Professional Documents
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HRP Full Pack 14-09-2021
HRP Full Pack 14-09-2021
HRP Full Pack 14-09-2021
Introduction to
Human Resource Planning
1 HRP
Agenda
Meaning and concept of HRP
Planning at different levels
Integrated strategic planning and HRM
Need for HRP and objectives of HRP
Process of HRP
Strategies for HR planners
Benefits and limitations of HRP
Guidelines for making HRP effective
HRP at organization and unit level
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Source: https://buffer.com/state-of-remote-work-2020
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What is strategy?
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Growth Rate,
Occupation 2020 Median Pay
2019-29
Wind turbine service technicians 61% $56,230 per year
Nurse practitioners 52% $111,680 per year
Solar photovoltaic installers 51% $46,470 per year
Occupational therapy assistants 35% $62,940 per year
Statisticians 35% $92,270 per year
Home health and personal care aides 34% $27,080 per year
Physical therapist assistants 33% $59,770 per year
Medical and health services managers 32% $104,280 per year
Physician assistants 31% $115,390 per year
Information security analysts 31% $103,590 per year
18 Source: https://www.bls.gov/ooh/fastest-growing.htm HRP
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Components of HR Planning
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Helps to plan for Helps to plan for a Takes into Based on the Looks at the
particular sector like estimation of
educational account the manpower needs
agriculture,
facilities, health output/ human resource of a particular
industry, etc.
care facilities, Helps the operational level needs of the department in an
agricultural and government to of the particular particular organization.
allocate its company in
industrial resources to the
industry when
question. It is
development and various sectors manpower needs
based on the
employment depending upon the are considered.
priority accorded to business plan of
plans, etc. the company.
the particular
sector.
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The corporate strategists in turn communicate their needs and constraints to the HR
manager.
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HR Planning Model
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Training & Development 32
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Objectives of HR Planning
Assessing manpower needs for future and making plans for recruitment and
selection.
Assessing skill requirement in future for the organization.
Determining training and the development needs of the organization.
Anticipating surplus or shortage of staff and avoiding unnecessary detentions or
dismissals.
Controlling wage and salary costs.
Ensuring optimum use of human resources in the organization.
Helping the organization to cope with the technological development and
modernization.
Ensuring career planning of every employee of the organization and making
succession programs.
Ensuring higher labor productivity.
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Determinants of HR Planning
External Factors Determinants of HRP Internal Factors
Trade Unions
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HR Planners should -
employ suitable techniques leading to effective allocation of work with a view
to improving manpower utilization.
conduct research to determine factors hampering the contribution of
individuals and groups to the organization with a view to modifying or
removing these handicaps.
develop and employ methods of economic assessment of human resources
reflecting its features as income generator and cost and accordingly
improving the quality of decisions affecting the manpower.
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Limitations of HR Planning
Uncertainty of future
Conservative attitude of top management
Problem of surplus staff
Short-sighted HR thinking
Expensive process
Time consuming
Accuracy of forecasts
HRP practitioners are sometimes perceived to be “HR experts” and not
“experts in the business.”
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Benefits of HR Planning
‘Growing our own timber' rather than 'buying in' as necessary;
The need for skills which are often in short supply;
The complexity of the expertise required which leads to extended training with
consequently long recruitment lead times;
Decisions are made over extended time scales particularly in capital intensive
industries;
A perception that the organization's demand is stable, or at least predictable;
Control of resources rather than laissez faire growth in organizations at a
particular stage of development.
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Strategic Management
Aligning HR with Strategy
1 HRP
Agenda
Implications of HR for organizational strategies
HR manager’s need to understand strategy
Organizational strategies including restructuring, growth and maintenance
Business strategy vs. corporate strategy
Linking HR process to strategy
Steps used in strategic planning and its benefits.
Importance of strategic planning
Risks associated with not planning
Approaches to linking strategy and HR, including the barriers to becoming a
strategic partner
Characteristics of an effective HR strategy
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What is Strategy?
Strategy is determination of the basic long-term goals and objectives of an
enterprise and the adoption of courses of action and the allocation of
resources necessary for carrying out these goals (Chandler, 1962).
It is the formulation of organizational objectives, competitive scopes and
action plans for gaining advantage.
Logical incrementalism is the process of subtly redirecting strategy to
accommodate changes in the environment which involves moving, shifting and
evolving as a dynamic process as conditions warrant changes. This is also called
emergent strategy.
https://www.youtube.com/watch?v=0BgMQkKMKaE
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Intended strategy is the one that was formulated at the beginning of the
period.
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Emergent strategy
Created from new
ideas and conditions.
Discarded strategy
Deemed inappropriate due to
changing circumstances.
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Strategic Typologies
Strategies
Turnaround*
Corporate Business
Strategies Divestiture Strategies
Builds a competitive focus
Restructuring Liquidation
in one line of business
Bankruptcy
Growth
Incremental International Mergers &
Stability Acquisitions
* Also called as ‘retrenchment strategy’
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1. Values The basic beliefs that govern individual and group behavior in an organization.
• Act with uncompromising honesty and integrity in everything we do.
• Satisfy our customers with innovative technology and superior quality, value and
service.
• Provide our investors an attractive return through sustainable, global growth.
• Respect our social and physical environment around the world.
• Value and develop our employees’ diverse talents, initiative and leadership.
• Earn the admiration of all those associated with 3M worldwide
(3M)
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Dynamic Capabilities (Teece, et al. 1997) The ability to adapt and renew
competencies in accordance with changing business environment.
5. Determine the competitive position
Low-cost provider strategy (Ex: Fast food business)
Broad differentiation strategy (Ex: Zappos "Deliver wow through service”)
Best-cost provider strategy (Ex: Chipotle Mexican Grill)
Focused or niche market strategy based on lower cost (Ex: Krispy Kreme Doughnuts)
Focused or niche market strategy based on differentiation (Ex: Rolls-Royce sells
limited number of high-end, custom-built cars)
6. Implement the strategy It is the process by which a strategy is put into action. It is
also called operational planning.
7. Evaluate performance
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• Clarity
• Coordination
• Efficiency
• Incentives
• Adjustment to change
• Career development
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TPK
Define strategy. What are the various types of strategies?
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Strategic HRM
Attracts,
Overarching HR philosophies
develops,
motivates, and
Human Resources trains
Formal HR policies
Management employees for
effective
functioning of
Specific HR practices
the organization.
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Behavioral Theory
This theory suggests that different HR strategies are required to influence the
diverse behaviors of employees.
HR’s role is to reinforce certain behaviors via the HR practices such as
recruitment, selection, training, compensation, and performance.
HR’s role is to tactfully challenge and refocus baseless ideas of human behavior.
This perspective is important as the HR department is tasked to define and
develop the behaviors necessary to achieve organizational capabilities of
innovation, speed and accountability.
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Strategic HR Planning
Reasons why strategic planning is so important:
1. Employees help an organization achieve success because they are its
strategic resources.
2. The planning process itself results in improved goal attainment.
What happens if the strategy of the organization changes?
Ensure HR planning such that human assets are managed and matched to
the new organizational strategy.
