Manpower planning process

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Manpower planning process

  1. 1. Human Resource Planning Dr Sorab Sadri and Prof. JayashreeSadri
  2. 2. HR Planning What is HR Planning? Why is it rarely done? What is the connection between a firm’sstrategic orientation and HR planning?
  3. 3. Organizational Life-Cycle Stages andHR ActivitiesLIFE-CYCLESTAGESTAFFING COMPENSATIONTRAININGANDDEVELOPMENTLABOR /EMPLOYEERELATIONSIntroduction Attract besttechnical andprofessionaltalent.Meet or exceedlabor market ratesto attract neededtalent.Define futureskillrequirementsand beginestablishingcareer ladders.Set basicemployee-relationsphilosophy oforganization.Growth Recruit adequatenumbers and mixof qualifiesworkers. Planmanagementsuccession.Mange rapidinternal labormarketMeet externalmarket but considerinternal equityeffects. Establishformalcompensationstructures.Mold effectivemanagementteam throughmanagementdevelopmentandorganizationaldevelopment.Maintain laborpeace,employeemotivation,and morale.
  4. 4. Organizational Life-Cycle Stagesand HR Activities (cont’d)LIFE-CYCLESTAGESTAFFING COMPENSATIONTRAINING ANDDEVELOPMENTLABOR /EMPLOYEERELATIONSMaturity Encourage sufficientturnover to minimizelayoffs and providenew openings.Encourage mobilityas reorganizationsshift jobs around.Controlcompensationcosts.Maintain flexibilityand skills of anaging workforce.Control laborcosts andmaintain laborpeace. Improveproductivity.Decline Plan and implementworkforcereductions andreallocations,downsizing andoutplacement mayoccur during thisstage.Implement tightercost control.Implementretraining andcareer consultingservices.Improveproductivity andachieve flexibilityin work rules.Negotiate jobsecurity andemployment-adjustmentpolicies
  5. 5. How does HR Planningoccur?1. What does the environment look like?2. What are our future personnelneeds?(forecast demand)a. Judgmental Estimates Rule of Thumb Delphi Technique NGT Brainstorming
  6. 6. The Nominal Group TechniqueA small group of 4-5 people gathers around a table. Leaderidentifies judgment issue and gives participants proceduralinstructions.Participants write down all ideas that occur to them, keepingtheir lists private at this point. Creativity is encouraged duringthis phase.Leader asks each participant to present ideas and writes themon a blackboard or flipchart, continuing until all ideas have beenrecorded.Participants discuss each other’s ideas, clarifying, expanding,and evaluating them as a group.Participants rank ideas privately in their own personal order andpreference.The idea that ranks highest among the participants is adoptedas the group’s judgment.
  7. 7. The Delphi TechniqueLeader identifies judgment issues and develops questionnaire.Prospective participants are identified and asked to cooperate.Leaders send questionnaire to willing participants, who recordtheir judgments and recommendations and return thequestionnaire.Leaders compiles summaries and reproduces participants’responses.Leader sends the compiled list of judgment to all participants.Participants comment on each other’s ideas and propose a finaljudgment.Leader looksfor consensusLeader accepts consensus judgment as group’s choice.
  8. 8. How does HR Planningoccur?1. What does the environment look like?2. What are our future personnelneeds?(forecast demand)b. Statistical Regression
  9. 9. Statistical Techniques Used to ProjectStaffing Demand NeedsNameRegression analysisProductivity ratiosDescriptionPast levels of various work load indicators, such as sales,production levels, and value added, are examined forstatistical relationships with staffing levels. Wheresufficiently strong relationships are found, a regression (ormultiple regression) model is derived. Forecasted levels ofthe retained indicator(s) are entered into the resultingmodel and used to calculate the associated level ofhuman resource requirements.Historical data are used to examine past levels of aproductivity index (P):P = Work load / Number of PeopleWhere constant, or systematic, relationships are found,human resource requirements can be computed by divingpredicted work loads by P.
