Professional Documents
Culture Documents
HRP: An Overview
HRP is a process of analyzing & identifying the need for & availability of human resources (HR) so that organization can meet its objectives
Defining HR Planning
Strategy Oriented DEFINITION
1. 2.
A strategy for the acquisition, utilization, improvement & retention of an organizations human resources AIMS of HRP:
to ensure the optimum use of the people currently employed to provide for the future staffing needs of the organization in terms of skills, number, & ages of people
HRP establish control: planner work as a policeman who checks whether staffing levels are optimum
HRP is as a continuous process of analyzing an organizations HR needs under the changing conditions & developing the activities necessary to satisfy these needs like staffing, recruitment, selection, training, etc. Process aimed at assisting management to determine how the organization should move from its current staffing position to its desired staffing position
3
HR strategy
HRP activities
Differentiation
Long
Shorter
HR planning scope External staffing Hire HR capabilities required Hire & train for broad competencies Flexible jobs & employees
HR strategy
HRP activities
Bureaucratic
Build HR approach Planned & regularly Likely to emphasize training maintained policies to provide programs & internal for lean HR promotion
Prospector
Succeed Creative & flexible on change Favors strategies of product management style & / or market development Have high quality HR Emphasize redeployment & flexibility of HR Little opportunity for longterm HRP Acquire
Perspectives of HRP
MACRO HRP
Assessing & forecasting demand for & availability of skills at national / global level Predict the kinds of skills that will be required in future & compare these with what is / will be available in the country Eg.
Gillette merger with P&G whereby decided to restructure & move from business units based on geographic regions to global business units based on product lines which resulted in redundancy of some employees (Relocation to Singapore & VRS for others)
MICRO HRP
Process of forecasting demand for & supply of HR for specific organization Eg.
Wipro (a software giant in India) raising wages / short-listing students in their 2nd yr. of college for future employment in India Genpact (an IT solution company in India) launching an associate trainee program with Osmania University in India
6
JOB ANALYSIS
JOB group of positions that have similar duties, tasks, & responsibilities POSITION set of duties & responsibilities performed by one person
A job is a general term, a position is more specific. Eg. as my job, I am a teacher. But to be specific, my position is Elementary Gifted Specialist. Eg. someone might work at the grocery store as their job, but specifically, their position is produce assistant.
JOB FAMILY group of 2 / more jobs that have similar duties / characteristics TASK separate, distinct & identifiable work activity DUTY several tasks that are performed by an individual8
Terminology commonly used in JA RESPONSIBILITIES literature perform certain tasks & obligations to
duties
DUTY**BEHAVIOR SHOWING A PROPER REGARD / SENSE OF OBLIGATION, JUSTICE MORALITY, OCCUPATION OR POSITION. RESPONSIBILITY**OBLIGATION,TO DO WHAT IS ASK,IF YOU SAY YOUR GOING TO DO SOMEHTHING DO IT,TRUST,HONEST, TO CARE FOR ANOTHER WHEN ONE
JOB DESIGN process to ensure that individuals have meaningful work & one that fits in effectively with other jobs JOB DESCRIPTION written summary of the content & context of the job, outlining the tasks, duties, & responsibilities of a job, as well as performance standards of each job JOB SPECIFICATION written statement of the KSA & other characteristics (human requirements) that are necessary for performing the job effectively & satisfactorily 9
is to be done? How is to be done? (CONTENT) what conditions is the job to be done (CONTEXT) KSA & other characteristics are required to perform the job (HUMAN REQUIREMENTS)
10
Under
What
JOB CONTENT
Duties & responsibilities Job demands Machines, tools, & equipment Performance standards
JOB CONTEXT
Physical, organizational & social context Work conditions, & work schedule
HUMAN REQUIREMENTS
Components of a JA
JOB
DESCRIPTION
of tasks, duties, responsibilities, & context
Statement
of the job
JOB
SPECIFICATION
required to perform the job satisfactorily
KSA
JOB
EVALUATION
Comparison
METHODS:
Interviews Questionnaires Observations Participant
diary
13
JA Process
Determine
OC
Select
representative jobs for analysis Analyze jobs using data gathering methods Check information for accuracy Write JD & JS for use in HR activities
14
Writing JDs
Job
title & identification Job summary Relationships Responsibilities & duties Standards of performance & working conditions Equipment & tools Working conditions
15
HRP Process
1. 2. 3. 4.
