Human Resource Planning

HR Planning
HR Planning is the process of examining an

organizations future human resource need. It involves:

Identifying and acquiring the right number of people

with the proper skills Motivating them to achieve high performance Creating interactive links between business objectives and resource planning activities

introduction
Human Resource Planning (HR Planning) is both

a process and a set of plans. It is how organizations assess the future supply of and demand for human resources. An effective HR plan also provides mechanisms to eliminate any gaps that may exist between supply and demand. Thus, HR planning determines the members and types of employees to be recruited into the organization or phased out of it.

meaning
Human resource planning is a forward looking

function. It tries to asses human resource requirements in advance keeping the production schedules, market fluctuations, demand forecast etc. It is an integral part of the overall corporate plans and reflects the broad thinking of management about manpower needs with in the organization.

How to fill openings?

A big question arises in the mind of HR manager

that how to fill opening i.e. from with in the organization or from outside the firm because each one requires different personnel plans. These are referred to build and buy approaches to employment planning. For eg. SBI apply build approach and the new generation banks apply buy approach. And most of the firm follow mixed approach.

 Employment planning should flow from the firm

strategic planning on the basis of strategic plans the HR Manager able to understand that what is the requirement of the firm.

Definition
HRP is a process by which an organization

ensures that it has the right number and kind of people at the right place and at the right time, capable of effectively and efficiently completing task that help the organization achieve its overall objectives.

Objectives of HRP
Forecast personnel requirements

Cope up with changes

Use existing manpower productively Promote employees in a systematic manner To meet the needs of expansion and

diversification programmes

Need
Even an imperfect forecast is better than none at

all. Address potential problem avoid skill deficiencies. Each organization needs personnel with necessary qualification, knowledge, experience, skills and aptitude. Need for replacement of personnel. Meet man power shortages due to labour turnover. Cater to future personnel needs- avoid surplus or deficiency of labour.(eg. Infosys)

Benefits
Create reservoir of talent

Prepare people for future

Expansion Cut cost Succession planning

HRP Process
Strategic Planning Technological forecasts Economic forecasts Market forecasts Organizational planning Investment planning Annual operating plans Human Resource Demand Annual employment requirements Numbers Skills Occupational categories Human Resource Supply Existing employment inventory After application of expected loss and attrition rates

Compared
with

Variances

If none

End

If surplus

If shortage

Decisions

Decisions Overtime, recruitment, etc.

Action Decisions

Layoff, retirement, etc.

End

End

The HRP Process

All effective HR planning shares certain features. It is generally agreed that HR planning involves four distinct phases or stages:
Situation analysis or environmental scanning

Forecasting demand for human resources

Analysis of the supply of human resources

Development of plans for action

Analysing organizational plans

First of all, the objectives and strategic plans of

the company are analysed. It is necessary to study business plans because all man power plans stem from business plans. A companys plans are based on economic forecast, companys sales, and expansion forecast and labour market forecast

Forecasting demand for HR

On the basis of corporate and functional plans,

and future activity levels, the future needs for human resources in the organization are anticipated. There are various forecasting techniques avaailable to forecast the demand of workforce.

Forecasting techniques
Managerial judgement: Managers discuss and

arrive at a figure of inflows and outflows which would cater to future labour demand. Ratio trend analysis: studying past ratio i.e. no. of workers vs volume of sales, forecasting future ratios and adjusting for future changes in the organization. Work study technique: used when length of operations and amount of labour required can be calculated. Delphi technique:from a group of experts the personnel needs are estimated

Forecasting techniques
Work force analysis: all the existing workers

are not likely to be available for work throughout the year due to absenteeism and turnover. In Order to estimate the loss of current man power, analysis of the present work force is made.

HR Supply forecast
It is the process of estimating future quantity

and quality of manpower available internally and externally to an organization. Existing human resources Internal sources of supply External sources of supply

Cont..
Internal supply

Inflows and outflows: the number of losses and gains of staff is estimated. External supply: external recruitment, selection and placements, advertisements, manpower consultants, campus recruitment, employee referrals.

Estimating man power gaps

Net HR requirements or manpower gaps can

be identified by compairing demand forecast and supply forecast

Formulating Action Plan

Once the man powers gaps are identified, plans prepared to bridge the gap .As Organization operates in a changing environment, similarly human resource requirement change so the HR manager have to change their policies programmes and strategies according to the needs of the organization.

