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HRP Process

1. Forecasting the demand for human resources 2. Preparing the manpower inventory (Supply forecasting) 3. Determining manpower gaps 4. Formulating HR plans

Preparing manpower inventory


Internal labour supply - Forecasting Techniques Staffing Table Markov Analysis Skills inventory Replacement chart

Preparing manpower inventory


a) Internal labour supply i) Staffing table: What it contains? - shows the no. of employees in each job - classifies employees Purpose: indicates whether the present employees are properly utilised or not

Preparing manpower inventory


ii) Markov Analysis: What it contains? No. of employees who will be in various positions in the organisation in the future Purpose: Estimates the future availability of workforce based on the past data such as rates of promotion, transfer and turnover.

Markov Analysis An Example


2010-2011 Sales Mgr. (n=10) Asst. Sales Mgr (n= 20) Sec. Head (n=30) Dept. Heads (n= 40) Sales Executives (n=100) Sales Mgr. 80% (8) 15% (3) 20% (6) 25% (10) 10% (10) 70% (14) 60% (18) 60% (24) 70% (70) 20% (20) 15% (6) 20% (6) 15% (3) Asst. Sales Mgr. Sec. Head Dept. Heads Sales Ex. Exit 20% (2)

Forecasted supply

11

20

28

34

70

37

Preparing manpower inventory


iii) Skills inventory: - assessment of the knowledge, skills, abilities, experiences and career aspirations of each employee. Purpose : To quickly match forthcoming job openings with employee background

Skills Inventory
Name: Code no: Department: Education: Work Experience: Memberships: Special qualifications:
Hobbies: Computer Literacy: Languages known:

Position preference: Location Preference:

Employee signature: Date:

Signature of HR Manager:

Preparing manpower inventory


iv) Replacement Chart What it contains? Profile of the employees department-wise. Purpose: To identify who will replace whom when there is a opening.

iv) Replacement Chart


GM Mr. A (*/2)
*Promotable now ** Needs development *** not suitable to position 1 Good performance 2 Above average performance 3 Acceptable performance 4 Poor performance

P.A to G.M Mr. D (**/1)

AMG Mr. B (*/2) Mr. C (**/3)

Hr Manager Mr.E (*/1)

Pro. Manager Mr.F (***/2)

Sales Manager Mr.G (**/1)

R & D Manager Mr.H (**/3)

HRP Responsibility for HRP


HRD assists and counsels various HoDs in the following aspects To plan and set objectives To collect and summarise manpower data Monitor and measure performance and inform top management Effective manpower planning and organisational planning.

Problems in HRP
Uncertainty

Lack of top management support

Focus only on quantitative aspects

Guidelines for effective HRP


Based on the overall objectives Top management support Employee skills inventory HRIS Coordination