Human Resource

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Amity Business School

Human Resource PLANNING
Presented By :Aditi Gaur (B-28) Amrinder Sahni(B-40) Anjali Paul(B-8) Anshu Chaudhary (B-25) Deepti (B-29) Himani Sharma(B-10) Surabhi Jain(B-2) Tuhina Tomar (B-21)

Amity Business School

HRP has been defined by Geisler (1967), As a process of forecasting, developing and controlling human resources in an enterprise. This process helps the enterprise to ensure that it has right number of people and the right kind of people at the right place at the right time performing tasks for which they are most effective. RIGHT PERSON AT RIGHT PLACE AT RIGHT TIME

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CASE SUMMARY
³HUMAN RESOURCE PLANNING? NO, THANKYOU´

Its a case about a reputed South Indian University who appointed too many people on temporary basis without their actual need rather the university already had a surplus of such staff who were already eating away the university's annual budget. The procedure to appoint such staff was also a slipshod. Eventually, the authorities realized their mistake of violating ³Equal Remuneration Act´ but they could not dismiss their additional burden as it would not have been taken lightly. When asked about HRP and its need from an employee who was getting benefited prompt came the reply ³HRP? NO, THANK YOU.

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OBJECTIVES
‡ To ensure optimum use of existing HR ‡ To forecast future requirement for HR ‡ To provide control measures to ensure that necessary HR are available as and when required. ‡ To assess the surplus and shortage of HR (Downsizing) ‡ To determine the level of Recruitment and Training

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IMPORTANCE
‡ Replacement of persons. (University could have timely ‡
replaced staff as per requirement) Labor Turnover. (If university could forecast the turnover rate it could have made preparations for training and recruitment and the work would not have suffered) Expansion Plans. (There were no such evident plans for expansion of the university so there was no need to take any new positions) Technological Changes. (there were no need to infuse fresh blood into the university) Assessing Needs. (determine the shortage or surplus of persons in the organization)

‡

‡ ‡

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FACTORS AFFECTING HRP ‡Type and strategy of organization. ‡Organizational growth cycle and planning. ‡Environmental uncertainties ‡Time horizons ‡Types and quality of forecasting information ‡Nature of jobs being filled ‡Outsourcing

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Amity Business School

Environment

Organizational Objectives and Policies

HR NEEDS FORECAST HR PROGRAMMING HRP IMPLEMENTATION CONTROL & EVALUATION OF PROGRAM Surplus

HR SUPPLY FORECAST

Shortage

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ENVIRONMENT ANALYSIS
‡ The first step in the human resource planning process is to understand the context of human resource management. ‡ Human resource managers should understand both internal and external environments. ‡ Data on external environments includes the general status of the economy, industry, technology and competition; labor market regulations and trends; unemployment rate; skills available; and the age and sex distribution of the labor force. ‡ Internal data required include short- and long-term organizational plans and strategies and the current status of the organization's human resources.

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ORGANIZATION OBJECTIVES AND POLICIES
‡ The human resource plan must be linked with the organization's strategic plan.

‡ The company strategy and business plan will determine what work activities are anticipated in the short term and long term.

‡ Based on these activities, the company can identify its human resource requirements.

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HR NEEDS FORECAST
‡ The aim of forecasting is to determine the number and type of employees needed in the future. ‡ Forecasting should consider the past and the present requirements as well as future organizational directions. ‡ Bottom-up forecasting is one of the methods used to estimate future human resource needs by gathering human resource needs of various organizational units.

HR SUPPLY FORECAST
‡ Organizations can hire personnel from internal and external sources. ‡ The skill inventories method is one of the techniques used to keep track of internal supply. ‡ Skill inventories are manual or computerized systems that keep records of employee experience, education and special skills. ‡ A forecast of the supply of employees projected to join the organization from outside sources, given current recruitment activities, is also necessary.

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HRM PROGRAMMING
‡HR Programming, the third step in the Human Resource Planning process assumes greater importance.

‡After the organization's personnel demand and supply are forecast these two must be reconciled or balanced

‡So that vacancies can be filled by the right employees at the right time.

