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HUMAN RESOURCE PLANNING

According to Leap & Crino,” HRP include the estimation of how many
qualified people are necessary to carry out the assigned activities, how
many ppl will bw available& what , if anything , must be done to ensure
that personnel supply equal to personnel demand at the appropriate point
in the future”.
According to Stoner & Freeman,” HRP is planning for future personnel
needs of an organization, taking into account both internal activities 7
factors in the external environment.
Rationalized approach

Orgzl strategy & targets

Orgzl practices &methods

Manpower Review & Analysis

Internal forecast External forecast

Demand supply
Adjust to balance

Recruit retain reduce

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Diagnostic Approach
Manpower plans &Policies

Operations

Monitored through Qualitative & Quantitative Technology

Understanding of causes

Plan of action to control

Human Resource Planning Process

Orgzl objectives & Policies

HR Need Forecast HR Supply forecast

HR Programming

HR Implementation

Control & Evaluation of Programme

Surplus Shortage
Restricted Hiring, Reduced hrs Recruitment & Selection
VRS, Layoff
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Organizational Objectives and Policies:

Once the Organizational Objectives are specified, communicated and
understood by all concerned, the HR dept must specify its objectives with
regard to HR utilization in the organization. In developing these objectives,
specific policies need to be formulated to address the following questions:
1.Are vacancies to be filled by promotions from within or hiring from
outside?
2.How do the training & development objectives interface with the HRP
objectives?
3.What union constraints are encountered in HRP and what policies are
needed to handle these constraints?
4. How to enrich employee’s job? Should the routine and boring jobs
continue or be eliminated?
HR Demand Forecast:
Demand forecasting is the process of estimating the future quantity &
quality of ppl required. The basic of forecasting must be annual budget &
long term corporate plan.
Demand forecasting must consider several factors:

External Factors Competition ( Foreign & domestic)

Economic climate
Law & regulatory bodies

Change in technology

Internal Factors Budget Constraints

Production levels
New Products & service
Organizational Structure
Employee Separation
HR supply forecast:
Supply Forecasting measures the no of ppl likely to be available from within
& outside an organization ,after making allowance for absenteeism, internal
movements & promotions, wastage and change in hours, and other
conditions of work.
The supply analysis covers:
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• Existing Human Resources

• Internal source of supply
• External source of supply
• Present Employees
Analysis of present Employees is greatly facilitated by HR audits. HR audits
summarize each employee’s skill & abilities. The audits of non-managers
are called skills inventories and those of the management are called
management inventories.
Internal Supply:
The technique generally used for the purpose are:

1. Inflows and outflows:

The simplest way to forecast internal supply is the inflows and outflows
method.
Example:
Estimation of internal supply for a word processing job

Source of
Inflows No of ppl surface of outflows no of ppl

Transfer in 12

Current Resignations 13
personnel levels
250 operator
Promotion in 10 Discharge 2
Demotions 4
Retirements 10
Promotion 13
Total inflow 22 total outflow 42

Current personnel level- outflows + inflows=Internal supply of word

processors
250-42+22=230

Turnover Rate:
Turnover rate is the traditional and simple method of forecasting
internal supply. Stated algebraically, the turnover rate is:
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No of separations during one year

*100
Avg. no. of employees during one year

Condition of work and absenteeism:

Change in conditions of work such as normal weekly working hrs, overtime
policies, the length and timing of holidays, retirement policy, the policy for
employing part-timers and shift system need to be assessed.
Absenteeism is understood as unauthorized absence from work .absenteeism
reduce the no. of employees available for work..

Productivity level:

Any change in productivity would affect the no of persons required per unit
of output.
Increase in productivity will reduce the requirement ,and decrease in it
would have the opposite effect.

Movement among jobs:

Some jobs are source of personnel for other jobs. For E.g, Secretaries may
be obtained by the promotion of typists, and branch managers are obtained
from a pool of section managers.

External Supply:

External source are important for specific reasons:

1) new blood & new experience will be available,
2) organization needs to replenish lost personnel,
3) Organizational growth and diversification

HR Programming:
Once an organization’s personnel and supply are forecast, the two must be
reconciled or balanced in order that vacancies can be filled by the right
employees at the right time.

HR Plan Implementation:

Implementation requires converting an HR plan into action.

Some such Programmes are:
• Recruitment
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• Selection and placement

• Training and development
• Retraining and redeployment(When a product line is discontinued ,its
employees are to be retained and redeployed to other depts. Where
they could be gainfully employed.
• The retention plan
• The redundancy plan
• Downsizing Plan:

Where there is surplus employee, trimming of lbr force will be necessary.

