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Human Resource Planning

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Human Resource Planning

Changes in Work Methodology: Concepts driving Change: Quality Value added services Strategic Alignment Flexible Manufacturing systems Innovative & Customised Products Hierarchical vs. Flat structures.

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Need for HRP in Todays Enterprise

Process

Capabilities Investments in R& D Need for stability and robustness to ensure long term survival. Need for organizations to assess the future supply of and demand for human resources Provides mechanisms to eliminate any gaps between supply and demand Determines the number and types of employees to be recruited into the organization or phased out of it

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What is HRP ?
HRP is an essential ingredient of Corporate Planning activity. Deserves the same attention as Financial resourcing and Planning, technology resourcing and developments. Increasing Shift towards Knowledge based economies growing need for skilled knowledge workers. To source and retain them.

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What is HRP ?
Human Resource Planning is the process by which management determines how the organization should move from its current human resource condition to the desired human resource condition. A process by which an organization ensures that it has the right number and kind of people at the right places at the right time, capable of effectively and efficiently completing these tasks that will help the organization achieve its overall objectives.

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Human Resource Planning

Forecasting future human resource needs including the analysis and understanding of existing resources. Improving and effectively utilizing existing human resources to meet emergent needs of the enterprise. Acquiring new human resources to fill the gap between actual needs and existing realities. Retaining human resources with right backgrounds, qualifications, skills and attitudes.

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issue regarding Human resources

Managerial competence Desired mix of knowledge, competency and experience Excess or Shortage of Manpower Compensation strategies Employee Engagement ( utilization of skills)

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Environmental Scan
Globalization MNC culture increased Labour mobility Whats so special? Thriving Workplace Alliance with vendors, suppliers and Value added Channels come from any part of the world not necessarily near the Manufacturing bases. Software development and R&D centers. Global Competition global sourcing of manpower

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Environmental Scan
Shortage of skills within a country are complemented by International hiring strategies. Eg. Middle East, USA, Europe, Far east

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Factors Reviewed by HR Planners

Social factors Education Levels, women Empowerment, People with Disabilities Technological Factors New Emergent areas projecting skill requirement. IT, Actuary, Asset management, Factoring, Biotechnology, R&D, Legal processes, Diagnostics and Health Management.

Inputs to strategic corporate planning process

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Organizational Circumstances: SWOT Analysis of each functional group as well as the entire corporation. An excellent understanding of all the functional groups and various areas of business. Human resource Realities: Employee strengths, internal skill sets, organization structure, T&D issues, redundancies, morale and motivational issues.

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Contd.
Financial Realities : profitability, financial reserves,debts, health of financial ratios, credibility with financial institutions, share holders. Manufacturing Realities: Maintenance, Up gradation, Modernization, Consolidation of plant and machinery,issues of internal manufacturing quality, In house vs. outsource.

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Characteristics of a good Plan

Consideration of possible alternatives in the form of make or buy decisions productivity improvement possibilities closing of or continuation of non viable units in the long term interest. Questions on the nature of Business the enterprise is engaged in and into what businesses it ought to move.

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Process of Human Resource Planning

Since beginning of the 20th century human behaviour in Industry has been studied in increasing depth. F.W. Taylor Attempts to improve productivity of people by time study. Frank and Lillian Gilbreth recording motion patterns led to work simplification on assembly lines. Bedaux- rating the speed of work, giving fatigue allowances

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Process of Human Resource Planning

Study on utilization of manpower on the shop floor supplemented by work related to creation of right environment by George Elton Mayo. Studies on quantification of work, work processes, work environment, both psychological and physical motivated by the fact that Industries had to become more and more productive in order to remain competitive and the realization that human resources were critical to the success of any organization.

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Process of Human Resource Planning

Business Realities and Budgets An HR Planner has to keep in touch with Business realities and operate within a given budgetary framework. Eg. Issue of Redundancy Playing an important role in Determination of Budgets to evolve appropriate strategies. Demand Forecast Inputs from corporate plans , existing level of productivity, Productivity Improvement trends.

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Sub Plans emerging from HRP

Productivity Improvement Plans Career and Succession Plans Separation plans Organization and Restructuring plans Hiring plans Employee Retention plans Redeployment plans

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Role of a Human Resource Planner

Profile of a Human Resource Planner 1. A Senior Person with the position & ability to influence Corporate Planning. 2. Thorough knowledge of macro economic scenario, internal human resource circumstances & Corporate planning activities. 3. Awareness of and sensitivity to other organizational issues like technology, marketing and sales strategies, financial health and organizational structure.

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Issues in Demand forecasting

Mapping Key positions in an organization. Advance hiring of people against only key positions . Key positions Scarcity of skills thereby requiring longer lead time to hire Jobs having scarcity of skills thereby requiring organizations to invest in training leading to longer lead time.

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METHODS OF DEMAND ESTIMATION

Volume of output / production has a direct correlation with manpower requirements. Improvements in productivity make a major impact on manpower demand and related output. Manpower estimation can be made by establishing a relationship between the workload or output and the human abilities to fulfill this.

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Forecasting Demand for Employees

The

Expert Estimate

Delphi

technique Nominal group technique (NGT)

Trend

Projection

Markov

chain analysis Regression analysis

Unit-Demand Forecasting

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METHODS OF DEMAND ESTIMATION

Ratio Analysis Ratio between output and manpower deployed to achieve that output is established at a given point of time. 1. Revenue per employee 2. Sales volume per sales person 3. Units produced per employee 4. Service contracts per engineer These Ratios help in projecting future needs

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Summary (1 of 3)
There

is no one best method for conducting HR planning and techniques all differ from organization to organization companies do not devote enough time and energy to the HR planning process

Methods

Many

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Summary (2 of 3)
An

effective HR plan should work in partnership with a strategic plan resource planning can be an integral part of the HRM program is directly related to: recruitment, selection, training, and promotion

Human

It