HRA&D U1

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HUMAN RESOURCE PLANNING

Unit 1

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Issues in SHRM

EmploymentDevelopment

Performance AppraisalCompensationIndustrial Relations

Work SystemsOrganizational Culture

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Issues in SHRMEmployment: internal or external source oroutsourcing.Development: in-house training or external,competency building or ad-hoc training.Performance Appraisal: based on behaviour orbased on results, group or individual criteria,developmental or remedial oriented, results for pay

or promotionCompensation: high base salaries or low basesalaries with high perks. Fixed or flexible package,

equal or discriminated pay etc.

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Issues in SHRM

Industrial Relations: Individual negotiation orcollective negotiation. Broad employeeparticipation vs limited employee participation,partial employee ownership or no employeeownership, employee compliance orempowerment.Work Systems: Job enrichments or simplified jobs,

implicit or explicit job analysis, specialized jobs or job rotations.Organizational Culture: multi-culture vs single

culture.

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HR & STRATEGIC PLANNING

Corporate Level StrategiesExpansion

DiversificationAcquisition & MergersRetrenchmentUn it Level StrategiesLow Cost LeadershipDifferentiation

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Introduction

± First, types and number of jobs are to beidentified.

±

Then number and kind of people requiredhas to be estimated. ± Strategies and strategic plans serve as the

basis of human resource planning.

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Definition

Process by which an organization move from itscurrent manpower position to desired manpowerposition. (E.W.Vetter)HR Planning is an integrated approach to performthe planning aspect of the personnel function inorder to have a sufficient supply of adequatelydeveloped and motivated people to perform theduties and tasks required to meet organizational

objectives and satisfy the individual needs andgoals of organizational members.(Leon.C.Megginson)

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ObjectivesTo recruit and retain human resources of required quantityand quality.To foresee the employee turnover.To meet the needs of expansion, diversification.

To foresee the impact of technology on work, existingemployee and future human resource requirements.To improve the standards, skill, knowledge, ability, disciplineetc.To minimize imbalance caused due to non-availability of human resources of right kind, right number in right time andright place.

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CharacteristicsChecks the corporate plan of the organization.Offsets uncertainties and changes to the maximum extent possibleand enables the organization to have the right men at right time andin right place.Provides scope of advancement and development of employeesthrough training, development etc.

Helps to anticipate the cost of salary enhancement, better benefitsetc.Helps to anticipate the cost of human resources to facilitate theformulation of budgets in an organization.To plan for physical facilities, working conditions and volume of fringe

benefits like canteen, schools, hospitals, conveyance etc.Gives an idea of type of tests to be used and interview techniques inselection based on the level of skills, qualifications, intelligence,values etc of future HRHelps to improve human contribution in the form of increased

productivity, sales, turnover etc.

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Need for PlanningThe shortage of certain categories or variety of skills.The changes in technology, marketing, managementetc and consequent need for new skills.The changes in organization design and structureaffecting manpower.The changes in government policiesThe labour laws affecting the demand for and supplyof labour.

Pressure from trade unions, politicians etc

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HRP Process1. Analyzing organizational plans.2. Demand forecasting3. Supply forecasting4. Estimating the net human resource requirements5. Action plan for redeployment, redundancy/retrenchment.6. Forecast future supply from all the sources.7. Action plan for outsourcing, recruitment, development

etc.

8. Modify the organizational plan.9. Retention plan

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1. Analyzing the Organizational Plans

Analyzing and breaking the organizational planinto production plan, technological plan, plansfor expansion, diversification.Helps in forecasting the demand for humanresources as it provides the quantum of futurework activity.

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2. Forecasting the overall human resourcerequirement

Jobs should be redesigned and re-analyzed keepingin view the organizational and unit-wise plans andprogrammes, future work quantum, future activity

or task analysis, future skills, values, knowledge andcapabilities of present employees and prospectiveemployees.Important forecasting methods are:

A) Management judgementB) Statistical techniquesC) Work study techniques

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A. Managerial Judgement

Managers who are acquainted with workload,efficiency and ability of employees, thinkabout future workload, future capabiliites of employees and decide on the number andtype of human resources to be required.It can be done using bottom-up approach andparticipative approach.

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B. Statistical Techniques

Two typesRatio Trend Analysis: The ratios are calculated for the pastdata and future ratios are estimated when there are changes inorganization

Econometric Models: These models are built up by analyzingthe past statistical data and by bringing the relationship among variables.These variables affect manpower requirement directly and indirectly like

investment, production, sales etc.

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C. Work Study Techniques

These techniques are suitable where thevolume of work is easily measurable.

Total production in terms of clear units areestimated in a year. Man hours required toproduce each unit is calculated giving dueweightage to absenteeism, rest etc.