1. Improved goal attainment.
The goals of HRM strategies are to shape employee behavior so that its is
consistent with the direction organization identifies in its strategic plans.
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2. The Risks
Costs involved in HR Planning –
• Increased time and energy involved in decision-making.
• Greater potential for information overload.
• Impossible commitments to employees.
• An over concern with employee reactions which are incompatible with the
industry conditions.
Risks involved –
• Strategy formulation is relatively easy, implementation is far more difficult.
• It may create an impression among employees that that jobs are for life.
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Strategic Partnering
• How do HR professionals become strategic partners?
• If a firm has one business strategy then working on HR strategy is fine.
• What happens when an organization has more than one business strategy and
more than one HR strategy?
• HR Strategy Differentiation
• The challenge is to treat employees in different divisions in an equitable
fashion while motivating different behaviors that align with the divisions’
strategies or functions. (Ex. 3M)
• HR strategy can be differentiated based on jobs/positions within divisions.
• Different positions assume different roles in strategy implementation.
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Agenda
Sources that HR planners use to keep current with business and HR trends
How environment scanning is practiced
Challenges in scanning the environment
Delineating the environmental factors
The role of the stakeholders
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Sources of Information 5
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https://empxtrack.com/blog/hr-trends-2021/
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Methods of Forecasting 8
Methods of Forecasting
Methods - Study competitor’s website; Train employees to ask questions from vendors; Hire
competitor’s employees; Private detectives (unethical).
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• HR strategists limit themselves to a two- to three-year time frame and extrapolate from
current trends.
• How profound are the impacts on people’s priorities, roles and expectations?
Environmental Factors 10
Environmental
Environmental Factors
Factors
Political &
Economic Globalization legislative
climate factors
• Unemployment rate • Increasing? • Changes to laws
• Employee • Sovereignty and regulations
willingness to • Prosperity • Ethical issues?
commute • Jobs wages • Pay equity?
• Risky executive
• Value of rupee • Social legislation
behaviors?
• Public debt
• Interest rates
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Environmental Factors 11
Environmental
Environmental Factors
Factors
• Baby
LaborBoomer
marketGeneration 1946 1964
• Tools, machinery, • Right to privacy
• Generation
Diversity X/Gen X 1965 1979equipment, software • Work-life
• Generational • Every HR function has balance
Generation Y/ Millennials/
differences 1980 1995the potential to become • Contingent
Gen Y
managed electronically. workers
Generation Z 1996 2010
• E-learning • Violence at work
Gen Alpha 2011 2025
• Virtual work
* Study of population statistics
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Stakeholders 12
Stakeholders are groups of people who have an interest in the projects, policies, or
outcomes of an organization’s decisions. They are also called constituent groups. They
affect strategy formulation.
• The board of directors & Senior executives: Research shows that different types of
strategies require different types of managers and executives. Ex. Those with tolerance
for ambiguity – managed firm with a growth strategy more successfully than those with a
harvest strategy.
• Senior management: More interested in workforce planning and utilization, incentive
compensation, training and development, and performance management systems.
• Supervisors: Manage employees and their role in meeting organizational goals.
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Issues Priority Matrix helps determine which are the important trends that may affect an
organization.
Probability of
Medium High priority Medium priority Low priority
Occurrence
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A proactive approach –
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Agenda
Forecasting activity categories
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HR Forecasting 3
Implicit here is that supply and demand analyses should be conducted separately
(Walker, 1980).
Forecasting Activity
HR forecasting processes use both quantitative and qualitative data. Accuracy of prediction
significantly improves when we use a variety of forecasting techniques (Patterson, 2003).
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1. Reduces HR costs
2. Increases organization’s flexibility
3. Ensures a close linkage to the macro business forecasting process
4. Ensures that organizational requirements take precedence over issues of resource
constraint and scarcity (HR supply and HR demand)
HR demand is the organization’s projected requirement for human resources.
HR supply is the source of workers to meet demand requirements, obtained either
internally (current members of the organization’s workforce) or from external
agencies.
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• Article 39 in Part IV, the Constitution of India: The state to ensure that citizens, men
and women equally, have the right to an adequate means of livelihood, right to
shelter, food, education and work.
• Designated groups are the groups deemed to require special attention due to the
persistent disadvantages they face in the labor market. Examples of such groups are
women, persons with disabilities, members of minorities, socially disadvantaged.
3. Managerial and Executive Personnel
• Pay attention to leadership talent and appraisals as this is the key for transforming
organizations.
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4. Recruits
• The relative balance of internal to external personnel to be selected for training courses
is a key factor in the HR forecasting and programming operations of many
organizations.
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3. Medium-run forecast
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Outcomes of Forecasting 11
Envelope: An analogy in which one can easily visualize the corners of an envelope
containing the upper and lower limits, or “bounds,” of the various HR projections
extending into the future.
Scenario: A proposed sequence of events with its own set of assumptions and
associated program details associated with HR functions.
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1. Determine HR demand
• Each organizational sub-unit has to submit its net personnel requirement to
the corporate forecasting unit.
• Planned future changes in organizational design or in restructuring, with their
associated increases or decreases in staffing levels must be incorporated into
the equation to revise the aggregate net departmental demand requirements.
• Consideration should be given to replacing non-productive paid time.
• All this will lead to net HR demand.
• Conduct a cost estimate or HR budget.
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2. Ascertain HR supply (includes internal supply and external supply) and skills
inventory-personal database record on each employee
• Internal supply refers to current members of the organizational workforce
who can be retrained, promoted, transferred, and so on to fill anticipated
future work requirements.
• External supply refers to potential employees currently undergoing training,
working for competitors, members of unions or professional associations, or
in a transitional stage, between jobs, or unemployed.
• Most organizations use a mix of both sources.
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Policy Options
• In case of HR shortage, attract new employees (full-time, part-time, contract or
freelance), recall the employees who were laid off, retired employees, use
temporary workers.
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Job Analysis
2
Agenda
Job analysis
Competency-based approaches
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Definitions 3
Job is a group of related duties, tasks, and behaviors performed by one or more
individuals, viz., jobholders.
Positions are the number of individuals who are performing the duties, tasks, and
responsibilities of a specific job.
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Job analysis
The best job analysis method ‘depends on objectives and the situation at hand’ (Gael, 1988)
The basic approaches to job analysis reflect (a) behavioral description, (b) behavioral
requirements, (c) ability requirements and (d) task characteristics (Fleishman and Quaintance,
1984).
Job analysis is the procedure for determining the duties and skill requirements of a job and the
kind of person who should be hired for it.
The systematic process of determining the skills, duties and knowledge required for
performing specific duties in an organization (Mondy et al., 1999).
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Job analysis is the process of studying jobs to gather, analyze, synthesize and report
information about job responsibilities and requirements and the conditions under which work is
performed (Heneman and Judge, 2009).
The analysis of sub-divided work in the organization, both at the level of the individual job and
for the entire flow of the production process (Belcourt et al.).
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Job Analysis 6
Job description and job specification are the written outcomes of the job analysis process.
Job description emphasizes the duties or tasks to be carried out on the job.
