An overview of HRP

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An overview of HRP

  1. 1. Human Resource PlanningHuman Resource Planning(HRP)(HRP)
  2. 2. AN OVERVIEW OF HUMANAN OVERVIEW OF HUMANRESOURCE PLANNINGRESOURCE PLANNINGDr Sorab Sadri and Prof. Jayashree SadriDr Sorab Sadri and Prof. Jayashree Sadri22
  3. 3. 33HRP: An OverviewHRP: An Overview HRP is aHRP is a processprocess ofof analyzing &analyzing &identifyingidentifying thethe need for & availability ofneed for & availability ofhuman resourceshuman resources (HR) so that(HR) so thatorganization can meet its objectivesorganization can meet its objectives
  4. 4. 44Defining HR PlanningDefining HR PlanningStrategy OrientedStrategy Oriented DEFINITIONDEFINITION– ““A strategy for the acquisition, utilization, improvement & retention of anA strategy for the acquisition, utilization, improvement & retention of anorganization’s human resources”organization’s human resources”– AIMS of HRPAIMS of HRP::1.1. to ensure the optimum use of the people currently employedto ensure the optimum use of the people currently employed2.2. to provide for the future staffing needs of the organization in terms of skills, number,to provide for the future staffing needs of the organization in terms of skills, number,& ages of people& ages of people– HRP establish controlHRP establish control: planner work as a “policeman” who checks whether: planner work as a “policeman” who checks whetherstaffing levels are optimumstaffing levels are optimumProcess OrientedProcess Oriented DEFINITIONDEFINITION– HRP is as aHRP is as a continuous process of analyzingcontinuous process of analyzing an organization’s HR needsan organization’s HR needsunder the changing conditions & developing the activities necessary to satisfyunder the changing conditions & developing the activities necessary to satisfythese needs like staffing, recruitment, selection, training, etc.these needs like staffing, recruitment, selection, training, etc.– Process aimed at assisting management to determineProcess aimed at assisting management to determine how the organizationhow the organizationshould moveshould move from its current staffing position to its desired staffing positionfrom its current staffing position to its desired staffing position
  5. 5. 55Business Strategy & HRPBusiness Strategy & HRPBusiness strategyBusiness strategyfocus (Porter)focus (Porter)HR strategyHR strategy HRP activitiesHRP activitiesCost leadershipCost leadershipCost controlCost controlStable businessStable businessenvironmentenvironmentEfficiency & qualityEfficiency & qualityJob & employeeJob & employeespecializationspecializationEmployee efficiencyEmployee efficiencyLong HR planning scopeLong HR planning scopeInternal promotionsInternal promotionsEmphasis on trainingEmphasis on trainingHiring & training forHiring & training forspecific capabilitiesspecific capabilitiesDifferentiationDifferentiationLong term focusLong term focusGrowthGrowthCreativity in job behaviourCreativity in job behaviourDecentralizationDecentralizationShorter HR planningShorter HR planningscopescopeHire HR capabilitiesHire HR capabilitiesrequiredrequiredFlexible jobs & employeesFlexible jobs & employeesExternal staffingExternal staffingHire & train for broadHire & train for broadcompetenciescompetencies
  6. 6. 66Business Strategy & HRPBusiness Strategy & HRPBusiness strategyBusiness strategyfocus (Miles &focus (Miles &Snow)Snow)HR strategyHR strategy HRP activitiesHRP activitiesDefenderDefenderFinds change threateningFinds change threateningFavors strategies whichFavors strategies whichencourage continuity &encourage continuity &securitysecurityBureaucratic approachBureaucratic approachPlanned & regularlyPlanned & regularlymaintained policies tomaintained policies toprovide for lean HRprovide for lean HRBuild HRBuild HRLikely to emphasizeLikely to emphasizetraining programs & internaltraining programs & internalpromotionpromotionProspectorProspectorSucceed on changeSucceed on changeFavors strategies ofFavors strategies ofproduct & / or marketproduct & / or marketdevelopmentdevelopmentCreative & flexibleCreative & flexiblemanagement stylemanagement styleHave high quality HRHave high quality HREmphasize redeploymentEmphasize redeployment& flexibility of HR& flexibility of HRLittle opportunity for long-Little opportunity for long-term HRPterm HRPAcquire HRAcquire HRLikely to emphasizeLikely to emphasizerecruitment, selection &recruitment, selection &performance baseperformance basecompensationcompensation
