Chapter -2 HUMAN RESOURCE PLANNING“Human resource planning is a strategy for the acquisition, utilization, improvement and preservation of an organization human resources. HRP is a plan of action formulated to meet future human resources needs. HRP contains the TWO important aspects:1. Estimating the required work force2. Staffing polices and programmes
1. Estimating the required work forceIt includes: Forecasting the number of employees of various categories required by the firm for a given period. This is a long range activity taken up by the firm & hence it should estimate the human resources required for a specific period.
2. Staffing polices and programmesIt includesMode of selection of staff, maintaining human resources data periodical reporting of manpower objectives, develop measure for utilization of human resources, effective work allocation to improve the quality of work& utilize the work to maximum.Policy also emphasis to take up research activity for continuously assessing the quality of work & find out underutilization of the capacity of human resources& to suggest remedial measures to rectify such underutilization, assessing the economic factors…..
Definitions E.W. Vetter ----as “a process by which an organization should move from its current manpower position to its desired manpower position. Through planning, management strives to have the right number & right places at the right time, doing things which result in both the organization & the individual receiving maximum long-run benefit. P. Bruce Colemn--- “the process of determining manpower requirements & the means for meeting those requirements in order to carry out the integrated plan of the organization”
Purposes of Human Resource Planning 1. Setting goals and objectives 2. Examining the effects of alternative human resource policies and programs 4.3
The Human Resource Planning Process 1. Project future human resource supply 2. Forecast future human resource needs 3. Compare forecast needs with projected supply 4. Plan policies and programs to meet human resource needs 5. Evaluate human resource planning effectiveness 4.5
Objectives of HRPTo recruit & retain the human resource of required quantity & qualityTo forecast the employees turnover & make the arrangements for minimizing turnover & filling up of consequent vacanciesTo meet the needs of programmes of expansion, diversificationTo foresee the impact of technology on work, existing employees & future human resource requirementsTo improve the standards, skill, knowledge, ability, discipline
To assess the surplus or shortage of human resources & take measure accordinglyTo maintain congenial industrial relations by maintaining optimum level & structure of HRTo minimize imbalances caused due to non-availability of human resources of right kind, right number in right time & right placeTo make the best use of its human resources to estimate the cost of human resources.
Need For employee replacement of death, retirement & transfer To provide skilled workers to increase productivity to optimize the organizational resources to face the problem of high labor turnover To meet the requirement of expansion and diversification to meet the challenges of changing technology To balance surplus-deficit manpower.
Advantages of HRP Disadvantages HRPImproves productivity Disruption in flow of workReduces excessive laborturnover Less job satisfactionAbsenteeism is high cost of productionminimized constant headache forOptimum utilization of management personnelHR in organizationEnhances employeesmorale
External factors 1. Government polices Internal factors 2. Level of economic 1. Strategies of the company development including future supply of HR’s 2. Human resource policy of the company 3. Business environment 3. Formal & informal groups 4. Information technology 4. Job analysis 5. Natural factors 5. Time horizons 6. Outsourcing 6. Type & quality of information 7. International factors 7. Company’s production operations policy 8. Trade unions
Process of Human resource planning1. Analyzing organizational plans2. Demand forecasting: Forecasting the overall human resource requirements in according with the organizational plans3. Supply forecasting: Obtaining the data & information about the present inventory of human resources & forecast the future changes in the human resource inventory4. In case of future deficit forecast the future supply of human resources from all sources with reference to plans of other companies
5. In case of future surplus, plan for redeployment, retrenchment & lay-off 6. estimating the net human resource requirements 7. plan for recruitment, development & internal mobility if future supply is more than or equal to net human resource requirements 8. plan to modify or adjust the organizational plan if future supply will be inadequate with reference to future net requirements.