Job specifications emphasize identifying the competencies the jobholder must possess to be a
successful performer in the specified job.
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Job analysis is essential pre-requisite for the success of virtually all other HR
functions.
Scientific management examines two main aspects of each job in the organization –
the methods employed and the time measurement for task completion.
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2 Organize work
Differentiate core work activities vs. activities that
Technology
can be outsources/curtailed.
Structure organization
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Determine methods and analyze the job or Cost, time, flexibility methods, validity
2 process and reliability, acceptance.
Determine the job or process to be analyzed Benchmarks are external comparators for
organizational jobs and performance criteria.
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Interviews Analysts may use 3600 evaluation that is “evaluation of attributes and
performance dimensions of a job from ‘the full circle’ around the job – that is,
feedback from subordinates, superiors, co-workers, clients, and the jobholder
himself/herself.”
Observation Direct observation - Observes the production line for worker behaviors and the
skills required for job success. Indirect observation – Video tape recording or
closed circuit camera records the job for subsequent analysis.
Questionnaires Standardized questionnaires – (a) the Functional Job Analysis, (b) the Job
Diagnostic Survey, and (c) the Position Analysis Questionnaire.
Common elements of questionnaires – (i) job related education, training and skill
requirements (ii) responsibility or accountability, (iii) effort required, and (iv) working
conditions
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Journals & Jobholders are asked to maintain a written record of their job activities,
Diaries and associated time expenditure, for a preset period.
Output and Useful for determining appropriate performance standards. Do not reveal
production qualitative or process aspects of the job.
analysis
Current job Examination of existing job descriptions and specifications.
descriptions
and
specifications
Most job analysts use multi-method approach that enables quantitative aspects as well as
qualitative aspects of each job to be analyzed.
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• A qualitative process of job • A quantitative approach that • Analyses any job using
analysis that produces assesses job characteristics three essential elements
behavioural statements in six different dimensions viz., people, data and
along a range from superior and relate them to human things.
to inferior performance for a characteristics.
specific job.
NAME OR LOGO
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A qualitative process of job analysis that produces behavioral statements along a range
from superior to ineffective performance for a specific job.
In 1955, Flanagan and Burns designed a critical incident method of appraisal for
General Motors. They collected 2,500 reported critical incidences from all the plants.
The incidents were classified into 16 critical requirements.
Physical and mental qualification: Physical condition, Coordination and arithmetic
computation, Understanding and repairing of mechanical devices, Judgment and
comprehension.
Work habits and attitudes: Productivity, Dependability, Accuracy of reporting, Getting
along with others, Initiative.
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1. Information Input: How and where the employee obtains necessary information
for job functioning.
2. Mental Processes: The types of planning, reasoning, and decision-making
processes required by the job.
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3. Work output: The specific items produced by the worker and the tools he or she
employs to produce them.
4. Relationship with other workers: Important interpersonal contacts for the
jobholder.
5. Job context and work satisfaction: The physical and social working
environment.
6. Other job characteristics: Elements of the job that do not fall into the other five
dimensions.
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Dr. Sidney Fine developed the quantitative approach to job analysis that uses a
collected list of the various functions or work activities that can make up any job.
FJA employs a series of written task statements, each containing four essential
elements:
1. A verb related to the task action being performed by the worker;
2. An object that refers to what is being acted up on;
3. A description of equipment, tools, aids, and processes required for successful
completion of the tasks; and
4. The outputs or results of task completion.
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FJA analyses any job using three essential elements: (1) people (important
interpersonal relations on the job); (2) data (obtaining, using, and transforming
data in aid of job performance; and (3) things (physical machinery, resources,
and the environment); each of these three dimensions is then rated by level of
complexity and importance.
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Competency Any knowledge, skills, trait, motive, attitude, value, or other personal
characteristic that is essential to perform the job and that differentiates superior from
solid performance.
Competency modelling is a systematic approach to identifying the competencies that
enable goal achievement.
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KSAOs required to perform specific jobs and Competencies are pre-defined. Core
examines individual level competencies that competencies and role or specific
are common to a broader occupational group or competencies. Members of the organization in
an entire range of jobs. those positions are expected to have those
competencies.
Duties and task focused. Worker focused. Includes personality and value
orientation of worker.
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Unions fear management abuse of authority in More relevant to today’s organizations as team
the competencies approach which lacks skills are important and managers seek
safeguards of written documentation and well- increased flexibility and control over worker’s
defined limits. behavior.
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Criticized for its utility as competencies are so broad and often ill defined to be
practical use in guiding performance of job duties.
Competencies focus more on behaviors than results.
Confusion among workers, practitioners, and academics as to what exactly is
incorporated into effective competency modelling.
Competency modelling is merely an extension of job analysis that focuses on what is
common across jobs.
By focusing on broad general competencies, a large number of activities required for
an individual’s successful performance in a job remains unexplained.
HR practitioners do not see much value in the competency modelling.
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Determining HR Demand
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Trend/Ratio Analysis
Scatter plot A graphical method used to help identify the relationship
between two variables.
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Scatter Plot
Size of Hospital No. of registered
(No. of beds) nurses
200 240
300 260
400 470
500 500
600 620
700 660
800 820
Relationship between Hospital size and
900 860 number of Registered Nurses
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Trend/Ratio Analysis
Ratio
Sales No. of
Year Sales/
(‘000 Rs.) Employees
Employee Figures for 2017 are the actuals.
2014 2800 155 18.06 Figures for 2018 and 2019 are the forecasts
2015 3050 171 17.83 or estimations.
2016 3195 166 19.25 The index used to forecast future demand
2017 3300 180 18.33 can be the most recent figure or an average
of the up-to-date period. In this example the
2018 3500 188 18.64
most recent ratio for the year 2017 was used
2019 3600 193 18.64 for forecasting.
2020 3850 207 18.64
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Regression Analysis
• It is very effective forecasting technique for short-, medium- and long-range time
horizons.
• Regression analysis pre-supposes that a linear relationship exists between one or
more independent (causal) variables, which are predicted to affect the dependent
(target) variable - for instance, future demand for personnel.
• Regression projects into the future on the basis of the past historical relationship
between the independent and dependent variables.
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Regression Analysis
• Simple regression prediction model:
Y = The dependent variable (HR demand)
Y = A + BX
A = Constant
B = Slope of the linear relationship between X and Y
X = The independent variable (level of sales)
B =
Σ(X2) – N(X bar)2
A = Y bar - BX bar
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Regression Analysis
• Simple regression prediction model: X Y
XY X2
Sales No. of people
Y = A + BX
2.0 20 40 4.00
Y = The dependent variable (HR demand)
A = Constant 3.5 32 112 12.25
B = Slope of the linear relationship between X
and Y 4.5 42 189 20.25
X = The independent variable (level of sales)
6.0 55 330 36.00
B =
7.0 66 462 49.00
Σ(X2) – N(X bar)2
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3. Another form is using weighted moving average. Here the more importance is
placed on recent data.
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1. Organization’s own line managers possess important insights into how future for
labor should or might change in the manager’s own area of responsibility.