  7. 7. 77Perspectives of HRPPerspectives of HRP MACRO HRP – Assessing & forecasting demand for & availability of skills at national /global level Predict the kinds of skills that will be required in future & compare thesewith what is / will be available in the country Eg. Gillette merger with P&G whereby decided to restructure & move frombusiness units based on geographic regions to global business units basedon product lines which resulted in redundancy of some employees(Relocation to Singapore & VRS for others) MICRO HRP – Process of forecasting demand for & supply of HR for specificorganization Eg. Wipro (a software giant in India) raising wages / short-listing students in their2ndyr. of college for future employment in India Genpact (an IT solution company in India) launching an associate traineeprogram with Osmania University in India
  8. 8. 88JOB ANALYSISJOB ANALYSIS
  9. 9. 99Terminology commonly used in JATerminology commonly used in JAliteratureliterature JOB – group of positions that have similar duties, tasks, &responsibilities POSITION – set of duties & responsibilities performedby one person A job is a general term, a position is more specific. Eg. as my job, I am a teacher. But to be specific, my position isElementary Gifted Specialist.Eg. someone might work at the grocery store as their job, butspecifically, their position is produce assistant. JOB FAMILY – group of 2 / more jobs that have similarduties / characteristics TASK – separate, distinct & identifiable work activity DUTY – several tasks that are performed by an individual
  10. 10. 1010Terminology commonly used in JATerminology commonly used in JAliteratureliterature RESPONSIBILITIES – obligations to perform certain tasks& duties DUTY**BEHAVIOR SHOWING A PROPER REGARD / SENSE OFOBLIGATION, JUSTICE MORALITY, OCCUPATION OR POSITION. RESPONSIBILITY**OBLIGATION,TO DO WHAT IS ASK,IF YOUSAY YOUR GOING TO DO SOMEHTHING DO IT,TRUST,HONEST,TO CARE FOR ANOTHER WHEN ONE JOB DESIGN – process to ensure that individuals havemeaningful work & one that fits in effectively with other jobs JOB DESCRIPTION – written summary of the content &context of the job, outlining the tasks, duties, &responsibilities of a job, as well as performance standards ofeach job JOB SPECIFICATION – written statement of the KSA &other characteristics (human requirements) that arenecessary for performing the job effectively & satisfactorily
  11. 11. 1111Information obtained from JAInformation obtained from JAWhat is to be done? How is to be done?What is to be done? How is to be done?(CONTENT)(CONTENT)Under what conditions is the job to beUnder what conditions is the job to bedone (CONTEXT)done (CONTEXT)What KSA & other characteristics areWhat KSA & other characteristics arerequired to perform the job (HUMANrequired to perform the job (HUMANREQUIREMENTS)REQUIREMENTS)
  12. 12. 1212Information obtained from JAInformation obtained from JA JOB CONTENTJOB CONTENT Duties & responsibilitiesDuties & responsibilities Job demandsJob demands Machines, tools, & equipmentMachines, tools, & equipment Performance standardsPerformance standards JOB CONTEXTJOB CONTEXT Physical, organizational & social contextPhysical, organizational & social context Work conditions, & work scheduleWork conditions, & work schedule HUMAN REQUIREMENTSHUMAN REQUIREMENTS KSA,KSA, Education, Experience & personal attributes (personality,Education, Experience & personal attributes (personality,interests, etc.)interests, etc.)