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HRM IMPLEMENTATION
‡ Implementation requires converting HR plan into action.

‡ A series of action programmes are initiated as a part of HR plan implementation. ‡ These programmes include * Recruitment, Selection and Placement. * Training and Development * Retaining and Deployment * The Retention Plan * The Redundance Plan * The succession Plan

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Recruitment, Selection and Placement
‡ Job vacancies- Identification of sources and search for suitable candidates. ‡ Selection programme should be professionally designed. ‡ Business Process Reengineering (BPR)

Training and Development
‡ Necessary for the existing staff ‡ Frequency and budget allocation

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Retraining and Redeployment
‡ Imparting new skills ‡ Gainful employment

Retention plan
‡ ‡ ‡ ‡ ‡ ‡ Compensation plan Performance appraisal Employees leaving in search of green pastures Employees quitting because of conflict The induction crisis Shortages and unstable recruits

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Downsizing plan
‡ Trimming of labour force is required where there is surplus workforce ‡ Voluntary Retirement Scheme (VRS) ‡ Lay-off

Managerial succession planning
‡ Need for good managers is perpetual ‡ Successful programmes include top management¶s involvement, review, formal assessment and development plans

CONTROL AND EVALUATION

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‡ Control and evaluation represents the final stage in the HRP process. ‡The HR Plan should include budgets, targets and standards. ‡It should also clarify responsibilities for implementation and control ‡It should establish reporting procedures which will enable achievements to be monitored against the plan. ‡These procedures may simply report on the numbers employed against establishment and on the numbers recruited under the recruitment targets . ‡But they should also report employment costs against budget , and the trends in wastage and employment ratios.

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STRATEGIES FOR MANAGING SHORTAGES ‡Recruiting new permanent employees. ‡Offer incentives to postpone retirement. ‡Rehire retirees part time. ‡Attempt to reduce Turnover. ‡Work current staff overtime ‡Subcontract work to another company. ‡Hire temporary employees. ‡Redesign job process so that fewer employees are needed.

STRATEGIES FOR MANAGING SURPLUSES ‡Hiring freeze. ‡Do not replace those who leave ‡Offer VR schemes. ‡Reduces work hours. ‡Leave of Absence ‡Across the border pay cuts. ‡Layoffs. ‡Reduce outsourced work ‡Employee training ‡Switch to variable pay plan. ‡Expand operations.

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Human Resource Information System

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‡ HRIS is a systematic procedure for collecting, storing, maintaining, retrieving and validating data needed by an organization about its human resource. ‡ An integrated system of hardware, software, and databases designed to provide information used in HR decision making. ‡ HRIS is a part of the organization¶s Management Information System.
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Benefits of HRIS
‡ Administrative and operational efficiency in compiling HR data. ‡ Availability of data for effective HR strategic planning.

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Application Of HRIS
‡ ‡ ‡ ‡ ‡ ‡ Training management Turnover analysis Succession planning Attendance reporting HRP Strategy Planning
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Output Data Uses Input Data Types Job Analysis Recruitment Selection/Job Posting/ Employee Referral T&D Performance Appraisal Compensation Benefits Safety Health Labor Relations Employee Relations HRIS Employee Tracking Diversity Programs Hiring Decisions Training Programs/Elearning/Manageme nt Succession Compensation Programs Benefit Programs (e.g., prescription drug programs) Health Programs (e.g., Employee Assistance Programs) Bargaining Strategies Employee Services

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Organizational Strategic Plans

Human Resource Management Plans

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Implementation Steps
‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Step 1- Inception of Idea Step 2- Feasibility Study Step 3- Selecting a Project Team Step 4- Defining the requirements Step 5- Vendor Analysis Step 6- Package Contract Negotiation Step 7- Training Step 8- Tailoring Step 9- Collecting the Data

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‡ ‡ ‡ ‡ ‡

Step 10- Testing the System Step 11- Starting Up Step 12- Running Parallel Step 13- Maintenance Step 14- Evaluation

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Uses Of HRIS
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HR Planning and Analysis Employee and Labour Relations HRIS Health, Safety and Security Compensation and Benefits

