HRM

HUMAN RESOURCES
PLANNING
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HRM
HUMAN RESOURCES PLANNING

Human Resources Planning is the process by
which an organization ensures that it has
the right number and kinds of people at
the right places , at the right time, capable
of effectively and efficiently undertaking
and completing those tasks that will help
the organization achieve its overall
objectives
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HRM
The TSS Case Study on HRP
The case study is in two parts.
We will do it one part at a time.
Some terms:
Offshore : Employees / Projects based out of India
Onsite : Employees / Projects based overseas normally at client location
Blended Rate : It is the weighted average billing rate that the company gets between offshore and
onsite, e.g. if there are 80 employees offshore getting billed at $25 per hour (average) and 20
employees onsite getting billed at $60 per hour (average), then the blended rate =
(25*80+20*60)/(80+20) per hour or $32 per hour.
Billed Nos. : the no. of employees who are getting billed
Billable Nos. : No. of employees who can get billed
Utilisation = Billed man-hours/Billable man-hours
Attrition Rate : Rate of employees leaving the organisation. In a month if the average no. of employees
is 100 and if 3 people leave during the month, the attrition % for that month is 3%
Voluntary Attrition (VA) : % of employees who leave on their own accord.
Involuntary Attrition (IVA) : % of employees who are asked to leave
Lateral : An employee with work experience
Fresher : An employee with no work-ex.

HRM
The TSS Case Study on HRP
Having studied the HRP exercise versions 1 & 2 what needs to be done to
make the planning more accurate:
Revenue planning needs to be done at the vertical/geo levels
Within that at client level including expected new clients, new projects
Offshore/Onsite breakups to be considered new projects will have higher
onsite components to start with
Revenues to be classified at EE/EN and NN categories
Manpower computations to be done at drilled down levels
Manpower to be classified by assuming offshore ratios at 1 PM : 3 PLs : 8 SW
engineers.
Onsite ratios would have to computed on case to case basis
Close monitoring of plans on a quarterly basis needs to be done
Process needs to be automated

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HRM
Importance of HRP
1)Each Organisation needs personnel with necessary qualifications, skills,
knowledge, experience & aptitude .
2)Need for Replacement of Personnel - Replacing old, retired or disabled
personnel.
3)Meet manpower shortages due to labour turnover Several Indian PSUs
headless for 6 -10 months.
4)Meet needs of expansion / downsizing programmes - As a result of
expansion of IT companies the demand for IT professionals are
increasing. PSUs offering VRS to employees to retrench staff and labour
costs.
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HRM
Importance of HRP
1)Each Organisation needs personnel with necessary qualifications, skills,
knowledge, experience & aptitude .
2)Need for Replacement of Personnel - Replacing old, retired or disabled
personnel.
3)Meet manpower shortages due to labour turnover Several Indian PSUs
headless for 6 -10 months.
4)Meet needs of expansion / downsizing programmes - As a result of
expansion of IT companies the demand for IT professionals are
increasing. PSUs offering VRS to employees to retrench staff and labour
costs.
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HRM
A Model for
Human
Resource
Planning
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HRM
Forecasting the Demand for Labor:
Judgmental Methods
Bottom-Up (Unit) Forecasting
In this method managers do the forecasting at Unit Level
Care has to be taken to eliminate exaggeration bias and
duplication
Top-Down Forecasting
Senior Managers collectively assess best case & worst case
scenarios and arrive at a most likely scenario
Delphi Technique
In this technique the experts do not meet face to face
Each is given questionnaire for forecasting and reasons thereof
The responses are collated and recirculated with another set of
questions
Process is done anonymously and within a few rounds the
responses tend to converge
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HRM
Forecasting the Demand
for Labor: Mathematical Methods
Productivity Ratio
Average no. Of units produced per direct unit of
labour
Staffing Ratios
Based on direct manpower deriving the indirect
manpower
Multiple Regression
Can be applied when sufficient historical data
exists to determine regression weights
Linear, or Goal Programming
Optimal staffing levels based on a given set of
constraints

