Human Resource Planning
Workforce (or employee or personnel)planning is the process of deciding what
positions the firm will
have to fill, and how to fill them. Its aim is to identify and address the gaps
between the employer’s workforce today, and its projected needs.
Steps
in Recruitment And Selection Process
Objectives
of Human Resource Planning
Objectives of Human Resource
Planning include following
Human resource planning is
necessary :
-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 anticipate the impact of technology on jobs and HR.
-To determine the level of the recruitment
and training
-To estimate the cost of HR.
-To meet the needs of expansion and diversification programs.
Some specific uses of HRP
-Quantify job for producing product.
- future staff-mix
- people &
position
-Assess staffing levels to avoid
unnecessary costs
-Reduce delays in procuring staff
-Prevent shortage/excess of staff
-Comply with legal requirements.
Forecasting personnel needs
The basic process for forecasting
personnel needs is to forecast revenues first. Then estimate the size of the staff required to support this
sales volume.
Human
Resource Demand Forecast
This is the process of estimating
future quantity and quality of manpower required for an organization.
-HR demand forecasting tools
The basic tools for projecting
personnel needs include
-Trend analysis
-Ratio analysis
-Scatter plot
-Markov analysis
-Managerial judgement
-
-
-Trend
Analysis:
Study of a firm’s past employment needs over a period of years to predict
future needs.
-Ratio Analysis: A forecasting technique for
determining future staff needs by using ratio between,
1. some casual factors (like sales volume )
2. the number of employees required (such as number of sales people
needed)
for example, suppose a salesperson
traditionally generates $50,000 in sales. If the sales revenue to salespeople ratio remain the same, you would require six new
salespeople next year to produce a hoped-for extra $300,000 in sales.
-Scatter
plot:
a graphical method used to help identify the relationship between two
variables.
-Markov Analysis: it’s a mathematical process known as
Markov analysis or Transition matrix to forecast availability of internal job
candidates. Its involves creating a matrix that shows the probabilities that employees in the chain of feeder positions
for a key job will move from position to position and therefore be available to fill the key position.
-Managerial
Judgement:
Few historical trends, ratios, or relationships will continue unchanged into the future. Judgment is thus needed to
adjust the forecast. Important factors that may modify your initial forecast of personnel requirements include
decisions to upgrade quality or enter into new markets; technological and administrative changes resulting in
increased productivity; and financial resources available, for instance, a projected budget crunch.
Forecasting
supply of personnel
Forecasting
HR supply
Process of estimating future quantity and
quality of manpower available internally & externally to an organization.
Personnel
replacement charts
Company records showing present
performance and promotability of inside candidates for the most important
positions.
Position
replacement cartd
A card prepared for each position
in a company to show possible replacement candidates and their qualifications.
Matching
demand and supply of personnel
To match labor demand and supply,
HRP
- compares forecasts for demand and supply of
workers
- monitors current and future shortages, and
overstaffing. Sometimes, strategic goals must change as a result.
- uses downsizing to reduce supply and balance demand.
Succession
planning: The
ongoing process of systematically identifying, assessing, and developing
organizational leadership to enhance performance.
Requisite
for Successful HRP
-HRP must be recognized as an
integral part of corporate planning.
-Backing from top management.
-Personnel records should be
complete, up-to-date and readily available.
-Plan by skill levels rather than by
aggregates.
A
special case in HRP: Retrenchment
-Many organizations today are facing
a very different environment – one of decline. Not surprisingly,
retrenchment carries with it
different implications for Human Resource Planning.
1.Outplacement
2.Layoffs
3.Leave of absence without pay
4.Loaning
5.Reduce work hours
6.Attrition
7.Work sharing
Common
Pitfalls in HRP
-The identity crisis
-Sponsorship of top management
-Size of initial effort
-Coordinating with other management
and HR functions
-Integration with organization plan
-Quantitative vs Qualitative
approach
-Non-involvement of operating
managers
-The technique trap.
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