  13. 13. 1313Components of a JAComponents of a JA JOB DESCRIPTIONJOB DESCRIPTION Statement of tasks, duties, responsibilities, & contextStatement of tasks, duties, responsibilities, & contextof the jobof the job JOB SPECIFICATIONJOB SPECIFICATION KSA required to perform the job satisfactorilyKSA required to perform the job satisfactorily JOB EVALUATIONJOB EVALUATION Comparison of relative value of jobs in organizationComparison of relative value of jobs in organizationfor making compensation decisionsfor making compensation decisions
  14. 14. 1414Methods of collecting information for JAMethods of collecting information for JANumber of ways – may be used inNumber of ways – may be used incombination or in isolationcombination or in isolationMETHODS:METHODS:InterviewsInterviewsQuestionnairesQuestionnairesObservationsObservationsParticipant diaryParticipant diary
  15. 15. 1515JA ProcessJA Process Determine purpose of JADetermine purpose of JA Review organization chartReview organization chart OC shows the division of work in organization, howOC shows the division of work in organization, howthe job in question related to other jobs, how the jobthe job in question related to other jobs, how the jobfits into the overall organization, who reports to whom,fits into the overall organization, who reports to whom,& whom the incumbent reports to& whom the incumbent reports to Select representative jobs for analysisSelect representative jobs for analysis Analyze jobs using data gathering methodsAnalyze jobs using data gathering methods Check information for accuracyCheck information for accuracy Write JD & JS for use in HR activitiesWrite JD & JS for use in HR activities
  16. 16. 1616Writing JDsWriting JDsJob title & identificationJob title & identificationJob summaryJob summaryRelationshipsRelationshipsResponsibilities & dutiesResponsibilities & dutiesStandards of performance & workingStandards of performance & workingconditionsconditionsEquipment & toolsEquipment & toolsWorking conditionsWorking conditions
  17. 17. 1717HRP ProcessHRP Process HRP PROCESS:HRP PROCESS:1.1. Environmental scanningEnvironmental scanning2.2. Forecasting & analyzing demand for HRForecasting & analyzing demand for HR3.3. Forecasting & analyzing supply of HRForecasting & analyzing supply of HR4.4. Developing action plans to match HRDeveloping action plans to match HRdemand & supplydemand & supply
  18. 18. 1818Environmental ScanningEnvironmental Scanning Systematic process of studying & monitoring theSystematic process of studying & monitoring theexternal environment of the organization in orderexternal environment of the organization in orderto pinpoint opportunities & threatsto pinpoint opportunities & threats Involves long range analysis of employmentInvolves long range analysis of employment Factors include economic factors, competitiveFactors include economic factors, competitivetrends, technological changes, socio-culturaltrends, technological changes, socio-culturalchanges, politico-legal considerations, labourchanges, politico-legal considerations, labourforce composition & supply, & demographicforce composition & supply, & demographictrendstrends
  19. 19. 1919Environmental ScanningEnvironmental Scanning Eg., competitive pressures are likely to increase resulting inEg., competitive pressures are likely to increase resulting inenhanced productivity requirements & HRP objective may be ‘toenhanced productivity requirements & HRP objective may be ‘toincrease employee productivity by 5% in 2 yrs.’ which will requireincrease employee productivity by 5% in 2 yrs.’ which will requirethe firm to determine current employee productivity (output /the firm to determine current employee productivity (output /employees)employees) Attempts to answer 2 questions:Attempts to answer 2 questions: Which jobs need to be filled (or vacated) during the next 12 months?Which jobs need to be filled (or vacated) during the next 12 months? How & where will we get people to fill (or vacate) these jobs?How & where will we get people to fill (or vacate) these jobs? Demand & supply of labour in loose & tight labour marketDemand & supply of labour in loose & tight labour market Major impact of the shortage of skilled workforce (tight labour market) inMajor impact of the shortage of skilled workforce (tight labour market) inIndia has been on staff cost (increased by 35% in 2005)India has been on staff cost (increased by 35% in 2005) Fast growing sectors like retail, ITeS, telecom are new & do not haveFast growing sectors like retail, ITeS, telecom are new & do not havehistorical talent to bank on & hence they are hiring from other sectorshistorical talent to bank on & hence they are hiring from other sectorswith skill sets that are relevant to their industrieswith skill sets that are relevant to their industries
