Human Resource ppt 2 Unit.ppt
- 2. HRP Right number of people with right skills at right place at right time to implement organizational strategies in order to achieve organizational objectives In light of the organization’s objectives-HRP is the process of analyzing an organization’s human resource needs and developing plans, policies, and systems to satisfy those needs.
- 3. Conti… Human Resource Planning is concerned with the flow of people into, through, and out of an organisation. HR planning necessarily involves a focus on employees, changing skill levels and the way in which those skills match organisational needs.
- 4. ROLE OF HUMAN RESOURCE PLANNING To determine and facilitate the levels and types of recruitment that may be required To identify the need for training and development To assess current employment costs in relation to other organisational costs. To assesses the surplus and shortage of human resources and take measures accordingly. To make the best use of human resources To forecast future requirement of human resources with different levels of skills. To ensure proper use of existing human resources in the organization
- 5. Benefits of HRP It provides scope for advancement and development of employees through training, development etc. It helps to anticipate the cost of salary enhancement, better benefits etc. To plan for physical facilities, working conditions and the volume of fringe benefits like canteen, schools, hospitals, conveyance, child care centres, company stores. It helps to take steps to improve human resource contributions in the form of increased productivity, sales, turnover etc.
- 6. Proccess of HRP Organizations need to do human resource planning so they can meet business objectives and gain a competitive advantage over competitors. Human resource planning compares the present state of the organization with its goals for the future Then identifies what changes it must make in its human resources to meet those goals
- 7. Forecasting as a Part of Human Resource Planning DEMAND FORECASTING SUPPLY FORECASTING Determine organizational objectives Demand forecast for each objective Aggregate demand forecast Does aggregate supply meet aggregate demand? Go to feasibility analysis steps Choose human resource programs External programs •Recruiting •External selection •Executive exchange Internal programs •Promotion •Transfer •Career planning •Training •Turnover control Internal supply forecast External supply forecast Aggregate supply forecast No Yes
- 8. Conti…. 1. Collect Information & Analysis of Existing Resources 2. Human Resource Forecasting i) Forecast Demand for Human Resources ii) Forecast Supply of Human Resources 3 Plan and Conduct Needed Programs 4 Monitoring the Implementation of the Plan
- 9. 1. ANALYSIS OF THE WORKFORCE Inventories of the Existing Workforce Succession Plans-to determine the type and calibre of managers available to succeed senior or middle managers who retire or leave Movement of Employees-promotions and transfers Use of Staff-overtime working, Absenteeism, ineffective or wasted time or efficiency in the use of labour Labour Turnover-an analysis of the rates at which staff are leaving employment. Costs-to know at which point recruitment becomes most cost-effective.
- 10. Human Resource Forecasting HR Forecasting attempts to determine the supply and demand for various types of human resources, and to predict areas within the organization where there will be labor shortages or surpluses. There are three major steps to forecasting: - Forecasting the demand for labor - Determining labor supply - Determining labor surpluses and shortages
- 11. Conti… Demand forecasting means forecasting of the quality of human resources (skill, knowledge, values, capabilities, etc) in addition to quantity of human resources. Important forecasting methods are: a) Managerial Judgement b) Ratio Trend Analysis c) Work Study Techniques.
- 12. Conti… a) Managerial Judgement: - Under this method manager or supervisor or supervisors who are well acquainted with the workload, efficiency and ability of employees, think about their future workload, future capabilities of employees and decide on the number and type of human resources to be required. - This is done by the supervisors concerned who send the proposals to the top officials for approval.
- 13. Conti… -Under this bottom up approach, the management at the top compares the proposals with the organizational plans, makes necessary arrangements and finalises the plans. b) Ratio Trend Analysis: - Under this method the ratios are calculated, for the past data relating to number of employees of each category and production level, sales level, activity level/workload level and direct employees and indirect employees.
- 14. Conti… - Future production level, sales level, activity level/workload are estimated with an allowance for changes in organization, methods, and Jobs. - Then future resources are calculated on the basis of established ratios. For Example: Present Level of Production ( 1-1-2010) = 2000 Units Present no. of Foremen Ratio is 4:2000 i.e 1:500 So (1-1-2010) = 4 Estimates production on (1-1-2010) = 5000 Units Foreman required as on ( 1-1-2010)= 5000/500 = 10 (without giving any provision for changes)
- 15. Conti…. c) Work Study Techniques: - These technique are more suitable where the volume of work is easily measurable. - Under this method, total production and activities in terms of clear units are estimated in a year - Man hours required to produce/perform each unit is calculated. - Work ability of each employee is estimated in terms of man hours after giving due weightage to absenteeism, rest etc.Then the required no. of employee is calculated.
- 16. Conti… For Example: Planned Operations during the year 2010 = 1,60,000 Units. Standard man hours needed to perform each unit in 2010 = 0.25 hours Planned man hour needed per year in 2010 = 40,000 hrs Work ability per employee in man hrs in the year 2010 = 2000 No. of employees required in 2010 = 40,000/ 2000 = 20
- 17. Conti.. Supply Forecasting is to forecast the future supply of human resource in the firm and the labour market. The first step of forecasting future supply of human resource is to obtain the data and information about the present human resource inventory. Existing Inventory: includes - The data related to inventory of human resource in terms number, department wise, sex wise, payroll wise etc.
- 18. Conti…. - Job Family Inventory: inventory of each job family i.e. all jobs related to clerks, cashiers, typists etc. and each sub-job family i.e all jobs having same characteristics ( skill, qualification) like production engineer ( Mechanical) and maintenance engineer (Mechanical) - Age inventory- age wise no. and categories of employees.
- 19. Conti…. Forecast Supply Of Hr • The Internal Supply of Labour • The External Supply of Labour -The external labour market -demographic change -early retirement -Changing employment patterns(e.g computer aided design/manufacture, JIT). -Changing patterns of work (e.g part-time workers, flexible workforce etc)
- 21. Conti… Determining Labor Surplus or Shortage: - Based on the forecasts for labor demand and supply, the planner can compare the figures to determine whether there will be a shortage or surplus of labor for each job category. - Determining expected shortages and surpluses allows the organization to plan how to address these challenges.
- 22. Plan and Conduct Needed Programs … 1. Staff/skill shortages -promoting existing staff, Redeployment of staff, training -getting more from existing staff, Job design -External recruitment 2. Staff surpluses -stopping recruitment -transfer, early retirements, Reducing overtime -Short-time working, reducing subcontracted work 3) . Managerial succession planning 4. Career planning 5. Organisation and structure plans 6. Performance planning
- 23. Implementation of the Plan 1. Acquisition Strategies: Which define how the resources required to meet forecast needs will be obtained 2. Retention Strategies: Which indicate how the organisation intends to keep the people it wants. 3. Development Strategies: Training and development programmes 4. Utilisation Strategies: which indicate intentions to improve productivity and cost-effectiveness. 5. Flexibility Strategies: How the organisation can develop more flexible work arrangements. 6. Downsizing Strategies: Which define what needs to be done to reduce the numbers employed