Manpower Planning and HR Metrics

BASED ON THE DATA FROM ASHOK LEYLAND

HRD TALENT TRIANGLE

Talent Acquisition

Talent Development

Talent Management

TALENT ACQUISITION
Organization structuring Manpower planning Staffing On-boarding

MANPOWER PLANNING

A process of selecting and putting right number of

people, right kind of people at the right time, right place, doing the right things for which they are selected which in turn help in achieving the goals of the organization

WHY MANPOWER PLANNING IS IMPORTANT ?

Provides input regarding talent availability and necessity

Efficient utilization of resources: Optimization of resources

Work Load Balancing

Motivation: Group motivation and Individual motivation Better human relations provides Job security and improves

human relations

Higher productivity: Productivity will increase with right

people at Right job in Right Qty

WHY WE NEED MANPOWER PLANNING?

Any shortage or surplus can easily be identified and

the problem can be rectified. All the recruitments in our organization are based on manpower planning. Reduce the labor cost as overstaffing is avoided. Identify the available talents. Growth and diversification of business. Helps in the stability of a concern.

Barriers to HRP
Time consuming

Expensive
Inaccuracy Lack of top management support

Employee resistance
Incompatibility Approach conflict

Environmental changes

Prerequisites for a Successful HRP

Top-management support Proper linkage between HR plan and organizational

plan.

Periodic review and revision of the forecasting

techniques and the forecasts

Without long range planning concentration becomes

focussed on short-term needs resulting in crisis management reactions

An excellent and up-to-date HRIS Proper balance should be adopted between the

qualitative and quantitative approaches to HRP

Forecasting as a Part of Human Resource Planning

Demand Forecasting
Determine Organizational Objective
Demand Forecast For Each Objective Design Job Description and Job Requirement Aggregate Demand Forecast Does Aggregate Supply Meet Aggregate Demand Perform feasibility analysis

Supply Forecasting
Choose Human Resource Programs
Internal Programs Promotion Transfer Career Planning Training Turnover Control Internal Supply Forecast

External Programs Recruiting External Selection Executive Exchange

External Supply Forecast

Aggregate Supply Forecast

Manpower Demand Planning

Procedure for Evaluating Effectiveness Of Human Resources

Long range Objective & Plans

Overall Requirement For Human Resource

Inventory Of Present Human Resources

Net New Human Resource Requirement

Short Term Goals, Plans , Programs & Budgets

Work force Requirements by occupational categories job skills etc.

Inventory by Occupational categories skills, Demographic characteristics

Action Planning Replacement Or Addition by Transferring, Recruiting & Selecting

Job Analysis
Job Analysis: The procedure of determining the duties and skill requirements of a job and kind of person who should be hired for it.

Job Analysis

Job Description

Job Specification

Job Description
A list of job's duties, responsibilities, reporting

relationships , working conditions and supervisory responsibilities, one product of a job analysis.

Job Specification
A list of job's "human requirements", that is, the

requisite education, skills, personality, and so on, another product of job analysis.

Timescale For Human Resource Planning

Time Frame Requirement Basis Annual Budget (Operational Plans) Availability Action Plans to meet Requirements Body shoppers / contractors, overtime , recruitment on contractual terms, restructuring and layoffs.

< 1 year

Existing manpower + Contractual Manpower

1-2 years

Forecasted budget or forward budget (Business Plans)

Current Manpower Transfer, promotion, Projected restructuring, Attrition redundancy, Training and development

Timescale For Human Resource Planning

Time Frame Requirement Basis Long Term Plans Availability Action Plans to meet Requirements Succession plans, recruitment, training and development , restructuring , redundancy Succession plans, MDP, OD, redeployment, job restructuring

2-5 years

Projected manpower (including those trainees who will be inducted during the period) Labor market , education system

More than 5 years

Perspective plans

Forecasting Demand For Employees

Quantitative Methods

Qualitative Methods

Forecasting Demand

Quantitative Forecasting Techniques

Trend Analysis

Work Study Technique

Business and Planning Analysis New Venture Analysis

Computer Based Simulation Models

Trend Analysis of HR Demand at Ashok Leyland

18 BUSINESS FACTOR
YEAR

LABOR = PRODUCTIVITY
(SALES/EMPLOYEE)

HUMAN RESOURCES DEMAND

(NUMBER OF EMPLOYEES)

(SALES IN THOUSANDS)

2004 2005 2006

$2,351 $2,613 $2,935

14.33 11.12 8.34

164 235 352

2007
2008 2009 2010 2011* 2012* 2013*

$3,306
$3,613 $3,748 $3,880 $4,095 $4,283 $4,446

10.02
11.12 11.12 12.52 12.52 12.52 12.52

330
325 337 310 327 342 355
*Projected figures

Work Study Technique

Used when its possible to calculate the length of the

operation and labor involved.

Productive Hours/ Unit * Planned Volume * (1- Absentee) * ( 1 - Idle) = -----------------------------------------------------------------------Actual Working hours of Individual

Work Study Technique Demonstrated At Ashok Leyland

Qualitative Forecasting Techniques

Management Forecasts Centralized Approach Decentralized Approach Delphi Technique Nominal Group Technique

Meeting Demand

External Supply

Internal Supply

Meeting Demand

Internal Supply
Inflows & Outflows Turnover Rate Productivity Level

Internal Supply Movement Among Jobs

Absenteeism

External Supply
Advertisements, Manpower Consultants, Campus

Recruitment, Unsolicited Applications, Employee Referral. Data taken from recent report:
Hiring Process Ad generates 2000 applications, 200 are potential Ratio 10:1

Out of 200, 40 attend interview

Out of 40, 30 offered jobs Out of 30, 20 accepted Overall Yield(2000:20)

5:1
4:3 3:2 100:1

Analysis Of Current Manpower Requirement At Ashok Leyland

Current Problems
Excess manpower in Ennore and Hosur 1 plant

Union barrier for downsizing

New Talent requirement for our Uttarakhand Plant Lack of Skilled manpower at Uttarakhand

Learning and Development at new plant

Ageing of Ennore and Hosur 1 employee strength Poor Quality of Manpower at North Indian Plant

Solutions Proposed
Convert Ennore Plant as R&D and Pilot Built shops,

use technical Skills of Ennore experienced employees Transfer or Promote Ennore employees to new Plant NTTF technical collaboration for skill development Built New training centers in Uttarakhand.

HR Metrics Used In Manpower Planning

Current V/S Actual Manpower - To track the

manpower requirement. Skill Matrix For tracking internal skill set. Competency Matrix For checking GAP in the competency at the desired recruited role. Recruitment Effectiveness Matrix To check how many people are recruited using a particular type of recruitment.