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Human Resources Planning
= Resources
Definition :
Process by which an organisation 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
organisation achieve its overall objectives..
Importance
1) Each Organisation needs personnel with necessary
qualifications, skills, knowledge, experience & aptitude .
2) Need for Replacement of Personnel
3) Meet manpower shortages due to labour turnover
4) Meet needs of expansion / downsizing programmes
5) Cater to Future Personnel Needs - Avoid surplus or
deficiency of labour.
6) Nature of present workforce in relation with
Changing Environment
Other uses
i) quantify job for producing product / service
ii) quantify people & positions and determine future
staff-mix
iii) assess staffing levels to avoid unnecessary costs
iv) reduce delays in procuring staff
v) prevent shortage / excess of staff
vi) comply with legal requirements
HRP Process - Determination of Quality of Personnel
Job Analysis
 process of collecting and studying information relating to
the operations and responsibilities of a specific job.
 determination of tasks which comprise the job and of
skills, knowledge, abilities and responsibilities required of
the worker for a successful performance and which
differentiates one job from all others.
 products of Job Analysis are Job Description & Job
Specification
Steps in Job Analysis
Collection of Organisational Structure Information
Selection of Representative Position to be Analysed
Collection of Job Analysis Data
Developing Job Description
Developing Job Specification
Collection of Data
 Who Collects ?
- On-the-job Employees, Supervisors,
Consultants / trade job analyst
 What to Collect
- Physical & Mental activity involved
- Each task essential to achieve overall result
- Skill / Educational factor needed for the job
 How to Collect ?
- Checklist, Interview, Observation, Participation,
Technical Conference, Diary Method, Quantitative
techniques
Areas in which information may be gathered :
• Job title
• Alternative title
• Work performed
• Equipment, Tools & Materials used
• Reports & records made
• Relation of the job to other jobs
• Education & experience required
• Physical, Mental& Visual effort required
• Responsibility (for equipment, reports,
performance) & duties
• Supervision given & received
• Hazards, Discomfort & Safety
Job Analysis
Process of Obtaining all pertinent Job Facts
Job Description
A proper definition & design
of work. A statement containing:
• Job Title
• Location
• Job Summary
• Duties & Responsibilities
• Materials, Tools & Equipment
used
• Forms & reports handled
• Supervision given / received
• Working conditions
• Hazards & Safety precautions
Job Specification
A statement of human
qualifications necessary to
do the job containing:
• Education & Qualifications
• Experience & Training
• Knowledge & Skills
• Communication skills
• Physical requirements - Height,
Weight, Age
• Personality requirements -
• Appearance, Judgement,
Initiative, Emotional stability
Purpose / Use Of Job Analysis
• Organisation & Manpower planning
• Recruitment & Selection
• Job Evaluation & Wage, Salary administration
• Job Re-engineering
• Employee Training & Managerial Development
• Performance Appraisal
• Health & Safety
HRP Process - Determination of Quantity of Personnel
Organisational Objectives
HR Programming
HR Needs Forecast HR Supply Forecast
HRP Implementation
Control & Evaluation
Surplus - Restricted Hiring,
Lay Off, VRS, Reduced Hours
Shortage - Recruitment &
Selection
Organisational Objectives & Policies
• Downsizing / Expansion
• Acquisition / Merger / Sell-out
• Technology upgradation / Automation
• New Markets & New Products
• External Vs Internal hiring
• Training & Re-training
• Union Constraints
HR Demand Forecast
Process of estimating future quantity and quality of
manpower required for an organisation.
- External factors - competition, laws & regulation,
economic climate, changes in technology and social
factors
- Internal factors - budget constraints, production
levels, new products & services, organisational
structure & employee separations
Forecasting Techniques
- Managerial Judgement - Managers discuss and arrive at a
figure of inflows & outflows which would cater to future
labour demand.
- Ratio-Trend Analysis - Studying past ratios, ie No. of
Workers Vs Volume of Sales, forecasting future ratios and
adjusting for future changes in the organisation.
- Work-Study Technique - Used when length of operations
and amount of labour required can be calculated.
- Delphi Technique - From a group of experts the personnel
needs are estimated.