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4. Central, state and local government staff and officials are important individuals to
consult because of their knowledge of future environmental changes in labor and
business legislations.
Management Survey
Scenario Planning
Qualitative Forecasting
Techniques
Delphi Technique
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Scenario Forecasting
Scenario planning A method for imagining future possible organizational states
and the resulting capabilities, activities, or strategies that are necessary to
be successful in those future states.
Scenarios generally considered are optimistic, realistic or most likely, and
pessimistic, extended into the time horizon.
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Delphi Technique
It is named after Greek oracle at Delphi and developed by N. C. Dalkey and his
associates at the Rand Corporation in 1950.
Delphi technique is a process in which the forecasts and judgements of a
selected group of experts are solicited and summarized in an attempt to
determine the future HR demand.
It is a carefully designed program of sequential, individual interrogations (usually
conducted through questionnaires) interspersed with feedback on the opinions
expressed by the other participants in previous rounds.
Key feature – Once a group of experts is selected, the experts do not meet face
to face.
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If the experts are from single line of inquiry then it may limit their innovation
and creative courses of action.
If sufficient attention has not been paid to developing criteria for the
identification and selection of experts, the personnel selected to derive the
demand forecasts may lack sufficient expertise or information to contribute
meaningfully to the process.
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HR Budgets
HR budgets are quantitative, operational or short-term demand estimates that
contain the number and types of personnel required by the organization as a
whole and for each sub-unit, division, or department.
Staffing table contains information related to a specific set of operational
assumptions or levels of activity (e.g., maintain the current organization
structure, increase the sales level by 5 percent over last year's level). The
staffing table presents the total HR demand requirement, laid out in terms
of the number of people required by level (e.g., vice-presidents) and
function (e.g., marketing).
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Ascertaining HR Supply
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Current employees who can be trained, Prospective employees in the labor market
transferred, or promoted to meet forecasted not currently working for the organization,
demand. including those who are employed
Reasons for preferring elsewhere and those who are unemployed
Current employees are already socialized who can be expected to join the
to the norms, rules and procedures of the organization to meet forecasted demand.
organization;
They possess detailed knowledge of their
performance and KSAs over time.
2 HRP
1
8/23/2021
3 HRP
Skills Inventories
4 HRP
2
8/23/2021
Management Inventories
5 HRP
Succession/Replacement Analysis
Replacement charts are visual representations of who will replace whom in the event
of a job opening. Likely internal candidates are listed, along with their age, present
performance rating, and promotability status.
Used to keep track of potential internal candidates for the most critical positions.
Replacement summaries are lists of likely replacements for each position and their
relative strengths and weaknesses, as well as information about current position,
performance, promotability, age, and experience.
6 HRP
3
8/23/2021
Succession Planning
7 HRP
Enables an organization to respond appropriately and stay on track when inevitable and
unpredictable changes occur, thus providing continuity and future direction even in the
turmoil of change.
Helps develop people as they prepare for new experiences and jobs, and this
development can also help improve their performance in current positions.
When employee performance is taken into account and they are promoted on this basis,
employees are positively motivated.
Promotes new organizational structures and flexibility by explicitly providing back-ups to
various positions, thereby reducing organizational dependency on one employee.
Saves time and money by having plans already in place to enable smooth internal
employee movement and continuity; therefore external hiring is an exception to the
process.
8 HRP
4
8/23/2021
It is a code listed next to the names of all potential successors; contains elements of
essential information for succession planning viz., (a) the employee’s level of
performance in the current job and (b) the employee’s readiness for movement or
promotion.
9 HRP
10 HRP
5
8/23/2021
Replacement Summary
11 HRP
Succession/Replacement Table
The succession/replacement charts and tables are very useful tools for HR planners who
are analyzing the state of the current workforce.
12 HRP
6
8/23/2021
May be limiting for current employees’ Looks at expanding the skills of current valued
employees
13 HRP
Ripple or chain effects are the effect caused when one promotion or transfer in the
organization causes several other personnel movements in the organization as a
series of sub-ordinates are promoted or transferred to fill the sequential openings.
14 HRP
7
8/23/2021
Markov Models/Analysis
15 HRP
It is a method of forecasting internal labor supply that involves tracking the pattern of
employee movements through various jobs and developing a transitional probability
matrix.
An employee has five possible movement patterns in the organization:
Remaining in the current job
16 HRP
8
8/23/2021
17 HRP
18 HRP
9
8/23/2021
The sequences of
movements between
various job states are
referred to as Markov
Chains.
19 HRP
20 HRP
10
8/23/2021
Linear Programming
LP enables calculations of “what if” and helps us to determine the impact of these
changes.
21 HRP
22 HRP
11
8/23/2021
Linear Programming
x
23 HRP
Movement Analysis
A technique used to analyze personnel supply, specifically the chain or ripple effect
that promotions or job losses have on the movements of other personnel in an
organization.
The total number of personnel movement is always greater than or equal to the
number of vacant positions to be filled.
Movement analysis can be performed for the whole organization, but doing it for
department/function is more desirable.
Normal planning time horizon is one year.
Movement analysis is calculated from top down.
Calculate the movement figures for one authority or compensation level at a time.
24 HRP
12
8/23/2021
Movement Analysis
4 1 - 1 0 0 - 0 0 1
5 6 - 6 - 2 10 1 3 9
6 20 5 1 15 3 10 2 5 6
7 32 5 2 15 5 15 5 10 12
8 40 5 2 15 6 20 8 14 16
9 50 5 3 15 8 25 13 21 24
149 15 24 29 53 68
26 HRP
13
8/23/2021
4 1 1 0 1
5 6 6 3 (2+10% of 6) 9
6 20 1 (5% 6
5 (15% of 20+10% of 20)
increase)
7 32 2 (5% 12
10 (15% of 32+15% of 32)
increase)
8 40 2 (5% 16
14 (20% of 40+ 15% of 40)
increase.)
9 50 3 (5% 24
20 (25% of 50+15% of 50)
increase)
x 149 15 53 68
27 HRP
Personnel Movement
Level
Positions to Personnel
be filled Total ripple or chain movement movement
4 1 - - - - - 1
5 9 + 1 - - - - = 10
6 6 + 1 + 9 - - - = 16
7 12 + 1 + 9 + 6 - - = 28
8 16 + 1 + 9 + 6 + 12 - = 44
9 24 + 1 + 9 + 6 + 12 + 16 = 68
68 5 36 18 24 16 = 167
28 HRP
14
8/23/2021
Vacancy/Renewal/Sequencing Model
29 HRP
External Hiring
Authority positions at during the year Promotions Level
level the start of outflows
% Nos. % Nos. % nos.
the period
1 (President) 1 100 1 100 1 1 1 0 0
2 (Vice President) 6 15 1 90 2 2 2 10 0
3 (Managers) 18 17 3 80 14 4 5 20 1
4 (Team Leaders) 45 20 9 70 32 9 13 30 4
5 (Associates) 88 25 22 45 40 14 31 55 17
6 (Trainees) 156 50 78 0 0 0 92 100 92
314 114 89 30 144 114
Total outflows at any organizational level are equal to losses at that level plus promotions to higher level.
