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MODULE – 2
Human Resource Planning, Job Analysis and
Design
1
Human Resource Planning, Job analysis and design
 Meaning
 Process of Job Analysis
 Methods of collecting job analysis data
 Job Description and Job Specification
 Role Analysis.
 Human Resource Planning
1. Objectives
2. Importance and process of Human Resource Planning
3. Effective HRP
2
Synopsis – Module 2
 Meaning – Human resource planning means deciding the number and type of the
human resources required for each job, unit and the total company for a particular
future date in order to carry-out organizational activities.
 HRP is a process that identifies current and future human resource needs for an
organization to achieve its goals. Human resource planning should serve as a link
between human resource management and the overall strategic plan of an
organization.
 E.W.Vetter viewed HRP “A process by which an organization should move from its
current manpower position to its desired manpower position. Though planning
management strives to have the right number and right kind of people at the right at
the right time, doing things which will result in both the organization and the
individual receiving maximum long run benefit.”
 Leon C Megginson “HRP is an integrated approach to performing the planning
aspects of the personnel function in order to have a sufficient supply of adequately
developed and motivated people to perform the duties and task required to meet
organizational objectives and satisfy the individual needs and goals of
organizational members.”
3
Human Resource Planning
Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 62
 Job analysis is a systematic process of collecting data about work activities,
equipment, context and KSAs required of the job.
 Job analysis: The process of collecting and analyzing information about jobs to
write:
1. Job description – A document that identifies the tasks and duties performed by a job
2. Job specification – A document that identifies the qualities required by a job
 According to Edwin B Flippo “Job analysis is the process of studying and
collecting information relating to the operations and responsibilities of a specific
job”
 According to Richard Henderson “Job analysis is the methodical compilation and
study of work data in order to define and characterize each occupation in such a
manner as to distinguish it from all others.”
4
Job Analysis
Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 50
 According to Edwin Flippo “Job description is an organized factual
statement of the duties and responsibilities of a specific job. It should tell
what is to be done, how it is done and why.”
 Job description implies objective listing of the job title, tasks, duties and
responsibilities involved in a job.
 Job description is an organized factual statement of job contents in the form
of duties and responsibilities of a specific job. The preparation of job
description is very important before a vacancy is advertised. It tells in brief
the nature and type of job.
5
Job Description
Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 50
 According to Edwin Flippo “Job specification is a statement of minimum
acceptable human qualities necessary to perform a job properly.”
 A statement of employee characteristics and qualifications required for
satisfactory performance of defined duties and tasks comprising a
specific job or function. Job specification is derived from job analysis.
 Job specification is based on job description. It is a written statement of
qualifications, traits, physical and mental characteristics that an individual
must posses to perform the job duties and discharge responsibilities
effectively.
6
Job Specification
Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 50
7
Process of Job Analysis
Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 52
PROCESS OF JOB ANALYSIS
Company strategies
Collection of Information
Process of information
Drafting job description
Drafting job specification
JOB
ANALYSIS
Benefits of
Job Analysis
Human Resource Planning
Team Building
Recruitment & Selection
Training & Development
Career Planning &
Development
Performance Analysis &
Development
Job Evaluation
Wage & Salary Levels
Internal Mobility
Discipline & Grievances
Work Scheduling
Health & Safety
 Strategies
According to William P Anthony the companies have to make four strategic
choices viz
1. The context of employee involvement in job analysis
2. The level of details of job analysis
3. Timing and frequency of analysis and
4. Past-oriented v/s future-oriented job analysis
 Collection of background information *Charts, class specification,
existing job description*
 Selection of representative position to be analyzed
 Collection of job analysis data *Feature of job, required employee
behaviour and human requirements*
 Developing a job description
 Developing a job specification
 Developing a employee specification
8
Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 52
 The job analysis provides the following information:
1. Job identification
2. Significant characteristics of job
3. What the typical worker does?
4. Job duties
5. What materials and equipment the worker uses?
6. How a job is performed
7. Required personal attributes
8. Job relationship
9
Job analysis information
Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 53
TYPES OF JOB ANALYSIS INFORMATION
 WORK ACTIVITIES
A. Description of work activities (Tasks) – How, Why, When a task is performed
B. Interface with other jobs and equipments
C. Procedures used
D. Behaviors required on the job
E. Physical movements and demands of the job
 MACHINES, TOOLS, EQUIPMENT AND WORK AIDS USED
A. List of machines, tools etc used
B. Materials processed with items listed in (A)
C. Products made with items listed in (A)
D. Services rendered with items listed in (A)
 JOB CONTEXT
A. Physical working condition (Exposure to heat, dust, toxic substances)
B. Organizational context
C. Social context
D. Work schedule
E. Incentives (Financial and non-financial)
 PERSONAL REQUIREMENTS
A. Specific skills
B. Specific education and training
C. Work experience
D. Physical characteristics
10
Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 55
Important techniques are:
1. Interviews
2. Direct observation
3. Maintenance of long records
4. Questionnaires
5. Critical incident technique
11
Techniques of data collection for job analysis
Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 54
Management Position Description Questionnaire(MPDQ)
1.Production, marketing & financial strategy planning
2.co-ordination of other organizational units & personnel
3.Internal benefits control
4.Products & services responsibility
5.Public and customer relations
6.Advanced consulting
7.Autonomy of actions
8.Approval of financial commitments
9.Staff service
10.Supervision
11.Complexity and stress
12.Advanced financial responsibility
13.Broad personnel responsibility
1. Employment
2. Organization audit
3. Training and development programme
4. Performance appraisal
5. Promotion and transfer
6. Preventing dissatisfaction and setting complaints
7. Discipline
8. Restriction of employment activity for health reasons and early retirement
9. Wage and salary administration
10. Health and safety
11. Industrial relations
12
Benefits or uses of job analysis
Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 59
13
Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 51
JOB ANALYSIS
JOB DESCRIPTION JOB SPECIFICATION
1. Get the questionnaire filled by the immediate supervisor of the employee.
2. Job analyst who has to complete the job description from by observing the
actual work being done by the employee and
3. All the information pertaining to the job should be secured from the
worker.
14
Major steps of job description
Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 58
Steps in job specific information
1. Physical information
2. Mental specification
3. Emotional and social specifications
4. Behavioural specifications
15
Job specific information
Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 58
• Job identification: job title, location,
job code, short name, department and
unit.
• Job summary: brief of job contents,
its authority, responsibility, hazards.
• Relation to other jobs (Relation with
superiors, peers, subordinates)
• Supervision gen/taken, location of the
hierarchy.
• Materials and forms used
• Conditions of work, location of work,
working hours, posture-standing,
sitting, walking-speed, accuracy,
health hazards, occupational diseases
etc.
• Hazards (accidental hazards).
16
Job Analysis Information & facts
Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 54
• Education
• Experience
• Training
• Judgment
• Initiative
• Physical effort
• Responsibilities
• Communication skills
• Emotional characteristics
• Unusual sensory demands such as
vision, smell, hearing etc.
JOB DESCRIPTION JOB SPECIFICATION
John B. Minner criticises job analysis as:
1. Job analysis, description, specification are too restrictive in nature and
they are not desirable because the job is largely what an individual makes
of it.
2. Job description impose undue(Inappropriate) limitations on the
development of the individual in his job.
3. Job analysis has very limited applicability in high-technology oriented
business organizations consequent upon the adoption of team work, flexi
work, dejobbing and virtual organizations.
4. Job analysis which takes in to consideration the social and psychological
needs of an employee would be a basic guideline for HRM.
17
Criticism against job analysis
Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 60
The important objectives of manpower planning in an organization are:
1. To recruit and retain the human resource of required quantity and quality.
2. To foresee the employees turnover and make the arrangements for minimizing
turnover and filling up of consequent vacancies.
3. To meet the needs of the programmers of expansion, diversification etc.
4. To foresee the impact of technology on work, existing employees and future
human resource requirements.
5. To improve the standards, skill, knowledge, ability, discipline etc.
6. To assess the surplus or shortage of human resource and take measures
accordingly.
7. To maintain congenial industrial relations by maintaining optimum level and
structure of human resources.
8. To maintain imbalance caused due to non-availability of human resources of
the right kind, right number in right time and right place.