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D. Scatter PlotUsed to investigate the possible relationshipbetween two variables that both relate to thesame event .

The data is displayed as a collection of points,each having the value of one variabledetermining the position on the horizontalaxis and the value of the other variabledetermining the position on the vertical axis.This kind of plot is also called a scatter chart ,scatter diagram and scatter graph .

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D. Scatter Plot

A scatter plot can suggest various kinds of correlations betweenvariables with a certain confidence interval. Correlations may bepositive (rising), negative (falling), or null (uncorrelated).If the pattern of dots slopes from lower left to upper right, it suggestsa positive correlation between the variables.

If the pattern of dots slopes from upper left to lower right, it suggestsa negative correlation.A line of best fit (alternatively called 'trendline') can be drawn inorder to study the correlation between the variables. An equation for

the correlation between the variables can be determined byestablished best-fit procedures. For a linear correlation, the best-fitprocedure is known as linear regression. Unfortunately, no universalbest-fit procedure is guaranteed to generate a correct solution forarbitrary relationships.

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D. Scatter Plot

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E. Delphi MethodThe D elphi method is a systematic, interactive forecasting methodwhich relies on a panel of experts.After each round, a facilitator provides an anonymous summary of the experts forecasts from the previous round as well as the reasons

they provided for their judgments.experts are encouraged to revise their earlier answers in light of thereplies of other members of their panel. It is believed that during thisprocess the range of the answers will decrease and the group willconverge towards the "correct" answer.Finally, the process is stopped after a pre-defined stop criterion (e.g.number of rounds, achievement of consensus, stability of results) andfinal rounds determine the results.

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E. Delphi MethodThe objective of the method was to combine expertopinions to assess the direction of long-term trends inscience and technology development, topics such asscientific breakthroughs, population control, automation,space progress, war prevention, weapon systems etc.Governments have widely acknowledged the value of collective intelligence from civil society, academic andprivate sector participants of the Delphi, especially in a fieldof rapid change, such as technology policies. In this sense,the Delphi method can contribute to a general appreciationof participative policy-making.

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3.Supply Forecasting

The first step of forecasting the future supplyof human resource is to obtain the data andinformation about the present humanresource inventory.Dimensions of human resource inventory are:Head count regarding total, department-wise, sex-wise, designation-wise,skill wise, payroll-wise etc.

Job Family Inventory: It includes number and category of employees of each job family. Eg:- clerks, cashiers, typist, stenos etc.Age Inventory: Includes age-wise number and category of employees.

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Supply Forecasting

Potential loss: Second step of supplyforecasting is estimation of future losses of human resources. Include voluntary quits,deaths, retirements, dismissals, layoffs etc.Potential Additions: are new hires, promotionsin, transfer in.

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Supply Forecasting

Analysing Sources of Supply:Both internal and external factors should be

analysed.Internal factors: training facility, salary levels,benefits, inter-personal relations etc.

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4. Estimating the Net HR Requirement

Net HR requirements in terms of number andcomponents are to be determined in relationto the overall HR requirements for a futuredate and supply forecast for that date.The difference between overall humanrequirements and future supply is to be foundout.

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5. Action Plan for Redeployment,Redundancy / Retrenchment

R edeployme n t Programmes:Outplacement: intended to provide career

guidance for displaced employeesEmployment in Sister OrganizationEmployment in Other Companies

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Action Plan for Redeployment, Redundancy/ Retrenchment

R edu n da nc y / R etre nc hme n t Programmes:OutplacementLayoff: due to slackness in business, machinery breakage,power failure etc.Leave of absence without payWork sharingReduced work hoursVoluntary retirementCompulsory retirementCreation of Ad-hoc projectsAttrition

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6. Forecast Future Supply

From various resources likeinternal sources,

comparable organizations,educational and training institutes,employment exchanges,

labour market

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7. Action Plan

For:Outsourcing

Recruitment and Selection PlanTraining and Development PlanProductivity Plan

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8.Modify the Organizational Plan

If the future supply of human sources isestimated to be inadequate or less than therequirements, the manpower planner has tosuggest the management to modify theorganizational plan.

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9. Retention PlanAdjustment of the salary levels with those of comparable industries.Providing opportunities for career development, providing trainingfacilities, adopting the policy of promotion form within, moresystematic promotional procedure, providing opportunities for self-development, assignment of challenging work etc.Introduction of effective consultation and negotiating machinery,encouragement of grievance redressing and conflict resolution ratherthan suppressing.Provide more conducive working conditions and extensive fringebenefits.Provide extensive participation of employee in decision-making.

Provide the facilities and environment for conducive interpersonalrelations.Provide the scope for challenging, creative and innovative work.

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HRA&D U1