HR Supply Forecast
Process of estimating future quantity and quality of
manpower available internally & externally to an
organisation.
Supply Analysis
 Existing Human Resources
 Internal Sources of Supply
 External Sources of Supply
Existing Human Resources
Capability / Skills Inventory using HR Information System
General Information -
Name: Present Address: Department:
Sex: Designation:
DOB: DOJ:
Marital Salary:
Status: Permanent Address: Grade:
Qualification -
Degree/Diploma Institution Class Year of Pass
Experience/Skills -
Job Title/ Organisation Brief Skill/
Appointment Responsibilities Specialisation
Outstanding Achievement / Additional Information -
Awards Performance Disciplinary Action
Promotions Merit Rating Absenteeism
Achievements
Career Plans:
Internal Supply
- Inflows & Outflows - The number of losses & gains of
staff is estimated.
- Turnover Rate - refers to rate of employees leaving.
= ( No. of separations in a year / Avg no. of
employees during the year ) x 100
- Absenteeism - unauthorised absence from work.
= ( total absentees in a year / Avg no. of
employees x No. of working days) x 100
- Productivity Level - = Output / Input. Change in
productivity affects no. of persons per unit of output.
- Movement among Jobs - internal source of
recruitment, selection and placement
External Supply
• External recruitment, selection & placement -
Advertisements, Manpower Consultants, Campus
Recruitment, Unsolicited Applications, Employee
Referrals
 Yield ratios - are estimated in the process of hiring
applications.
Hiring Process Ratio
 Ad generates 2000 applications. 200 are potential 10:1
 Out of 200, 40 attend interview 5:1
Out of 40, 30 were offered jobs 4:3
Out of 30, 20 accepted 3:2
Overall Yield Ratio (2000:20) 100:1
HR Programming
Balancing Demand and Supply
Vacancies filled in by the right employee at the right
time
HR Plan Implementation
Recruitment, Selection & Placement
 Training & Development
 Retraining & Redeployment
 Retention Plan
 Downsizing Plan
Control & Evaluation
- Are Budgets, Targets & Standards met?
- Responsibilities for Implementation & Control
- Reports for Monitoring HR Plan

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HR Planning Essentials

  • 2. Definition : Process by which an organisation 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 organisation achieve its overall objectives..
  • 3. Importance 1) Each Organisation needs personnel with necessary qualifications, skills, knowledge, experience & aptitude . 2) Need for Replacement of Personnel 3) Meet manpower shortages due to labour turnover 4) Meet needs of expansion / downsizing programmes 5) Cater to Future Personnel Needs - Avoid surplus or deficiency of labour. 6) Nature of present workforce in relation with Changing Environment
  • 4. Other uses i) quantify job for producing product / service ii) quantify people & positions and determine future staff-mix iii) assess staffing levels to avoid unnecessary costs iv) reduce delays in procuring staff v) prevent shortage / excess of staff vi) comply with legal requirements
  • 5. HRP Process - Determination of Quality of Personnel Job Analysis  process of collecting and studying information relating to the operations and responsibilities of a specific job.  determination of tasks which comprise the job and of skills, knowledge, abilities and responsibilities required of the worker for a successful performance and which differentiates one job from all others.  products of Job Analysis are Job Description & Job Specification
  • 6. Steps in Job Analysis Collection of Organisational Structure Information Selection of Representative Position to be Analysed Collection of Job Analysis Data Developing Job Description Developing Job Specification
  • 7. Collection of Data  Who Collects ? - On-the-job Employees, Supervisors, Consultants / trade job analyst  What to Collect - Physical & Mental activity involved - Each task essential to achieve overall result - Skill / Educational factor needed for the job  How to Collect ? - Checklist, Interview, Observation, Participation, Technical Conference, Diary Method, Quantitative techniques
  • 8. Areas in which information may be gathered : • Job title • Alternative title • Work performed • Equipment, Tools & Materials used • Reports & records made • Relation of the job to other jobs • Education & experience required • Physical, Mental& Visual effort required • Responsibility (for equipment, reports, performance) & duties • Supervision given & received • Hazards, Discomfort & Safety