9. To make the best use of its human resource
10. To estimate the cost of human resource.
18
Objectives of HRP
Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 63
 HRP anticipates not only the required kind and number of employees but also
determines the action plan for all the functions of personnel management . The
major benefits of HRP are:
1. It checks the corporate plan of the organization
2. It offsets uncertainty and change. But the HRP offsets uncertainties and changes to
the maximum extent possible and enables the organization to have right men at the
right time and in the right place.
3. It provides scope for advancement and development of employees through training,
development etc.
4. It helps to anticipate the cost of salary enhanced, better benefits and all the cost of
human resources, facilitating the formulation of budgets in an organization.
5. To foresee the need for redundancy and plan to check it or to provide alternative
employment in consultation with trade unions, other organizations and government
through remodeling organizational, industrial and economic plans.
6. To foresee the changes in values, aptitude and attitude of human resources and to
change the techniques of interpersonal management etc.
19
Benefits of Human Resource Planning
Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 64
7. To plan for physical facilities, working conditions and the volume of fringe benefits
like canteen, schools, hospitals, conveyance, child care centers, quarters, company
stores etc.
8. It gives an idea of the type of tests to be used and interview techniques in selection
based on the level of skills, qualifications, intelligence, values etc. of human
resources.
9. It causes the development of various sources of human resource contributions in the
form of increased productivity, sales, turnover etc.
10. It facilitates the control of all the functions, operations, contribution and cost of
human resources.
20
Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 64
External Factors
Government Policies
Level of economic development
including future supply of HRs
Business environment
Level of technology
Natural factors
International factors
Internal Factors
Strategies of the
company
HRP of the company
Formal & Informal
groups
Job analysis
Time horizons
Type and quality of
information
Company’s production
operation policy
Trade union’s
21
Factors affecting HRP
Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 65
Importacne of HRP
1. Future personnel needs
2. Part of strategic plans
3. Creating highly talented personnel
4. International strategies
5. Foundation for personnel functions
6. Increasing investment in human resources
7. Resistance to change and move
8. Unite the perspective of line and staff managers
9. Other benefits – 1. upper management has a bitter view of the HR dimensions
of business decision: 2. personnel costs may be less because the management
can anticiapate imbalances before they become unmanagable and expensive:
3. more time is provided to locate talent: 4. better opportunities exist to
include women and minority groups in future growth plans: 5. better planning
of assignments to develop managers can be done: 6. major and successful
demands on local labour markets can be made.
22
Importance of HRP
Source: “Human Resource Management” Book by K.Ashwathappa-PgNo 74
Process of HRP consists of following steps
1. Analyzing the corporate and unit level strategies
2. Demand forecasting: Forecast the overall human resources requirements in
accordance with the organization plans.
3. Supply forecasting: Obtaining the data and information about the present
inventory of human resources and forecast the future changes in the human
resource inventory.
4. Estimating the net human resource requirements.
5. In case of future surplus, plan for redeployment, retrenchment and lay-off.
6. In case of future deficit, forecast the future supply of human resources from
all sources with reference to the plans of other companies.
7. Plan recruitment, development and internal mobility if future supply is more
than or equal to net human resources requirements.
8. Plan to modify or adjust the organizational plan if future supply will be
inadequate with reference to future net requirements.
23
HRP Process
Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 67
24
2. Demand forecasting
 Managerial judgment
 Statistical techniques
 Work study technique
25
 Present level of production (25/05/2020): 2,000 Units
 Present number of foreman(25/05/2020): 4 Emp
Ratio is 2000 / 4 500 Unit per Emp
 Estimated production as on (25/05/2021): 5000 Units
 Foreman required as on (25/05/2021)(5000 / 500) 10 Emp
 Planned operation during 2020 =1,60,000 Units
 Standard man hours needed to perform each unit in 2020 =0.25
 Planned man hours needed per year in 2020 =40,000
 Work ability per employee in man hours in the year 2020 =2,000
 Number of employee required in 2003(40,000 / 2,000) =20
3. Supply forecasting
Existing inventory
1. Head counts regarding total, dept-wise, sex-wise, designation-wise, skill-wise,
payroll-wise etc.