Upward mobility rate [For level 4, it is 4 (promoted to level 3)/45 (Positions at the start for level 4)]= 8.8%.
30 HRP
15
8/23/2021
Vacancy Model
1 1 1 1 1 0
2 6 1 2 2 0
3 18 3 4 5 1
4 45 9 9 13 4
5 88 22 14 31 17
6 156 78 0 92 92
31 HRP
32 HRP
16
8/23/2021
Cost of replacing a trained worker ranges from 70 to 200 per cent of the departing
person’s annual salary.
Retention can be facilitated by –
Communication programs
Maintaining and administering performance and compensation systems that
identify and differentially reward better performers
Offering more flexible and attractive work arrangements (flexitime, telecommuting,
cafeteria-style benefit plans)
Mentoring programs
33 HRP
17
8/23/2021
Succession Management
Organizational Propositions 2
1
8/23/2021
Replacement Planning
The process of finding replacement employees for key managerial positions.
Replacement planning has evolved into succession management.
Reasons:
Broadening the focus
Expanding the time horizon
Creating a talent pool of replacements
Improving the evaluation system
HRP
2
8/23/2021
Broader focus
Starting point in replacement was the job.
Starting point in succession management is the organizational strategy.
Time horizon
Replacement planning was for immediate and short-term requirements.
Succession management looks at long-term.
Talent pools
Organizations have to develop talent pools with flexible skills and competencies rather
then depending on individuals.
HRP
Talent pools are a corporate resource and not the property of individual divisions.
Personnel planning evolved in to succession management. Helps in global
competition, environmental turbulence, de-layered organizations and new
technologies.
Talent segmentation is as important as the customer segmentation.
Succession management should also track the external candidates, and not just
the internal ones.
Rating System
Several raters give current evaluations on an employee’s performance.
HRP
3
8/23/2021
HRP
Internal
Availability of reliable information about the candidate.
Increases commitment and retention among employees.
Corporate culture is preserved.
Less internal disruption.
Recruitment and selection costs are low.
External
May have better skills to lead the organization through major transformation or change.
Bring new knowledge and skills and prevents organization from inbreeding and stale.
HRP
4
8/23/2021
HRP
5
8/23/2021
11
12
6
8/23/2021
Managerial Competencies 13
HRP
14
7
8/23/2021
15
HRP
8
8/23/2021
17
HRP
18
Educational approach to broaden the intellectual skills and analytical ability are preferred.
Universities and corporate universities are used to teach conceptual skills.
Mentoring and coaching: Mentors are the executives who coach, advise and
encourage junior employees.
A combination of Experience, Exposure and Education is used by some companies.
‘Executive finishing schools’ for breeding the best leaders.
Coaches are paid counsellors from outside the organization.
HRP
9
8/23/2021
20
HRP
10
8/23/2021
21
HRP
11
8/23/2021
HRP
24
HRP
12
8/23/2021
HR should own the talent management process to mitigate three types of risks to an
organization:
Vacancy risk Unfilled key vacancies may lead to business losses and/or inability to
move forward on strategic goals.
Readiness risk Employees should be motivated and qualified for occupying key
positions when opportunities arise.
Transition risk Develop programs to retain key employees and monitor competitors
and others to be able to quickly identify external candidates.
HRP
13
8/23/2021
HRP in Restructuring
1 HRP
Definitions
Merger
1
8/23/2021
3 HRP
2
8/23/2021
Economy of scope advantage refers to the ability of a firm to use one set of
inputs to produce a wider range of products and services.
Diversification Reducing dependency on one market or one product. (Ex. GE)
Redefining businesses
May achieve the benefits through vertical integration or horizontal integration.
Vertical integration refers to the mergers and acquisitions of companies that have
buyer-seller relationship. (Ex. PepsiCo acquiring KFC, Taco Bell and Pizza Hut)
Horizontal integration refers to the increase in market share and market power
that results from M&A of rivals. (Ex. Facebook and Instagram)
5 HRP
Financial benefits
Reduce expenses by reducing overhead count, factories and/or branches.
6 HRP
3
8/23/2021
Management needs
Managers may pursue their personal interests at the expense of stockholders. (Ex.
CEO pay, prestige)
Need for power with growth strategies.
7 HRP
Merger Methods
Management of one company contacts the management of the target company.
Use of intermediaries, such as an investment banker, is common.
Poison pills refers to the right of key players to purchase shares in the company
at a discount, that makes the takeover extremely expensive.
White knights are buyers who are more acceptable to the targeted company.
8 HRP
4
8/23/2021
Financial impact
Acquisition resulted in an average increase of 25 per cent for the target firms, and zero
economic profits for the bidding firms.
McKinsey study found that only 23 per cent of mergers end up recovering the costs
incurred in the deal.
Four out of five fail to produce any shareholder value.
10 HRP
5
8/23/2021
• Providing better managerial oversight. GE Capital applied its better management systems to
improve the profits of Burger King and Tim Horton’s.
• Transferring valuable skills. PepsiCola transferred its direct store delivery logistics system to make
Frito Lay (an acquired company) more successful.
• Sharing valuable capabilities. Proctor & Gamble shared its customer team capability and media
buying capability with their acquisitions.
12 HRP
6
8/23/2021
7
8/23/2021
15 HRP
16 HRP
8
8/23/2021
Cultural transformation where the partner companies abandon key elements of their
current cultures and adopt new norms.
Deculturation where the acquired organization does not value the culture of the
dominant partner and is left in a confused, alienated, marginalized state.
Separation where the two cultures resist merging and either the merged company
operates as two separate companies or divorce others.
The level of difficulty in merging two cultures is increased when the merger is one
between companies from two different countries.
Cultural assessment tools – Merging Cultures Evaluation Index.
PwC suggests –
Deploying role models
Providing meaningful incentives
17 HRP
HR issues in M&A
Transition Team
Selection Compensation
Due Diligence
18
18 HRP
9
8/23/2021
HR issues in M&A
HR Planning
The Contingency Plan
Identify contact person and merger coordinator.
Contact person develops a merger plan outlining the chain of command, methods for
communicating, procedures to follow during a takeover, and negotiation skills training
and media response training for senior team.
Identify transition team.
HR due diligence
Due diligence is a process through which a potential acquirer evaluates a target firm
for acquisition.
19 HRP
Employment contracts
Executive compensation contacts
Benefit plans and policies
Incentive, commission and bonus plans
Pension plans and retirement policies
Employment policies
20 HRP
10
8/23/2021
Complaints about employment equity, health and safety, wrongful dismissal, unfair
labor practices, and applications for certifications and grievances.
Once the legal obligations have been evaluated, the level of KSAOs must be
assessed.
Ways to assess the employee capabilities –
Reviewing all employee documentation and then conducting interviews with
managers at a minimum of four levels;
Determining contractual obligations with regard to early retirements, terminations,
promised new jobs and pre-merger level of turnover.
21 HRP
Transition team
Urgency Staffing decisions such as terminating, hiring, evaluating, and training
become urgent. Job analysis should be conducted to identify duplication of jobs.
Uncertainty impedes productivity and new business development.