The trimming or downsizing plan shall indicate:
1.Who is to be made redundant and where and when;
2. Plans for re-development or re-training ,where this has not been
covered in the re-development plan;
3. Steps to be taken to help redundant employees find new jobs;
4. Programming for consulting with union or staff associations and
informing those affected.

Control & Evaluation:

Control and evaluation represents the final phase in the HRP Process.
The HR plan should include budgets, targets and standards. It should also
clarify responsibilities for implementation and control, and establish
reporting procedures which will be enable achievements to be monitored
against the plan.

Requisites For Successful HRP

• HRP Must be recognized as an integral part of corporate planning.

The planner of human resource must be aware of the corporate
Objectives.
• Backing of Top management for HRP is absolutely essential.
• HRP responsibilities should be centralized in order to coordinate
consultation b/w different mgmt levels.
• Personnel records must be complete, up-to-date & readily
available.
• The time horizon of the plan must be long enough to permit any
remedial action.
• The techniques of planning should be those best suited to the data
available & the degree of accuracy required.
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Barriers To HRP
(Just go through available books)

JOB ANALYSIS
Job Analysis is the process of studying and collecting information relating to
the operations and responsibilities of a specific job. The immediate products
of this analysis are job descriptions and job specifications.
According to Harry L.Wylie, ”Job analysis deals with the anatomy of the
job….It is the complete study of the job embodying every known and
determinable factor, including the duties and responsibilities involved in its
performance; the condition under which performance is carried on; the
nature of the task; the qualifications required in the worker; and the
conditions of employment, such as pay, hours, opportunities and privileges.

Job analysis
(A process of obtaining all pertinent job facts)

Job Description Job Specification

A statement containing items such as (A Statement of human qualifications
• Job title necessary to do the job. Usually contains
• Location such items as
• Job summary • Education
• Duties • Experience
• Machines, tools, equipment • Training
• Materials and forms used • Judgment
• Supervision given or received • Initiative
• Working conditions • Physical Effort
• Hazards • Physical skills
• Responsibilities
• Communication Skills
• Emotional Characteristics
• Unusual sensory demands such as
sight, smell, hearing.
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Process Of Job Analysis

Strategic choices

Gather Information Uses of Job Description and Job Specification

Personnel Planning
Process Information Performance Appraisal
Hiring
Job Description Training & Development
Job Evaluation and compensation
Health & Safety
Job Specification
Employee discipline
Work Scheduling
Career Planning

Strategic Choice:
With regard to job analysis, an organization is required to make at least 4
choices:
• The extent of employee involvement in job analysis:

Too much lead to

involvement bias in favour of a job

Minimally involved lead to

They tend to become suspicious
about the motive behind the job
analysis

• The level of details of the analysis

• Timing and frequency of analysis will depend on these points
1. an organization is newly established& the job analysis is
initiated for the first time;
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2. A new job is created in an established company;

3. A job is changed significantly due to change in technology
,methods ,procedures or systems;
4. The orz is contemplating a new remuneration plan;
5. The employees or managers feel that there exist certain
inequities between job demands and the remuneration it carries.

• Past –oriented vs. Future oriented job analysis:

If an organization is changing rapidly due to fast growth or technological
change, a more future- oriented approach to job analysis may be desired.

Information Gathering:

This step involves decisions on three issues:

• What type of data is to be collected ?
• What methods are to be employed for data collection ?
• Who should collect the data ?
• With regard to the methods for data collection, there are several of
them, but the more prominent of them are-
• Observation
• Interview
• Questionnaires
• Checklist
• Technical conference
• Diary methods

Information Processing:

Once the job has been collected. it need to be processed, so that it

would be useful in various personnel functions.

Method of collecting Job data:

Quantitive Techniques: (Frequently asked in Short Notes)

Position Analysis questionnaire:

The Position analysis Questionnaire (PAQ) is a highly specialized

instrument for analyzing any job in terms of employee activities. The
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PAQ contains 194 job elements on which a job is created depending

on the degree to which an element is present. These elements are
grouped into ^ general categories .

Management Position Description Questionnaire(MPDQ):

The Management Description Questionnaire is a highly structured

questionnaire containing 208 items relating to managerial
responsibilities , restrictions ,demands. These 208 items are grouped
under 13 categories.

Application or Importance of Job application:

Development of Key Result Area(KRAs):

KRAs are developed using the principal activities stated in the job
description. KRAs are a critical component of the performance appraisal
system. a state clear goals and targets the job holder has to achieve in a
specified time.

Design of training programme :

It provide information on inputs required for an employees to progress from

1 stage to another .this data can be utilized to design mgmt development
programmes to prepare an employee for promotion & higher responsibilities.