2. Job family inventory
3. Age inventory – Present age of employees helps in future forecast like
recruitment and selection
26
1.Clerk, cashier, typist etc
2. Characteristics like Skill, qualification, (similar operations) like production
engineer, maintenance engineer or admin etc,
4. Estimating the net human requirements
5. Action plan for Redeployment, Redundancy/Retrenchment
6. The redeployment programmes
 Outplacement
 Employment in the sister organizations
 Employment in other companies
7. Redundancy / Retrenchment Programmes
 Reduce work hours
 Work sharing
 Layoffs
 Leave of absence without pay
 Voluntary retirement/Early retirement
 Attrition
 Compulsory retirement/Iron handshake
 Creation of Ad-hoc projects
27
8. Forecast future supply from all the sources.
9. Action plan for outsourcing, recruitment etc.
 Outsourcing plan
 Recruitment and selection plan
 Training and development plan
 Productivity plan
 Retention plan
28
THERE ARE LEAST 8 PRE-REQUISITES FOR SUCCESSFUL HRP
1. HRP must be recognized as an integral part of corporate planning. The
planner of human resource must therefore, be aware of the corporate
objectives.
2. Backing of top management for HRP is absolutely essential.
3. HRP responsibilities should be centralized in order to co-ordinate
consultations between different management levels.
4. Personnel records must be complete, up-to-date and readily available.
5. The time horizon of the plan must be long enough to permit any remedial
actions.
6. The techniques of planning should be those best suited to the data available
and the degree of accuracy required.
7. Plans should be prepared by skill levels rather than by aggregates.
8. Data collection, analysis, techniques of planning and the plans themselves
need to be constantly revised and improved in the light of experience.
29
Effective HRP
Source: “Human Resource Management” Book by K.Ashwathappa-PgNo 98
1. Organizational culture
2. Organizational structure
3. Strategy of the organization
4. Availability of funds
5. Formulation of business plan and their integration with HRP
6. Manpower forecasting
7. Top management support
8. Manpower development
9. Information system
10. Economic conditions
11. Government regulations
12. Political environment
30
Effective HRP
Source: GOOGLE
31
Factors Affecting HRP
Source: GOOGLE
HRP
Organizational
growth cycle
& planning
Environmenta
l uncertainties
outsourcing
Nature of job
being filled
Type and
quality of
forecasting
information
Time
horizons
Type and
strategy of
organization
32

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HRM module 2

  • 1. WELCOME MODULE – 2 Human Resource Planning, Job Analysis and Design 1
  • 2. Human Resource Planning, Job analysis and design  Meaning  Process of Job Analysis  Methods of collecting job analysis data  Job Description and Job Specification  Role Analysis.  Human Resource Planning 1. Objectives 2. Importance and process of Human Resource Planning 3. Effective HRP 2 Synopsis – Module 2
  • 3.  Meaning – Human resource planning means deciding the number and type of the human resources required for each job, unit and the total company for a particular future date in order to carry-out organizational activities.  HRP is a process that identifies current and future human resource needs for an organization to achieve its goals. Human resource planning should serve as a link between human resource management and the overall strategic plan of an organization.  E.W.Vetter viewed HRP “A process by which an organization should move from its current manpower position to its desired manpower position. Though planning management strives to have the right number and right kind of people at the right at the right time, doing things which will result in both the organization and the individual receiving maximum long run benefit.”  Leon C Megginson “HRP is an integrated approach to performing the planning aspects of the personnel function in order to have a sufficient supply of adequately developed and motivated people to perform the duties and task required to meet organizational objectives and satisfy the individual needs and goals of organizational members.” 3 Human Resource Planning Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 62
  • 4.  Job analysis is a systematic process of collecting data about work activities, equipment, context and KSAs required of the job.  Job analysis: The process of collecting and analyzing information about jobs to write: 1. Job description – A document that identifies the tasks and duties performed by a job 2. Job specification – A document that identifies the qualities required by a job  According to Edwin B Flippo “Job analysis is the process of studying and collecting information relating to the operations and responsibilities of a specific job”  According to Richard Henderson “Job analysis is the methodical compilation and study of work data in order to define and characterize each occupation in such a manner as to distinguish it from all others.” 4 Job Analysis Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 50