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HRM
Program Planning Options
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HRM
Other uses of HRP
i)quantify job for producing product /
service
ii) quantify people & positions required
iii) determine future staff-mix
iv) assess staffing levels to avoid
unnecessary costs
v) reduce delays in procuring staff
vi) prevent shortage / excess of staff
vii) comply with legal requirements
HRM
Assessing Current Human Resources
Human Resource Inventory
Name
Education
Skills with skill levels
Prior Experience
Training
Current Position & Role
Performance Ratings
Last Promotion Date
Current Reporting Manager
Current Location
Current Grade
Current Salary
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HRM
Assessing Current Human Resources
Most companies use an HRIS
Larger Companies use ERPs like SAP,
Peoplesoft etc.
MIS relating to HRIS are built around the HRIS
Some organizations also do succession
planning using HRIS for expected seperations
(retirements/ resignations) and planned
internal movements
HRIS is also used for determining training
needs

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HRM
Assessing where the organization is
going
Revenue Projections
Products and Services Mix in the projection
Location based mix of the projections
Sometimes limitations in skill supply also
determines the revenue projections and
product/services mix
R & D Projections of the company
Non revenue generating Human resources
Projections
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HRM
Implications of Future Demand
Necessary to perform an analysis for every
significant job level and type on a Year-by-Year,
Quarter-by-Quarter or Month-by-Month basis
Has to be done on skills basis
Need to identify the type of demand, e.g., if
for a short duration of 3 -6 months we can look
at temporary hires
Companies policies and philosophy on FTEs &
Contractors
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HRM
Implications of Future Supply
Increasing Supply
New Hires
Transfers In
Long Leave Returnees
Decreasing Supply
Voluntary & Involuntary Attritions
Retirements
Transfer- Outs
Sabbaticals

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HRM
Implications of Future Supply
Changes in external supply
Increasing trends in availability of fresh graduates/post
graduates from colleges
Organizations have to tie up with colleges to make the college
education more useful to meet their skill needs
With recessionary trends, part time job seekers like students,
housewives
Non-availability of resources with Obsolescent skills
Non-availability of resources with high-end skills or multiple
skills
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HRM
Internal Supply
Inflows & Outflows - The number of losses & gains of staff
is estimated.
Turnover/Attrition Rate - refers to rate of employees leaving.
= ( No. of separations in a year / Avg no. of employees during the year ) x
100
Absenteeism - unauthorised absence from work.
= ( total absentees in a year / Avg no. of employees x No. of working
days) x 100
Productivity Level = Output / Input.
Change in productivity affects no. of persons per unit of output.
Movement among Jobs - internal source of recruitment, selection and
placement
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HRM
External Supply
External recruitment, selection & placement -
Advertisements, Manpower Consultants, Campus
Recruitment, Unsolicited Applications, Employee Referrals,
e-recruitment,
Yield ratios - are estimated in the process of hiring applications.
Hiring Process Ratio
Ad generates 2000 applications. 200 are potential 10:1
Out of 200, 40 attend interview 5:1
Out of 40, 30 were offered jobs 4:3
Out of 30, 25 accepted 3:2.5
Out of 25, 20 joined 2.5:2
Overall Yield Ratio (2000:20) 100:1





