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Human Resource Planning & Development

Prepared by Dr. Pradeep Tomar 9416381108

Concept and perspective of HRM

HRM is the art of procuring, developing & maintaining competent workforce to achieve organization objective. HRM is the process of bringing the people & organization together, so that the goals and objectives of each are met

Concept of HRM
Human Resource Management is basically a procedure of developing potentialities & competencies of employees so that they get maximum satisfaction out of their work & give their best efforts towards organizational objectives. Give the best to the World you have, the best of the word comes to you.

Possible HR areas for core competencies

Personnel to HRM A Journey

HR department are not very concept in the organization structure. HRM < < < Personnel < < < Health & Happiness <<< Welfare Department. This department was seen and observed as place where less productive employee could placed where less productive employees could be placed with minimal damage to the organization's ongoing operations.

Scope of HRM
Manpower Aspects
Recruitment, Selection, placement training, appraisal, compensation, productivity etc.

Welfare Aspects
Working condition, amentias, facilities & benefits.

Industrial Relation Aspects

Union -Management relations, dispute settlement, grievance handling, discipline, collective bargaining.

Specific Objectives of HRM

Societal Objectives - Resource Allocation - Legal Compliance - Benefits - Union Mgt. Relations Organizational Objectives - H R Planning - Recruitment & Selection - Placement, Orientation - Training & Development - Appraisal & assistance

Functional Objectives - Placement - Transfer & Promotion - Potential Appraisal - Performance Appraisal Personal Objectives - Training & Development - Potential Appraisal - Performance Appraisal - compensation - Assessment

Functions of HRM
Managerial Function Operative Function - Planning - Organizing - Directing - Controlling > Acquisition Functions > Development Functions > Motivational Functions > Maintenance Functions > Integration Function > Refining Function - at top level - at the level of Dept. Head

Advisory Functions

Human Resource Planning

Human Resource Planning is the process by which organization ensures that it has the right number of people of right competencies at the right position at the right time. Human Resource Planning program is designed to accurately estimate the number of employees required with the essentially needed skills to match the organizational objectives.

Significance of HR planning
1. 2. 3. 4. 5. 6. 7. 8. 9. Future Human Resource Requirement Existence in highly Competitive world. Vibing well with the change Pool of talented Human Resource Curtailment of Cost International Business Strategies Expansion or contraction Base for all HRM Functions Designing Training & Development Programs

Linkage of organizational & HR Strategies

Factors that determine the HR Plans

External Factors Affecting HRP

Politico-legal Forces - Constitution of India & Political Parties policies about business and other affairs related to business Economic Forces - Industrial production, - agriculture - growth strategy - Population - national per cap. Income - money & capital markets -supplier - Competitor - customer & clients - Industrial Labor - impact of Globalization Technological Factors Socio- Cultural Factors

Internal Factors Affecting HRP

Organizational Culture & conflicts Employee Union Organization Plans, Policies & strategies Diversity Management Work Team

HRP at Macro & Micro Level

Organization level manpower planning cannot be done in isolation of macro issues. At Aggregative or macro level HRP is influenced by general environmental factor like, - employment - unemployment situation - demographic changes - legal control & Institutional policies - Policies on globalization & opening of Market

At the Organizational or micro level, HRP is influenced by - Technological changes - Organizational restructuring - Skill and competencies gap - Strategic objectives - Trade union pressure - Lead time for manpower procurements

HRP at Macro Level

Development of human resources is one of the important objectives of any country for long term economic growth. This is more visible from our economic planning, as governments over the year have been giving increasing priority to Population planning & control Literacy & Education Health & Medical Care Social security & housing etc.

Population Planning & Control

Population planning & control the Government of India has adopted a National population Policy (2000) to ensure population stabilization The policy emphasize on affordable reproductive health care, increased quality of life by enhancing service of primary & secondary education, sanitation, drinking water, housing, transport, communication & empowering women.

Factor Affecting Family Planning in India

1. 2. 3. 4. Low age at marriage Illiteracy Religious Attitude Myths, Fears and belief about contraceptives.

Literacy & Education

Education - to develop human resource at the macro level, the Government of India has also adopted a National Policy on Education in 1986 The policy provides a broad framework for complete eradication of illiteracy in the country by declaring basic primary level education up to standard V, free and compulsory.

Health & Medical Care

India has recorded disparity and regional imbalances. Although there is an increased allocation of 36.9% in 2000-2001 over 19992000 for central sector health services, at the state level, the situation is very dispensive

Social Security & Housing

Government have renewed its efforts by adopting the National housing and Habitat, 1998. Social security & overall quality of life 1. Jawahar Gram Samridhi Yogana (JGSY) 2. Employment Assurance Scheme (EAS) 3. Swaran Jayanti Gram Swarozgar Yogna(SJGS) 4. National Social Assitance Programme 5. Nehru Rozgar Yogana(NRY) 6. Prime Ministers Rozgar Yogana

Rate of growth in human resources, in turn, is determined by the two dimensions of human resources: Quantity and Quality

Quantity of Human Resource is determine by variable such as Population policy Population structure
Sex Composition Age Composition

Migration Labour force participation

Quality of Human Resource is influenced by status of variables like as

Education and training Health & nutrition
Three determinants of Health Status
Purchasing Power of the People Public Sanitation, climate & availability of medical facilities Peoples knowledge & understanding of health hygiene

Equality of opportunity

Segmentation in Labour Market

agricultural and nonagricultural, rural and urban, formal and informal, male and female, and skilled and unskilled.

Labour Market Analysis

labour Market Analysis

A Labour Market Observatory is: A network of people who observe what is going on in the labour market. They use information from LMIS to develop policy about the labour market in particular to reduce unemployment and to ensure that mismatch between skills supplied by institutions and skills demanded by job creators is minimized as far as is possible.


Collect labour market information Analyse the information Store the information in a systematic and easily retrievable way
Analyse existing information, undertake new studies, surveys Disseminate findings about the labour market; and Monitor and report on policies for skills development;

Factors considered in labour Market Analysis

1. 2. 3. 4. 5. 6. 7. 8. General Population Density Population Movement Age Distribution Social Class Unemployment rate Population With higher education Skill Level Skill Shortage

Factors Affecting demand for & Supply of labour on a Typical Labour Market
On the Demand Side On the Supply Side

National & Sectoral Development goals, monetary policy Technology options Consumer demand patterns and composition of produced goods and services Public and private saving and investment trends and patterns. Labour law regarding worker; safty, rewards, security training Tax structure, tax administration and investment incentive package Labour productivity: output per unit of manhour

Population growth and flow births, deaths, migration, are structure Education and training Environment, social and Cultural factors
Social Demands functions : Status in Society and meeting of basic needs Wage levels

Career guidance, counseling

(Job information and placement procedure)

Process of Labour Market Analysis

Labor market analysis is the process of:
1. Identifying the appropriate labor market for various types of positions. 2. Surveying the market to determine the salaries that are being paid for like positions. 3. Identifying market trends such as: ancillary pay, and merit and pay practices. 4. Establishing, adjusting, and/or recommending salary changes and/or structures for staff positions. 5. Consulting with management on their workforce needs.

Source of information include

1. Labour Market Trends 2. Labour Market Quarterly, Annual Social Trends Survey 3. Chamber of commerce ASSOCHAM - Associated Chambers of Commerce and Industry of India, CII - Confederation of Indian Industry, FICCI - Federation of Indian Chambers of Commerce and Industry 4. Training and Enterprise Councils

Labour Market Information System (LMIS)

An information system that transforms labour market data to information. An information system that supplies policy makers with key indicators of the labour market.

LMO website