  • 5.  According to Edwin Flippo “Job description is an organized factual statement of the duties and responsibilities of a specific job. It should tell what is to be done, how it is done and why.”  Job description implies objective listing of the job title, tasks, duties and responsibilities involved in a job.  Job description is an organized factual statement of job contents in the form of duties and responsibilities of a specific job. The preparation of job description is very important before a vacancy is advertised. It tells in brief the nature and type of job. 5 Job Description Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 50
  • 6.  According to Edwin Flippo “Job specification is a statement of minimum acceptable human qualities necessary to perform a job properly.”  A statement of employee characteristics and qualifications required for satisfactory performance of defined duties and tasks comprising a specific job or function. Job specification is derived from job analysis.  Job specification is based on job description. It is a written statement of qualifications, traits, physical and mental characteristics that an individual must posses to perform the job duties and discharge responsibilities effectively. 6 Job Specification Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 50
  • 7. 7 Process of Job Analysis Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 52 PROCESS OF JOB ANALYSIS Company strategies Collection of Information Process of information Drafting job description Drafting job specification JOB ANALYSIS Benefits of Job Analysis Human Resource Planning Team Building Recruitment & Selection Training & Development Career Planning & Development Performance Analysis & Development Job Evaluation Wage & Salary Levels Internal Mobility Discipline & Grievances Work Scheduling Health & Safety
  • 8.  Strategies According to William P Anthony the companies have to make four strategic choices viz 1. The context of employee involvement in job analysis 2. The level of details of job analysis 3. Timing and frequency of analysis and 4. Past-oriented v/s future-oriented job analysis  Collection of background information *Charts, class specification, existing job description*  Selection of representative position to be analyzed  Collection of job analysis data *Feature of job, required employee behaviour and human requirements*  Developing a job description  Developing a job specification  Developing a employee specification 8 Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 52
  • 9.  The job analysis provides the following information: 1. Job identification 2. Significant characteristics of job 3. What the typical worker does? 4. Job duties 5. What materials and equipment the worker uses? 6. How a job is performed 7. Required personal attributes 8. Job relationship 9 Job analysis information Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 53
  • 10. TYPES OF JOB ANALYSIS INFORMATION  WORK ACTIVITIES A. Description of work activities (Tasks) – How, Why, When a task is performed B. Interface with other jobs and equipments C. Procedures used D. Behaviors required on the job E. Physical movements and demands of the job  MACHINES, TOOLS, EQUIPMENT AND WORK AIDS USED A. List of machines, tools etc used B. Materials processed with items listed in (A) C. Products made with items listed in (A) D. Services rendered with items listed in (A)  JOB CONTEXT A. Physical working condition (Exposure to heat, dust, toxic substances) B. Organizational context C. Social context D. Work schedule E. Incentives (Financial and non-financial)  PERSONAL REQUIREMENTS A. Specific skills B. Specific education and training C. Work experience D. Physical characteristics 10 Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 55
  • 11. Important techniques are: 1. Interviews 2. Direct observation 3. Maintenance of long records 4. Questionnaires 5. Critical incident technique 11 Techniques of data collection for job analysis Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 54 Management Position Description Questionnaire(MPDQ) 1.Production, marketing & financial strategy planning 2.co-ordination of other organizational units & personnel 3.Internal benefits control 4.Products & services responsibility 5.Public and customer relations 6.Advanced consulting 7.Autonomy of actions 8.Approval of financial commitments 9.Staff service 10.Supervision 11.Complexity and stress 12.Advanced financial responsibility 13.Broad personnel responsibility
  • 12. 1. Employment 2. Organization audit 3. Training and development programme 4. Performance appraisal 5. Promotion and transfer 6. Preventing dissatisfaction and setting complaints 7. Discipline 8. Restriction of employment activity for health reasons and early retirement 9. Wage and salary administration 10. Health and safety 11. Industrial relations 12 Benefits or uses of job analysis Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 59
  • 13. 13 Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 51 JOB ANALYSIS JOB DESCRIPTION JOB SPECIFICATION
  • 14. 1. Get the questionnaire filled by the immediate supervisor of the employee. 2. Job analyst who has to complete the job description from by observing the actual work being done by the employee and 3. All the information pertaining to the job should be secured from the worker. 14 Major steps of job description Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 58
