Hrm planning

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Hrm planning

  1. 1. SHRM.L 5,6 Human Resources Planning The right people at the right place at the right time… 1
  2. 2. Emerging HR Issues • • • • • Finding specialized technical talent Finding seasoned managers Developing fair HR management practices Devising fair workable layoff policies Improving productivity • Managing career development opportunities
  3. 3. HR Planning Human Resource (HR) Planning The process of analyzing and identifying the need for and availability of human resources so that the organization can meet its objectives. So Human resource planning is a process by which an organization ensures that 3
  4. 4. Purpose of HRP  Reduces personnel costs  Provides a better basis for planning employee     development Improves the overall strategic plan Promotes awareness of HR planning at all levels Provides tools for evaluation Creates more opportunities for women and minority groups in work plans.
  5. 5. HR Planning Considerations… • • • • • • Organizational growth New products, services, areas, industries New skills required Organizational stage Organizational structure change Budget 5
  6. 6. Importance of Planning • Deal with change--technological , social, regulatory, and environmental • Objectives "if you don't know where you are going, any road will get you there."
  7. 7. Factors That Determine HR Plans Strategy of the organization Culture of the organization Financial environment Current organizational Situation Time-Horizon Economic Factor Social Factor Demographic Factors Competition Technological Factors Growth and Expansion of Business 7
  8. 8. Benefits of HR Planning Lower HR costs through better HR management. More timely recruitment for anticipate HR needs Better development of managerial talent Improve the utilization of human resources. Make successful demand on local labor market. Co-ordinate different HR programs 8
  9. 9.                                                           HR Planning Process                     9
  10. 10. 1st Step: Environmental scanning External Forces are as follows Economic Factor Technological changes Demographic changes Political issues Social concerns Government Regulation Employment opportunities vis-à-vis unemployment levels Competitors’ strategy 10
  11. 11. 1st Step: Environmental scanning Internal Changes in Organizational Environment Product mix and capacity utilization. Acquisition and merger. Activities of expansion operations and technological up gradation. Wages revision and bonus payment. Working environment and conditions. Changes in ownership and Boards of Directors. Morale and motivation of new managers. Reorganization and induction of new managers. 11
  12. 12. Steps 2nd: Organizational Objective and policies: HRP need to be based on organizational objectives. 3rd: HR Demand Forecasting 12
  13. 13. Forecasting the Demand for Human Resources Demand forecasting is the process of estimating the quantity and quality of people required to meet future needs of the organization Forecasting Methods Trend Analysis: Study of firms past employment needs over a period of years to predict future needs. • Judgmental • Estimates—asking managers’ opinions, top-down or bottom-up • Rules of thumb—using general guidelines • Delphi technique—asking a group of experts • Nominal groups—reaching a group consensus in open discussion Mathematical • Statistical regression analysis— • Productivity ratios—units produced per employee • Staffing ratios—estimates of indirect labor needs Ratio Analysis: A forecasting technique for determining future staff needs by using rating between production/ sale and employee needed. 13
  14. 14. 4th: HR Supply Forecasting The supply analysis covers Existing human resources: Internal sources of supply External sources of supply Present Employees: Skills Inventory: Audit of Non managers. Include-personal data, skill, salary & job, company data, capacity of individual etc. Management Inventory: Audit of Managers. It includes-Work history, strength & weakness, carrier goal, personal data, previous duties etc. Internal Sources:The techniques generally used for the purpose are: Inflow and outflow Productivity level Movement among jobs External Supply: University, college, Recruiting agency, open job market, Experienced employee market. individuals after early retirement. Ex-Army Etc. 14
  15. 15. Steps of HRP 5th: Gap Analysis : After the forecasting of HR demand and supply, the two must be balanced. Gap Human Resources shortage Human Resources surplus 15
  16. 16. Steps of HRP 6th: Solution Analysis: Solution analysis is the development of strategies for closing the gaps through applying different startegies like:  Recruitment & selection  Placement, Training and development  Retention activities,  Downsizing plan etc.. 16
  17. 17. 6th: HR Plan Implementation Managerial Succession Planning: Succession planning is the process of ensuring a suitable supply of successors for current and future senior or key jobs. It refers to the process of deciding how to fill the most important executive posts in the organization. Succession planning includes the development of replacement charts portray middle-to-upper level management positions that may become vacant in the near future lists information about individuals who might qualify to fill the positions 17
  18. 18. Successful HRP — the role of HR • HR personnel to understand the role of HRP processes • Top management to be supportive • Not to start with an overly complex system • Healthy communications between HR personnel and line managers • HR plan to be integrated with the organisation’s strategic plan • Balance between qualitative and quantitative approaches
  19. 19. Summary • An effective HRP is required for an organisation to be effective • A complex system is not what’s required • Measure of success of the system: if the right people are available at the right time • HRP needs to be fully in integrated to the organisation’s business plan • HR managers must be able to demonstrate the success of HRP processes
  20. 20. ? Thanks 20

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