Process of personnel planning; formulating plans to fill the future openings based on the analysis of environment and organizational plans.
Manage the headcount of an org-achieve compatibility with predicted trends with performance over time.
HRP- EXPLANATIONS THE PRACTICE OR ACTIVITY CARRIED ON BY THE ORGANIZATION WITH THE PRIMARY PURPOSE OF IDENTITIFYING AND ATTRACTING POTENTIAL EMPLOYEES. THROUGH HUMAN RESOURCE PLANNING, MANAGEMENT PREPARES TO HAVE THE RIGHT PEOPLE AT THE RIGHT PLACE AT THE RIGHT TIME TO FULFILL BOTH ORGANIZATIONAL AND INDIVIDUALOBJECTIVES. HRP takes care of natural depletion of work force and the changing needs of the company as far as quality and nature of workers are concerned.
HUMAN RESOURCE PLANNING PROCESS Forecast of labour demands Forecasts of labour supply Forecasts of labour surplus or shortage Goal setting and strategic planning Program implementation and evaluation
PROGRAMME PLANNING OPTIONS Do not replace employees who leave Offer incentives for early retirement Transfer or re-assign excess employees Use slack time for employees training or equipment maintenance Reduce work hours Lay-off employees If a surplus of employees is expected …. Hire new full-time employees Offer incentives for postponing retirement Re-hire retired employees on part-time basis Attempt to reduce turnover Bring in overtime for present staff Subcontract work to another company Hire temporary employees Re-engineer to reduce needs. If a shortage of employees is expected ….
OPTIONS FOR REDUCING AN EXPECTED LABOR SURPLUS Low Low Low Moderate Moderate High High High Human Suffering Slow Natural attrition Slow Retraining Fast Pay reductions Fast Transfers Slow Retirement Fast Work sharing Fast Demotions Fast Downsizing Speed Option
OPTIONS FOR AVOIDING AN EXPECTED LABOR SHORTAGE Low Low Moderate High High High High Human Suffering Slow Technological innovation Fast Temporary employees Slow Retrained Transfers Slow New external hires Slow Turnover reductions Fast Outsourcing Fast Overtime Speed Option
Average core combined with Category A overtime and Category B own-pool temporaries Small core workforce (inc. Category A home workers and part-timers) and Category C workers Large core combined with Category A part-time Average core combined with Category A part-timers, shift workers, home workers and Category C agency and/or subcontracts HUMAN RESOURCING:Planning and performance Fluctuations in demand High High Low Low Labour costs Risk assessment model of flexible working patterns
Peripheral group I Secondary labour markets Flexibility through quantitative adjustment Short term contracts Public subsidy trainees Delayed recruitment Job sharing Part timers Peripheral group II Core group Primary labour markets Flexibility through utilization Agency temporaries Subcontracting Out-sourcing Self-employment The flexible firm
RECRUITMENT CHANNELS INTERNAL Job Posting Programs Buy Back INTERNAL Walk in interviews Employee referrals Advertisement Employment agencies Private placement agencies Educational Institutes Temporary Help Agencies Open House
Hypothetical Yield Ratio for Five Different Recruitment Sources 75% 5% 70% 3% 45% Yield ratio 100% 80% 90% 25% 87% Yield ratio 19 50 40 95 100 Judged acceptable $ 5,000 $ 50,000 10/400 11% 10 95% 100 400 Renowned University 20 400 45 175 Interview offers accepted Executive Search Firms Newspaper Ad Employee Referrals Local University 15 25 35 90 Accept employment offers 20 500 50 200 Resumes generated 95% 12% 89% 57% Yield radiation $ 6,000 $ 800 $ 425 $333 Cost per hire $ 90,000 $ 20,000 $ 15,000 $ 30,000 Cost 15/20 25/500 35/50 90/200 Cumulative 79% 50% 88% 90% Yield ratio