  • 15. Steps in job specific information 1. Physical information 2. Mental specification 3. Emotional and social specifications 4. Behavioural specifications 15 Job specific information Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 58
  • 16. • Job identification: job title, location, job code, short name, department and unit. • Job summary: brief of job contents, its authority, responsibility, hazards. • Relation to other jobs (Relation with superiors, peers, subordinates) • Supervision gen/taken, location of the hierarchy. • Materials and forms used • Conditions of work, location of work, working hours, posture-standing, sitting, walking-speed, accuracy, health hazards, occupational diseases etc. • Hazards (accidental hazards). 16 Job Analysis Information & facts Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 54 • Education • Experience • Training • Judgment • Initiative • Physical effort • Responsibilities • Communication skills • Emotional characteristics • Unusual sensory demands such as vision, smell, hearing etc. JOB DESCRIPTION JOB SPECIFICATION
  • 17. John B. Minner criticises job analysis as: 1. Job analysis, description, specification are too restrictive in nature and they are not desirable because the job is largely what an individual makes of it. 2. Job description impose undue(Inappropriate) limitations on the development of the individual in his job. 3. Job analysis has very limited applicability in high-technology oriented business organizations consequent upon the adoption of team work, flexi work, dejobbing and virtual organizations. 4. Job analysis which takes in to consideration the social and psychological needs of an employee would be a basic guideline for HRM. 17 Criticism against job analysis Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 60
  • 18. The important objectives of manpower planning in an organization are: 1. To recruit and retain the human resource of required quantity and quality. 2. To foresee the employees turnover and make the arrangements for minimizing turnover and filling up of consequent vacancies. 3. To meet the needs of the programmers of expansion, diversification etc. 4. To foresee the impact of technology on work, existing employees and future human resource requirements. 5. To improve the standards, skill, knowledge, ability, discipline etc. 6. To assess the surplus or shortage of human resource and take measures accordingly. 7. To maintain congenial industrial relations by maintaining optimum level and structure of human resources. 8. To maintain imbalance caused due to non-availability of human resources of the right kind, right number in right time and right place. 9. To make the best use of its human resource 10. To estimate the cost of human resource. 18 Objectives of HRP Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 63
  • 19.  HRP anticipates not only the required kind and number of employees but also determines the action plan for all the functions of personnel management . The major benefits of HRP are: 1. It checks the corporate plan of the organization 2. It offsets uncertainty and change. But the HRP offsets uncertainties and changes to the maximum extent possible and enables the organization to have right men at the right time and in the right place. 3. It provides scope for advancement and development of employees through training, development etc. 4. It helps to anticipate the cost of salary enhanced, better benefits and all the cost of human resources, facilitating the formulation of budgets in an organization. 5. To foresee the need for redundancy and plan to check it or to provide alternative employment in consultation with trade unions, other organizations and government through remodeling organizational, industrial and economic plans. 6. To foresee the changes in values, aptitude and attitude of human resources and to change the techniques of interpersonal management etc. 19 Benefits of Human Resource Planning Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 64
  • 20. 7. To plan for physical facilities, working conditions and the volume of fringe benefits like canteen, schools, hospitals, conveyance, child care centers, quarters, company stores etc. 8. It gives an idea of the type of tests to be used and interview techniques in selection based on the level of skills, qualifications, intelligence, values etc. of human resources. 9. It causes the development of various sources of human resource contributions in the form of increased productivity, sales, turnover etc. 10. It facilitates the control of all the functions, operations, contribution and cost of human resources. 20 Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 64
  • 21. External Factors Government Policies Level of economic development including future supply of HRs Business environment Level of technology Natural factors International factors Internal Factors Strategies of the company HRP of the company Formal & Informal groups Job analysis Time horizons Type and quality of information Company’s production operation policy Trade union’s 21 Factors affecting HRP Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 65