  20. 20. 2020Forecasting HR DemandForecasting HR Demand FORECASTING ‘makes use of information fromFORECASTING ‘makes use of information fromthe past & present to identify expected futurethe past & present to identify expected futureconditions’.conditions’. Forecasts are not perfectly accurate & as theForecasts are not perfectly accurate & as theplanning scope becomes shorter the accuracy ofplanning scope becomes shorter the accuracy offorecasts increasesforecasts increases HR demand forecasts may be internal / externalHR demand forecasts may be internal / external
  21. 21. 2121Qualitative Methods of Demand ForecastingQualitative Methods of Demand ForecastingMethod Advantages DisadvantagesEstimationPeople in position estimatethe number of people the firmwill require in the next yr.Incorporates knowledgeof corporate plans inmaking estimatesMay be subjectiveExpertopinionPanel of experts forecast HR requirements for particular future businessscenarios. For this method, there may be a single expert, or estimates of severalexperts may be pooled togetherDelphi Experts go through severalrounds of estimates with noface-to-face meetingIncorporates future plans& knowledge of expertsrelated to mkt., industry& technical developmentSubjective, timeconsuming & mayignore dataGroupbrainstormingFace-to-face discussion basedon multiple assumptions aboutfuture business directionGenerates lot of ideas Does not lead toconclusionNominalgrouptechniqueFace-to-face discussion Group exchangesfacilitate plansSubjective which mayignore dataSimpleaveragingSimple averaging ofviewpointsDiverse view points taken Extremes views aremasked whenaveraged
  22. 22. 2222Quantitative Methods of Demand ForecastingQuantitative Methods of Demand ForecastingMethod Advantages DisadvantagesTrendanalysis&projectionBased on past relationship between a business factor related toemployment & employment level itselfSimplelong-runtrendanalysisExtrapolates pastrelationship betweenvolume of businessactivity & employmentlevels into the futureRecognizes linkagebetween employment& business activityAssumes thatvolume of businessactivity of firm forforecast period willcontinue at samerate as previousyrsIgnores multiplicityof factorsinfluencingemployment levelsRegressionanalysisRegresses employmentneeds onto key variablesData drivenUses multiplebusiness factorsDifficult to use &apply
  23. 23. 2323Quantitative Methods of Demand ForecastingQuantitative Methods of Demand ForecastingMethod Advantages DisadvantagesSimulationmodelsUses probabilities offuture events to estimatefuture employment levelsMakes severalassumptions about thefuture regardingexternal & internalenvironmentSimultaneouslyexamines severalfactorsCostly &complicatedWorkloadanalysisBased on actual content ofworkHR requirementsbased on expectedoutput of the firmProductivity changestaken into accountJob analysis maynot be accurateDifficult to applyMarkovanalysisProbabilisticBased on past relationshipbetween business factorrelated to employment &employment level itselfData driven Assumes thatnature of jobs hasnot changed overtimeApplicable tostable environment
  24. 24. 2424Causes of DemandCauses of DemandEXTERNAL CHALLENGES:– Economic developments – noticeable effect but aredifficult to estimate (Inflation, unemployment, &changing workforce patterns)– Social, political & legal challenges – easier topredict, but their implications are not very clear(Implication of abolishing mandatory retirement age inUS may not be known until a generation has livedwithout “65 & out” tradition)– Technology changes – difficult to predict & assessbut may radically alter strategic & HR plans (PC wouldcause mass unemployment vis-à-vis IT field as a largeone employing millions of people directly / indirectly –complicates HR, because it tends to reduceemployment in one dept. while increasing it in another)
  25. 25. 2525Causes of DemandCauses of DemandORGANIZATIONAL DECISIONS:– As orgs. respond to changes in their environment, decisions aremade to modify the strategic plan, which commits firm to long-range objectives – growth rates & new products, markets /services & these objectives dictate number & types of employeesneeded in future– To achieve long-term objectives, HR specialists must developlong-range HR plans that accommodate strategic plan– In short run, planners find strategic plans become operational inform of budgets– Sales & production forecasts are less exact than budgets butmay provide even quicker notice of short-run changes in demandfor HR– New ventures means changing HR demands – when a newventure is begun internally from scratch, lead time may allowplanners to develop short-run & long-run employment plans –merging HR group with Corporate Planning staff
  26. 26. 2626Causes of DemandCauses of DemandWORKFORCE FACTORS (ATTRITION):– Demand is modified by employee actions such as retirements, resignations, terminations, death, & leaves of absence– Analysis Technique – Markov Analysis ofAttrition Rates
