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HUMAN RESOURCES PLANNING

TOPICS TO BE COVERED
Definition of HRP Importance of HRP Job Analysis HRP Process- In detail -Organizational objectives

-HRP needs forecasting -HRP Supply forecasting -HR Programming -HR Plan Implementation

-Control & Evaluation

DEFINITION :
process

by which an organization ensures that it has the right number & kind of people at the right place and at the right time, capable of effectively and efficiently completing those tasks that help the organization achieve its overall objectives.

DEFINITION :

HRP includes estimation of how many qualified people are necessary to carry out the assigned activities, how many people will be available, and what, if anything, must be done to ensure personnel supply equals personnel demand at the appropriate point in the future. HRP is a process of translating organizational objectives and plans into the number of workers needed to meet those objectives.

PURPOSE OF HRP
In simple words HRP is understood as the process of forecasting an organizations future demand for and supply of the right type of people in the right numbers. It is only after HRP is done, that the company can initiate and plan the recruitment and selection process. HRP is a sub-system in the total organizational planning. HRP facilitates the realization of the companys objectives by providing right type and right number of personnel. HRP is important because without a clear-cut manpower planning, estimation of a organizations human resource need is reduced to mere guesswork

IMPORTANCE
1)Each Organization needs personnel with necessary qualifications, skills, knowledge, experience & aptitude . 2)Need for Replacement of Personnel retired or disabled personnel. Replacing old,

3)Meet manpower shortages due to labour turnover Indian Airlines, Gas Authority of India headless for 10 months.

4)Meet needs of expansion / downsizing programs - As a


result of expansion of IT companies the demand for IT professionals is increasing. PSUs offering VRS to employees to retrench staff and labour costs.

5)Cater to Future Personnel Needs - Avoid surplus or deficiency of labour.


75% of organizations are overstaffed. Redeployment of staff to other units.

6)Nature of present workforce in relation with Changing Environment - helps to cope with changes in competitive forces, markets, technology, products and government regulations.
Shift in demand from ERP to internet programming has increased internet programmers demand at Wipro, Infosys etc. ITI retrained its existing workforce in the new electronic telephone system.

OTHER USES
i) quantify job for producing product / service ii) quantify people & positions required - determine future staff-mix iii) assess staffing levels to avoid unnecessary costs iv) reduce delays in procuring staff v) prevent shortage / excess of staff vi) comply with legal requirements

HRP PROCESS

1. 2. 3. 4. 5.

HRP process as such includes following elements or sets for planning Overall Organization Objectives Business Environment Forecasting Manpower Needs Assessing Manpower Supply Matching Manpower Demand-Supply factors

HRP PROCESS - DETERMINATION OF QUANTITY OF PERSONNEL


Organisational Objectives

HR Needs Forecast
HR Programming

HR Supply Forecast

HRP Implementation Control & Evaluation Surplus - Restricted Hiring, Lay Off, VRS, Reduced Hours Shortage - Recruitment & Selection

ORGANISATIONAL OBJECTIVES & POLICIES


Downsizing / Expansion Acquisition / Merger / Sell-out Technology upgradation / Automation New Markets & New Products External Vs Internal hiring Training & Re-training Union Constraints

HR DEMAND FORECAST
process of estimating future quantity and quality of manpower required for an organisation.

External factors - competition, laws &

regulation, economic climate, changes in technology and social factors Internal factors - budget constraints, production levels, new products & services, organisational structure & employee separations

FORECASTING TECHNIQUES
Managerial Judgement - Managers discuss and arrive at a figure of inflows & outflows which would cater to future labour demand. Ratio-Trend Analysis - Studying past ratios, ie No. of Workers Vs Volume of Sales, forecasting future ratios and adjusting for future changes in the organisation.. Work-Study Technique - Used when length of operations and amount of labour required can be calculated. Delphi Technique - From a group of experts the personnel needs are estimated.

HR SUPPLY FORECAST
process of estimating future quantity and quality of manpower available internally & externally to an organisation.

