Professional Documents
Culture Documents
Top Management
HRP IS TO
SUBSERVE THE
OVERALL
ORGANIZATION OBJECTIVES BY
ENSURING
AL OBJECTIVES AVAILABILITY
AND
UTILISATION OF
HUMAN
RESOURCES.
Step 2: Organizational Objectives and
Policies
HR department must specify its objectives with regard
to HR utilization in the organization.
In developing these objectives, specific policies need
to be formulated
HR Objectives
Step 2: Organizational Objectives and
Policies
Ask these questions
1. Are vacancies to be filled by promotions from within or hiring from
outside?
2. How do the training and development objectives interface with the HRP
objectives?
3. What union constraints are encountered in HRP and what policies are
needed to handle these constraints?
4. How to enrich employee’s job? Should the routine and boring jobs
continue or be eliminated?
5. How to downsize the organisation to make it more competitive?
6. To what extent production and operations be automated and what can
be done about those displaced?
7. How to ensure continuous availability of adaptive and flexible
workforce?
Step 3: HR Demand forecast
Demand forecasting is the process of estimating the future
quantity and quality of people required.
Basis of the forecast must be the annual budget and long-term
corporate plan, translated into activity levels for each function and
department.
Example: In a manufacturing company, the sales budget
would be translated into a production plan giving the number and type
of products to be produced in each period.
The number of hours to be worked by each skilled category to make the
quota for each period, would be computed.
Once the hours are available, determining the quality and quantity of
personnel will be the logical step.
Step 3: HR Demand forecast
Demand competition (foreign
forecastin
g Externa and domestic),
economic climate,
factors organisational
structure, and
employee separations
Step 3: HR Demand forecast
There are several good reasons to conduct demand
forecasting.
It can help:
(i) quantify the jobs necessary for producing a given
number of goods, or offering a given amount of services;
(ii) determine what staff-mix is desirable in the future;
(iii) assess appropriate staffing levels in different parts of
the organisation so as to avoid unnecessary costs; (iv)
prevent shortages of people where and when they are
needed most; and
(v) monitor compliance with legal requirements with regard
to reservation of jobs.
WHAT ARE THE
DIFFERENT
FORECASTING
TECHNIQUE?????
Step 3: HR Demand forecast
Forecasting Techniques Forecasting techniques vary
from simple to sophisticated ones. Before describing
each technique, it may be stated that organisations
generally follow more than one technique.
The techniques are:
1. Managerial judgement
2. Ratio-trend analysis
3. Regression analysis
4. Work study techniques
5. Delphi technique
6. Flow models
Step 3: HR Demand forecast
Managerial Judgement This technique is very simple. In this,
managers sit together, discuss and arrive at a figure which would be
the future demand for labour.
The technique may involve a ‘bottom-up’ or a ‘top-down’
approach.
In the first, line managers submit their departmental proposals to
top managers who arrive at the company forecasts.
In the ‘top-down’ approach, top managers prepare company and
departmental forecasts.
These forecasts are reviewed with departmental heads and agreed
upon. Neither of these approaches is accurate—a combination of
the two could yield positive results.
Step 3: HR Demand forecast
Ratio-trend Analysis Ratio trend analysis involves
studying past ratios and forecasting future ratios
making some allowances for changes in the
organisation or its methods.
Ratio-trend Analysis
Step 3: HR Demand forecast
Regression Analysis
This is similar to ratio-trend analysis in that forecast is based
on the relationship between sales volume and employee size.
However, regression analysis is more statistically
sophisticated.
A firm first draws a diagram depicting the relationship between
sales and workforce size.
It then calculates regression line—a line that cuts right through
the center of the points on the diagram.
By observing the regression line, one can find out number of
employees required at each volume of sales
Regression Analysis
Step 3: HR Demand forecast
Work-study Techniques
Work-study techniques can be used when it is possible to apply work
measurement to calculate the length of operations and the amount of
labour required.
The starting point in a manufacturing company is the production
budget, prepared in terms of volumes of saleable products for the
company as a whole, or volumes of output for individual departments.
The budgets of productive hours are then compiled using standard
hours for direct labour.
The standard hours per unit of output are then multiplied by the
planned volume of units to be produced to give the total number of
planned hours for the period.
This is then divided by the number of actual working hours for an
individual operator to show the number of operators required.
Allowance will have to be made for absenteeism and idle time.
