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SUNITA SHUKLA
STRATEGIC PLANNING
THE PROCESS BY WHICH TOP MANAGEMENT DETERMINES OVERALL O R G A N I Z AT I O N A L P U R P O S E S A N D OBJECTIVES AND HOW THEY ARE TO BE ACHIEVED
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.
This process involves the estimate of the future manpower needs of an organization and meeting them through the labour force available with it
HRP is the first step in the process of Recruitment and selection after job analysis has been completed
From a broad organizational perspective, HR planning intends to achieve better customer satisfaction, quality enhancement and improved employee motivation
From a functional perspective, it aims at enhancing the employees motivation and commitment, team spirit, mutual trust and creativity
The three basic objectives of any HRP are: Attracting, developing and retaining an efficient workforce Evaluating rewarding its performance Inventing and controlling HR plans and programs to optimize the HR cost
IMPORTANCE
1) Each Organization needs personnel with necessary qualifications, skills, knowledge, experience & aptitude . 2)Need for Replacement of Personnel disabled personnel. Replacing old, retired or
3)Meet manpower shortages due to labour turnover 4) Meet needs of expansion / downsizing programmes - As a
result of expansion of IT companies the demand for IT professionals are increasing. PSUs offering VRS to employees to retrench staff and labour costs. DOT.COMs firing staff.
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
Demand = Supply
No Action
Recruitment
Selection
10
HR DEMAND FORECAST
process of estimating future quantity and quality of manpower required for an organization.
External factors competition (foreign & domestic), laws & regulation, economic climate, changes in technology and social factors
Internal factors - budget constraints, production levels, new products & services, organizational 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, i.e. No. of Workers Vs Volume of Sales, forecasting future ratios and adjusting for future changes in the organization.
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 organization.
Supply Analysis Existing Human Resources Internal Sources of Supply External Sources of Supply
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:
Turnover Rate - refers to rate of employees leaving. = ( No. of separations in a year / Avg no. of employees during the year ) x 100
Absenteeism - unauthorized 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 External Sources are important for specific reasons: New blood and new experience will be available Organization needs to replenish lost personnel Organizational growth and diversification create the needs to use external sources to obtain additional number and type of employees
HR PROGRAMMING
Balancing Demand and Supply
HR PLAN IMPLEMENTATION
Retention Plan
Downsizing Plan
Resistance by employees
Resistance by trade unions Uncertainties