  • 22. Importacne of HRP 1. Future personnel needs 2. Part of strategic plans 3. Creating highly talented personnel 4. International strategies 5. Foundation for personnel functions 6. Increasing investment in human resources 7. Resistance to change and move 8. Unite the perspective of line and staff managers 9. Other benefits – 1. upper management has a bitter view of the HR dimensions of business decision: 2. personnel costs may be less because the management can anticiapate imbalances before they become unmanagable and expensive: 3. more time is provided to locate talent: 4. better opportunities exist to include women and minority groups in future growth plans: 5. better planning of assignments to develop managers can be done: 6. major and successful demands on local labour markets can be made. 22 Importance of HRP Source: “Human Resource Management” Book by K.Ashwathappa-PgNo 74
  • 23. Process of HRP consists of following steps 1. Analyzing the corporate and unit level strategies 2. Demand forecasting: Forecast the overall human resources requirements in accordance with the organization plans. 3. Supply forecasting: Obtaining the data and information about the present inventory of human resources and forecast the future changes in the human resource inventory. 4. Estimating the net human resource requirements. 5. In case of future surplus, plan for redeployment, retrenchment and lay-off. 6. In case of future deficit, forecast the future supply of human resources from all sources with reference to the plans of other companies. 7. Plan recruitment, development and internal mobility if future supply is more than or equal to net human resources requirements. 8. Plan to modify or adjust the organizational plan if future supply will be inadequate with reference to future net requirements. 23 HRP Process Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 67
  • 24. 24
  • 25. 2. Demand forecasting  Managerial judgment  Statistical techniques  Work study technique 25  Present level of production (25/05/2020): 2,000 Units  Present number of foreman(25/05/2020): 4 Emp Ratio is 2000 / 4 500 Unit per Emp  Estimated production as on (25/05/2021): 5000 Units  Foreman required as on (25/05/2021)(5000 / 500) 10 Emp  Planned operation during 2020 =1,60,000 Units  Standard man hours needed to perform each unit in 2020 =0.25  Planned man hours needed per year in 2020 =40,000  Work ability per employee in man hours in the year 2020 =2,000  Number of employee required in 2003(40,000 / 2,000) =20
  • 26. 3. Supply forecasting Existing inventory 1. Head counts regarding total, dept-wise, sex-wise, designation-wise, skill-wise, payroll-wise etc. 2. Job family inventory 3. Age inventory – Present age of employees helps in future forecast like recruitment and selection 26 1.Clerk, cashier, typist etc 2. Characteristics like Skill, qualification, (similar operations) like production engineer, maintenance engineer or admin etc,
  • 27. 4. Estimating the net human requirements 5. Action plan for Redeployment, Redundancy/Retrenchment 6. The redeployment programmes  Outplacement  Employment in the sister organizations  Employment in other companies 7. Redundancy / Retrenchment Programmes  Reduce work hours  Work sharing  Layoffs  Leave of absence without pay  Voluntary retirement/Early retirement  Attrition  Compulsory retirement/Iron handshake  Creation of Ad-hoc projects 27
  • 28. 8. Forecast future supply from all the sources. 9. Action plan for outsourcing, recruitment etc.  Outsourcing plan  Recruitment and selection plan  Training and development plan  Productivity plan  Retention plan 28
  • 29. THERE ARE LEAST 8 PRE-REQUISITES FOR SUCCESSFUL HRP 1. HRP must be recognized as an integral part of corporate planning. The planner of human resource must therefore, be aware of the corporate objectives. 2. Backing of top management for HRP is absolutely essential. 3. HRP responsibilities should be centralized in order to co-ordinate consultations between different management levels. 4. Personnel records must be complete, up-to-date and readily available. 5. The time horizon of the plan must be long enough to permit any remedial actions. 6. The techniques of planning should be those best suited to the data available and the degree of accuracy required. 7. Plans should be prepared by skill levels rather than by aggregates. 8. Data collection, analysis, techniques of planning and the plans themselves need to be constantly revised and improved in the light of experience. 29 Effective HRP Source: “Human Resource Management” Book by K.Ashwathappa-PgNo 98
  • 30. 1. Organizational culture 2. Organizational structure 3. Strategy of the organization 4. Availability of funds 5. Formulation of business plan and their integration with HRP 6. Manpower forecasting 7. Top management support 8. Manpower development 9. Information system 10. Economic conditions 11. Government regulations 12. Political environment 30 Effective HRP Source: GOOGLE
  • 31. 31 Factors Affecting HRP Source: GOOGLE HRP Organizational growth cycle & planning Environmenta l uncertainties outsourcing Nature of job being filled Type and quality of forecasting information Time horizons Type and strategy of organization
  • 32. 32