Job Analysis Job analysis is a systematic investigation of thetasks, duties and responsibilities necessary to doa job. Job analysis is the process of collecting jobrelated information
Types of Job analysis InformationWork Activities:Machines, Tools, Equipments and Work Aids usedPersonal requirements Job context
Outcomes of Job AnalysisJob descriptionJob specification Job evaluation
Job DescriptionA job description is a written statement of theduties, responsibilities, requiredqualifications and reporting relationships of aparticular job.The job description is based onObjective information obtained through jobanalysis
Characteristics1. Should indicate the scope & nature of the work including all important relationships.2. Should be clear regarding the work of the position, duties..3. More specific words should be selected… The kind of work The degree of complexity The degree of skilled required The extent to which problems are standardized The extent of workers responsibility fro each phase of the work The degree & the type of accountability Action words such as analyze, gather, plan, confirm, deliver, maintain, supervise & recommend should be used.
4. Supervisory responsibility should be shown tot the incumbents5. Utility of the description in meeting the basic requirements should be checked from the extent of understanding the job by reading the job description by a new employee.The content of job Description the job Description normally contains the information on the following lines… Job title Organizational location of the job Supervision given & received
Materials, tools, machinery & equipment workedDesignation of the immediate superiors & subordinatesSalary levels: Pay, D.A., other allowances, bonus, incentive wage, method of payment, hours of work, shift, break.Complete list of duties to be performed separated according to daily, weekly, monthly & casual, estimated time to be spent on each duty.
Example of Job DescriptionJOB TITLE:-------------------------OCCUPATIONALCODE:---------------------------------REPORTS TO:------------------------------------------------JOB NO. :----------------------------------------------SUPERVISES:------------------------------------------GRADE LEVEL:-------------------------------------AS ON DATE :--------------------------------------------FUNCTIONS:__________________________________________________________DUTIES AND RESPONSIBILITIES:_______________________________________________________JOB CHARACTERISTICS:_________________________________________________________
Job description form of credit manager Mr.Ravikanth… in SBI in INDIA 1. Job grade: Middle management 2. Job title: Credit manager 3. Reporting to: regional manager 4. Definition of job purpose: To be a link between the branch managers & regional manager in appraising credit proposals 5. Definition of job duties: Receiving credit proposals processes by field officers at all branch level with specific remarks of the branch manager Evaluating the proposals from the lines of technical feasibility, commercial viability, financial soundness Securing additional information required from the applicant Visiting the industry/filed before taking final decision Making final decision & informing the same to all parties
6. Additional responsibility requirementsRepresenting the bank in district developmentcommitteesMaintaining sound employee relations in hisdepartments7. Extent & limits of authorityFinalizing the projects requiring the loan up to Rs. 30lakhsFinalizing the projects owned purely by privatelimited companies8. Salary : Rs. 4500 per month (pay Rs. 3500 + HRA Rs.700)9. Working conditions
Job specificationJob specifications specify theMinimum acceptable qualificationsrequired by the individual to performthe task efficiently. Based on theinformation obtained from the jobanalysis procedures, job specificationidentifies the qualifications, appropriateskills, knowledge, and abilities andexperienced required to perform the job. Job specification is an important tool inthe selection process as it keeps theattention of the selector on thenecessary qualification required…..
Job specification form Job grade: Middle Management Job title: Credit manager Physical & Health: Normal health, able to visit factories, fields----able to walk extensively Energy level & temperature: High, ability to adjust to increasing temperature Appearance, Dress: Neat----suitable for travelling Mental abilities: Alertness, ability to read & perceive accurately Special abilities: Flexibility, adaptability
Special knowledge or skills: must know local language, skills of conciliation & appreciation Skill in operating special equipment: Driving two wheelers & light vehicles Degree of personal traits Maturity: Must be capable of accepting responsibility to recover Self reliance: Stick to own appraising decisions Dominance: Must dominate the filed officers & branch mangers Creativeness: Creative thinking in developing new schemes of advances & recovery
Particular skills: Calculating, analytical, interpretation, appraising etc… Others: 1. age 2. sex 3. educational qualifications 4. experience 5. physical specification: Height, weight 6. social background 7. family background 8. extra-curricular activites 9. hobbies
Job EvaluationJob evaluation provides the relative value ofeach job in the organization. It is an importanttool to determine compensationadministration.•If an organization is to have an equitablecompensation program, jobs that have similardemands on terms of skills, education andother characteristics should be placed in thecommon compensation groups
Job DesignJob design is the process:---of deciding the content of a job in terms of its duties & responsibility----on the methods to be used in carrying out the job, in terms of techniques, systems & procedures & on the relationships that should exist between the job holder & his superiors & colleagues
Two important goals of job design are:1. To meet the organizational requirements such as higher productivity, operational efficiency, quality of product/ service2. To satisfy the needs of the individual employees like interests, challenge, achievement or accomplishment.. Finally the goal of job design is to integrate the needs of the individual with organizational requirements…
Job design process---has to start from what activity needs to be done in order to achieve organizational goals---it requires the use of techniques like work-study, process planning, organizational methods & organizational analysis---the retaining part of the discussion on the process of job design involves the technical aspects of job design
Job Rotation---refers to the movement of an employee from one job to another.---job themselves are not actually changed, only the employees are rotated among various jobs.---an employee who works on a routine/respective job moves to & works on another job for some hours/days/months & backs up to the first job.---this measures relives the employees from boredom & monotony, improves employees skills regarding various jobs & prepares the competent employees to meet the contingencies.