Work-study Techniques
Step 3: HR Demand forecast
Delphi Technique
The Delphi technique is a method of forecasting personnel
needs.
It solicits estimates of personnel needs from a group of experts,
usually managers.
The HRP experts act as intermediaries, summarise the various
responses and report the findings back to the experts. The
experts are surveyed again after they receive this feedback.
Summaries and surveys are repeated until the experts’ opinions
begin to agree.
The agreement reached is the forecast of the personnel needs.
The distinguishing feature of the Delphi technique is the absence
of interaction among experts.
Delphi Technique
Flow Models
Flow models are very frequently associated with forecasting personnel needs. The
simplest one is called the Markov model. In this technique, the forecasters will:
1. Determine the time that should be covered. Shorter lengths of time are
generally more accurate than longer ones. However, the time horizon depends
on the length of the HR plan which, in turn, is determined by the strategic plan
of the organisation.
2. Establish categories, also called states, to which employees can be assigned.
These categories must not overlap and must take into account every possible
category to which an individual can be assigned. The number of states can
neither be too large nor too small.
3. Count annual movements (also called ‘flows’) among states for several time
periods. These states are defined as absorbing (gains or losses to the company)
or non-absorbing (change in position levels or employment status). Losses
include death or disability, absences,resignations and retirements. Gains include
hiring, rehiring, transfer and movement by position level.
4. Estimate the probability of transitions from one state to another based on past
trends. Demand is a function of replacing those who make a transition.
Flow Models
https://www.youtube.com/watch?v=EqUfuT3CC8s
Step 3: HR Demand forecast
Use of Demand Forecasting Techniques
Use of demand forecasting techniques by organisations
(US). As seen from the table, 70 percent of the
companies use supervisor estimates (another name for
managerial judgements) and the famous Delphi
technique finds its acceptance only among three
percent of the sample organisations.
Step 4: HR Supply forecast
HR Supply Forecast
The next logical step for the management is to determine
whether it will be able to procure the required number of
personnel and the sources for such procurement.
This information is provided by supply forecasting, also
called bench forecasting.
Supply forecasting measures the number of people likely to
be available from within and outside an organization, after
making allowance for absenteeism, internal movements and
promotions, wastage and changes in hours, and other
conditions of work.
Step 4: HR Supply forecast
The supply analysis covers
Existing
human
resources,
External
sources of Internal
supply sources of
supply, and
Step 4: HR Supply forecast
1. Existing human resources,
1. Analysis of present employees is greatly facilitated by
HR audits(summarise each employee’s skills and
abilities)
2. HR audits of Non-managers are called skills
inventories and those of the management are called
management inventories.
Step 4: HR Supply forecast
2. Internal sources of supply
Armed with HR audits, planners can proceed with the
analysis of internal supply. The techniques generally used
for the purpose are:
(i) inflows and outflows,
(ii) turnover rate,
(iii) conditions of work and
(iv) absenteeism,
(v) productivity level, and
(vi) movement among jobs.
Inflows and Outflows The simplest way to forecast internal supply is the
inflows and outflows method.
Step 4: HR Supply forecast
Turnover rate is the traditional and simple method of
forecasting internal supply. Stated mathematically, the
turnover rate is
Step 4: HR Supply forecast
Conditions of Work and Absenteeism Changes in
conditions of work such as normal weekly working
hours, overtime policies, the length and timing of
holidays, retirement policy, the policy for employing
part-timers and shift systems need to be assessed.
Absenteeism is understood as unauthorised absence
from work. Stated differently, it amounts to
absenteeism when an employee is scheduled to work
but fails to report for duty.
Step 4: HR Supply forecast
Productivity Level Any change in productivity would
affect the number of persons required per unit of
output. Increase in productivity will reduce the
requirement, and decrease in it would have the
opposite effect.
Step 4: HR Supply forecast
Movement among Jobs Some jobs are sources of
personnel for other jobs.
For example, secretaries may be obtained by the
promotion of word processors, and branch managers
are obtained from a pool of section managers
Step 4: HR Supply forecast
External Supply
In addition to internal supply, the organisation needs to look
out for prospective employees from external sources.
Sources of external supply vary from industry to industry, organisation
to organisation, and also from one geographical location to another.
Step 5 HR Programming
Once an organization's personnel demand and supply
are forecast, the two must be reconciled or balanced in
order that vacancies can be filled by the right
employees at the right time.