Supply Analysis Existing Human Resources Internal Sources of Supply External Sources of Supply

EXISTING HUMAN RESOURCES


Capability / Skills Inventory using HR Information System
General Information Name: Present Address: Sex: DOB: Marital Status: Permanent Address: Qualification Degree/Diploma Department: Designation: DOJ: Salary: Grade:

Institution

Class

Year of Pass

Experience/Skills Job Title/ Organisation Brief Skill/ Appointment Responsibilities Specialisation Outstanding Achievement / Additional Information Awards Performance Disciplinary Action Promotions Merit Rating Absenteeism Achievements Career Plans:

INTERNAL SUPPLY
Inflows & Outflows - The number of losses & gains of staff is estimated.

Turnover Rate - refers to rate of employees leaving. = ( No. of separations in a year / Avg no. of employees during the year ) x 100 Absenteeism - unauthorised absence from work. = ( total absentees in a year / Avg no. of employees x No. of working days) x 100
Productivity Level - = Output / Input. Change in productivity affects no. of persons per unit of output. Movement among Jobs - internal source of recruitment, selection and placement

EXTERNAL SUPPLY

External recruitment, selection & placement Advertisements, Manpower Consultants, Campus Recruitment, Unsolicited Applications, Employee Referrals

Yield ratios - are estimated in the process of hiring applications. Hiring Process Ratio

Ad generates 2000 applications. 200 are potential Out of 200, 40 attend interview Out of 40, 30 were offered jobs Out of 30, 20 accepted Overall Yield Ratio (2000:20)

10:1 5:1 4:3 3:2 100:1

HR PROGRAMMING
Balancing Demand and Supply

Vacancies filled in by the right employee at the right time

HR PLAN IMPLEMENTATION

Recruitment, Selection & Placement

Training & Development


Retraining & Redeployment Retention Plan Downsizing Plan

CONTROL & EVALUATION

Are Budgets, Targets & Standards


met?

Responsibilities for Implementation &


Control

Reports for Monitoring HR Plan

FACTORS AFFECTING HRP


Type & Strategy of Organizations Organizational Growth cycles & planning Environmental uncertainties Time Horizons Type & Quality of Information

JOB ANALYSIS
Organizations consist of jobs that have to be staffed. Job Analysis is the procedure through which you determine the duties of these positions and the characteristics of the people to hire for them. Job Analysis produces information for writing job descriptions (a list of what the job entails) and job specifications (what kind of people to hire for the job) Virtually every personnel related action an HR person takes depends on knowing what the job entails and what human traits one needs to do the job well.

JOB ANALYSIS
The following types of information via the job analysis: Work Activities- the actual work activities of the job , may also include how, why, and when the worker performs each activity Human Behaviours- that the job requires, job demands Machines, tools, equipment and work aids- information regarding tools used, materials processed, knowledge applied & services rendered Performance Standards- in terms of quantity or quality levels for each job duty Job Context- physical working conditions, work schedule & organizational & social context Human Requirements- job related knowledge or skills & required personal attributes

HRP PROCESS - DETERMINATION OF QUALITY OF PERSONNEL

Job Analysis

process of collecting and studying information relating to the operations and responsibilities of a specific job.
determination of tasks which comprise the job and of

skills, knowledge, abilities and responsibilities required of


the worker for a successful performance and which differentiates one job from all others.

products of Job Analysis are Job Description & Job Specification

USES OF JOB ANALYSIS

Job Analysis

JD & JS

Recruitment & selection decisions

Performance Appraisal

Job Evaluationwage & salary decisions

Training Requirements

JOB ANALYSIS INFORMATION HIERARCHY

OCCUPATION

Smallest unit into which work can be divided

Distinct work activity

Number of tasks

ELEMENT TASK

DUTY

POSITION

JOB

JOB FAMILY

CAREER

STEPS IN JOB ANALYSIS


Collection of Organisational Structure Information Selection of Representative Position to be Analysed Collection of Job Analysis Data

Developing Job Description

Developing Job Specification

COLLECTION OF DATA Who Collects ? - On-the-job Employees, Supervisors, Consultants / trade job analyst

What to Collect
- Physical & Mental activity involved - Each task essential to achieve overall result - Skill / Educational factor needed for the job

- Checklist, Interview, Observation, Participation, Technical Conference, Diary Method, Quantitative techniques

How to Collect ?

