• Large, complex organizations often require ataller hierarchy.• In its simplest form, a tall structure results in onelong chain of command similar to the military.• As an organization grows, the number ofmanagement levels increases and the structuregrows taller. In a tall structure, managers formmany ranks and each has a small area of control.
• Flat structures have fewer management levels,with each level controlling a broad area or group.• Flat organizations focus on empoweringemployees rather than adhering to the chain ofcommand.• By encouraging autonomy and self-direction, flatstructures attempt to tap into employees’creative talents and to solve problems bycollaboration.
• Virtual organization can be thought of as away inwhich an organization uses information andcommunication technologies to replace oraugment some aspect of the organization.• People who are virtually organized primarilyinteract by electronic mea
• For example, many customer help desks linkcustomers and consultants together viatelephone or the Internet and problems maybe solved without ever bringing peopletogether face-to-face
• A boundary less Organizational structure is acontemporary approach in Organizational design.• It is an organization that is not defined by, orlimited to the horizontal, vertical or externalboundaries imposed by a pre-defined structure.• It behaves more like an organism encouragingbetter integration among employees and closerpartnership with stakeholders.
• Functional• Line• Matrix• product
Job Analysis• Formal and detailed examination of jobs• Process of defining a job in terms of itscomponent tasks or duties and theknowledge or skills required to perform them. .
DEFINITION• Job refers to a group of activities performed by an employees• Tasks is a larger work segment composed of several tasks that areperformed by an individual• Responsibilities is an obligations to perform certain tasks andduties.• Job analysis– The procedure for determining the duties and skillrequirements of a job and the kind of person who should behired for it.– The process of obtaining information about jobs bydetermining what the duties, tasks, or activities of jobs are
Job description Statement of the tasks, duties, and responsibilities(TDRs) of a job to be performed
Job specification• Job Specification– Statement of the needed knowledge, skills, andabilities (KSAs) of the person who is to performthe job
The process of Job analysis4-10The major steps involved in job analysis are: Organisational analysis Selection of representative positions to be analysed Collection of job analysis data Preparation of job description Preparation of job specificationJob Analysis
Job Description• Job description is an important documentwhich is basically descriptive in nature andcontains a statement of job analysis• It serves to identify a job for consideration byother job analysts• It tells us what should be done, why it shouldbe done, and where it should be performed.
Job specifications• It is a written statement of qualifications,traits, physical and mental characteristics thatan individual must possess to perform the jobduties and discharge responsibilitieseffectively.
Job analysis information and factsJob descriptionContains information and facts about:• Job identification• Job summary• Relation to other jobs• Supervision taken, location in thehierarchy• Machine tools and equipmentsused• Materials and form used• Condition of work, location ofwork, working hours, posturestanding, sitting, walking, accuracy,health hazards, occupationaldiseases etc.Job specificationContains information and facts about:• Education• Experience• Training• Judgment• Initiative• Physical effort• Physical skills• Responsibilities• Communication skills• Emotional characteristics• Unusual sensory demands such asvision, smell , hearing etc.
Human Resource Planning• Human Resource is an important corporateasset and the overall performance of thecompanies depends upon the way it is put touse.• In order to realize company’s objectives, it isessential to have a human resource plan.
Human Resource Planning• Human Resource planning (also calledemployment or personnel planning) isessentially the process of getting the rightnumber of qualified people into the right jobat the right time so that an organization canmeet its objectives.
According to E.W. Witter,• HRP is defined as “A process by which anorganization should move from its currentmanpower position to its desired manpowerposition.
5-3Human Resource PlanningObjectiveThe basic purpose of HRP is to decide what positions the organisation willhave to fill and how to fill them.Objectives of human resource planningForecast personnel requirementsCope with changesUse existing manpower productivelyPromote employees in a systematic way
Importance of HRPHRP is important in a number of ways:• Reservoir of talent• Prepare people for future• Expand or contract• Cut costs• Succession planning
Benefits of HRPThe major benefits of HR planning are:• It checks the corporate plan of theorganization• It offsets uncertainty and change• It provides scope for advancement anddevelopment of employees through training,development etc.• It helps to anticipate the cost of salaryenhancement, better benefits etc.