Information gaps Communicate effectively the reasons for merger, impact on
employees, career opportunities in the new entity, etc.
Stress A transition team may be the most important determinant of merger success.
The transition team is responsible for retaining talent, maintaining the productivity of
employee performance, select individuals for the new organization, integrate HR
programs, and take first steps to integrate cultures.
22 HRP
11
8/23/2021
The transition team is responsible for retaining talent, maintaining the productivity of
employee performance, select individuals for the new organization, integrate HR
programs, and take first steps to integrate cultures.
Simultaneously HR planners must prepare plans by looking at the employee skills
inventories.
Review of HR policies would reveal three different situations –
Complimentary One company might focus on career development, while the other
focuses on benefits.
Duplicated Both companies have identical HR information systems.
Contradictory One organization uses performance measurement system, while the
other uses incentive pay program.
23 HRP
Selection
Retention and Reduction are the critical areas to address immediately.
How many employees does the merged company need?
Check the benchmarks for the industry.
Classify the employees – critical to ongoing operations; critical to retain through to the
close of the deal; highly marketable; potentially redundant.
Reductions might be necessary, dismissals are heartbreaking.
Restructuring demands number of decisions. Employees want to know their fate in the
new company.
Will the company support them in financial planning, job relocation and career planning?
24 HRP
12
8/23/2021
Selection
Retention and Reduction are the critical areas to address immediately.
How many employees does the merged company need?
Check the benchmarks for the industry.
Classify the employees – critical to ongoing operations; critical to retain through to the
close of the deal; highly marketable; potentially redundant.
Reductions might be necessary, dismissals are heartbreaking.
Restructuring demands number of decisions. Employees want to know their fate in the
new company.
Will the company support them in financial planning, job relocation and career planning?
25 HRP
13
8/23/2021
27 HRP
Evaluation of Success
Training and development
Financial measures,
Customer service metrics,
Human capital metrics, and
Operational measures.
Achievement of operational efficiencies and synergies.
28 HRP
14
9/14/2021
10
1 HRP
Key HR challenges in
internationalization
2 HRP
1
9/14/2021
3 HRP
Follow local laws and conventions for wage determination, hours of work, forms of job
contract, and redundancy procedures.
Human resource management issues, functions, policies and practices that result
from the strategic activities of multifunctional enterprises and that impact the
international concerns and goals of those enterprises.
4 HRP
2
9/14/2021
5 HRP
3
9/14/2021
7 HRP
8 HRP
4
9/14/2021
9 HRP
10 HRP
5
9/14/2021
Selection
• Personality as a selection criteria
• The Big Five Personality Model demonstrated to be crucial to expatriate adjustment.
[Emotional stability, extraversion, openness, agreeableness, and conscientiousness]
• Those who scored high on these five dimensions were found to be better adjusted to
overseas assignments.
• Trainability as a selection criteria
• Trainability refers to an individual’s ability to acquire certain skills to a desired level of
performance.
• Various cross cultural KSAOs may be classified according to their stable properties (e.g.
personality) versus their dynamic properties (e.g. knowledge and skills).
11 HRP
• Expats with minimum level of the stable characteristics would gain incremental success
in selection efforts.
• Other personal characteristics
• Three dimensions of cross cultural competencies:
• Self-maintenance competencies
• Relationship competencies
• Perceptual competencies
12 HRP
6
9/14/2021
Pre-assignment Training
13 HRP
Post-assignment Activities
• Repatriation
• Repatriation is the process of PCNs, TCNs, or even HCNs returning to their home
headquarters or home subsidiaries.
• People experience reverse culture shock on return to the home country.
• Consequences of reverse culture shocks:
• No appropriate position to return;
• Dissatisfaction with the standard of living on return;
• Co-workers may not be interested in hearing about the repatriate’s experiences;
• Repatriate’s job may not make as much use of internationally acquired KSAOs as it
could.
14 HRP
7
9/14/2021
• Only 14 per cent companies had formal repatriation strategy linked to career
management and retention.
• Career development
• Step 1 – International assignment is merely one step in an overall career development
plan.
• Step 2 – Ensure that the next step makes good use of the KSAOs developed
internationally.
• Ways repatriate’s international experience could be leveraged:
• Could be used as a trainer to future expatriates or provide input to the CCT process.
• Could be a long distance supervisor to other expatriates.
15 HRP
• Performance appraisal
• Broad categories of global assignments – technical/staff specialists and managerial.
• In addition to the normal job evaluation criteria, additional environmental factors that
are part of appraisal criteria are:
• The extent the position requires interaction.
• Subsidiaries bottom-line results.
• Volatility of foreign labor market.
• Telecommunication and transportation infrastructure.
16 HRP
8
9/14/2021
• Compensation
• Categories of cash outlays for expatriates and their families:
• Goods and services (food, clothing, personal care, recreation, transportation,
medicare)
• Housing
• Income taxes
• Reserves (savings, benefits, investments, social security taxes, etc.)
• Shipment and storage
• Payment to employees – home country/host country/combination
• Home leave allowance
17 HRP
18 HRP
9
9/14/2021
• Labor relations
• Type of unions and rate of unionization are critical to international HR managers.
• Types of unions – industrial, craft, conglomerate and general.
• Industrial unions – All grades of employees in an industry.
• Craft unions – Based on skilled occupations across industries.
• Conglomerate unions – Represent members in more than one industry.
• General unions – Open to all employees in the country.
• In addition, we also have white collar unions.
• International HR managers have to devise strategies to improve the fit between their
labor relations activities and the external environment.
19 HRP
20 HRP
10
9/14/2021
11
Outsourcing
1 HRP
Outsourcing
1
9/14/2021
Outsourcing HR Functions
3 HRP
2
9/14/2021
3
9/14/2021
Strategic focus
“Not a single company can afford to even try and be the first in every thing.”
Companies should focus on their core competency.
What is core competency has four meanings – activities traditionally performed
internally; activities critical to business success; activities creating current or
potential competitive advantage; activities that will influence future growth or
rejuvenation.
Non-core work is transactional. Core work is transformational.
The real source of core competitive advantage is not products, but management’s
ability to consolidate skills and technologies into competencies to adapt to changing
circumstances.
7 HRP
4
9/14/2021
Specialized expertise
“Outsource when somebody can do better than you.”
Specialized services are better for outsourcing. [Employee reference checks]
Employees who are outsourced to the service provider may see opportunities for
career development.
Access to leading practices is also a reason for outsourcing.
Organizational politics
Outsourcing helps to get rid of a troublesome department.
9 HRP
10 HRP
5
9/14/2021
Employee morale
Outsourcing is a form of restructuring and always results in displaced employees.
Employees need a sense of identification and feeling of security and belonging.
When these are disrupted , employees feel resentful and retaliatory.
About 1/3rd of HR professionals resist outsourcing.
Consequences of outsourcing for employees – transferred to outsourcing agency,
transferred internally to other functions, outplaced, and/or offered voluntary
retirement.
11 HRP
Security risks
The major information risk for HR is loss of personnel information.
Individual performance and medical histories are very sensitive.
