CHAPTER: 2 HUMAN RESOURCE PLANNING Meaning: HRP is the process of forecasting, developing and controlling human resources in an organization.

It identifies what must be done to ensure the availability of human resources needed by the organization to meet its goal. According to French " HRP is the process of assessing the organization's human resources need in light of organizational goals and making phase to ensure that a competent stable workforce is employed." It ensures that the organization has the right number of employee at the right place at the right time so that human resource e problem will be solved when it occur. It provides information about the existing strength and weakness of the people in the organization as well as the kinds of skills to be developed. HR planning is prepared by human resource department in consultation with line department by determining the right number of people the demand and supply of manpower. The HR planning and supply of manpower. The HR planning matches the demand and supply of human resources in order to meet future activities. 1. According to Schuler, Personnel and HR planning involves forecasting human resource needs for the organization planning the step necessary to meet those need. 2. According to Decenzo & Robbins, Employment planning is the process of determining organizations human resources. Characteristics of Human Resource Planning: 1. Aspect of Acquisition Function:

Human resource planning function id related to acquisition function of human resource management. In other words, the acquisition function of human resource management starts with the proper human resource planning. 2. Future Oriented:

Every planning activity is related to future. HR planning is also future oriented. The HR planning is made today and implemented in the future. HR planning estimates the future human resources of the organization. 3. Estimation of Demand and Supply of Manpower:

HR planning estimate the future demand and supply of manpower for any organization. HR planning helps to make necessary arrangement of surplus and deficit of human resources in the organization.

4.

Goal Oriented:

HR planning is made in order to achieve certain goals. The main objective of HRP is to preplan the human resources for the future. HRP is made today for the future in order to achieve short-term and long-term goals. 5. Quantitative and Qualitative Aspect:

In HRP, the human resources needed for the future is not only determined in quantity but other aspect regarding human resources is also determined. Quantitative aspect such as skill, attitude and ability of human resources is also estimated. 6. Integral Part of Organizational Plan:

Any organization determines different types of corporate of organizational plan. HRP is important part of corporate planning. HRP is important to make organizational planning. 7. Time Horizon:

Human resource planning considers short-term and long-term goal of the organization. It estimates these goals remaining within a fix period of time. In other words, human resource planning considers time horizon. Importance of Human Resource Planning: 1. Goal (Objective) Achievement:

Human resource planning focus on overall organizational goals. The human resource planning ensures the optimum achievement of objectives. The forecast of human resources are based on the objectives, strategies and plan of the organization. 2. Minimize Future Risk and Uncertainty:

Human resource planning is made to minimize future risk and uncertainty by forecasting the need of technical and other manpower. This will help to reduce the chances of losses by making optimum utilization of human resources. 3. Effective Utilization Human Resource:

Human resource planning ensures that the organization acquire and retain the quality human resource. Existing human resource can be deployed to ensure their effective utilization. 4. Implement Business Strategy:

Without proper human resource planning, business strategy can not be implemented. Human resources are the people who have to work in order to implement the business strategy. It is only possible through human resource planning. 5. Human Resource Development:

Human resource planning anticipate skill requirement for various level of human resources. This provides adequate time for planning and development programs. In other words, human resource planning uses the employees properly. 6. Promote Awareness:

Human resource planning promotes awareness that human resource activities are equally important at every level. Both line and staff managers directly and indirectly have to be involved in human resource activities. In other words, human resource planning promote awareness among human resources.

Human Resource Strategy:Meaning and Concept:HR strategy is an important tool to implement HRP in order to achieve business objectives. HR strategies are generally linked vertically with business strategy and horizontally with marketing, production and other strategy. HR strategy is concerned with establishing relationship between long-term direction and business strategy. It is used to design the structure and functions of an organization to improve the situation of co-ordination. To make this clear, it is important to understand the concept of three order strategy. The first order strategy is concerned with the long-term impact which affects second order strategy. Second order strategy is related to organizational structure and system of control. Finally, there is the third order strategy, which is known as HR strategy. Without the third order strategy, other order strategy can not be implemented. >>According to Hall and Torrington, HR strategy involves a central philosophy of the way that people are managed in an organization and transition of this in to personnel policies and practices, and its interrelation with business strategy and within itself. >>According to Gary Dessler, HR strategy refers to the specific human resource course of action the company plans to pursue to achieve its aims. Features of Human Resource Strategy:1. Goal Oriented:-

HR strategy is always goal oriented. HR strategy is helpful to achieve the overall organizational goals as well as the goal of HR department. In order to achieve such goals, different courses of action related to HR strategy are important.