Equal Employment and Staffing

HR Development

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Human Resource Information System
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A model of a Human Resource information system Input Work Output force subsyst subsyst planning ems ems subsyste Accounti Recruitin m ng g informati subsyste on Work m Internal system force sources manage HRIS ment Datab HRs subsyste Compens ase research m ation subsyste subsyste m Users Benefits m Environ subsyste mental m sources HRs Environ intelligen mental ce reporting subsyste subsyste m Data Information m

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TECHNIQUES OF HRP HR DEMAND FORECAST

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MANAGERIAL JUDGMENT
This technique is very simple . In this manager sit together, discuss and arrive at a figure which would be the future demand of labor . The technique may involve a µbottom to up¶ or µtop to bottom¶ approach . This technique is used in smaller organizations or in those companies where sufficient data isn¶t available.

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RATIO ANALYSIS
Ratio analysis is the quickest forecasting technique which involves studying past ratios and forecasting future ratios making some allowances for change in the organization or its method .

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REGRESSION ANALYSIS
Regression analysis identifies the movement of two or more inter-related series. It is used to measure the changes in a variable as a result of changes in other variables. Regression analysis determines the relationship between Y variables such as the number of employees and X variables such as service delivery by actually measuring the relationship that existed in the past. Use of the method begins with a series of observation each costing of a value for the Y variable plus a value for each X variable.

The Delphi Technique
Amity Business School Leader identifies judgment issues and develops questionnaire. Prospective participants are identified and asked to cooperate. Leaders send questionnaire to willing participants, who record their judgments and recommendations and return the questionnaire. 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 final judgment. Leader looks for consensus

Leader accepts consensus judgment as group¶s choice.

The Nominal Group Technique
A small group of 4-5 people gathers around a table. Leader identifies judgment issue and gives participants procedural instructions.

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Participants write down all ideas that occur to them, keeping their lists private at this point. Creativity is encouraged during this phase. Leader asks each participant to present ideas and writes them on a blackboard or flipchart, continuing until all ideas have been recorded. Participants discuss each other¶s ideas, clarifying, expanding, and evaluating them as a group. Participants rank ideas privately in their own personal order and preference. The idea that ranks highest among the participants is adopted as the group¶s judgment.

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WORK STUDY
Work study is the study of work. It is the analysis of work dividing it into smaller parts followed by rearrangement of these parts to give the same effectiveness at lesser cost. It examines both the method and duration of the work involved in a process. It is the systematic examination of the methods of carrying out activities such as to improve the effective use of resources and to set up standards of performance for the activities carried out

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OBJECTIVES OF WORK STUDY
‡ To recommend and implement the desired improvements in work methods by establishing the most economical way of doing work. ‡ Investigation and analysis of existing situation. ‡ Examination of weakness if any in the production process. ‡ Most effective use of the existing or proposed plant. ‡ Efficient use of human efforts. ‡ Ensure proper performance of those employed in the production process. ‡ Measurement of work values. ‡ To initiate and maintain incentive bonus schemes. ‡ Setting standards for labor cost ctrl documentation. ‡ To standardize the method, material and equipment used in the production process.

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COMPONENTS OF WORK STUDY 1.Method Study 2.Work measurement. 3.Ergonomics.

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FLOW MODELS
‡ Associated with forecasting personnel needs. ‡ Simplest one is known as MARKOV MODEL. In this technique the forecasters will: ± Determine the time that should be covered. ± Establish categories, called states, to which employees can be assigned. ± Count annual movements, called flows. Among states for several time periods

MARKOV MODEL

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Determine the time that should be covered Establish categories, called states to which employees are assigned Count annual movements, called flows, among the states for different time periods Estimate the probability of transitions from one state to other based on past trends

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ADVANTAGES
‡ Easy to understand its underlying assumptions. ‡ Makes sense to the decision makers ‡ Likely to accept results

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DISADVANTAGES
‡ Heavy reliance on past data ‡ Accuracy in forecasts about the individuals is sacrificed to achieve accuracy across groups