AREAS IN WHICH INFORMATION MAY BE GATHERED :

Job title Alternative title Work performed Equipment, Tools & Materials used Reports & records made Relation of the job to other jobs Education & experience required Physical, Mental& Visual effort required Responsibility (for equipment, reports,
performance) & duties Supervision given & received Hazards, Discomfort & Safety

JOB ANALYSIS PROCESS OF OBTAINING ALL PERTINENT JOB FACTS


Job Description
A proper definition & design of work. A statement containing:
Job Title Location Job Summary Duties & Responsibilities Materials, Tools & Equipment used Forms & reports handled Supervision given / received Working conditions Hazards & Safety precautions

Job Specification
A statement of human qualifications necessary to do the job containing:
Education & Qualifications Experience & Training Knowledge & Skills Communication skills Physical requirements - Height, Weight, Age Personality requirements Appearance, Judgement, Initiative, Emotional stability

JOB ANALYSIS METHODS


There are 6 widely used methods for JA: Observation method Individual interview method Group interview method Structured questionnaire method Technical conference method Diary method

PURPOSE / USE OF JOB ANALYSIS


Organisation

& Manpower planning Recruitment & Selection Job Evaluation & Wage, Salary administration Job Re-engineering Employee Training & Managerial Development Performance Appraisal Health & Safety

RECRUITMENT

Meaning and Definition Purposes and importance Factors governing recruitment Recruitment process- Internal, External Searching Screening Evaluation and Control Evaluation of Recruitment Process Evaluation of Recruitment methods Philosophies of Recruitment

DEFINITION AND MEANING OF RECRUITMENT


According to Edwin B. Flippo, Recruitment is the process of searching the candidates for employment and stimulating them to apply for jobs in the organisation Meaning: Recruitment is the activity that links the employers and the job seekers. A process of finding and attracting capable applicants for employment

RECRUITMENT
Recruitment

is the discovering of potential applicants for actual or anticipated organizational vacancies is the process of searching for prospective applicants and stimulating & encouraging them to apply for jobs in an organization. recruitment forms the first stage in the process which continues with selection and ends with the placement of the candidate

It

Thus,

PURPOSE AND IMPORTANCE


To determine the present and future requirements of the organization Increase the pool of job candidates at minimum cost Help increase the success rate of the selection process Help reduce the probability of employee turnover

PURPOSE AND IMPORTANCE


Meet

the organizations legal and social obligations regarding the composition of its workforce Identifying and preparing potential job applicants who will be appropriate candidates. Increase organizational and individual effectiveness in the short terms and long term Evaluate the effectiveness of various recruiting techniques and sources for all types of job applicants

FACTORS GOVERNING RECRUITMENT


External Factors Supply and Demand Unemployment Rate Labour Market Political- Social Sons of Soil Image

Internal Factors Recruiting Policy HRP- carried or not Size of the Organization Cost of recruiting Organizational growth & expansion

RECRUITMENT PROCESS
Recruitment Planning Strategy Development1. Make or Buy 2. Technological Sophistication 3. Where to Look 4. How to Look (Methods of Recruitment) Searching Screening Evaluation & Control

STEPS IN RECRUITMENT PROCESS


1.

2.

3. 4. 5. 6. 7.

Identify vacancy Prepare job description and person specification Advertising the vacancy Managing the response Short-listing Arrange interviews Conducting interview and decision making

METHODS OF RECRUITMENT
Internal Recruitment Present Employees Employee Referrals Former Employees Previous Applicants External Recruitment Professional or Trade Associations Advertisement Campus recruitment Consultants Radio and Television

EVALUATION OF RECRUITMENT PROCESS


Return Rate of applications sent out Number of suitable candidates for selection Retention and performance of the candidates selected Cost of the recruitment process Time lapsed Comments on image projected

EVALUATION OF RECRUITMENT METHODS


Number of initial enquiries received which results in completed application forms Number of candidates at various stages of the recruitment and selection process Number of candidates recruited Number of candidates retained in the organization after six months

PHILOSOPHIES OF RECRUITMENT
Traditional Philosophy- Shotgun approach Modern Philosophy- Rifle approach i.e. matching the needs of the organization to the needs of applicants - Realistic Job Preview - Job Compatibility Questionnaire

SELECTION
Definition According to Thomas stone Selection is the process of differentiating between applicants in order to indentify and hire those with a greater likelihood of success on the jobs. In simple words
It is the functions perform by the management of selecting the right employees at the right time After identifying the sources of human resources, searching for prospective employees and stimulating them to apply for jobs in an organization .

