3. hr planning ppt

7/29/2019 3. HR Planning PPT

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HUMAN RESOURCES PLANNING

S R Tulasi

Hyderabad

[email protected]


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CONTENTS

Introduction to Human resources planning

Integration of Strategic Planning with HR

Planning

Process and techniques of HR Planning

Control and review mechanism

Summary


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3 CS OF HRD

Commitment

With low commitment,

tasks may not be done at

all or done at a slow

pace that they lose

relevance

Culture

This is the sustaining

force and spirit for the

organization to live

Competencies

Ensure tasks are

completed cost

effectively, with

optimal efficiency

All 3 Cs are needed for the organization to succeed.


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WHAT DO WE UNDERSTAND BY

PLANNING !


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WHAT IS HUMAN RESOURCE PLANNING !

An Integrated approach to ensure supply ofadequately developed and motivated people to

perform the duties and tasks required to meet

organizational objectives and satisfy individual needs.

The activity of planning human resources is usually in

connection with the overall strategic planning of the

organization.

It provides linkage between different HR functions viz.compensation, benefits, staffing etc and the overall

strategic goals of the organization.


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Objectives of HR Planning

To recruit & retain the human resource of required quantity/quality

To foresee the employee turnover and make arrangements forminimising turnover and filling up of consequent vacancies

To meet the needs of expansion, diversification etc

To foresee the impact of technology on work, existing employees

and future human resource requirements

To improve the standards,skills,knowledge,ability,discipline etc

To assess the surplus/shortage of human resources & take

necessary measures

To maintain congenial industrial relations by maintaining optimum

level and structure of human resources


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BENEFITS OF HR PLANNING

Better view of the HR dimensions of businessdecisions

Enables placement of right people at right places

and in right time

Optimises HR costs through better HR

management.

Better development of managerial talent

Focus on physical facilities before a crisis develops

Helps firm up financial budget


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HRP AND ENVIRONMENT

Several environmental factors will need to be

scanned while developing Human Resources plansSocial/cultural/religious factors

Technological developments including automation/

IT etcEconomic factors both domestic and global

Political factors/ Legal requirements / Statutory

provisionsDemographic factors / gender/age/literacy

Industry growth trends, competition, new products

etc


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HRP AT DIFFERENT LEVELSNational level : Central Government develops HR

plans at national level & forecasts demand and

supply of Human Resources

Sectoral level :Agricultural/Industrial/Service etc

Government in consultation with relevant Industry

associations & NGOs.

Industry level : Steel, cement, power, textiles,chemical etc

Organization level : Individual managements


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FACTORS AFFECTING HUMAN RESOURCES PLAN

External Factors Internal Factors

Govt Policies Company Strategies

Level of Economy HR Policy of the Company

Business Environment Formal & Informal groups

Information technology Job Analysis

Level of Technology Time horizons

Natural factors Type & Quality of

information

Outsourcing policies Operational policies

International factors Trade union related issues


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THE PROCESS OF HR PLANNING

Analyze organizational Strategies

Demand Forecast: HR Component-wise

Supply Forecast: HR Component-wiseNet HR requirement:

Surplus?

: Plan for Redeployment/RetrenchmentShortage

: Plan for recruitment / Training / Internal Mobility


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IMPORTANCE OF HRP

HRP matches the organisation and its

HR objectives with its people requirements

It ensures: that the available talent is correctly allocated

Personnel costs are optimised

the numbers are appropriate

productivity is maximised

talented employees are retained


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FACTORS THAT DETERMINE HR PLANS


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LINKAGE OF ORGANIZATIONAL AND HR STRATEGIES


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TYPICAL DIVISION OF HR RESPONSIBILITIES

IN HR PLANNING


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HR PLANNING PROCESS


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FORECASTING

METHODS


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HRP - FORECASTS

A forecast of the demandfor human

resources within the organisation

A forecast for the supplyofexternalhumanresources

A forecast of the supplyof human resources

available within the organisation


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APPROACHES TO HR PLANNING

Quantitative methods Use statistical and mathematical techniques

Used by theoreticians and professional

HR planners in large organisations.

Qualitative methods Use expert opinion (usually a line managers)

The focus is on evaluations of employee performanceand promotability as well as career development.


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INTERNAL DEMANDQUALITATIVE

Expert opinion Expert = usually the line manager

Delphi technique Individual decision making, followed by collation of

results and redistribution of information until consensus is

reached

Nominal group technique Independent idea generation, followed by a group

presentation and ranking of options


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THE DELPHI TECHNIQUELeader identifies judgment issues and develops questionnaire.

Prospective participants are identified and asked to cooperate.

Leaders send questionnaire to willing participants, who record

their judgments and recommendations and return the

questionnaire.

Leaders compiles summaries and reproduces participantsresponses.

Leader sends the compiled list of judgment to all participants.

Participants comment on each others ideas and propose a final

judgment.

Leader looks

for consensus

Leader accepts consensus judgment as groups choice.


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THE NOMINAL GROUP TECHNIQUE

A small group of 4-5 people gathers around a table. Leader

identifies judgment issue and gives participants procedural

instructions.

Participants write down all ideas that occur to them, keeping

their lists private at this point. Creativity is encouraged during

this phase.

Leader asks each participant to present ideas and writes themon a blackboard or flipchart, continuing until all ideas have been

recorded.

Participants discuss each others ideas, clarifying, expanding,

and evaluating them as a group.

Participants rank ideas privately in their own personal order and

preference.

The idea that ranks highest among the participants is adopted

as the groups judgment.