HRP PROCESS:
Environmental scanning Forecasting & analyzing demand for HR Forecasting & analyzing supply of HR Developing action plans to match HR demand & supply
16
Environmental Scanning
Systematic
process of studying & monitoring the external environment of the organization in order to pinpoint opportunities & threats long range analysis of employment
Involves Factors
include economic factors, competitive trends, technological changes, socio-cultural changes, politico-legal considerations, labour force composition & supply, & demographic trends
17
Environmental Scanning
Eg., competitive pressures are likely to increase resulting in enhanced productivity requirements & HRP objective may be to increase employee productivity by 5% in 2 yrs. which will require the firm to determine current employee productivity (output / employees) Attempts to answer 2 questions:
Which jobs need to be filled (or vacated) during the next 12 months? How & where will we get people to fill (or vacate) these jobs?
18
Forecasting HR Demand
FORECASTING
makes use of information from the past & present to identify expected future conditions. are not perfectly accurate & as the planning scope becomes shorter the accuracy of forecasts increases demand forecasts may be internal / external
19
Forecasts
HR
Advantages
Disadvantages
Panel of experts forecast HR requirements for particular future business scenarios. For this method, there may be a single expert, or estimates of several experts may be pooled together Experts go through several rounds of estimates with no face-to-face meeting Incorporates future plans & Subjective, time knowledge of experts consuming & may related to mkt., industry & ignore data technical development Generates lot of ideas Does not lead to conclusion
Group Face-to-face discussion based brainstormi on multiple assumptions about ng future business direction Nominal group technique Simple averaging Face-to-face discussion
Group exchanges facilitate Subjective which may plans ignore data Extremes views are masked when averaged
20
Extrapolates past Recognizes linkage Assumes that volume relationship between volume between employment & of business activity of business activity & business activity of firm for forecast employment levels into the period will continue future at same rate as previous yrs Ignores multiplicity of factors influencing employment levels
HR requirements based Job analysis may not on expected output of be accurate the firm Difficult to apply Productivity changes taken into account Data driven Assumes that nature of jobs has not changed over time Applicable to stable environment
22
Markov analysis
Probabilistic Based on past relationship between business factor related to employment & employment level itself
Causes of Demand
EXTERNAL CHALLENGES:
Economic developments noticeable effect but are difficult to estimate (Inflation, unemployment, & changing workforce patterns) Social, political & legal challenges easier to predict, but their implications are not very clear (Implication of abolishing mandatory retirement age in US may not be known until a generation has lived without 65 & out tradition) Technology changes difficult to predict & assess but may radically alter strategic & HR plans (PC would cause mass unemployment vis--vis IT field as a large one employing millions of people directly / indirectly complicates HR, because it tends to reduce employment 23 in one dept. while increasing it in another)
Causes of Demand
ORGANIZATIONAL DECISIONS:
As orgs. respond to changes in their environment, decisions are made to modify the strategic plan, which commits firm to longrange objectives growth rates & new products, markets / services & these objectives dictate number & types of employees needed in future To achieve long-term objectives, HR specialists must develop long-range HR plans that accommodate strategic plan In short run, planners find strategic plans become operational in form of budgets
Sales & production forecasts are less exact than budgets but may provide even quicker notice of short-run changes in demand for HR New ventures means changing HR demands when a new venture is begun internally from scratch, lead time may allow planners to develop short-run & long-run employment plans merging HR group with Corporate Planning staff
24
Causes of Demand
WORKFORCE FACTORS (ATTRITION):
Forecasting Techniques
Trend Projection Forecasts:
Extrapolation: involves extending past rates of change into future (if an avg of 20 production workers was hired each month for past 2 yrs, extrapolating that trend into future means that 240 production workers will be added during upcoming yr.) Indexation: a method of estimating future employment needs by matching employment growth with an index, such as ratio of production employees to sales (eg., for each million $ increase in sales, production deptt. requires 10 new assemblers)
2.
