Human Resources - manpower planning

1. 2. HUMAN RESOURCE PLANNING
JOB ANALYSIS AND DESIGN
JOB EVALUATION
Mrinalini Arora
Faculty-Management
Human Resource Management

2. Meaning
 Manpower planning and Human Resource
planning are synonymous.
 It is “the process by which the management
determines how an organization should move
from the current manpower position to its
desired manpower position. Through planning,
the management strives to have the right number
and the right kind of people at the right places, at
the right time, to do things which result in both
organization and individual growth”

3. Definition
 Coleman defines,
Manpower planning is “the process of
determining manpower requirements and the
means of meeting those requirements in order to
carry out the integrated plan of the organization”
 Strainer defines,
Manpower planning is “Strategy for the
acquisition, utilization, improvement, and
preservation of an enterprise’s human
resources. It relates to the quantitative
requirements of jobs determining the number of
personnel needed and developing sources of
manpower.”

4. Definition
 Wickstrom says,
Human resource planning consists of series of
activities,
1. Forecasting future manpower requirements
based on mathematical projection of trends in the
economic environment in industry or judgmental
estimates based on the specific future plans of
the company.
2. Making an inventory of present manpower
resources and assessing the extent to which
these resources are employed optimally.

5. Definition
3. Anticipating manpower problems by projecting
present resources in to the future and
determine their adequacy both qualitatively and
quantitatively.
4. Plan actions like training, selection,
promotion, transfer, development and
compensation to ensure the future manpower
requirements are properly met.

6. Need for Human Resource Planning
Each organization needs human resources to
carry out work. These are provided by human
resource planning.
1. The person have to be replaced at work
because of retirement, death, incapacitation etc.
2. Replacing frequent employee turnover
because of promotion, voluntary quit, marriage,
child birth etc.

7. Need for Human Resource Planning
4. Manpower planning is required to meet the
challenge of a changing technology and
newer techniques of production.
5. It helps to identify areas of surplus personnel
or the area where there is shortage of
personnel.
E.g. If it is surplus they may be redeployed.

8. Responsibility of Human Resource
Planning
 Human Resource Planning is the collective
responsibility of the line manager and the staff
manager
Line Manager
• Estimates the manpower
requirements
• Provides the information
on the basis of the
estimates of the
operating levels
Staff Manager
• Provides supplemental
information in the form of
records
• Present forecasting techniques
to the line manager
• Advises the line manager on
assessment of manpower
utilization
• Develops sources of
information for purpose of
comparison
• Administer the procedure of
forecasting

9. Human Resource planning process
 The five steps of manpower planning are
1. Deciding goals and objectives
2. Forecasting the Human resource requirements
3. Auditing Human resources
4. Planning job analysis
5. Developing a Human resource manpower plan

10. Step 1. Deciding goals and objectives
 Analyze Business plan and business strategies
 The business objectives are long term and short
term objectives
1. Long term objectives e.g. produce a new
product, expand in a market, hire sales force
and not depend on distributors, start a new
industry or a business unit
2. Short term objectives e.g. hire additional 15
employees for training purposes, additional
team with 3 members for a project

11. Step 2. Forecasting the manpower
requirement
 Manpower forecasting is the process of making
statements about manpower demand and supply
whose actual outcomes have not yet been
observed.
 Forecasting can be described as predicting
what the future will look like, whereas planning
predicts what the future should look like
 There is no single right forecasting method to
use. One has to understand the various
forecasting techniques and select the technique
based on the objectives and conditions.

12. Step 2. Forecasting the manpower
requirement
 Forecasting is the basic premise on which
manpower planning is built
 It is necessary for many reasons:
1. An expansion in business means additional
resources.
2. Change in management and leadership styles
3. Use of technology and mechanization
necessitate changes in skills of workers and
well as change in the number of employees
needed.
4. If there are changes in quality or quantity of
product or services it requires change in
organization structure.

13. Knowing the Forecasting techniques
1. Executive or Managerial judgment
In this the managers sit together, discuss and
arrive at a number of employees needed in future
based on the three approaches
a) Bottoms-up approach
The departmental heads send their proposals to
the top management who compare these with the
organizational plans, make necessary adjustments
and finalize them.

14. Forecasting Techniques – Managerial
judgment
b) Top-down approach
The top management prepares the requirements
and sends the information to various departmental
heads for their review and approval.

15. Forecasting Techniques – Managerial
judgment
c) Participative approach
A combination of bottoms up and top down
approach. Here the departmental heads sit with the
top management and make projections for
manpower requirement after joint consultations.
Shortcoming: The estimation of manpower is made
using guesswork.

16. Forecasting Techniques
2. Statistical Techniques
a) Ratio-trend Analysis
b) Work study Method
c) Delphi Technique
d) Regression analysis

17. Forecasting techniques - Statistical
Techniques
a) Ratio-trend Analysis
Demand for manpower is estimated on basis of
ratio of production level and number of workers
available. The ratio will estimate the demand for
human resources.
e.g
Estimated production for next year is = 1,40,000
units
Estimated number of workers needed (ratio-trend
1:200)
= (1,40,000 X 1)/200
= 700
This is the quickest forecasting technique.

18. Forecasting techniques -Statistical
Techniques
b) Work study Method
It is based on the volume operation and work
efficiency for personnel.
Planned output/
(Standard output per hour X Standard hour per person)
 Work study method is more suitable for repetitive
and manual jobs where it is possible to measure
work and set standards.