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INTERNAL DEMANDQUANTITATIVE

Trend analysis Or Time Series Analysis, makes predictions by

projecting past and present trends into the

future

Econometric modelling and multiple

predictive techniques Building complex computer models to simulate

future events based on probabilities and

multiple assumptions


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STATISTICAL TECHNIQUES USED TO PROJECT

STAFFING DEMAND NEEDS

NameRegression

analysis

Productivity

ratios

DescriptionPast levels of various work load indicators, such as sales,

production levels, and value added, are examined for statistical

relationships with staffing levels. Where sufficiently strong

relationships are found, a regression (or multiple regression)

model is derived. Forecasted levels of the retained indicator(s)

are entered into the resulting model and used to calculate the

associated level of human resource requirements.

Historical data are used to examine past levels of a productivity

index (P):

P = Work load / Number of People

Where constant, or systematic, relationships are found, human

resource requirements can be computed by diving predicted

work loads by P.


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STATISTICAL TECHNIQUES USED TO PROJECT

STAFFING DEMAND NEEDS (CONTD)

Name

Personnel ratios

Time series

analysis

Description

Past personnel data are examined to determine historical

relationships among the employees in various jobs or job

categories. Regression analysis or productivity ratios are

then used to project either total or key-group human resource

requirements, and personnel ratios are used to allocated total

requirements to various job categories or to estimate for non-

key groups.

Past staffing levels (instead of work load indicators) are used

to project future human resource requirements. Past staffinglevels are examined to isolate and cyclical variation, long-tem

terms, and random movement. Long-term trends are then

extrapolated or projected using a moving average,

exponential smoothing, or regression technique.


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INTERNAL SUPPLYQUALITATIVE

Skills inventory May be simple and manual

Detailed and maintained as part of the HR informationsystem

Replacement charts Visual representation of which employee will replace the

existing incumbent in a designated position when vacant

Succession planning Systematic, long-term career development activity

focusing on preparing high potential employees for thefuture


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INTERNAL SUPPLYQUANTITATIVE

Turnover analysis Examination of why employees leave an organisation.

Data: retirement, death, illness or disability, resignation,

retrenchment or termination.

Markov analysis Mathematical technique used to forecast the availability

of internal job applicants. Transition Matrix developed to assess probability of

moves.


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A SAMPLE TRANSITION MATRIX

Part A: Personnel Supply

Estimated Personnel Classification in Year T + 1 (%)

Classifications in Year T P M S Sr A Exit

Partner .70 .30

Manager .10 .80 .10

Supervisor .12 .60 .28

Senior .20 .55 .25Accountant .15 .65 .20

Part B. Staffing Levels

Estimated Personnel Availabilities in Year T + 1 (%)

Beginning

Classifications in Year T Levels P M S Sr A Exit

Partner 10 7 3

Manager 30 3 24 3

Supervisor 50 6 30 14

Senior 100 20 55 25

Accountant 200 30 130 40

10 30 50 85 130


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DEALING WITH SURPLUS RESOURCES

RedeploymentOutplacement within the organization through careerguidance

Skill improvement and redeployment

Organizational growth to facilitate redeployment

Employment in sister organizations

Redundancy/RetrenchmentOutplacement in other Organizations through guidance

Temporary / leave of absence without pay /permanent layoffWork sharing / reduced working hours

VRS / Early retirement / compulsory retirement

Attrition / Hiring freeze


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What appears in HR Planning ?

Mission or Purpose of the Statement Summary of financial projections

SWOT of HR

Summary of Performance

A job seekers market review

People Competency Profile

Major Assumptions

HR Objectives & strategies for the next years Detailed current year operational Plan, with

forecasts

and budgets


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REVIEW MECHANISM OF HRPPeriodic reports on manpower / internal and external

mobilityAudit manpower utilization / measurement of manpower

productivity

Survey of job satisfaction, morale, interpersonal

relations etc

Effectiveness of induction and other developmental

activities

Break even point/ Pay back period of new employees

Exit interviews / areas of concern / redressal

mechanism


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SUCCESSFUL HRPTHE ROLE OF HR

HR personnel to understand the role ofHRP processes

Top management to be supportive

Not to start with an overly complexsystem

Healthy communications between HRpersonnel and line managers

HR plan to be integrated with theorganisations strategic plan

Balance between qualitative andquantitative approaches


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SUMMARY

An efficient HRP is required for anorganisation to be effective

A complex system is not whats required

Measure of success of the system: if theright people are available at the right time

HRP needs to be fully integrated to theorganisations business plan

HR managers must be able to demonstratethe success of HRP processes


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GROUP STUDY - 1

Is the process of human resources

planning different for a green field factory

and an ongoing enterprise !

If so, enumerate the differences and

discuss


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GROUP STUDY - 2

There is a growing deficiency in soft/employability skills, with the focus on the

technical skills India is renowned for. Most

graduates have a poor non-technical skill,which impedes their effectiveness as workers

and reduces their productivity - From a studyreport on BRIC countries.

Discuss this statement


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GROUP STUDY - 3

Human Resources Planning does notdeal just with numbers but a whole lot ofissues beyond.

Is this statement correct !If so, what are those issues beyond !


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GROUP STUDY - 4

Delphi technique and Nominal group

technique are used to assess the

qualitative aspects on internal demand.

Compare the two techniques and discuss

their complimentary roles on demandanalysis


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GROUP STUDY - 5

Markov analysis also known as Transition

matrix is used as a quantitative tool in

the assessment of internal supply of

human resources.

Discuss its salient features and

usefulness in a fast changing IT Scenario.

3. hr planning ppt

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