Development of Compensation Structure:

compensation is commensurate with duties & responsibilities of a job. For

compensation to be equitable accurate assessment of the job requirements
has to be made.

Helpful in Strategic Planning:

Job analysis can help in strategic planning by identifying jobs that need to be
changed, eliminated or restructured to meet the demands of a changing
environment.
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Uses of Job Analysis:

Primary
work or Job description
activities JOB ANAYSIS
Job Specification
Jobs • Methods
• Techniques Job Evaluation
Job
Structures
• Relations
• Responsibilities Assessment of
Performance

Secondary Job Rotation

activities Job Enrichment
supporting
main work

Job Design

Job design involves conscious effort to organize task, duties &

responsibilities into unit of work to achieve certain objectives:
It integrate work content(Task functions, relationship) ,the reward (intrinsic
& extrinsic) & qualification required ( Skills, knowledge & ability).

Steps of Jobs Design:

A) Specification of Individual tasks

B) Specifications of methods of performing each task
C) Combination of task into specific jobs to be assigned to individual.
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Factors Affecting Job Design:

Organizational Factors

Environmental factors Job Design Productivity & Satisfying

jobs

Behavioral Factors

Technique of Job Design:

Work Simplification:

In this technique, the job is simplified or specialized given job is broken

down into small subparts &each part is assigned to one individual .To be
more specific, work simplification involves:
• Mechanical paring of work
• Repetitive work process
• Working on only part of product.
• Predetermining tools & technique
• Restricted interaction among employee
• Few skill requirement.
Work simplification is done so that less trained 7& less paid employee can
do these jobs.
The technique is defective in this sense that over specification result in
boredom which in turn can lead to errors & resignation.

Job Rotation:

It implies movement of employee from job to job .job remain unchanged

,but employee shift with job rotation a given employee perform different
jobs, but more or less jobs of some nature.

On the positive side ,It may be said that Job rotation is likely to increase
intrinsic reward potential of a job bcoz of different skills & abilities need to
perform it. the organization stands to benefits because workers become more
competent in several job rather than one.
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2. it improves worker’s self image ,provide personal growth & make the
worker more valuable to organization.

On Negative Side:
According to Herzberg, ”Job rotation is merely” substituting one zero for
another zero.

Task 1 Task 2 Test

Drill Assemble component
holes parts

Week 1 Week 2 Week3

Job Enlargement:

Job Enlargement involves expanding no. of task or duties assigned to a

given job. Job enlargement is naturally opposite to work simplification.
Adding more task or duties to a job does not mean that new skills &abilities
are need to perform it .There is only horizontal expansion. Acc. to
Herzberg,” Job enlargement is simply” adding zero to zero” .

Job Enrichment:

Job Enrichment seeks to improve both task efficiency & human satisfaction
by building into ppl’s job, quite specifically, greater scope for personnel
achievement & recognition , more challenging & responsible work, more
opportunity for individual advancement & growth. An enrich jobs will have
more responsibility & autonomy (Vertical enrichment), more variety of task
(Horizontal enrichment) & more growth opportunity.

Job Design & Its outcome

Job Characteristics Psychological need Outcomes

Autonomy Sense of responsibility,

self control
Self Esteem
• Motivation
• Performance
satisfaction
• Low absenteeism
• Job Involvement
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Feedback Knowledge of results

Significance identities
Skills & Variety Meaningfulness
achievement,
variety

Selection

Concept of selection:

Selection is the process by which an organization chooses from a list of

applicants the person who best meets the criteria for the position available
taking into account the current market conditions.
This selection process leads to creation of a contractual relation between the
employer and the employee.
Recruitment is appositive process of searching the prospective employees
and stimulating them to apply for jobs in large numbers in the organization.
Selection is a negative process as in involves the taking of suitable ppl for
the organization and rejection or elimination of the unsuitable applicants.

Difference Between Recruitment & Selection

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Recruitment
1.It means searching for source of labour
an stimulating ppl to apply for jobs
2.It is a Positive process
Selection
1. It means selection of right kinds of ppl for
various jobs
2.It is a negative process as it involves
rejection of unsuitable candidates.

3. It creates a large pool of applicants 3.It leads to screening out unsuitable

candidates
for jobs.

4.It is a simple process. It involves 4.It is a complex & time consuming process.
The candidates have to clear a no. of
hurdles before they are selected for jobs
contacting the various source of labour.

Training &Development
Training is process of learning a sequence of programmed behaviour. It is
the application of knowledge. It gives people an awareness of the rules and
procedures to guide their behaviour. It attempts to improve their
performance on the current job and prepares them for an intended job.