HRM


JOB ANALYSIS
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4-21
Job Analysis Job Analysis
Job
Descriptions
Job
Specifications
The process of
getting detailed
information about
jobs.
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HRM
Job Descriptions
Job Description: a list of tasks, duties,
and responsibilities (TDRs) that a
particular job entails.
Key components:
Job Title
Brief description of the TDRs
List of the essential duties with detailed
specifications of the tasks involved in carrying out
each duty
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HRM
Sample Job Description
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HRM
Job Specifications
Job Specification: a list of the knowledge, skills,
abilities, and other characteristics (KSAOs) that an
individual must have to perform a particular job.
Knowledge: factual or procedural information
necessary for successfully performing a task.
Skill: an individuals level of proficiency at
performing a particular task.
Ability: a more general enduring capability that
an individual possesses.
Other Characteristics: job-related licensing,
certifications, or personality traits.
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HRM
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HRM
Types of Information
Collected
Work
activities
Human
behaviors
Human
requirements
Job
context
Machines, tools,
equipment, and
work aids
Performance
standards
Information
Collected Via
Job Analysis
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HRM
Use of Job Analysis
Information
Recruitment and
Selection
Compensation
Legal
Compliance
Discovering
Unassigned
Duties
Performance
Appraisal
Training
Information
Collected Via
Job Analysis
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HRM
Process Chart for Analyzing a Jobs Workflow
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HRM
Steps in Job Analysis
1
2
3
4
5
Steps in doing a job analysis:
Review relevant background information.
Decide how youll use the information.
Select representative positions.
Actually analyze the job.
Verify the job analysis information.
6
Develop a job description and job specification.
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HRM
Methods of Collecting Job Analysis
Information: The Interview
Information Sources
Individual employees
Groups of employees
Supervisors with
knowledge of the job
Advantages
Quick, direct way to find
overlooked information
Disadvantages
Distorted information
Interview Formats
Structured (Checklist)
Unstructured
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HRM
Job Analysis: Interviewing Guidelines
The job analyst and supervisor should work together to
identify the workers who know the job best.
It is advisable to quickly establish rapport with the
interviewee.
Follow a structured guide or checklist, one that lists open-
ended questions and provides space for answers.
Ask the worker to list his or her duties in order of
importance and frequency of occurrence.
After completing the interview, review and verify the data.
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HRM
Methods of Collecting Job Analysis
Information: Questionnaires
Information Source
Have employees fill out
questionnaires to
describe their job-related
duties and
responsibilities
Questionnaire Formats
Structured checklists
Open-ended questions
Advantages
Quick and efficient way
to gather information
from large numbers of
employees
Disadvantages
Expensive and time
consuming in preparing
and testing the
questionnaire
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HRM
Methods of Collecting Job Analysis
Information: Observation
Information Source
Observing and noting the
physical activities of
employees as they go
about their jobs
Advantages
Provides first-hand
information
Reduces distortion of
information
Disadvantages
Time consuming
Difficulty in capturing
entire job cycle
Of little use if job
involves a high level of
mental activity
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HRM
Methods of Collecting Job Analysis
Information: Participant Diary/Logs
Information Source
Workers keep a
chronological diary/ log
of what they do and the
time spent on each
activity
Advantages
Produces a more
complete picture of the
job
Employee participation
Disadvantages
Distortion of information
Depends upon
employees to accurately
recall their activities
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HRM
Writing Job Descriptions
Job
Identification
Job
Summary
Responsibilities
and Duties
Authority of the
Incumbent
Standards of
Performance
Working
Conditions
Job
Specifications
Sections of a
Typical Job
Description
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HRM
The Job Description
Job Identification
Job title
Preparation date
Preparer
Job Summary
General nature of the job
Major functions/activities
Relationships
Reports to:
Supervises:
Works with:
Outside the company:
Responsibilities and Duties
Major responsibilities
and duties (essential
functions)
Decision-making
authority
Direct supervision
Budgetary limitations
Standards of Performance
and Working Conditions
What it takes to do the
job successfully

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HRM
Writing Job Specifications
Specifications for
Trained Versus
Untrained
Personnel
Specifications
Based on
Statistical
Analysis
What traits and
experience are required
to do this job well?
Specifications
Based on
Judgment
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HRM
Writing Job Descriptions (continued)
Step 1. Decide on a Plan
Step 2. Develop an Organization Chart
Step 3. Use a Job Analysis/Description
Questionnaire
Step 4. Obtain Lists of Job Duties
Step 5. Compile the Jobs Human Requirements
Step 6. Complete Your Job Description
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HRM
The Skills Matrix for One Job at BP
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HRM
Writing Job Specifications (continued)
Steps in the Statistical Approach
Analyze the job and decide how to measure job
performance.
Select personal traits that you believe should
predict successful performance.
Test candidates for these traits.
Measure the candidates subsequent job
performance.
Statistically analyze the relationship between the
human traits and job performance.
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HRM
Job Analysis in a Jobless
World
Job
Enlargement
Job
Enrichment
Job Design:
Specialization and
Efficiency?
Job
Rotation
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HRM
Job Analysis in a Jobless
World (continued)
Flattening the
Organization
Reengineering
Business
Processes
Dejobbing the
Organization
Using Self-
Managed Work
Teams
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HRM
Designing Jobs That Motivate: The
Job Characteristics Model
1. Skill variety the extent to which a job
requires a variety of skills to carry out the
tasks involved.
2. Task identity the degree to which a job
requires completing a whole piece of
work from beginning to end.
3. Task significance the extent to which
the job has an important impact on the
lives of other people.
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HRM
Designing Jobs that Motivate: The
Job Characteristics Model
4. Autonomy the degree to which the job
allows an individual to make decisions
about the way work will be carried out.
5. Feedback - the extent to which a person
receives clear information about
performance effectiveness from the work
itself.
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HRM
Characteristics of a Motivating Job
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HRM
Designing Jobs That Motivate