  27. 27. 2727Forecasting TechniquesForecasting TechniquesTrend Projection Forecasts:Trend Projection Forecasts:– Quickest forecasting techniquesQuickest forecasting techniques– Two simplest methods –Two simplest methods –1.1. ExtrapolationExtrapolation: involves extending past rates of change into future: involves extending past rates of change into future(if an avg of 20 production workers was hired each month for(if an avg of 20 production workers was hired each month forpast 2 yrs, extrapolating that trend into future means that 240past 2 yrs, extrapolating that trend into future means that 240production workers will be added during upcoming yr.)production workers will be added during upcoming yr.)2.2. IndexationIndexation: a method of estimating future employment needs by: a method of estimating future employment needs bymatching employment growth with an index, such as ratio ofmatching employment growth with an index, such as ratio ofproduction employees to sales (eg., for each million $ increase inproduction employees to sales (eg., for each million $ increase insales, production deptt. requires 10 new assemblers)sales, production deptt. requires 10 new assemblers)– Both are crude approximations in short run because theyBoth are crude approximations in short run because theyassume that causes of demand remain constant which isassume that causes of demand remain constant which isseldom the case – making it very inaccurate for long-seldom the case – making it very inaccurate for long-range HR projectionsrange HR projections
  28. 28. 2828Methods of Demand EstimationMethods of Demand EstimationTREND ANALYSIS & PROJECTIONTREND ANALYSIS & PROJECTION• Study of firm’s past employment needs over a period of yrs. to predictStudy of firm’s past employment needs over a period of yrs. to predictfuture needsfuture needs• Appropriate business factor that relates significantly to employment levelsAppropriate business factor that relates significantly to employment levelsdiffers across industries (University – student enrollment, Sales firm –differs across industries (University – student enrollment, Sales firm –sales volume, Manufacturing firm – total units produced)sales volume, Manufacturing firm – total units produced)• Steps:Steps:1.1. Determine &Determine & identify a business factoridentify a business factor that relates to the number & type ofthat relates to the number & type ofpeople employedpeople employed2.2. Identify historical trendIdentify historical trend of the relationship between this business factor & theof the relationship between this business factor & thenumber of people employednumber of people employed3.3. Determine the ratioDetermine the ratio of employees to the business factor, that is, the averageof employees to the business factor, that is, the averageoutput per individual employee per year – labour productivityoutput per individual employee per year – labour productivity4.4. Determine the labour productivity ratioDetermine the labour productivity ratio for the past 5 yrs at least & calculate thefor the past 5 yrs at least & calculate theaverage annual rate of change in productivityaverage annual rate of change in productivity5.5. Calculate the human resource demandCalculate the human resource demand by dividing the business factor by theby dividing the business factor by theproductivity ratioproductivity ratio6.6. ProjectProject human resource demand for the target year.human resource demand for the target year.
  29. 29. 2929Methods of Demand EstimationMethods of Demand EstimationSIMPLE LONG-RANGE TREND ANALYSISSIMPLE LONG-RANGE TREND ANALYSIS• ExtrapolatesExtrapolates the volume of currentthe volume of currentbusiness activity for the years for whichbusiness activity for the years for whichthe forecast is being madethe forecast is being made• Since there is a correlation betweenSince there is a correlation betweenvolume of business activity &volume of business activity &employment level,employment level, linear extrapolationlinear extrapolationwould also indicate HR demand by job &would also indicate HR demand by job &skill categoryskill category
  30. 30. 3030Methods of Demand EstimationMethods of Demand EstimationRATIO ANALYSISRATIO ANALYSIS• RATIO between output & manpower deployedRATIO between output & manpower deployedto achieve that output is established at a givento achieve that output is established at a givenpoint of timepoint of time• Eg., revenue per employee, sales vol. perEg., revenue per employee, sales vol. persalesperson, service contract per engineer, unitssalesperson, service contract per engineer, unitsproduced per employee, etc.,produced per employee, etc.,• Historical ratio between:Historical ratio between:• Some causal factor (sales volume)Some causal factor (sales volume)• No. of employees required (number of salesperson)No. of employees required (number of salesperson)
  31. 31. 3131Methods of Demand EstimationMethods of Demand EstimationREGRESSION ANALYSISREGRESSION ANALYSIS• Drawing a statistical comparison of pastDrawing a statistical comparison of pastrelationship among variablesrelationship among variables• Statistical relationship between no. ofStatistical relationship between no. ofpatients (business factor) & employmentpatients (business factor) & employmentlevel of nurses in a nursing home may belevel of nurses in a nursing home may beuseful in forecasting the no. of employeesuseful in forecasting the no. of employeesthat will be needed if the no. of patientsthat will be needed if the no. of patientsincreases by say 20%increases by say 20%