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HR SUPPLY FORECAST

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HR SUPPLY FORECAST
After demand forecasting the next logical step for the management is to determine whether it will be able to procure the required number of personnel and the sources for such procurement. This information is provided by supply forecasting. Supply forecasting measures the number of people likely to be available after making allowances for absenteeism , internal movements and promotions, wastage and other conditions of work .The supply analysis covers:1.Existing Human Resources 2.Internal Sources Of Supply, and 3.External Sources Of Supply

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Existing Human Resources
Analysis of present employees is greatly facilitated by HR audits. The audits of non-managers are called skill inventories and those of non managers are called management inventories.

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Internal Sources Of Supply
After being armed with HR audits planners proceed with supply of internal supply. The techniques generally used for this purpose are:Inflows and Outflows- The simplest way to forecast internal supply is the inflow and outflow method. It calculates gains and losses of personnel for a particular job. Total losses are subtracted from the current personnel level. Total gains are added to expected level of personnel at the end of the year. This figure is then viewed in conjunction with the anticipated demand in order to determine whether or not adjustments are necessary and to ensure demand is equal to supply.
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Turnover Rate - Stated mathematically , the turnover rate is:Number of separations during one year × 100 Average number of employees during the year Conditions Of Work And Absenteeism- Changes in conditions of work such as normal weekly working hours , overtime policies, retirement policy, shift system needs to be assessed. Absenteeism is calculated as :× 100 Number of Person ± Days lost Average no. of person × No. of days working
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Productivity level ± Any changes in productivity would affect the number of person required per unit of the output . Increase in productivity will reduce the number of person required and decrease in productivity will have the opposite effect. Movement among jobs-Some jobs are sources of personnel for other jobs. For example, Secretaries may be obtained by the promotion of typists

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External Sources Of Supply
In addition to internal sources of supply the organization needs to look out for prospective employees from external sources. External sources are important for specific reasons: ‡ New blood and new experiences will be , ‡ organization needs to replenish lost personnel ,and ‡organizational growth and diversification creates the need to use external sources to obtain additional number and type of employees. Sources of external supply vary from industry to industry , organization to organization and also from one geographical location to another. 47

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REQUISITES OF HRP
‡ HRP must be recognized as an integral part of corporate planning. ‡ Backing of top management for HRP is absolutely essential. ‡ Personnel records must be complete, up-to-date and readily available. ‡ The time horizon of plan must be long enough to permit any remedial action. ‡ Plans should be prepared by skill levels rather than by aggregates.

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‡ HRP responsibilities should be centralized in order to co-ordinate consultation between different management levels. ‡ The techniques of planning should be those best suited to the data available and the degree of accuracy required.

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BARRIERS TO HRP
‡ HR practitioners are perceived as experts in handling personnel matters, but are not experts in managing business. ‡ HR information often is incompatible with the information used in strategy formulation. ‡ Conflicts may exist between short-term and long-term HR needs. ‡ There is conflict between quantitative and qualitative approaches to HRP. ‡ Non-involvement of operating managers renders HRP ineffective. 50

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CASE SUMMARY
³PROMOTING THE PROTÉGÉ´ The case opens up where Prem Nath Diwan, executive chairman of Vertigo decided to take early retirement and in his whole successful career he had been very successful as a leader and had really groomed Mr. Ranjan Warrior and thought he would be his obvious successor but discussion with his trusted solicitor showed him the entire new side of the story that the senior executives were as it is not pleased with Mr. Ranjan as he had always played his favorite so choosing him would obviously bring some revolt si instead he should play safe and chose Richard Crasta as even he is talented. The case ended with the question as what should be done.

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We can conclude the case by suggesting that :
Mr. Divan should take up HR supply forecast techniques which would provide him the means of estimating the kind of employees that will be required to fit his post or be his successor from within the organization (as he wanted). The emphasis given to the ³Management inventory´ as a post like his would require only a manager to fill in. If he wants to fill his chair with an outsider then he would go for External Sources. Finally he could have also gone for MANAGERIAL SUCCESSION PLANNING.

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