Both are crude approximations in short run because they assume that causes of demand remain constant which is seldom the case making it very inaccurate for longrange HR projections
26
Study of firms past employment needs over a period of yrs. to predict future needs Appropriate business factor that relates significantly to employment levels differs across industries (University student enrollment, Sales firm sales volume, Manufacturing firm total units produced) Steps:
1. 2. 3. 4. 5. 6.
Determine & identify a business factor that relates to the number & type of people employed Identify historical trend of the relationship between this business factor & the number of people employed Determine the ratio of employees to the business factor, that is, the average output per individual employee per year labour productivity Determine the labour productivity ratio for the past 5 yrs at least & calculate the average annual rate of change in productivity Calculate the human resource demand by dividing the business factor by the productivity ratio Project human resource demand for the target year.
27
Extrapolates the volume of current business activity for the years for which the forecast is being made Since there is a correlation between volume of business activity & employment level, linear extrapolation would also indicate HR demand by job & skill category
28
RATIO between output & manpower deployed to achieve that output is established at a given point of time
Eg., revenue per employee, sales vol. per salesperson, service contract per engineer, units produced per employee, etc.,
Statistical relationship between no. of patients (business factor) & employment level of nurses in a nursing home may be useful in forecasting the no. of employees that will be needed if the no. of patients increases by say 20%
30
Production output & manpower are the two variables & the relationship between these two is plotted on a graph by drawing a line of best fit
X
x x
a Manpower
x x
Analysis aims at providing a measure of the extent to which changes in the values of two variables are correlated with one another
b Production level
Y
31
Shows the percentage (& actual no.) of employee who remain in each job from one yr. to the next, as also the proportion of those who are promoted or transferred or who exit the organization Internal mobility among different job classifications can be forecast based upon past movement patterns past patterns of employee movements (transitions) used to project future patterns Pattern is used to establish transitional probabilities & to develop a transition matrix Transitional probabilities:
Indicate what will happen to the initial staffing levels in each job category / probability that employee from one job category will move into another job category Determine the forecasted employee levels at the end of the yr
32
Internal supply forecasts relate to conditions inside the org. such as age distribution of workforce, terminations, retirements, etc. External supply forecasts relate to external labour market conditions & estimates of supply of labour to be available to the firm in the future in different categories
33
Government estimates of population available for work Net migration into and out of the area Numbers entering the workplace Numbers leaving the workplace Numbers graduating from schools / colleges Changing workforce composition Technological shifts Industrial shifts Trends in the industry (actions of competing employers) Economic forecasts Government regulations & pressures such as job reservations for certain groups
34
Obtains & stores information about each employee of the org. in a manner that is easily accessible because it is necessary for HRP Employee information stored in the inventory relates to KSA, experience, & career aspirations of the present workforce of the firm Contents of HR Inventory
Personal identification information Biographical information Educational achievements Employment history Information about present job Present skills, abilities, & competencies Future focused data Specific actions (like training needed for achieving career goals)
35
2 types
Skills inventory: describes the skills & knowledge of non-managerial employees & is used primarily for making placement & promotion decisions Management inventory: contains the same information as in skills inventory, but only for managerial employees which describes the work history, strengths, weaknesses, promotion potential, career goals
36
A systematic & deliberate process of identifying, developing & tracking key individuals within the firm to prepare them for assuming senior & top-level positions in future. Eg., SAIL poaching from global players & preparing a defence system wherein 2nd & 3rd line of command is being prepared; IBM, ExxonMobil, GE, etc., have already hired its CEO for 2010 Eg., Godrej, Marico (fly. owned business) in India have drop dead succession plan which keeps the wheel moving where a promoter of the fly-owned firm may always be around to guide the company
38
40
Thank You
41