Step 6: HR Plan Implementation
Implementation requires converting an HR plan into
action.
A series of action programmes are initiated as a part of
HR plan implementation.
Some such programmes are recruitment; selection and
placement; training and development; retraining and
redeployment; the retention plan; the redundance plan;
and the succession plan.
Step 7: Control and Evaluation
Control and evaluation represents the fifth and the final phase
in the HRP process
The HR plan should include budgets, targets and standards. It
should also clarify responsibilities for implementation and
control, and establish reporting procedures which will enable
achievements to be monitored against the plan.
These may simply report on the numbers employed against
establishment (identifying both those who are in post and those
who are in pipe line) and on the numbers recruited against the
recruitment targets.
But they should also report employment costs against budget,
and trends in wastage and employment ratios.
Succession Planning
Akash Ambani to head Reliance
Jio - that’s just phase I of Mukesh
Ambani’s succession plan
https://
www.businessinsider.in/business/corporates/news/mukesh
-ambani-steps-down-as-director-of-reliance-jio-akash-am
bani-appointed-chairman/articleshow/92521472.cms
Managerial Succession Planning
Need for good managers is critical and perpetual.
More and more organisations are planning for managerial
succession and development because they have found that it
takes years of systematic grooming to produce effective managers.
Methods of succession planning vary.
top management’s involvement and commitment,
high-level review of the succession plans,
formal assessment of the performance and potential of the candidates,
and
written development plans for the individual candidates.
Succession plan should centre on important jobs and should identify
correctly the skill requirement of those jobs.
Managerial succession planning
includes training programmes and
series of job assignments leading to
top positions
Components of Succession
Planning
Capacity
and Needs
Assessment
Develop
Monitor and
and
Manage the
Implement
plan.
Plan
Job Analysis
Meaning and Uses of Job Analysis, Process of Job
Analysis – Job Description, Job Specification,
Job Enlargement, Job Rotation, Job Enrichment
(Meanings Only)
Job Analysis
Job
▷A job may be defined as a “collection or aggregation of
tasks, duties and responsibilities which as a whole, are
regarded as a regular assignment to individual
employees”.
▷In other words, when the total work to be done is
divided and grouped into packages, we call it a “Job”.
▷Jobs can take the form of wage employment, self-
employment, and farming.
▷They can be formal or informal.
60
Jobs are the cornerstone of economic and social development.
Economies grow as people get better at what they do, as they
move from farms to firms, and as more productive jobs are
created and less productive ones disappear.
Societies flourish as jobs bring together people from different
ethnic and social backgrounds and nurture a sense of
opportunity.
Jobs are thus transformational—they can transform what we earn,
what we do, and even who we are.”
61
“
Each job has a definite title based upon standardized trade
specifications within a job; two or more grades may be identified,
where the work assignments may be graded according to skill, the
difficulty in doing them, or the quality of workmanship.
Further, a job may include many positions, for a position is a job
performed by, related to, a particular employee.
62
Meaning of Job Analysis
It is a systematic analysis of each job for the purpose of
collecting information as to what the job holder does,
under what circumstances it is performed and what
qualifications are required for doing the job.
63
Definitions of Job Analysis, Edwin
Flippo:
“
“JOB ANALYSIS IS THE PROCESS OF STUDYING AND
COLLECTING INFORMATION RELATING TO THE
OPERATIONS AND RESPONSIBILITY OF A SPECIFIC
JOB”.
64
THE PROCESS OF JOB ANALYSIS
Strategic Choices
Gather Information
Process Information
Job description
Job Specification
65
Strategic Choices
• With regard to job analysis, an organization is required to
make at least five choices:
1. The extent of employee involvement in job analysis.
2. The level of details of the analysis.
3. Timing and frequency of analysis.
4. Past-oriented versus future-oriented job analysis.
5. Sources of job data.
The extent of employee involvement in job
analysis
Employee Involvement is a debatable point.
• Too much involvement may result in bias in favour of a job, as the employee is likely to inflate the duties and
responsibilities of his jobs, just to make it appear more important than it actually is.
• On the other hand, if employees are not involved or only minimally involved, they tend to become suspicious
about the motives behind the job analysis.
Lack of involvement from employees may lead to inaccurate and incomplete information.
The extent to which employees are involved depends upon the needs of both the organisation and the employees.
In order to prevent employee dissatisfaction, uncertainty and anxiety, firms should communicate the reasons for
conducting the job analysis and keep the employees informed about the job-analysis process.