Factors affecting HRP

Technical changes in the society

Organizational changes
Shortage of skills due to labour turnover Multicultural workforce

Organizational growth cycle and planning

Out sourcing Nature of jobs being filled

Limitations
Future is uncertain

Conservative attitude of top management

Time consuming and expensive activity Ineffective information system

People are unpredictable

Job Analysis
Job analysis deals with the anatomy of the job

. It is the complete study of the duties and responsibilities involved in its performance; the conditions under which performance is carried on; the nature of the tasks; the qualifications required in the worker; and the conditions of employment such as pay, hours, opportunities and privileges.
The

process of studying and collecting information relating to the operations and responsibilities of a specific job.

Cont..
Job Analysis is not a one time activity as jobs

are changing constantly

The job and not the person an important

consideration in job analysis is conducted of the job and not of the person
It simply highlights what are the minimum

activities that are entailed in a job.

Meaning
Job analysis is the procedure through which

you determine the duties of these position and the characteristics of the people to hire for them. It refer to formal study of jobs which attempts to collect information related to two sets of data: Job Description and Job Specification

Job Analysis: A Basic Human Resource Management Tool

Human Resource Planning Recruitment

Tasks

Responsibilities

Duties

Selection
Training and Development

Job Descriptions

Performance Appraisal Compensation and Benefits Safety and Health Employee and Labor Relations Legal Considerations Job Analysis for Team

Job Analysis

Job Specifications

Knowledge

Skills

Abilities

Importance of Job Analysis

Human Resource Planning Recruitment and Selection Performance Appraisal Placement and Orientation

Training and Development

Job Evaluation Job Design

Safety and Health of workers

Compensation Determination Career Planning

Process of Job Analysis

Organisational Job Analysis Selection of Representative Jobs for Analysis

Obtaining Information about the Job

Sources of Jobs are Existing Job Description

and Specification Equipment Maintenance Records Training Manuals. Films of Employee working Newspaper, Magazines Development of Job Descriptions Preparing Job Specifications

Organization analysis Organizational Charts Class Specification Work Flow Charts

Selecting the representative job Number of Jobs to be analysed Priorities of different Jobs

Job Description Collection of Job Information

Techniques of Data Collection

Job Specification

Direct Observation Interviews Questionnaire Past Records Critical Incidents

The job analysis process

Competancy based Job analysis

What is competancy?
Competencies can be simply defined as

demonstrable characteristics of the person that enable performance.

Definition
Competency-based job analysis means

describing the job in terms of the measurable, observable, behavioral competencies (Knowledge, skills and/or behaviors) that an employee doing that job must exhibit to do the job well.

.
Competency-based job analysis differs from task-based job analysis
The focus of the competancy based job analysis

is on the desirable and essential behaviours required to perform a job, while the focus of the task based job analysis is on the tasks, roles and responsibilities associated with a job.

Why use Competency Analysis?

There are three reasons to describe jobs in terms of

competencies rather than duties: First as mentioned earlier, traditional job descriptions with their lists of specific duties may actually backfire if a high performance work system is the employer goal. The whole thrust of these systems is to encourage employees to work in a self-motivated way, by organizing the work around teams. Employees here must be enthusiastic about learning and moving among jobs. Giving someone a job description with a list of specific duties may simply breed a that-is-not-my-job attitude. The inportant thing is to ensure that each worker has the skills he or she needs to move among the Jobs

Cont..
Second, describing the job in terms of the

skills, knowledge, and competencies the worker needs to be more strategic.

 Third,

measurable skills, knowledge, and competencies are the heart of any companys performance management process. Performance management means basing employees training, appraisals, and rewards on fostering and rewarding the skills and competencies he or she needs to achieve his or her goals. Describing the job in terms of skills and competencies facilitates this.

 Examples of Competencies: In practice,

managers often write paragraph-length competencies for jobs, and organize these into two or three clusters. For example, general competencies such as reading, writing, and mathematical reasoning, leadership competencies such as leadership, strategic thinking, and teaching others technical competencies which focus on the specific technical competencies required for specific types of job and/or occupations.

 Illustrations:

Some technical competencies for the job of

systems engineers might include the following: 1. Design complex software applications, establish protocols, and create prototypes. 2. Establish the necessary platform requirements to efficiently and completely coordinate data transfer. 3. Prepare comprehensive and complete documentation including specifications, flow diagrams, process, and budgets.

