusion,PeopleSoft, Kronos Workforce Central.
Features of HRIS systems include:

Applicant tracking systems (ATS) to help the

hiring process
HCM (human capital management)
Benefits administration software to manage
employee benefits
Payroll management tools for compensation
management
Tools to manage talent or manage employees
Workflow, scheduling, or resourcing tools

Ex: SAP SuccessFactors, Workday, Oracle

Fusion,PeopleSoft, Kronos Workforce Central.
HR CHECKLIST

HR-Audit-Checklis
t.pdf
HR AUDIT REPORT

HR Audit Final
Report.pdf
NEW LABOUR CODES 2022:
They will have to work for a time period of not more than 48 hours. The
ones who work for 8 hours a day will have only one week off.

People who work for 12 hours a day in an organization will get three week
offs, and the ones that work 9 hours per day will be provided 2 week-offs.

The professionals who are leaving the country have to be sorted with the
final settlement completed within a time limit of 2 days of leaving the
company.

Female employees will benefit from an increase in maternity leave to 26

weeks.

Companies have to take permission from the female workers for the night
shift.
Proper facilities and security need to be assured to the female forces in an
organisation.
 4 Labour Codes
For ensuring workers’ right to minimum wages,
the Central Government has amalgamated
• 4 laws in the Wage Code,
• 9 laws in the Social Security Code,
• 13 laws in the The Occupational Safety,
Health and Working Conditions Code,
• and 3 laws in the Industrial Relations Code.
 Job Analysis, Job description and Job
Specification – Job redesign, HR
dashboard.
When Job Analysis Is
Performed ?
• When the organization is
founded
• When new jobs are created
• When jobs are changed
significantly as a result of new
technologies, methods,
procedures, or systems
Uses of Job Analysis
1. HRP
2. Recruitment & Selection
3. Training & Development
4. HR Audit
5. Job Evaluation and Job Design
6. Performance Appraisal
7. Career Planning
8. Safety and Health
Stages of Job Analysis
Job Description
JOb Specification(Job Requirements)

Example
://careers.ibm.com/job/13
086171/technical-business-
development-manager-
hybrid-cloud-infrastrure-
svs-remote/?
codes=IBM_CareerWebSite
Advantages of Job Analysis
Disadvantages of Job Analysis
Job Design - Objectives
Job Design - Objectives
 Job Design - Constituents
The Job Simplification means breaking the job into relatively easier sub-parts with the
intention to enhance the individual’s productivity by minimizing the physical and
mental efforts required to perform a complex job.

The Job Enrichment is the job design technique used to increase the satisfaction
among the employees by delegating higher authority and responsibility to them and
thereby enabling them to use their abilities to the fullest.

The Job Enlargement refers to the horizontal expansion of jobs wherein more and
more activities, and tasks are added to the existing job scope at the same level in the
organization.

Job rotation is the practice of moving employees between jobs in an organization.

These rotations are predominantly lateral, meaning that they happen between jobs on
the same level and are not considered promotions. They are also often temporary with
people moving back to their original job after a certain time. (Job rotation in Factories,
nurses, management trainees
https://www.digitalhrtech.com/job-redesign/
 Job ReDesign

Restructuring the
elements including tasks,
duties and responsibilities
of a specific job in order to
make it more encouraging
and inspiring for the
employees or workers is
known as job redesigning.
 Job ReDesign

Restructuring the
elements including tasks,
duties and responsibilities
of a specific job in order to
make it more encouraging
and inspiring for the
employees or workers is
known as job redesigning.
Advantages of Job Redesigning
HR Dashboard

The HR Dashboard is the visual representation of the metrics

that an HR manager needs to keep a track of to judge the
performance of different organizational departments. Apart
from the records of personnel, it includes the business
performance dashboard, marketing dashboard, sales
dashboard, finance dashboard, etc.

https://www.qlik.com/us/dashboard-examples/hr-dashboard
https://www.aihr.com/blog/hr-reporting-hr-report-
hr-dashboard/#Templates
HR OutSourcing Definition
‘A strategic decision that entails the external contracting
of determined non-strategic activities or business
processes necessary for the manufacture of goods or the
provision of services by means of agreements or
contracts with higher capability firms to undertake those
activities or business processes, with the aim of
improving competitive advantage’.
- Rodriguez and Robaina
Reasons for Outsourcing

https://www.qlik.com/us/dashboard-examples/hr-dashboard
 Most Common Outsourced HR
functions
1.  Background screening of applicants
2.  Risk Management
3.  Temporary Staffing
4.  Employee Assistance/Counselling
5.  Health Care Benefits
6.  Retirement Planning
7.  Performance Management
8.  Drug Screening