67
Level of Details
▷ The level of analysis may vary as in time and motion studies, to broad as in analyzing
jobs based on general duties.
▷ The level of analysis affects the nature of the data collected.
▷ The nature of job being analyzed determines the level of detail in job analysis.
○ For example, analyzing the number of movements an employee makes and the
frequency of job-related movements would be more relevant for a crane
operator’s job than a HR manager’s position.
▷ The level of details required in job analysis also depends upon the purpose for which job-
related details are being collected.
○ For example, if the primary purpose of analysing the job is for a mass input for
intensive training programmes or an input for assessing how much the job is
worth, the level of details required may be great .
▷ The job analysis is being done to add clarification to the rules and responsibilities of job
holders, a less-detailed job analysis may be needed.
68
Timing and frequency of analysis
When and How Often
Traditional job analysis information describes how the job has been
done in the past and the manner in which it is being currently done.
This will allow firms to begin hiring and training people for these jobs prior
to the actual change.
• For example, personal computers began to replace electronic typewriters, thus changing the
character of many typist jobs. Many companies anticipated these changes and began retraining
their typists before changing over to personal computers.
70
Source of Job Data
▷ Although the most direct source of information about a job is the job holder, a number of other
human and non-human sources are available
▷ These sources may provide information which an average job holder cannot, thereby enabling the job
analyst to question the job-holder more effectively
71
Gather Information
• This step involves decisions on three issues, viz;
1. What type of data is to be collected?
2. What methods are to be employed for data collection?
3. Who should collect the data?
So far as the type of data to be collected is concerned, it may
be stated that all details about the job need to be collected.
72
Gather Information
Personal Requirements
• Job-related knowledge
and/or skills
• Personal attributes
Gather Information
• The second question is :-
• What methods are to be employed for data
collection?
The methods for data collection.
(i) observation,
(ii) interview,
(iii) questionnaires,
(iv) checklists,
(v) technical conference, and
(vi) diary methods.
Gather Information
The third question is
Who should collect the data?
With regard to the persons employed to collect data, it
may be stated that three types of individuals are used.
They are—
Job description, indicates what all a job involves—tasks and responsibilities taged
on to a job, job title, duties, machines, tools and equipment, working conditions and
hazards form part of job description.
The capabilities that the job-holder should possess form part of job specification-
Education,experience,training,judgement,skills, communication skills and the like
are a part of job specification.
.
Job Specification and Job Description
What is important is that there should be fit between job demands (job description)
and abilities required to discharge the tasks (job specification).
1. HRP
Job Description
2. Recruitment and Selection
3. Training and Development
4. Job Evaluation
5. Renumeration
Job Specification 6. Performance Appraisal
7. Personal Information
8. Safety and Health
Recruitment –
Meaning, Methods of Recruitment, Factors
affecting Recruitment, Sources of
Recruitment
Introduction to Recruitment
Determine
Human Resource
Planning
Recruitment JOB ANALYSIS
and Selection
needs
Definition of Recruitment
• 1. Recruitment Policy
• The recruitment policy of the organization i.e. recruiting from internal sources and external sources also affect the recruitment process. The recruitment policy of an organization
determines the destinations or enlistment and gives a structure to usage of recruitment program.
• 2. Human Resource Planning
• Effective human resource process and procedure helps in fixing the loops present in the existing manpower of the organization. This also helps in filter the number of employees to
be recruited and what kind qualification and skills they must possess.
• 3. Size of the Organization
• The size of the organization affects the recruitment process. If the organization is planning to increase its operations and expand its business, it will think of hiring more personnel,
which will handle its operations.
• 4. Cost involved in recruitment
• Recruitment process also count the cost to the employer, thats why organizations try to employ/outsource the source of recruitment which will be cost effective to the organization for
each candidate.
EXTERNAL FACTORS
4. Employee
referrals. Walk-ins
E-recruiting.
Sources of Recruitment
• Advertisements
• Employment Exchanges
• Unsolicited Applicants
• Professional Organizations
• Data Banks
• Similar Organizations
• Present Employees
• Casual callers
• Employee Referrals
• Labor Contractors
• Former Employees
• Trade Unions
• Previous Applicants
• Gate Recruitments
• Campus Recruitment
• Recruitment Agencies
• Walk-ins, Write-Ins & Talk-ins
• Displaced Persons
• Competitors