20. Forecasting techniques -Statistical
Techniques
c) Delphi Technique
 Systematic, structured communication technique or
method
 An interactive forecasting method
 Experts answers questionnaires in one or two
rounds after which a facilitator or change
agent[5] provides a summary of the experts' forecasts
from the previous round as well as the reasons they
provided for their judgments.
 Thus, experts are encouraged to revise their earlier
answers in light of the replies of other members of
their panel. It is believed that during this process the
range of the answers will decrease and the group
will converge towards the "correct" answer.
 Delphi is based on the principle that forecasts (or
decisions) from a structured group of individuals are
more accurate than those from unstructured groups.

21. Forecasting techniques -Statistical
Techniques
c) Delphi Technique
The Delphi technique is an exploratory technique
and is based on the consensus of a panel of
experts, but does not allow communication between
group members.
Advantages
 Considers the expert opinion thus has more validity
 Useful for long term forecasting
Disadvantages
 Takes longer time

22. Forecasting techniques -Statistical
Techniques
 Regression analysis
Regression can be defined as a functional
relationship between two or more correlated
variables.
 It is used to predict one variable given the
other. The relationship is usually developed
from observed data.
 In linear regression the relationship between
variables forms a straight line

23. Causal relationships
 Linear Regression Analysis
Y = a +b X
Y is the dependent variable
X is the independent variable
a is the intercept
b is the slope

25. Workforce Analysis
Example Tata Consultancy Services Limited (TCS)
 It is the process of analyzing and understanding
the workforce and planning for projected
shortages and surpluses in specific occupations
and skill sets.
 In Tata Consultancy Services Limited (TCS),
workforce analysis should be made based on
their projects.

26. Step 3 – Auditing HR
Manpower Supply forecasting
 Once the future needs are estimated, next step is
to determine manpower supply forecasting.
 It determines whether the HR department will be
able to procure the required number of personnel.
Specifically, supply forecast measures the
number of people likely to be available from
within and outside an organization.
 The supply analysis covers:
1. Existing human resources
2. Internal source of supply
3. External source of supply

27. HR Supply Forecasting

28. Step 3 – Auditing HR
Manpower Supply forecasting
 This is done by
1. Skills Inventory
2. Organization charts
 Both organization charts and skill inventories
determine and evaluate the quantity and quality
of the present human resources in the
organization.

29. 1. Skill Inventory
 A skill inventory contains
1. Personnel files stating education, work
experience, interests, work skills.
 Skill inventory allows managers to match the job
opening with the employee backgrounds.

31. 2. Organization charts
 Organization charts determine “how many
people, at what level, in what position and what
kind of experience and training would be
required”
 For supply forecasting
1. List the current job holders
2. List the persons who are potential replacements
if an opening occurs.

33. Step 3 – Auditing human resources
 Both skill inventory and organization charts tell
us ‘what exists in the stock’ and ‘what is needed
to be added to that stock’.

34. Step 4 – Planning Job Analysis
 After having decided how many persons are
needed, it is necessary to prepare job analysis.
 Job analysis is the anatomy of the job or
complete study of job.

35. Terms about Job
Job – is defined as a “collection or aggregation of
tasks, duties and responsibilities which as a
whole, are regarded as regular assignment to
individual employees”
Position – is defines as a “collection of tasks and
responsibilities regularly assigned to one person”
Job is a “group of positions which involve same
duties, responsibilities, skill and knowledge”.
e.g. There can be 5 different positions of an
Account Managers all doing the same kind of
Job with slight difference in the area.

36. Conducting Job analysis
Five basic steps for doing a Job Analysis
Step 1: Collection of background
information – review organization charts, job
classification and existing job descriptions
Step 2: Selection of position to be analyzed
as it is a time consuming activity
Step 3: Collection of Job analysis data
a) Can be collected from the employees who
are doing the job
b) By supervisors who watch the employees
do a job
b) The trade job analysts (outside persons)
are assigned to watch employees perform job

37. Steps in Job Analysis
Five basic steps for doing a Job Analysis
Step 4: The information collected is
processed to generate a Job description
Step 5: Convert the JDs into job
specifications , mention what personal
qualities, skills are necessary to get the job
done

38. Job Analysis
 Job Analysis includes job description and job
specification.

39. Job description
 It is written record of job duties, responsibilities
and requirements of a particular job.
 It is concerned with
1. The title
2. job objective (‘why job’),
3. job location
4. Reporting relationship – (External and Internal)
5. Duties/ Responsibilities (what is the job)

40. 1. Job Description format
JOB TITLE [ Name of the job ]
Area Clinical Research
Department [the business unit ]
Location [organization and place of job ]
Job Summary Using 30-40 words briefly define the overall purpose of the
Job as discussed
1. Reporting to
2. Reporting by
[Immediate senior ]
[ positions that report into the above job ]
Duties &
Responsibilities
Describe the tasks and responsibilities serial no. wise starting
from the most important task to tasks that follow .
1.
2.
3.
Job conditions/
hazards

41. 2. Job Specification format
JOB TITLE [ Name of the job ]
Qualifications Education
Work
experience
Range min. to max in years
Skills -Professional skills
- soft skills
Trainings
undertaken
Specialized courses, license, certifications
Abilities
(characteristics)
- Natural traits related to the job

42. Job evaluation
 It is a process of analyzing and describing
positions grouping them and determining their
relative value by comparing the duties of different
positions in terms of their different responsibilities
and other requirements.
 The purpose is to assigning a pay grade/range
to the jobs.

43. Job evaluation systems
 1. The Ranking system
 2. Job classification or grading system
 3. Point system

44. Step 5 – Developing a Human Resource
plan
 Development and implementation of human
resource plan
 Strategic decision making
A) Whether the person be hired from within using
promotional channels or
B) Whether the person is obtained from an outside
source.
 For eg. most organizations follow the trend that
they fill higher vacancies by promotion and
lower positions by recruitment from the market.

45. Thank you