• It gives an idea of the type of tests to be used andinterview techniques in selection based on thelevel of skills, qualifications, intelligence, valueetc.• It causes the development of various sources ofhuman resources to meet the organizationalneeds.• It facilitates the control of all the functions,operations, contribution and cost of humanresources.
The Process Of HRP• Forecasting the demand for human resources• Supply Forecasting (preparingman power inventory)• Determining man power gap• Formulating HR plans
5-5Human Resource PlanningThe Process Of HRPThe HRP is a four step process: demand forecasting, supply forecasting,estimating manpower gaps and formulating HR plans. The demand forhuman resources is influenced by several factorsForecasting the demand for human resourcesExternal challengesEconomic developmentsPolitical, legal, social, technological changesCompetitionOrganisational decisionsWorkforce factorsForecasting technique
5-6Human Resource PlanningExternal Challenges: Liberalisation, privatisation and globalisation (LPGera) have created huge demand for people in software, finance marketing,and manufacturing fields.Organisational Decisions: Decisions such as expansion, diversification,and relocation leading to demand for people possessing requisite skillsWorkforce Factors: Such as retirement, resignation, and termination etccreating manpower gaps.The Process Of HRP
5-7Forecasting TechniquesHR forecasts are an attempt to find out an organisations future demandfor employeesHuman Resource PlanningForecasting techniquesExpert forecastsTrend analysisWorkforce analysisWorkload analysis
5-8Human Resource PlanningExpert Forecasts: These are based on the judgements of those who possessgood knowledge of future human resource needsTrend Analysis: Human resource needs, as such, can be estimated byexamining past trends.Forecasting techniquesAn example of trend analysis2001-02 Production of Units : 5,0002002-03 No. of Workers : 100Ratio : 100:50002003-04 Estimated Production : 8,000No. of Workers required : 8000 × = 1601005000
5-9Workforce Analysis: All relevant factors in planning manpower flows in afirm such as transfers, promotions, new recruitments, retirement,resignation etc are taken into account while estimating HR needsHuman Resource PlanningForecasting techniques
5-10Human Resource PlanningWorkload analysis: Based on the planned output, a firm tires to calculate thenumber of persons required for various jobs.Forecasting techniquesAn example of workload analysisPlanned output for the year 10,000 piecesStandard hours per piece 3 hoursPlanned hours required 30,000 hoursProductive hours per person per year 1,000 hours (estimated on annual basis)(allowing for absenteeism, turnover, idle time etc.)No. of workers required 30
5-11Human Resource PlanningSupply Forecastingto find out the size and quality of personnel available within the org tovarious positionA) Internal labour supply: a manpower inventory in terms ofthe size and quality of personnel available (their age, sex,education, training, experience, job performance, etc) isusually prepared by HR departments. Several techniques areused while ascertaining the internal supply of manpower (asupply of employees to fill projected vacancies can come fromwithin the firm or from new hires )
5-12Human Resource PlanningEstimated internal labour supplyfor a given firmThe FirmSources of Inflows Transfers Promotions New Recruits Recalls Promotions Quits Terminations Retirements Deaths LayoffsEmployees In Employees OutCurrentstaffinglevelProjectedoutflowsthis yearProjectedinflowsthis yearFirm’s internalsupply for thistime next year– + =Projected OutflowsCurrent StaffingLevel
5-13Human Resource Planningforecasting techniqueStaffing table: Shows the number of employees in each job, how they areutilised and the future employment needs for each type of job.Marcov analysis: Uses historical information from personnel movementsof the internal labour supply to predict what will happen in the futureThis technique uses historical rates of promotion , transfer and turn overto estimate future availabilities in the work force .Supply Forecasting