Job loading Increasing workload, often a result of redundancies. It may mean having to do more of the same, but often entail one or two extra activities that have to be taken on…Job enlargement---means adding more & different tasks to a specialized job to provide grater variety. This process is called horizontal job loading or horizontal enlargement. It tackles dissatisfaction & reduces monotony by increasing the variety & scope of tasks. This techniques though leads to higher wages, it improves worker satisfaction, quality of production & overall efficiency of the organization
Job EnrichmentMeans adding duties & responsibilities that will provide for skill provide variety, task identity, task significance, autonomy & feedback on jobs performance.It tries to deal with dissatisfaction by increasing job depth as work activities from a vertical slice of the organizational unit are combined in one job.As work becomes more challenging & worker responsibility increases, motivation & enthusiasm also increase
Advantages of Job EnrichmentJob enrichment is useful to both the workers and the organization.The worker gets achievement, recognition and self- actualization.The worker gets a sense of belonging to the organization. The worker finds the job meaningful. Job enrichment reduces absenteeism, labor-turnover and grievances. It motivates the workers to give best performance.
Techniques of Job enrichment Increasing the responsibility of the activity Providing wider scope, more sequence & increased pace of the work Giving a natural unit of work either to an employee or group of employees Providing the freedom of work by minimizing controls when the employee are clearly accountable for attaining defined goals. Allowing the employees to set their own standards or targets Encouraging employee participation in planning, innovation & creations
Evaluation types Job Ranking is the most simple form. Basically one just orders the jobs according to perceived seniority. This is easy to do in a small organization, but gets more and more difficult as different jobs exist within the company. Pair Comparison introduces more rigor by comparing jobs in pairs, but really its a more structured way of building a basic rank order. Benchmarking or slotting sets up certain jobs that are analyzed in detail. These are then used for comparison to slot jobs against these benchmarks. Job Matching allocates benchmarks too, but when a position is matched the elements of the job that differ are re- evaluated. Usually this evaluation will be done with a Point Factor Analysis (PFA) or classification system.
Point Factor Analysis Point Factor Analysis (PFA) is the old-school (but fair) bureaucratic method for determining a score for each job. Jobs are broken down into factors such as “knowledge required”. A set of closed questions in each factor break down to detail such as “level of education”. The responses to these questions are given a score, and totaled for each factor. Each factor is given a weight, and this effects the contribution made to the overall total score by that factor. Factors can be weighted according to their significance to the organization, and this allows the pay scheme to be linked to the organization’s strategy.
Job Simplification Job simplification is a design method whereby jobs are divided into smaller components and subsequently assigned to workers as whole jobs. Simplification of work requires that jobs be broken down into their smallest units and then analyzed. Each resulting sub-unit typically consists of relatively few operations. These subunits are then assigned to the workers as their total job.
There appears to be two major advantages in using job simplification. First, since the job requires very little training, they can be completed by less costly unskilled labor. Second, job speed increases because each worker is performing only a small portion of the previously large job and thus is able to master a smaller, less complicated job unit. On the negative side, job simplification results in workers experiencing boredom, frustration, alienation, lack of motivation and low job satisfaction. This, in turn, leads to lower productivity and increased cost.