An brief introduction to HRM and human resource planning for the new learners, Human resource forecasting

1. NME ELECTIVE (unit 1)

2.  HRM includes all management decisions &
actions that affect the relationship between
the organization & employee’s (human
resources)

3.  Human Resource Management field, includes
knowledge of
 job analysis,
 human resource planning,
 recruiting,
 employment selection,
 equal employment opportunity,
 performance appraisal,
 compensation,
 incentives,
 benefits, and
 labor relations.

5.  Societal Objectives
 Organizational Objectives
 Functional Objectives
 Personal Objectives

6.  Employment opportunities
 Maximum productivity
 Material & mental satisfaction to workforce
 Control of wastage of effort
 To maintain ethical policies & socially
responsible behaviour.

7.  To reach the organizational goal
 To communicate the HRM policies to all the
employees
 To develop and maintain quality of work life

8.  To suit organizations demand
 To tailor the departmental level service
towards organizational goals.

9.  Job security
 Facilities for proper training and development
 Increase in job satisfaction & self -
actualization

10.  Fairness & firmness
 Tact and resourcefulness
 Sympathy & consideration
 Knowledge of labour & other terms
 Broad social outlook

11.  HRP is the process of forecasting a firm’s
demand for & supply of right type of people
in the right number for the right job.

12.  Future personnel needs
 Part of strategic planning
 Creating highly talented personnel
 International strategies
 Foundation for personnel functions
 Increasing investment in HR
 Resistance to change & move
 Unite the perspectives of line and staff
managers
 Other benefits

13. Environmental
scanning
HR Demand
forecast
HR Supply
forecast
Identifying
resource gap
Action plans

15.  Systematic monitoring of the external forces
influencing the O.
 Economic factors
 Technological changes
 Demographic changes
 Political & legislative issues
 Social issues

16.  Demand forecasting is the process of
estimating future quantity& quality of
people required.
 Based on annual budget and long term
corporate plan of each function and
department.

17.  Considers 2 factors:
 Internal (economic, climate, law & regulatory
bodies, changes in technology, & social factors)
 External (budget constraints, pdtn levels, new
p&s, O structure, & employee separations.

18.  BOTH INTERNAL & EXTERNAL
 External:
 People in the labour market, unemployed people.
 Internal:
 Employees who can be promoted, transferred,
or demoted to meet anticipated need.

19.  To ensure supply matches the demand.
 To identify the gap between hr resources
needed & the availability is identified.
 Two forms:
 Surplus HR
 Shortage of HR

20.  If there is shortage:-
 Discouraging retirements
 Hiring new people
 Transferring people
overstaffed areas

21.  If there is surplus of
HR:-
 Offering early
retirements
 Transferring to unstaffed
areas
 Terminating people

22.  HR Forecasting is the process by which an
organization estimates its future
organization needs.
 Forecasting techniques differ from simple to
sophisticated ones.
 An O can follow one or more technique.

23.  Under this technique the managers sit
together, discuss and arrive at a figure which
would be the future demand for labour.
 The technique may involve a “bottom up” or
“top down” approach.
 This technique is used in smaller
organizations or in those companies were
sufficient data base is not available.

24.  The quickest forecasting technique.
 This involves the study of past ratio’s, say….
Between the no. of workers and sales in an O
and forecasting future ratios.

25.  This is similar to Ratio – trend analysis.
 Regression analysis is purely statistically
oriented.
 In this, a firm first draws a diagram depicting
the relationship between any two variables.
 Then calculates the “regression line” ( a line
that cuts right through the centre of the point
on the diagram)

26.  It is used to calculate the length of operations
and the amount of labour required.
 This technique is also known as 'work-load
analysis'.

27.  Let us assume that the estimated production of an organization is
3,00,000 units.
 The standard man-hours required to produce each unit are 2 hours.
 The past experiences show that the work ability of each employee in
man-hours is 1500 hours per annum.
 The work-load and demand of human resources can be calculated as
under:

28.  Estimated total annual production = 300000 units
 Standard man-hours needed to produce each unit = 2 hrs
 Estimated man-hours needed to meet estimated annual production
(i x ii) = 600000 hrs
 Work ability/contribution per employee in terms of man-hour =
1500 units
 Estimated no. of workers needed (iii / iv) = 600000/1500 = 400
units
 The above example clearly shows that 400 workers are needed for
the year.

29.  Delphi technique is the method of forecasting
personal needs.
 It is named after the ancient Greek oracle at
the city of Delphi.
 It extracts the personal needs of individuals
from a group of experts usually manager’s.
 Decision is arrived at through written
communication, in the form of filling up the
questionnaires often through mails.

30.  Flow model are associated with forecasting
personal needs.
 The simplest one is Markov model.