5-14Marcov analysis for a hypotheticalretail companyHuman Resource PlanningFigures in circles show the transition percentages80%1220%36%211%483%3011%1166%638%810%2972%2072%616%466%8674%106620%28815%142003-2004 Store Asst. Store Section Dept. Sales ExitManagers Managers Heads Heds ExecutivesStore Managers(n = 15)Asst. StoreManagers(n = 36)SectionHeads(n = 94)DepartmentalHeads(n = 288)SalesExecutives(n = 1440)ForecastedSupply 16 41 92 301 1072 353
5-15Skills inventory: It is a summary of the skills and abilities , experience of eachof current employees .Human Resource PlanningSupply Forecasting
5-16Human Resource PlanningSkills inventory: an exampleName : A.K. Sen Date printed : 1-4-2004Number : 429 Department : 41Key words Work experienceWord Description Activity From ToAccounting Tax Supervision 1998 2000 Tax clerk ABC Companyand analysisBook Keeping Ledger Supervision 2000 2002 Accountant XYZ Co.Auditing Computer Analysis 2002 2003 Chief Accounts TT Bankrecords OfficerEducation Special Qualifications MembershipsDegree Major Year Course Date 1. AIMAMBA Finance 1998 DBF 1996 2. ISTDB.Com Accounts 1995 Risk Management 1999 3. ICAComputer Languages Position Location HobbiesLiteracy preference choice Tally French Accounting Kolkata Chess Banking Auditing Delhi FootballSoftware Bangalore BoatingEmployees Signature __________ HR Department________Date _______________________ Date ________________
5-17Human Resource PlanningReplacement chart: It is a visual representation of who will replace whomin the event of a job opening.Supply Forecasting
5-18Human Resource PlanningReplacement chartGeneral ManagerV. K. GargA/2KeyNames given are replacementcandidatesA. Promotable nowB. Needing developmentC. Not suitable to position1. Superior performance2. Above Average performance3. Acceptable performance4. Poor performanceP A toGeneral ManagerL. MathewsB/1Assistant General ManagerR.K. Arora A/2B.K. Nehru B/3Division:HR ManagerC.P. Thakur A/1Division:Accounting &Taxation ManagerA.T. Roy C/2Division:Planning ManagerA.N. Gupta A/1K.P. Rao B/1Technical AdvisorN.R. Murthy B/3Northern RegionManagerL.C. Srivatsav A/2A. Thapar C/4Central RegionManagerS.P. Kumar A/1R. Pandey B/3Southern Region ManagerA. Subramanyam B/2B.K. Menon B/1Eastern RegionManagerR. Krishna B/3
5-19B) External Labour supply: External hires need to be contactedwhen suitable internal replacements are not available. A growingnumber of firms are now using computerised human resourceinformation systems to track the qualifications of hundreds orthousands of employees. HRIS can provide managers with alisting of candidates with required qualifications after scanning thedata base.Human Resource PlanningSupply Forecasting
5-20Important barometers of laboursupplyHuman Resource Planning1. Net migration into and out of the area2. Education levels of workforce3. Demographic changes in population4. Technological developments and shifts5. Population Mobility6. Demand for specific skills7. National, regional unemployment rates8. Actions of competing employers9. Government policies, regulations, pressures10. Economic Forecasts for the next few years11. The attractiveness of an area12. The attractiveness of an industry in a particular place
Manpower Gap Analysis5-21Human Resource PlanningThis is used to reconcile the forecasts of labour demand and supply. Thisprocess identifies potential skill shortages or surpluses of employees, skillsand jobsEstimating manpower requirementsYear1 2 31. Number required at the beginning of the year2. Changes to requirements forecast during the year DEMAND3. Total requirements at the end of the year (1+2) ------- ------4. Number available at the beginning of the year5. Additions (transfers, promotions) SUPPLY6. Separations (retirement, wastage, promotions out and other losses)7. Total available at the end of year (4+5+6) --------------------8. Deficit or surplus (3-7) RECONCILIATION9. Losses of those recruited during the year OF THE ABOVE10. Additional numbers needed during the year (8+9) MANPOWERNEEDED
5-22Formulating HR PlansHuman Resource PlanningOnce supply and demand for labour is known adjustments can be madeformulating requisite HR plansA variety of HR plans Recruitment plan Redeployment plan Redundancy plan Training plan Productivity plan Retention plan