2.

Environmental Consideration:-

HR strategy considers different environmental factors to implement it. Different environmental factors such as, economic, social, cultural, political, technological, trade organizations are considered before making human resource strategy. 3. Long-term Perspective:-

HR strategy is made for short-term as well as long-term. However, many strategic planning are made for long-term perspective. In the same way, HR strategy is also made for long-term perspective. In other words, HR strategy has long-term impact. 4. Integrated Approach:-

While designing HR strategy not only environmental factors are considered, but also other factors of the organization like overall strategy, organizational features, plans and policies are also considered. In this sense, HR strategy is an integrated approach of many components.

Relationship between HR Planning & Strategic Planning (Business Strategy): 1. Business Planning:-

Business planning is the plan made for achievement of business objectives. It includes the following planning activities:a). Strategic Planning:It is prepared for a long period of time. The plan includes corporate philosophy, environmental scanning, and constraints and the objectives goals of the organization. Such plans are prepared with the involvement of the CEO. b). Operational Planning: Operational planning is made for a period of 3-5 years. It includes the middle range operational activities of the business. It comprises plan programme, organizational strategies and plan for the entry of new business. This plan implements the strategic planning.

c). Annual Budget: In order to reach strategic and operational planning at the bottom level, annual budget is required. This planning activity consists of annual budget, fixing performance goal programme, assignment, monitoring and evaluation. 2. Human Resource Planning:-

HRP is the estimation of demand and supply of human resources. It includes the following activities:a). Issue Analysis: This analysis is made to support the implementation of strategic planning based on long-term strategic planning issue, business need, external environment, internal resources, and other implications are identified.

b). Forecasting Human Resource Requirement: Once the issues are identified, estimation of human resource for the future is conducted. It includes decision relating to the staffing level, staffing mix, job designing and finding requirement of human resource. c). Action Plan: Depending on human resource requirement, on action plan is prepared to achieve organizational objectives. The action plan include staffing, authority requirement, selection, transfer, promotion, trainings and development, compensation management and labor reaction. Approaches to Human Resource Planning: 1. Traditional Approach:-

This approach considered Hard technique to forecast the demand and supply of manpower for the organization. It also considers the quantitative aspect of human resources. This method provides ways and agreed method as technique to work out manpower planning. According to this approach, HRP comprises the following: Forecasting future demand of human resource. Analysis of current human resource. Forecasting internal human resource supply. Reconciliation of forecasts.

Decision and plans.

2.

Strategic Approach:-

According to this approach, HRP is taken to be the result of interaction among the environmental development. This approach assumes that, together with the Hard prediction of HR requirement. It is also necessary to make the prediction of Soft factors such as, employees creativity, innovation and flexibility required. The Soft HRP is directed towards the following activities Defining where the organization wants to be in the future. Defining where the organization is at the moment. Analysis environmental influence. Formulation of plans to affect the desired changes and to ease transition.

Human Resource Planning Process:HRP is the process of anticipating future business and environmental demand on an organization and attempting to provide sufficient manpower. The important phases of HRP are as follows:1. Environmental Analysis:-

Environmental analysis include an analysis of external (PESTEL) and the internal environment (organizational objectives and plans). After an analysis of the internal and external environment, it is possible for top managers and HR manager to find out strength and weakness. On the other hand, it can analyze opportunities and threats. 2. Determining HR Objectives and Policies:-

After an analysis of internal and external environment, it is important to develop HR objectives and policies. These objectives and policies are important to tap (use) the HR in business opportunities. The human resource information system (HRIS) helps by providing related information in this course of action. 3. Human Resource Forecast:-

Once the information is analyzed regarding current human resources, the next step is to make a human resource forecast in order to meet the future requirement. It consists of demand and supply forecasting (internal and external supply). 4. Action Plan:-

Action plan is known as implementation plan. It is the execution of HRP and objectives. The major activities required for the implementation of HRP are recruitment, selection, socialization, training, development, transfer, promotion etc. 5. Control and Evaluation:-

Once HRP is executed, it is important to monitor and evaluate in order to know how the HRP matches human resource objectives. The best way to monitor and evaluate the effect of human resource planning (HRP) on human resource manager is to develop certain indicators. The result of evaluation is feed-back to the human resource managers. Assessing Current Human Resources:1. Human Resource Inventory:-

