Human resource planning and Job Evaluation


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Human Resource Planning, Features, Process of HRP, Demand and Supply forecasting of HRP, Job Evaluation, Features and Methods of Job Evaluation and its Drawbacks.

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  • Human resource planning and Job Evaluation

    1. 1. Human Resource Planning & Job Evaluation
    2. 2. Flow of Presentation • Human Resource Planning • HRP Process • HR Demand and Supply Forecasting • HRP in Selected Industries • Job Evaluation • JE Process • Methods of JE • Catch in JE • Conclusion HRP and Job Evaluation 2
    3. 3. Human Resource Planning • Definition Process by which an organization ensures that it has the right number & kind of people at the right place and at the right time, capable of effectively and efficiently completing those tasks that help the organization achieve its overall objectives. HRP and Job Evaluation 3
    4. 4. Human Resource Planning (contd..) • HR Planning is the process of examining an organizations’ future human resource need • Human Resource Planning (HR Planning) is both a process and a set of plans • It involves: • Identifying and acquiring the right number of people with the proper skills • Motivating them to achieve high performance • Creating interactive links between business objectives and resource planning activities HRP and Job Evaluation 4
    5. 5. Importance of Human Resource Planning • Provides quality workforce • Reduces labor costs • Facilitates rise in skills • Effective motivation • Safety of health HRP and Job Evaluation 5
    6. 6. Human Resource Planning Process HRP and Job Evaluation 6
    7. 7. Human Resource Planning Process (contd..) • Interfacing with strategic planning and scanning the environment • Taking an inventory of the company’s current human resources • Forecasting demand for human resources • Forecasting the supply of HR from within the organization and in the external labor market HRP and Job Evaluation 7
    8. 8. Human Resource Planning Process (contd..) • Comparing forecasts of demand and supply • Planning the actions needed to deal with anticipated shortage or overages • Feeding back such information into the strategic planning process HRP and Job Evaluation 8
    9. 9. HRP Demand Forecasting • Forecasting human resource demand is the process of estimating the future human resource requirement of right quality and right number • Factors affecting HR demand forecasting • Employment trends • Replacement needs • Productivity • Absenteeism and • Expansion and growth HRP and Job Evaluation 9
    10. 10. HRP Demand Forecasting (contd..) • Techniques of estimating/forecasting human resources demand: • Managerial Judgment • Wwork Study Technique • Ratio-trend Analysis • Econometric Models • Delphi Model • Other Techniques, such as Statistical techniques, Estimates based on historical record and so on HRP and Job Evaluation 10
    11. 11. HR Supply Forecasting • HR supply forecasting is the process of estimating availability of human resource followed after demand for testing of human resource • Forecasting supply of human resource we need to consider internal and external supply. - Internal supply of human resource available by way of transfers, promotions, retired employees & recall of laid-off employees, etc. - External supply of human resource is availability of labour force in the market and new recruitment. HRP and Job Evaluation 11
    12. 12. Status of HRP in Selected Industries • Blue Star • In case of Blue Star, HR planning is done at the beginning / expansion of project, for replacement of manpower on account of resignation/termination; vacancies are approved and filled up. • Reliance Industries • In Reliance Industries Limited, Human HR planning is done at the project/ expansion stages. All the levels are filled up according to the organization structure created at the time of project/expansion. This was the first human resources system which was implemented in Reliance. HRP and Job Evaluation 12
    13. 13. Status of HRP in Selected Industries (contd..) • Hindustan UniLever Limited It is observed that Human Resources planning is done at the time of project implementation in case of new projects and expansion of existing project. The organization structures are drawn and the vacancies are filled accordingly. After the completion of projects, for replacement of manpower on account of resignation/termination; vacancies are approved and filled up. • Raymond Limited, HR planning is done at the beginning / expansion of project, for replacement of manpower on account of resignation/termination; vacancies are approved and filled up. HRP and Job Evaluation 13
    14. 14. Job Evaluation HRP and Job Evaluation 14
    15. 15. Job Evaluation • Job evaluation is the process of determining the worth of one job in relation to that of other jobs in a company • Is a process of determining the relative worth of a job • A practical technique to judge the size of a job relative to others HRP and Job Evaluation 15
    16. 16. Features of Job Evaluation • It tries to assess jobs, not people. • The standards of job evaluation are relative, not absolute. • The basic information on which job evaluations are made is obtained from job analysis. • Job evaluations are carried out by groups, not by individuals. • Some degree of subjectivity is always present in job evaluation. • Job evaluation does not fix pay scales, but merely provides a basis for evaluating a rational wage structure. HRP and Job Evaluation 16
    17. 17. Job Evaluation Process • HR takes the lead in this exercise with approval from the management . • Analyze and prepare job description (JA, JD, JS) • Select and prepare a JE plan (jobs should be divided into detailed tasks and positions) • Classify jobs (assigning money values to each class) • Install / roll out the program • Maintain / upgrade the program HRP and Job Evaluation 17
    18. 18. Methods of Job Evaluation • Quantitative Methods• Point Method • Factor Comparison Method • Non- Quantitative Methods• Ranking Method • Job Grading / Classification Method HRP and Job Evaluation 18
    19. 19. Quantitative Methods of JE • Point Method • It was introduced by Merill R. Lott • The earliest approach for evaluating job based on quantitative values • Aspects or parts of the job such as education and experience required to perform the job are assessed and a points value awarded • The higher the educational requirements of the job the higher the points scored • The point method is usually seen as the most reliable and valid evaluation method by employees HRP and Job Evaluation 19
    20. 20. Quantitative Methods of JE (contd…) Point Method • Advantages • Disadvantages • Highly stable over time • Perceived as valid by users and employees • Likely to be reliable among committee that assesses the jobs • Provides good data to prepare a response to an appeal • Time, money, and effort required to set up • Relies heavily on key (benchmark) jobs, so if key jobs and correct pay rates don’t exist, the point method may not be valid HRP and Job Evaluation 20
    21. 21. Quantitative Methods of JE (contd…) • Factor Comparison Method • Jobs are compared against other jobs on the basis of how much of some desired factor they possess • Each job’s factors are ranked against each other job’s factors • The market pay rate for each job is then allocated among the factors based upon a market pay rate scale HRP and Job Evaluation 21
    22. 22. Non-Quantitative Methods of JE • Ranking Method • Ranking simply orders the job descriptions from smallest to largest based on the evaluator’s perception of relative value or contribution to the organization’s success. • Advantages • Simple, Fast and Most commonly used • Disadvantages • May appear arbitrary to employees • Can be legally challenged • Unreliable HRP and Job Evaluation 22
    23. 23. Non-Quantitative Methods of JE (contd..) • Job Grading / Classification Method • Job descriptions are slotted into a series of classes that cover the range of jobs. Each class has a definition. These definitions are the standards against which the jobs are compared • Advantages • Uses job families / groups instead of individual jobs • May produce same results as Point Method, but is less costly • Disadvantages • Not useful when jobs are very different from each other • May be confusing to employees about why jobs are included in class HRP and Job Evaluation 23
    24. 24. Catch in Job Evaluation • Not a scientific technique • Problem of adjustment • Unrealistic • Organizational limitation • Opposition by workers • Subjectivity HRP and Job Evaluation 24
    26. 26. Thank you