Reduced value
Extreme levels of outsourcing hollow out a company. (Read book ‘Commoditization
and the Strategic Response’ by Andrew Holmes).
Research finding: ‘Outsourcing an activity deemed to be routine and of low value
did not result in the remaining HR staff becoming focused on more “strategic” or
higher-value work.’
When HR function is outsourced, the internal image of HR may deteriorate.
12 HRP
6
9/14/2021
Management of Outsourcing
13 HRP
Inform the outsourcing Align service levels with the Problems with outsourcing:
decision to affected business objectives. Poor service definition.
function. But, when? Document baseline services, Weak management
Prepare RFP. using response time, processes.
response cost, and customer
Invite internal/external Demand frequent and
satisfaction ratings.
bids. accurate reporting.
Include quality measures.
Establish teams to Improve frequency and
Include technical and legal quality of communication.
evaluate these bids
experts in preparation.
Conduct satisfaction surveys.
14 HRP
7
9/14/2021
15 HRP
8
9/14/2021
12
Interface between
IT and HRM
2 HRP
1
9/14/2021
Interface between
IT and HRM
3 HRP
IT and HRM
• IT usage in HR increases with the implementation of business strategy and delivering tangible
results.
• IT usage for HRM increases if associated with strategic roles such as business partner and
change agent.
• IT reduces traditional HR transactional tasks/costs.
• Employee benefits and payroll management can be automated or outsourced.
• Performance management and multi-rater feedback process are getting automated.
4 HRP
2
9/14/2021
• Web-based HR
• Self service is a web-based service delivery model.
• Web-based HR service centres. (Job postings, personal data, access to learning solutions)
• E-recruiting and E-learning
• Pre-employment testing
• Enterprise portals
• These are knowledge communities that allow employees from a single or multiple companies
to access and benefit from specialized knowledge associated with tasks.
5 HRP
• Self service
• It is a technology platform that enables employees and managers to access and modify their
data via a web browser from a desktop or centralized kiosk.
• It is based on the principle that data is most effectively captured at source.
• Can be used for – personal information, emergency contact, travel reimbursement, enroll for
benefits or training classes, job openings, creating application materials, apply for a
position, check status of pending application, model retirement options, etc.
• Managers may use it for compiling information on employee absenteeism and turnover data,
to forecast HR demand, manage recruitment, annual appraisals, compensation planning.
• Employee self-service and manager self-service applications are changing service delivery
models.
6 HRP
3
9/14/2021
IT for HR Planning
• IT can support different steps for strategic HR planning such as satisfaction with the service
levels, organizational climate or engagement surveys, employee participation in training,
competencies, performance levels, etc.
• Workforce analytics
• The application and technologies for gathering, storing, analyzing, and providing access to
data to help users make better business decisions is referred as business intelligence.
• Workforce analytics should provide right information, in the right form, at the right time.
• Includes visual metrics, charts and data. Ex. Cost of HR function per employee, Cost per
benefit of an employee training program.
• Monitor enterprise goal attainment and identify performance deficiencies. Ex. Scorecard
illustrates performance of key metrics overtime. It may track revenue per employee, cost of
hire, or voluntary separation by length of service.
7 HRP
8 HRP
4
9/14/2021
• Skills inventories
• Valuable information for assessing the internal supply of talent.
• Skills inventory software contains personal record and skills profile of each employee (Skills
DB Pro).
• Skills inventories help managers to quickly identify employees with critical competencies and
ensure training is connected to strategic business needs.
• Automated skills inventories become an integral part of IT enhanced competence
management.
• Replacement charts
• Include predicted departure dates of the incumbents, shortlist of possible successors.
9 HRP
• Employee performance appraisal data and information about how ready possible successors
are to fill the managerial positions is included.
• Help decision makers determine which positions have sufficient bench strength.
• Succession management
• Succession management requires enormous information such as competencies, talent pools,
developmental plans, performance assessments from different sources, and developmental
opportunities.
• IT solutions can help manage this information and make succession management plans
more effective and wide-spread.
10 HRP
5
9/14/2021
• Succession Plus, Nardoni Strategic Solutions (NSS) (the premier succession planning and
development software for Fortune 500 companies now known as SUCCESSION Pulse); 360
On The Net (a web-based multi-rater assessment and development tool); Incentive
Compensation System (a team-based compensation system); HR Pulse (a competency-
based HR workstation and toolkit); plus a variety of custom human resource applications.
• Build talent strategy, Cisco Systems. Pathfinder Software Application. Helps employees
realize their career plans within the organization.
11 HRP
Big Data
• Big Data: The integration of digitized data from multiple sources and in multiple formats,
including structure and unstructured data.
• Structured data: Any form of data that can be organized into rows and columns. Other types
of structured data include sensor data.
• Unstructured data: Text documents, emails, audio, presentation's, geotags, images, videos,
etc.
• Five pillars of big data: Volume, Velocity, Variety, Veracity, Value
12 HRP
6
9/14/2021
AI and ML
• Artificial Intelligence: A software based ability to demonstrate learning and decision making.
• Machine learning: Machine learning is a branch of that focuses on the use of data and
algorithms to imitate the way that humans learn, gradually improving its accuracy.
13 HRP
• HR metrics
• Dashboards
• KPIs
14 HRP
7
9/14/2021
• HRIS
• A comprehensive across the board software system for HRM that includes subsystems or
modules.
• Offers integral solution for the HR department.
• Includes software, hardware, support functions, and systems policies and procedures used
to gather, store, and report human resources data.
15 HRP
• Specialty products
• These are software solutions for specific/specialized applications that may or may not
interface with the main database.
Performance
Workforce Ready Sage Payroll Hiring Process
Review
16 HRP
8
9/14/2021
• Enterprise solutions
• ERP is a commercial software system that automate and integrate many or most of a firm’s
business processes.
• Cover the fullest range of organizational activities and processes.
• Used by large corporations, aiming to achieve substantial cost savings.
• SAP – Human Capital Management (HCM) is the HR part of ERP.
• Oracle - Global Core Human Capital Management, Workforce Management, Workforce
Service Delivery, Talent Management, HR Analytics.
• ERP promotes the use of a single, shared relational database for critical information
across the organization.
• ERP is very costly and requires long time for implementation.
17 HRP
18 HRP
9
9/14/2021
19 HRP
20 HRP
10
9/14/2021
Evaluating HR Technology
• Attitudes toward IT are influenced by behavioral beliefs about technology usefulness and ease
of use.
• These beliefs are influenced by information satisfaction and system satisfaction, which result
from information quality and system satisfaction.
• More sophisticated evaluation includes analysis of the costs and benefits of the IT solution.
• Similarly return on investment (RoI) approach deals with savings through HR system.
• Competitive advantage
• Useful to assess the contribution of HR technology to competitive advantage.
21 HRP
• Occurs when HR systems facilitate the development of firm specific competencies, produce
complex social relationships, and generate tacit organizational knowledge.
• Technology applications available – development of internal labor markets though job
postings and career pathing, e-learning, e-recruiting, Employee Self Service (ESS) application
reinforces employee participation and engagement.
• Provide access to knowledge repositories.