It is also called skilled inventory. A human resource inventory consists of up to date information about the qualification and experience of selected categories of employees. The information available from the HR inventory includes personal data, educational qualification, result of performance appraisal, training and career goals. This information facilitates the assessment of current skilled manpower, which is useful to determine the need of special type of manpower in the organization. Such inventory is useful at the time of promotion, management, planning and reporting, compensation planning, career planning etc. 2. Human Resource Information System (HRIS):-

HRIS has been implemented to assist HR inventory. This is designed to provide quick information about the employees working in the organization. HRIS include information on all employees (local and across the border) currently on the organization and provide computerized information about the position and skill available. HRIS consists the following categories:-

Basic-Non-Confidential Information: -Employees Name Group : 1 -Organizations Name -Work Location -Work Phone Number Group : 2 General Non-confidential Information: -Information in the previous category.

-Social insurance / Security Number. -Other organizational information. -Position related informational (code, title, effective date). General Information with Salary: Group : 3 -Information in the previous categories. -Current salary, effective date, amount of last change, reason of last change. Confidential Information with Salary: -Information in the previous categories. Group : 4 -Position ranking. -Gender or minority status if needed for tracking employment equity programs. -Educational data. Extended Confidential Information with Salary: Group : 5 -Bonus Information. -Projected salary increase information. -Performance evaluation Information.

3.

Succession Planning:-

Succession Planning. Vacancy on Managerial Post. Vacancy within one year. Ready Now. Vacancy within 2-5 years. Vacancy beyond 5 years.

Make short-term planning to Make long-term planning to fulfill the vacancy. fulfill the vacancy.

In the post, organizational success was defined in terms of market growth, diversification and financial resources. HRP and succession of managers were based on intuition. These have affected the timely supply of qualified manpower and many organizations have ultimately become less competitive. In this competition age, it is

very important to determine the right number of people at the right time, at the right place and position. Widely known as succession planning or management succession, it ensures that the organization has individual ready to move in to position of higher responsibility. This is a special time of planning used to forecast potential managers for future promotion in the higher management level. Whereas a replacement chart shows the potential vacancy to be filled. Succession planning ensures development of managers to take position as required by the chart. Since many companies feel their internal vacancies from within the organization. Such a selection is often made on the basis of performance appraisal. However, promotion, transfer, training and development are also the important part of succession planning. 4. Job Analysis:-

Job analysis is the process of defining a job in terms of task or behaviour and specifying the education, training, and responsibilities needed to perform the job effectively. The information gathered fro the job analysis has many uses. The main HR areas were these information can be used are job description, job specification, recruitment, selection, performance appraisal, career development etc. for the purpose of manpower planning, the use of job analysis is specially to prepare job description, specification and job evaluation. Forecasting Demand and Supply of Human Resource:

Delphi Technique. Normal Grouping Technique Managerial Estimate.

Simple linear Regression Multiple linear Regression Time Series Analysis

The estimation of future manpower depends up on the strategies, plan and future organizational activities of an organization. The selection of a particular method of demand forecasting is largely determined by the time frame and information gathered. The popular demand forecasting techniques are as follows:1. Judgmental Forecast:

According to this technique, managerial level employees are consulted in order to make HR demand. In this technique, managerial level employees as well as HR manager are consulted before making estimation of HR demand. This technique is very useful for the prediction of HR demand because, managerial employees have more knowledge about the staff.

Delphi Technique(1940):-

This is the most frequently used to predict the demand for manpower in an organization based on the possible future developed by the Rand Corporation in the late 1940s, this technique is useful to accumulate expert advice on future HR demand. Using this technique to forecast manpower demand, experts work independently and avoid face to face discussion. An intermediary establishes contact with experts and takes their opinion. The main duty of the intermediary is to analyze the information and provide feedback to them. Normal Grouping Technique:-

This is a team decision making process where the members independently write down their ideas described and clarify them to the group. After that, they independently rank on them. The techniques generally use to identify organizational problems and solution to the problems. In order to forecast the HR demand, team members will sit large then around a conference table and independently list their ideas about future demand of human resources on a proper. After 10-20 minutes. They discuss in the group and express their individual views. The final forecasting is made by ranking or voting. Managerial Estimation:-

According to this technique, managerial level employees are consulted in order to make HR demand. In this technique, managerial level employees as well as HR manager are consulted before making estimation of HR demand. This technique is very useful for the prediction of HR demand because, managerial employees have more knowledge about staffs. 2. Statistical Technique:

Statistical technique uses statistical tools like simple linear regression, multiple linear regression, time series etc. in order to predict the future HR demand. These techniques are as follows: Simple Linear Regression:

In this technique, two variables are considered for the estimation of future HR. the factors may be age, salary, production level, investment etc. in this technique instead of X & Y, other factors are considered. Multiple Linear Regression:

The difference between simple and multiple linear regression is that multiple linear regression considers many variables. In this technique, instead of two variables,

many variables related to employees like, age, salary, capital, investment and others are considered for HR demand. Time Series:

In this technique, time is considered for the prediction of HR. in this technique, the statistical tool called time series is considered. It depends up on the increasing and decreasing trend of employees in the organization. A time series figure is used to estimate future number of employees.

Forecasting Human Resource Supply: Once the number of manpower required for the future is estimated, the next important task is to ensure the supply of manpower at the right time, at the right place, and the right number. Supply forecasting helps in this purpose. Internal supply of manpower and external supply of manpower is important for the organization. The forecasting of HR supply are as follows:1. Judgmental Technique:

According to this technique, internal and external supply of manpower is based on individual or group judgment. The popular techniques are as follows: Replacement Planning:

Human Resource Planning in Nepal:

1. Poor Tradition of Human Resource Planning: Nepal has a poor tradition of human resource planning. The Nepalese managers trend to regard human resource planning as an area of low priority because of this, Nepalese organization lacks right numbers and kinds of people at the right place and at the right time. 2. Lack of Assessment of Current Human Resource: Most Nepalese organizations lack up-to-date human resource inventory which describes the skills current available. They also lack effective human resource data base information. 3. Missing Demand Forecast:

Nepalese organization lack proper demand forecast in terms of number and skills of people required. Business organizations relate revenue forecast which serve as the basis for the forecast of human resource demand. 4. Missing Supply Forecast: Nepalese organization lack proper supply forecast of human resource from inside and outside sources. Promotion and transfer are not planned in advance. Given the professionals and skilled technicians are suffering from unemployment. 5. Mismatch of Demand and Supply:

Nepalese organizations do not proper attention to matching demand and supply forecast to determine shortage and surplus. Succession planning is not done by Nepalese manager. 6. Short-term Horizon:

Human resource planning in Nepal has generally one year horizon strategic planning is very much lacking. Implementation of human resource planning is not effective. 7. Over Staffing and Under Staffing:

Most government agencies and public enterprises in Nepal suffer from over staffing. The number one priority of Nepalese politician is not done by Nepalese managers. 8. Private Sector Performance:

The family owned and managed private sector organizations do not bother about human resource planning. They prefer to hire relatives, friends and near and dear

CHAPTER : 3 JOB DESIGN AND ANALYSIS:

Meaning of Job: According to McCormick, a job is a group of position which are identical with respect to their major and significant task and sufficiently alike to justify their being covered by a single analysis. There may be one or more person employed in a job. From the above definition, it is clear that job refers to the work content performed by a group of people with similar work, such as title described by the title section

officer or police officer when the job of a section officer is analyzed, it sufficiently represent job of many other section officer too. Meaning of Task: A task is the collection of activities that are directed towards the achievement of specific objectives. It is considered as to be a describe unit of work performed by an individual. For example, the task of a police officer is to talk with political leaders to settle political disturbance in an area. Position: According to McCormick, A position consists of the tasks and duties for any individual. A position exists, whether occupied or vacant. It refers to a set of duties, tasks, activities and elements to be performed by a single worker. It means each employed person has a position rather than a job. For example, a position of a police officer is Ram Sharma, sub-inspector, kaski district police officer. Occupation: According to McCormick, the term occupation refers to a job of general class, an across the board basis, without organizational line. Some examples of occupation categories are accountant, engineer, doctor etc. This occupation also clearly indicate what a person expertise lies on him.

Concept of Job Design: Job design specifies the content of job and the method of doing the job. It is the process of determining specific task to be included in a job and the method of performing those tasks. Job design integrates job content and method of doing the job in a way that meet the need of the employer and employees. The key to successful job design lies in balancing the need of the organization and employees. >>According to Decenzo and Robbins, Job design is the way in which, job tasks are organized in to a unique of work. Job design involves mainly three steps: Specification of individual task. Combination of task in to jobs that can be assigned to individual or group.

Specification of method of performing each task.

Job design affects productivity, cost, quality and cost-effectiveness of the organization. It also affects the motivation and job satisfaction of employees. Labor relations are affected by job design.