  • 9. Job Analysis Process of Obtaining all pertinent Job Facts Job Description A proper definition & design of work. A statement containing: • Job Title • Location • Job Summary • Duties & Responsibilities • Materials, Tools & Equipment used • Forms & reports handled • Supervision given / received • Working conditions • Hazards & Safety precautions Job Specification A statement of human qualifications necessary to do the job containing: • Education & Qualifications • Experience & Training • Knowledge & Skills • Communication skills • Physical requirements - Height, Weight, Age • Personality requirements - • Appearance, Judgement, Initiative, Emotional stability
  • 10. Purpose / Use Of Job Analysis • Organisation & Manpower planning • Recruitment & Selection • Job Evaluation & Wage, Salary administration • Job Re-engineering • Employee Training & Managerial Development • Performance Appraisal • Health & Safety
  • 11. HRP Process - Determination of Quantity of Personnel Organisational Objectives HR Programming HR Needs Forecast HR Supply Forecast HRP Implementation Control & Evaluation Surplus - Restricted Hiring, Lay Off, VRS, Reduced Hours Shortage - Recruitment & Selection
  • 12. Organisational Objectives & Policies • Downsizing / Expansion • Acquisition / Merger / Sell-out • Technology upgradation / Automation • New Markets & New Products • External Vs Internal hiring • Training & Re-training • Union Constraints
  • 13. HR Demand Forecast Process of estimating future quantity and quality of manpower required for an organisation. - External factors - competition, laws & regulation, economic climate, changes in technology and social factors - Internal factors - budget constraints, production levels, new products & services, organisational structure & employee separations
  • 14. Forecasting Techniques - Managerial Judgement - Managers discuss and arrive at a figure of inflows & outflows which would cater to future labour demand. - Ratio-Trend Analysis - Studying past ratios, ie No. of Workers Vs Volume of Sales, forecasting future ratios and adjusting for future changes in the organisation. - Work-Study Technique - Used when length of operations and amount of labour required can be calculated. - Delphi Technique - From a group of experts the personnel needs are estimated.
  • 15. HR Supply Forecast Process of estimating future quantity and quality of manpower available internally & externally to an organisation. Supply Analysis  Existing Human Resources  Internal Sources of Supply  External Sources of Supply
  • 16. Existing Human Resources Capability / Skills Inventory using HR Information System General Information - Name: Present Address: Department: Sex: Designation: DOB: DOJ: Marital Salary: Status: Permanent Address: Grade: Qualification - Degree/Diploma Institution Class Year of Pass Experience/Skills - Job Title/ Organisation Brief Skill/ Appointment Responsibilities Specialisation Outstanding Achievement / Additional Information - Awards Performance Disciplinary Action Promotions Merit Rating Absenteeism Achievements Career Plans:
  • 17. Internal Supply - Inflows & Outflows - The number of losses & gains of staff is estimated. - Turnover Rate - refers to rate of employees leaving. = ( No. of separations in a year / Avg no. of employees during the year ) x 100 - Absenteeism - unauthorised absence from work. = ( total absentees in a year / Avg no. of employees x No. of working days) x 100 - Productivity Level - = Output / Input. Change in productivity affects no. of persons per unit of output. - Movement among Jobs - internal source of recruitment, selection and placement
  • 18. External Supply • External recruitment, selection & placement - Advertisements, Manpower Consultants, Campus Recruitment, Unsolicited Applications, Employee Referrals  Yield ratios - are estimated in the process of hiring applications. Hiring Process Ratio  Ad generates 2000 applications. 200 are potential 10:1  Out of 200, 40 attend interview 5:1 Out of 40, 30 were offered jobs 4:3 Out of 30, 20 accepted 3:2 Overall Yield Ratio (2000:20) 100:1
  • 19. HR Programming Balancing Demand and Supply Vacancies filled in by the right employee at the right time
  • 20. HR Plan Implementation Recruitment, Selection & Placement  Training & Development  Retraining & Redeployment  Retention Plan  Downsizing Plan
  • 21. Control & Evaluation - Are Budgets, Targets & Standards met? - Responsibilities for Implementation & Control - Reports for Monitoring HR Plan