  32. 32. 3232Methods of Demand EstimationMethods of Demand EstimationLINEAR REGRESSIONLINEAR REGRESSIONANALYSISANALYSIS• Relationship between twoRelationship between twovariables which is directlyvariables which is directly& precisely proportional& precisely proportional• Production output &Production output &manpower are the twomanpower are the twovariables & thevariables & therelationship between theserelationship between thesetwo is plotted on a graphtwo is plotted on a graphby drawing a “line of bestby drawing a “line of bestfit”fit”• Analysis aims at providingAnalysis aims at providinga measure of the extent toa measure of the extent towhich changes in thewhich changes in thevalues of two variables arevalues of two variables arecorrelated with one anothercorrelated with one anotherXab YManpowerProduction levelxxxxxxx
  33. 33. 3333Methods of Demand EstimationMethods of Demand EstimationMARKOV ANALYSISMARKOV ANALYSIS• Shows the percentage (& actual no.) of employee who remain inShows the percentage (& actual no.) of employee who remain ineach job from one yr. to the next, as also the proportion of thoseeach job from one yr. to the next, as also the proportion of thosewho are promoted or transferred or who exit the organizationwho are promoted or transferred or who exit the organization• Internal mobility among different job classifications can be forecastInternal mobility among different job classifications can be forecastbased upon past movement patterns – past patterns of employeebased upon past movement patterns – past patterns of employeemovements (transitions) used to project future patternsmovements (transitions) used to project future patterns• Pattern is used to establish transitional probabilities & to develop aPattern is used to establish transitional probabilities & to develop atransition matrixtransition matrix• Transitional probabilities:Transitional probabilities:• Indicate what will happen to the initial staffing levels in each jobIndicate what will happen to the initial staffing levels in each jobcategory / probability that employee from one job category will movecategory / probability that employee from one job category will moveinto another job categoryinto another job category• Determine the forecasted employee levels at the end of the yrDetermine the forecasted employee levels at the end of the yr
  34. 34. 3434Forecasting & Analyzing HRForecasting & Analyzing HRSupplySupply– Internal supply forecasts relate toInternal supply forecasts relate toconditions inside the org. such as ageconditions inside the org. such as agedistribution of workforce, terminations,distribution of workforce, terminations,retirements, etc.retirements, etc.– External supply forecasts relate toExternal supply forecasts relate toexternal labour market conditions &external labour market conditions &estimates of supply of labour to beestimates of supply of labour to beavailable to the firm in the future inavailable to the firm in the future indifferent categoriesdifferent categories
  35. 35. 3535Methods of Forecasting External HR SupplyMethods of Forecasting External HR SupplyINTERRELATED FACTORS THAT MUST BE CONSIDERED IN PROJECTINGINTERRELATED FACTORS THAT MUST BE CONSIDERED IN PROJECTINGEXTERNAL HR SUPPLYEXTERNAL HR SUPPLY• Government estimates of population available for workGovernment estimates of population available for work• Net migration into and out of the areaNet migration into and out of the area• Numbers entering the workplaceNumbers entering the workplace• Numbers leaving the workplaceNumbers leaving the workplace• Numbers graduating from schools / collegesNumbers graduating from schools / colleges• Changing workforce compositionChanging workforce composition• Technological shiftsTechnological shifts• Industrial shiftsIndustrial shifts• Trends in the industry (actions of competing employers)Trends in the industry (actions of competing employers)• Economic forecastsEconomic forecasts• Government regulations & pressures such as job reservations for certainGovernment regulations & pressures such as job reservations for certaingroupsgroups
  36. 36. 3636Methods of Forecasting Internal HR SupplyMethods of Forecasting Internal HR SupplyHR INVENTORYHR INVENTORY• Obtains & stores information about each employee of the org. in a mannerObtains & stores information about each employee of the org. in a mannerthat is easily accessible because it is necessary for HRPthat is easily accessible because it is necessary for HRP• Employee information stored in the inventory relates to KSA, experience,Employee information stored in the inventory relates to KSA, experience,& career aspirations of the present workforce of the firm& career aspirations of the present workforce of the firm• Contents of HR InventoryContents of HR Inventory• Personal identification informationPersonal identification information• Biographical informationBiographical information• Educational achievementsEducational achievements• Employment historyEmployment history• Information about present jobInformation about present job• Present skills, abilities, & competenciesPresent skills, abilities, & competencies• Future focused dataFuture focused data• Specific actions (like training needed for achieving career goals)Specific actions (like training needed for achieving career goals)