The objective of the selection decision is to choose the individual who can most successfully perform the job from the pool of qualified candidates.

SELECTION PROCESS FLOWCHART


Job analysis
Recruitment

Application form
Written examination Preliminary interview Tests Medical examination Reference checks Line managers decision

DIFFERENTIATION BETWEEN RECRUITMENT AND SELECTION


Recruitment
1.

Selection
It Involves the series of steps by which the candidates are screened for choosing the most suitable persons for vacant posts. The basic purpose of selection process is to choose the right candidate to fill the various positions in the organisation.

It the process of searching the candidates for employment and stimulating them to apply for jobs in the organization. The basic purpose of recruitments is to create a talent pool of candidates to enable the selection of best candidates for the organisation, by attracting more and more employees to apply in the organisation. Recruitment is a positive process i.e. encouraging more and more employees to apply . Recruitment is concerned with tapping the sources of human resources. There is no contract of recruitment established in recruitment

2.

3.

4.

Selection is a negative process as it involves rejection of the unsuitable candidates. Selection is concerned with selecting the most suitable candidate through various interviews and tests. Selection results in a contract of service between the employer and the selected employee.

5.

IMPORTANCE OF RECRUITMENT AND SELECTION


Helps to get a proper candidate. Help to increase success rate. Help to reduce the probablity. Helps to get organizations legal and social obligations. Helps to increase organization and individual effectiveness.

PLACEMENT

Placement involves assigning jobs to the selected candidates It is matching of what the supervisor has reason to think the candidate can do which the job demands Most employees are put on a probation period after which his/her employment is confirmed Only in rare cases an employee once placed, is asked to quit from his/her job

IMPORTANCE OF PLACEMENT

It helps in reducing employee turnover. It helps in reducing absenteeism.

It helps in reducing accident rates.


It avoids misfit between the candidate and the job.

ORIENTATION, INDUCTION OR INDOCTRINATION

It is welcoming a new employee to the organization


Billimoria defines induction as a technique by which a new employee is rehabilitated into the changed surroundings and introduced to the practices, policies and purposes of the organization

OBJECTIVES OF INDUCTION

To reduce the initial anxiety all new entrants feel when they join a new job in a new organization To familiarize the new employees with the job, people, work place, work environment in the organization

To facilitate outsider-insider transition in an integrated manner

To reduce exploitation by the unscrupulous co-workers To reduce the cultural shock faced in new organizations

INDUCTION PROCEDURE

The procedure should basically follow these steps:

First, the new person needs time and a place to report to work Second, it is very important that the supervisor or the immediate boss meet and welcome the employee to the organization Third, administrative work should be completed Fourth, departmental orientation to be conducted Fifth, verbal explanations are to be supplemented by a wide variety of printed material

INFORMAL INDUCTION

This is an unplanned induction programme. This may be simply an introduction to the new entrant about the job and organization It may last for one hour or so and there can be two versions:

Supervisory system

Immediate supervisor conducts the induction

Buddy or sponsor system

Immediate supervisor assigns the responsibility of induction to an old employee

FORMAL INDUCTION

It is a planned programme carried out to integrate the new entrant into the organization

This is usually carried out by large organizations


It includes the following contents:

Brief history of the organization Organizational mission, vision, objectives and philosophies Policies and procedures Rules and regulations Organizational structure and authority relationships Terms and conditions Welfare and safety measures

PHASES OF INDUCTION PROGRAMME

General induction

This is the first phase of induction carried out by the HR dept. Focus is to expose the new entrant to the organization Employee is briefed about his service conditions, pay and perks, promotion procedure, etc. This period of induction may vary from few days to few weeks

PHASES OF INDUCTION PROGRAMME

Specific induction

This is given by the employees supervisor The focus is on the overall exposition of the new employee to his job This training helps the new employee adjust to his work environment This may last for a few weeks or even months

PHASES OF INDUCTION PROGRAMME


Follow-up

induction

The main objective is to verify whether the new employee is getting himself adjusted with the work or not This is either given by the employees immediate supervisor or a specialist on industrial psychology

Feedback from this follow-up induction can be used to assess the requirements of guidance and counseling for the new entrants