 Similarly, for a corporate treasurer, technical

competencies might include: 1. Formulate trade recommendation, by studying several models for currency trends, and using various quantitative techniques to determine the financial impact of certain financial trades. 2. Recommend specific trades and when to make them. 3. Present recommendations and persuade others to follow the recommended course of action (Note that exhibiting this competency

 Competancy based analysis usually comes

down to identifying the basic skills an employee needs to do the job. Mathematics: using mathematics to solve problems. Speaking: talking to others to convey information effectively. Complex problem solving: identifying complex problems and reviewing related information to develop and evaluate options and implement solutions. Negotiation: bringing others together and

Job Description
It is descriptive in nature which includes a statement of the purpose , scope, duties and responsibilities of a specific job, the relationship of job with other jobs, machines, materials and tools involved , the nature of supervision ; working conditions and so on. Thus job description is a written statement of what a jobholder is required to do, how it is to be done and why it is to be done.

Job Description components

Job title

General summary of job

Key relationships Education and Experience (Minimum qualifications) Knowledge, skills and abilities Principal duties & essential functions

Major challenges
Physical, mental requirements Working conditions

Writing Job Description

No standard format

This information is used to write Job

Specification Section of a Typical Job Description may be: Job Idntification Job summary Relationship Responsibilities and Duties Standard of Performance Working Conditions

Job Identification
Contains several type of Information:

Job title Salary/pay scale Job family Department Location Level of job

Job summary
Summarize the essence of the Job

Includes only Jobs major functions or

activities. Make clear that the employer expects the job incumbent to carry out his or her duties efficiently and attentively.

Relationship
Show the job holder relationship with other

inside and outside the company.

Responsibilities and Duties

Heart of Job Description

A listing of the Job major responsibilities and

duties Define limits of Job Holder decision making authority, direct supervision and budgetary limitation. A manager may know about his job duties from the job analysis or from various sources of Standardized job description.

Standard of Performance
List standard the employee is expected to

achieve under each of the Job description main duties and responsibilities Standard must be specific Straight forward way of setting standard is to finish the statement

Working conditions
Conditions involved in Job.

Environment outside the organization.

Noise level, Hazardous condition etc.

Job specification
Job Description focuses on the job, while job

specification focuses on the jobholders. It is a statement of minimum level of qualification, skills, physical and mental attributes , experience, training , essential to do the job effectively.
A statement of human qualification necessary to

do the job effectively usually contains items such as: Education, Experience, Training, Judgement, Initiative, Physical efforts, Responsibilities , Communication skills , Emotional Characteristics , Unusual sensory demands such as sight, smell,

Compiling a person specification

Attainment: What educational requirements

and specialist knowledge are really required for successful completion of the task. Experience: What roles and tasks should have been occupied to ensure that the post holder is adequately equipped? Abilities: What skills need to be deployed for the competent performance of the tasks? Aptitude: Where will the post-holders strengths lie;what particular talents do they need to possess? Interests: What interest relevant to the work

What is a Talent? How to define talent management?

Talent is a term used to define highly skilled

workers. These individuals possess significant job experience in their functional areas and a strong knowledge of the industry they work in. Talent management is a set of entrepreneurial human resources processes and practices ensuring the sustainable effectiveness of the most skilled workers within an organization. Talent Management, as the name itself suggests is managing the ability, competency and power of employees within an organization. Talent management comprises three major

 If talent management is executed correctly it

can have a strategic impact on an organization. Good talent management involves much more than simply "attracting, developing and retaining" talent. The Human Resources function is a patchwork of several specialty functional areas of expertise each requiring a solid understanding and discipline. These functional areas are typically considered to be: Workforce & Succession Planning (Talent Attraction & Recruiting)

 To manage talent successfully, all theses silos

need to be fully integrated and have to work together. At first Workforce and Succession Planning defines future talent needs by quantify and qualifying needs according to the business strategy of an organization. Performance Management delivers an overview of the already existing talent while Talent Acquisition and Recruiting should close the identified gaps in the "Talent map". Talent Acquisition should also include areas like Employer

 Learning

and Development programs should coach and train existing talent to become the future leaders of an organization who are able to use their talent to deliver excellence in performance. In line with all of these programs there has to be an effective compensation policy. High performance talent requires an adequate compensation package which demonstrates that their commitment and accomplishments (achieved results) is also being acknowledged through monetary benefits.