  10. 10. Statistical Techniques Used to ProjectStaffing Demand Needs (cont’d)NamePersonnel ratiosTime series analysisDescriptionPast personnel data are examined to determine historicalrelationships among the employees in various jobs or jobcategories. Regression analysis or productivity ratios arethen used to project either total or key-group humanresource requirements, and personnel ratios are used toallocated total requirements to various job categories or toestimate for non-key groups.Past staffing levels (instead of work load indicators) areused to project future human resource requirements. Paststaffing levels are examined to isolate and cyclicalvariation, long-tem terms, and random movement. Long-term trends are then extrapolated or projected using amoving average, exponential smoothing, or regressiontechnique.
  11. 11. Regression Analysis1. Statically identify historical predictor of workforce sizeExample: FTEs = a + b1 sales + b2 new customers2. Only use equations with predictors found to bestatistically significant3. Predict future HR requirements, using equationExample: (a) FTEs = 7 + .0004 sales + .02 newcustomers(b) Projected sales = $1,000,000Projected new customers = 300(c) HR requirements = 7 + 400 + 6 = 413
  12. 12. Determining the Relationship BetweenHospital Size and Number of Nurses
  13. 13. How does HR Planningoccur?b. Statistical (cont.) Ratio analysis2. What are our future personnelneeds? (demand forecast cont.)
  14. 14. How does HR Planningoccur?3. Are resources available – internallyor externally – to fill those needs?a. Internal Replacement charts
  15. 15. Employee Replacement Chart forSuccession Planning
  16. 16. How does HR Planningoccur?3. Are resources available – internallyor externally – to fill those needs?a. Internal Replacement charts Promotability
  17. 17. How does HR Planningoccur?3. Are resources available – internallyor externally – to fill those needs?a. Internal Replacement charts Promotability Succession planning Skills inventory Transition (Markov) matrix
  18. 18. A Sample Transition MatrixPart A: Personnel SupplyEstimated Personnel Classification in Year T + 1 (%)Classifications in Year T P M S Sr A ExitPartner .70 .30Manager .10 .80 .10Supervisor .12 .60 .28Senior .20 .55 .25Accountant .15 .65 .20Part B. Staffing LevelsEstimated Personnel Availabilities in Year T + 1 (%)BeginningClassifications in Year T Levels P M S Sr A ExitPartner 10 7 3Manager 30 3 24 3Supervisor 50 6 30 14Senior 100 20 55 25Accountant 200 30 130 4010 30 50 85 130
  19. 19. How does HR Planningoccur?3. Are resources available – internallyor externally – to fill those needs?b. External – what do you look at?- try to determine availability ofqualified labor; Surplus? Shortage?
  20. 20. How does HR Planningoccur?4. What should we do?- create plan of action to reconcile supplyand demanda. Set objectivesb. Generate alternatives
  21. 21. Staffing Alternatives to Deal withEmployee SurplusesSource: Compliments of Dan Ward, GTE Corporation
  22. 22. Staffing Alternatives to Deal withEmployee ShortagesSource: Compliments of Dan Ward, GTE Corporation
  23. 23. How does HR Planningoccur?4. What should we do?- create plan of action to reconcile supplyand demanda. Set objectivesb. Generate alternativesc. Assess alternatives
  24. 24. Alternative Scheduling OptionsAlternativePercent Using(N = 427 companies)The following definitions were used in this surveyfor alternative scheduling strategies:• Part-time: A regular employee who works fewer than 35 hours perweek.• Flextime: A system than enables employees to vary their schedules:Usually, the flexibility applies to starting and finishing times.• Compressed workweek: A full-week schedule (usually 40 hours) thanoccurs in fewer than five days, such as four 10-hour days.• Job sharing: Two or more employees split a full-time position, divingthe responsibilities, and, to some degree, the compensation.• Work-at-home: A program that enables employees to complete work athome (or at a remote office closer to home) on a regular basis. It is oftenreferred to as “flexplace” or “telecommuting.”84%40%23%18%13%
  25. 25. How does HR Planningoccur?4. What should we do?- create plan of action to reconcile supplyand demanda. Set objectivesb. Generate alternativesc. Assess alternativesd. Choose alternative – KEEPPHILOSOPHY IN MIND
  26. 26. How does HR Planningoccur?5. How did we do?a. Did company avoid surplus/shortage?b. Evaluate usefulness of methodsusedc. Goals v. Production Levels, etc.

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