Job Enlargement - Broadening the types of
tasks performed in a job.
Job Extension -
Enlarging jobs by combining
several relatively simple
jobs to form a job with a
wider range of tasks.
Job Rotation -
Enlarging jobs by moving
employees among several
different jobs.
4-47
Designing Jobs That Motivate
Job Enrichment
Empowering workers by
adding more decision-
making authority to jobs.
Based on Herzbergs theory
of motivation.
Individuals are motivated
more by the intrinsic
aspects of work.

Self-Managing Work Teams
Have authority for an
entire work process or
segment:
schedule work
hire team members
resolve team performance
problems
perform other duties
traditionally handled by
management
Team members motivated
by autonomy, skill variety,
and task identity.
4-48
Designing Jobs That Motivate
Flexible Work Schedules
Flextime
A scheduling policy in
which full-time employees
may choose starting and
ending times within
guidelines specified by the
organization.
A work schedule that
allows time for community
and family interests can be
extremely motivating.
Job Sharing
A work option in which two
part-time employees carry
out the tasks associated
with a single job.
Enables an organization to
attract or retain valued
employees who want more
time to attend school or
take care of family matters.
4-49
Alternative
s to the 8-
to-5 Job
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HRM
Designing Jobs That Motivate
Telework
Telework the broad term for doing
ones work away from a centrally
located office.
Advantages to employers include:
less need for office space
greater flexibility to employees with special needs
Easiest to implement for managerial,
professional, or sales jobs.
Difficult to set up for manufacturing
workers.
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HRM
Competency-Based Job Analysis
Competencies
Demonstrable characteristics of a person that
enable performance of a job.
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HRM
A competency is an underlying characteristic of a
person, which enables him to deliver superior
performance in a given job, role or a situation

This characteristic may be called an attribute
bundle consisting of knowledge, skills, traits, social
role, self image and motive. The underlying
characteristic manifests itself in the form of
behaviour, which helps identification and
measurement of the competency


What is a Competency?

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HRM
Personality
(Traits, Motives,
Attitudes & Values)
Hard
Skills
Soft Skills
Job Knowledge
What is a competency? The Iceberg Model
A bundle of skills, knowledge and attitudes required for
superior performance
Hidden
Visible
Difficult
to
Develop
Easier to
Develop
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HRM
Set of SKILLS
Relates to the
ability to do,
Physical
domain
Attribute
Relates to
qualitative
aspects
Personal
Characteristics
or traits
KNOWLEDGE
Relates to
information
Cognitive Domain
COMPETENCY
Outstanding
Performance of tasks
or activities
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HRM
Competency-Based Job Analysis
Reasons for Competency-Based
Job Analysis
To support a high-performance work system.
To create strategically-focused job descriptions.
To support the performance management process
in fostering, measuring, and rewarding:
General competencies
Leadership competencies
Technical competencies
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HRM
Competency-Based Job Analysis
How to Write Job Competencies-
Based Job Descriptions
Interview job incumbents and their supervisors
Ask open-ended questions about job
responsibilities and activities.
Identify critical incidents that pinpoint success
on the job.
Use off-the-shelf competencies databanks