  37. 37. 3737Methods of Forecasting Internal HR SupplyMethods of Forecasting Internal HR SupplyHR INVENTORYHR INVENTORY• 2 types –2 types –• Skills inventory: describes the skills &Skills inventory: describes the skills &knowledge of non-managerial employees &knowledge of non-managerial employees &is used primarily for making placement &is used primarily for making placement &promotion decisionspromotion decisions• Management inventory: contains the sameManagement inventory: contains the sameinformation as in skills inventory, but only forinformation as in skills inventory, but only formanagerial employees which describes themanagerial employees which describes thework history, strengths, weaknesses,work history, strengths, weaknesses,promotion potential, career goalspromotion potential, career goals
  38. 38. 3838Methods of Forecasting Internal HR SupplyMethods of Forecasting Internal HR SupplyHR INVENTORYHR INVENTORY• Can be used to develop employee replacementCan be used to develop employee replacementchartscharts• Replacement charts – lists current jobholders &Replacement charts – lists current jobholders &identifies possible replacements should there be aidentifies possible replacements should there be avacancy for reasons such as resignations, transfers,vacancy for reasons such as resignations, transfers,promotions, etc.promotions, etc.• Replacement charts include the following informationReplacement charts include the following informationon possible replacements like current jobon possible replacements like current jobperformance, potential for promotion, trainingperformance, potential for promotion, trainingexperience required by replacement to be ready forexperience required by replacement to be ready forthe key positionthe key position• Chart also details ‘when’ a replacement is neededChart also details ‘when’ a replacement is neededfor a ‘job’ – short term forecasts in naturefor a ‘job’ – short term forecasts in nature
  39. 39. 3939Methods of Forecasting Internal HR SupplyMethods of Forecasting Internal HR SupplySUCCESSION ANALYSIS & PLANNINGSUCCESSION ANALYSIS & PLANNING• A systematic & deliberate process of identifying,A systematic & deliberate process of identifying,developing & tracking key individuals within the firm todeveloping & tracking key individuals within the firm toprepare them for assuming senior & top-level positionsprepare them for assuming senior & top-level positionsin future.in future.• Eg., SAIL poaching from global players & preparing aEg., SAIL poaching from global players & preparing a‘defence system’ wherein 2‘defence system’ wherein 2ndnd& 3& 3rdrdline of command isline of command isbeing prepared; IBM, ExxonMobil, GE, etc., havebeing prepared; IBM, ExxonMobil, GE, etc., havealready hired its CEO for 2010already hired its CEO for 2010• Eg., Godrej, Marico (fly. owned business) in India haveEg., Godrej, Marico (fly. owned business) in India have‘drop dead’ succession plan which keeps the wheel‘drop dead’ succession plan which keeps the wheelmoving where a promoter of the fly-owned firm maymoving where a promoter of the fly-owned firm mayalways be around to guide the companyalways be around to guide the company
  40. 40. 4040Methods of Forecasting Internal HR SupplyMethods of Forecasting Internal HR SupplyLABOUR WASTAGE ANALYSISLABOUR WASTAGE ANALYSIS• Traditionally LW is measured by the employeeTraditionally LW is measured by the employeeturnover index (% wastage index)turnover index (% wastage index)• (No. of empls leave in mth / avg. empls) x 100(No. of empls leave in mth / avg. empls) x 100• Turnover classified into:Turnover classified into:• Avoidable separations (resignations & dismissal)Avoidable separations (resignations & dismissal)• Unavoidable separations (retirement, death, &Unavoidable separations (retirement, death, &marriage)marriage)• Turnover rate = [(S-US) / M] x 100Turnover rate = [(S-US) / M] x 100
  41. 41. 4141Methods of Forecasting Internal HR SupplyMethods of Forecasting Internal HR SupplyABSENTEEISM RATEABSENTEEISM RATENo. of man-days lost due to absenceNo. of man-days lost due to absencefrom work during the periodfrom work during the periodARAR = --------------------------------------- x 100= --------------------------------------- x 100Avg. number of Total numberAvg. number of Total numberempls. during this pd. of daysempls. during this pd. of days
  42. 42. 4242Thank YouThank You

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