ASSESSING HUMAN RESOURCE REQUIREMENTS

ASSESSING HUMAN RESOURCE REQUIREMENTS

Assessing Human Resource Requirements implies to Evaluate the requirements of personnel in an organization.

ASSESSING HUMAN RESOURCE REQUIREMENTS

Stages in Assessing Human Resource Requirements: 1. Analyzing Organizational Plans 2. Human Resource Planning
a) Forecasting Demand for Human resources (Manpower Forecasting) b) Forecasting Supply of Human resources

3. Estimating Manpower Gaps 4. Action Planning 5. Monitoring and Control

ASSESSING HUMAN RESOURCE REQUIREMENTS

1.

Analyzing Organizational Plans and Policies Determining objectives Generating plans and policies that provide direction for future course of action Various subsystems hence devise their own plans and programmes All manpower plans stem out of business plans relating to nature, level and organization of activity contd..

ASSESSING HUMAN RESOURCE REQUIREMENTS

contd.. Questions in this regard can be: Are vacancies to be filled by promotions form within or by hiring from outside? How to ensure availability of adaptive and flexible work force? How to enrich employees job?

ASSESSING HUMAN RESOURCE REQUIREMENTS

2.

Human Resource Planning

The prediction of future levels of demand for, and supply of, workers and skills at organizational, regional, or national level. Taking direction from objectives, plans and policy considerations, human resource plan is prepared. Planning process consists of two activities: a) Forecasting Demand for Human resources (Manpower Forecasting) b) Forecasting Supply of Human resources Aim of these type of forecasting: to find out additional requirement of personnel, Both in terms of quality and quantity,

ASSESSING HUMAN RESOURCE REQUIREMENTS

a)

Forecasting Demand for Human resources (Manpower Forecasting) Future needs of human resources in an organization are anticipated on the basis of: Corporate and functional plans and Future activity levels

ASSESSING HUMAN RESOURCE REQUIREMENTS

a)

Forecasting Demand for Human resources (Manpower Forecasting) Purpose of Manpower Forecasting: To quantify the jobs necessary for producing a given number of goods, To determine what staff mix is required in future, To assess appropriate staffing levels in different parts of the organization, To avoid unnecessary cost, To avoid shortages of people where and when they are needed most and To monitor compliance with legal requirements with regard to reservation of jobs.

ASSESSING HUMAN RESOURCE REQUIREMENTS

a)

1. 2. 3. 4. 5.

Forecasting Demand for Human resources (Manpower Forecasting) Techniques for manpower forecasting are: Managerial Judgement Method Delphi Technique Work Study Technique Ratio- Trend Analysis Statistical and Mathematical Models

ASSESSING HUMAN RESOURCE REQUIREMENTS

Techniques for manpower forecasting
1.

Managerial Judgement Method

Conventional method, Managers prepare forecast of HR needs on basis of past experience, This method can be used in two alternative ways: a) ----top management prepares HR plan for the whole orgnaization with assistance of HR department, -----the plan so made is circulated amongst various departments for making necessary changes, -----after receiving documents from various departments, HR needs are then finalised in a committee, after a meet with departmental heads.

ASSESSING HUMAN RESOURCE REQUIREMENTS

Techniques for manpower forecasting 1. Managerial Judgement Method
b) Bottom up approach -----departments are given broad guidelines to prepare their own plan for HR needs, ------the plans are then reviewed and consolidated by HR departments, ------a comprehensive HR need plan is made

ASSESSING HUMAN RESOURCE REQUIREMENTS

Techniques for manpower forecasting 2. Delphi Technique:
a) b) c)

Named after ancient greek oracle at city of Delphi Used for group decision making Steps followed: a) a small group designs questionnaire about problem under study is made, b) It is then sent to various experts c) They fill up questionnaire independently without interaction with anyone d) The filled questionnaires are analysed by designer e) If there is lot of divergence, a new questionnaire is madeand sent to larger group f) The process is repeated until some consensus is reached Contd..

ASSESSING HUMAN RESOURCE REQUIREMENTS Techniques for manpower forecasting

Contd.. 2. Delphi Technique: d) Useful where solution requires subjective judgements on a collective basis For eg: what shall be the trend of fashion next year.

ASSESSING HUMAN RESOURCE REQUIREMENTS

Techniques for manpower forecasting
Contd..
2. e)

Delphi Technique: Use of Delphi Technique in Human Resource needs: First: To know the trends for changing job profile, Changing personnel profile internationally or within the country. Second: To know about changing profile of personnel in their respective departments due to changing environment.

ASSESSING HUMAN RESOURCE REQUIREMENTS

Techniques for manpower forecasting
3.

Work Study Technique Based on volume of operation and efficiency of personnel, volume of operation derived from organizational plan documents and Increase/ decrease in operation can thus be measured. Work efficiency or productivity or work being done is measured by Time and motion study

ASSESSING HUMAN RESOURCE REQUIREMENTS Techniques for manpower forecasting

3.

Work Study Technique Standard Time required per unit of work can be calculated Example:

ASSESSING HUMAN RESOURCE REQUIREMENTS

Techniques for manpower forecasting
3.

Work Study Technique Example:

Planned output for next years: 50,000 units Standard hours per unit : 2 Planned hours required : 50,000 X 2 = 1,00,000 Productive hours per worker in the year : 2,000 Number of workers required : 1,00,000/ 2 =50 If the span of control is ten, then, 50/10 = 5 supervisors will be required to supervise the work

ASSESSING HUMAN RESOURCE REQUIREMENTS Techniques for manpower forecasting

3.

Work Study Technique

Appropriate for repetitive and manual jobs Appropriate when it is possible to measure work and set standards

ASSESSING HUMAN RESOURCE REQUIREMENTS

Techniques for manpower forecasting
4. a) b)

c)

d)

Ratio- Trend Analysis Ratios are calculated on the basis of past data Future ratios are calculated on the basis of time series analysis Expected changes in organization as methods and jobs are kept in mind HR needs are calculated on the basis of various ratios and likely trends

ASSESSING HUMAN RESOURCE REQUIREMENTS Techniques for manpower forecasting

4. Ratio- Trend Analysis Ratios as:
a)
b) c)

d)

Total output/ number of workers, Total sales volume/ number of sales persons, Direct workers (supervisory) / indirect workers (managerial personnel) Etc. are calculated.

ASSESSING HUMAN RESOURCE REQUIREMENTS

Techniques for manpower forecasting
4. Ratio- Trend Analysis Example: Production level in 2006-2007 = 50,00units Number of workers in 2006-2007 = 50 If the span of control is ten, then, 50/10 = 5 supervisors will be required to supervise the work Ratio = 5 : 50,000 or 1: 1,000

ASSESSING HUMAN RESOURCE REQUIREMENTS

Techniques for manpower forecasting
5. Mathematical Model It expresses relationship between independent variables (e.g. investment, production, sales, etc.) and dependent variable (e.g. number of employees required) Methods used include:

Statistical regression analysis Simulation models Productivity ratiosunits produced per employee Staffing ratiosestimates of indirect labor needs

ASSESSING HUMAN RESOURCE REQUIREMENTS

Forecasting Periods Forecasting is generally done for :

Short-termless than one year Intermediateup to five years Long-rangemore than five years

Forecasting Methods

Figure 28

ASSESSING HUMAN RESOURCE REQUIREMENTS

FACTORS FOR FUTURE DEMAND FOR HUMAN RESOURCES 1. Employment Trend 2. Replacement Needs 3. Productivity
1. 2.

Better utilization of existing manpower Automation and computerization

4.
5.

Absenteeism Expansion and Growth