• Knowledge management is a systematic and organizationally specified process for
acquiring, organizing, and communicating both tacit and explicit knowledge so that
employees may make use of it to be more effective and productive in their work.
22 HRP
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13
Organizational Propositions 2
1
9/14/2021
Downsizing 4
2
9/14/2021
Restructuring 6
3
9/14/2021
• Declining profit
• Business downturn or increased pressure from competitors
• Merger with another company, resulting in duplication of efforts
• Introduction of new technology
• The need to reduce operating costs
• The desire to decrease levels of management
• Getting rid of ‘deadwood’
Alternatives to Downsizing 8
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Inplacement v. Outplacement 9
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Survivor’s Perceptions 11
• Perceptions of justice
- procedural
- interactional
- distributive
• Negative attitudes and behavior
• Reduced performance capabilities
• Lower productivity
• Higher turnover intention
Impact on Downsizers 12
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• Rightsizing
• Reduce number of layers/ levels rather than no. of positions
• Identify, develop and protect the valued employees
• Emphasize leadership skills
• Empower individuals
• Identify and protect core competencies
• Special attention for those who lose the job as well as those who remain
• Be selective and long-term oriented
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Priyanka S
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1. What are the greatest HR frustrations? Frustration is usually the result of inefficiency
-spending valuable time duplicating data on disparate systems that aren’t integrated
-Are PTO requests and approvals becoming too time-consuming?
-Has employee turnover become so excessive that you’re exhausting your recruiting budget
by mid-year?
2. What is our organization doing on a regular basis that could be a waste of time?
3. What are our most critical needs for HR?
4. What level of customer service do we need?
5. What bonus features would benefit our organization most?
HRIS
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Human capital management (HCM) is a set of practices related to people resource management. These
practices are focused on the organizational need to provide specific competencies and are implemented
in three categories: workforce acquisition, workforce management and workforce optimization.
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Human Resource Management System (HRMS) is a HR ware that enables the management of several
HR functions through the use of information technology.
HRMS is a digital personal assistant to do tedious work for HR professionals.
HRMS can be described as automation software that automates most of the tasks of the Human
Resource Management (HRM) process.
Gartner - HRMS as “Business applications for the management of HR-related transactions, best practices
and enterprise reporting.
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The evolution of HRIS can be traced back in 1950's and 1960's when the first automated
systems (payroll system) was introduced. GE was the first to introduce the system.
During 1990’s, extensive studies were undertaken on the advantages of the introducing HRIS
in the organization and its influence on the overall human resource strategies and business
planning.
Early Belief - HRIS (Human Resources Information System) is only to manage employee
records, attendance/Time Sheet, leave, and shift up to generating Payroll through a software
application installed in a computer.
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Simplify Compliance and Reporting - HRMS systems also help ensure compliance with
HR laws and reduce the risk of fines, penalties, and missed deadlines.
Better Focus on What’s Important – Automate the operational and focus on the core
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Objective :
Higher speed of processing and retrieval of data
Fast response
Engaged workforce
HRMS is a amalgamation of processes, systems, methods,
and rules that automates the entire human resource World class employee experience
activities that strategically aligns the role and contribution Establishing of streamlined and systematic procedures
of people towards corporate goals
Higher transparency in the system
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Data Management - Real-time data , invaluable as employees are increasingly being viewed
as customers and employee engagement has become a key part of the organizational puzzle.
Employee Self Service – An information suite that is available to employees in one central
hub. Focus on strategic tasks - improves the efficiency of the business’ functioning.
Easy Reporting - An HRMS allows you to generate a number of predefined statutory as well
as MIS reports immediately without set up. HR dashboards give you a quick view of critical
information, all on a single screen.
100% Statutory Compliance - Modern cloud HRMS ensure compliance through regular
updates of statutory changes to the back end of the software, such that you are not forced to
go hunting for the nitty-gritty of legal changes in a constantly evolving legal landscape such
as that present in India.
Adopt Best Processes in the Industry - An HRMS is researched and set up in such a way
that it incorporates within it the best practices used in the space. A few examples of this
include checklists, predefined formats for letters, requests, etc and the like.
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An HRMS holistically automates the functions while maintaining an updated inventory of skills, abilities,
achievements, and profiles of the employees always available at the disposal of managers to aid rational
decision related to the efficient allocation of the workforce.
Effective Risk Management : HRMS electronically gathers and manage the documents and store files with
appropriate tags, thus increasing the responsiveness at the times of audits. Moreover, as the workflow is
streamlined, it gets easier to gauge the nonconformities from the standard procedures, thereby eliminating
the possibilities of legal penalties.
Optimal Efficiency: HRMS works on predictive analytics for the workforce, thus making it easier for
organizations to invest in right interventions at the right time. Therefore, the implementation of HRMS leads
to cost reduction
Transparent communication:. HRMS promotes superior communication between employees through
improved collaboration and open feedback mechanisms. With higher accessibility and share-ability,
communication gets streamlined by involving the right accountability centers.
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Streamlined Recruitment process: HRMS simplifies the recruitment process as it helps in creating a
unified pool of resumes from which hiring managers can draw the candidates that fit in the pre-defined
parameters to fill the vacancies. ATS.
HRMS systematizes manpower planning by ascertaining the demand across the business functions
and highlighting the need to supply candidates with relevant skills.
Self Service : HRMS offers a self-service interface to the employees and managers through which they
can update and access the information as per the need, thus reducing the administrative workload for
HR specialists.
Refine & Redefine the culture. HRMS extends its competence by executing activities like attitude and
sentiment surveys, career management plans, potential assessment, learning modules for employees,
affirmative action plans, exit interviews, and succession planning thus contributing towards the
improvement of the work environment in the companies.
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Increasing organizational effectiveness: HRMS supports decision making and better control through
automated reconciliations that are known for their accuracy and timeliness. The overall efficacy of the
organization as an employer is instrumentally improved with HRMS.
Shift the focus: HRMS re-engineers the entire human resource function, thus shifting the focus of
companies from process-oriented HR to strategic HR.
Increasing Compliance : HRMS monitors, evaluates and controls the deviations experienced in HR
functional and tactical processes, thus managing compliance with state laws.
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HRMS is a high-performance software that creates a massive impact on the sustainability of enterprises
by making them flexible and responsive to change.
Data - Workforce analytics -provide Return-on-Investment (ROI) evidence for workforce-related
decisions, as well as gain insight on future workforce planning
It brings transparency in the system
develops a foundation for best human resource practices
HRMS is customized, affordable, secure and service oriented
Has advanced solutions catering specifically to the needs of the businesses - SOA
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The workplace today is in a state of continuous, digital flux, HR systems and processes need
to adapt to a world that is datafied, technology-driven, and people-centric.
Need is of integrated systems for organizing, storing, retrieving and reviewing data.
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Recruitment
Online Recruting 2
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Case Interviewing 5
It is a method that subjects a job applicant to a scenario and business problem similar to
those encountered on the job.
• Application of technology
• Quantitative analysis
• Theory development and conceptual thinking
• Creative production
• Counseling and mentoring
• Managing people and relationships
• Enterprise control
• Influence through language and ideas