Human resource
planning
UNIT 2
definition

“Is the process of forcastIng an
organizations future demand
for and supply of the right type
of people In rIght number”

ALSO CALLED STRATEGIC
MANPOWER PLANNING OR
EMPLOYEMENT PLANNING
definition

Process by which an organization
ensures that it has the right number
and kind of people at the right place an
at the right time, capable of
effectively and efficiently completing
those task that help the organization
achieve its overall objectives.
definition

The ongoing process of systematic
planning to achieve optimum use of an
organization's most valuable asset - its
human resources. The objective of
human resource (HR) planning is to
ensure the best fit between employees
and jobs, while avoiding manpower
shortages or surpluses. The three key
elements of the HR planning process are
forecasting labor demand, analyzing
present labor supply, and balancing
projected labor demand and supply.

The HR plan needs to be
flexible enough to meet shortterm staffing challenges,
while adapting to changing
conditions in the business and
environment over the longer
term. Human resource planning
is a continuous process.
WHY HRP

If organisations overdo the
size of their workforce it will
carry surplus or underutilised
staff. Alternatively, if the
opposite misjudgement is made,
staff may be overstretched,
making it hard or impossible to
meet production or service
deadlines at the quality level
expected.
Importance of HRM

Part of strategic planning – 2 way support

determines future personnel need

Helps organization get people with the required skill,
knowledge, education, aptitude.

to foresee the employee turnover and make the
arrangements for minimizing turnover and filling up of
consequent vacancies

to meet the needs of the program of expansion,
diversification

to foresee the impact of technology on work, existing
employees and future human resources requirements

to assess the surplus or shortage of human resources
and take measures accordingly.

Bases for other HR functions

Better selection of employees

Better planning to implement any legal requirement.

Important for International strategie

to minimize imbalances caused due to non-availability of
human resources of right kind ,right number in right time
and right place;


to make the best use of its human resources
to estimate the cost of human resources.


To reduce HR cost : Today the cost of HR is about
25% to 45% of the cost of production and this
cost is increasing very quickly and cost has to
be reduced in order to face competition. HRP
helps to avoid both shortage and surplus of
labour. It helps to make optimum utilisation of
labour. It also helps to reduce labour
turnover. All this helps to reduce labour cost.
To identify potential replacements : Each year
many employees either retire or leave or are
taken out of the organisation. HRP helps to find
replacements for these employees. These
replacements may be either from inside or from
outside the organisation

To avoid disturbance in the
production process : In HRP, the
manpower requirements of the
organisation are determined well in
advance. So the manpower is
supplied continuously to the
organisation. This helps the
production process to run smoothly.
Thus, HRP helps to avoid
disturbances in the production
process
Planning
process
Environment scanning
Organization policies &
objectives
HR Need forecast and HR
supply forecast
HR programme
HRP Implementation
Control & Evaluation
Surplus (restrict hiring
reduce working hours)
Shortage-(recruitment)
Environment
HR Needs Forecast
Org objectives and policies
HR Supply Forecast
HR Programming
HRP Implementation
Control and Evaluation
Surplus
Shortage
Environment 1)
2)
3)
4)
5)
Economic factors
Technological Changes
Demographic changes( us age
vs india )
Political and legislative
issues (quotas , labor, child
labor)
Social concerns (inclusive
growth)
Organizational objectives
and policies-:
HR plans need to be based on
organizational objectives.
 Specifics requirements in terms
of numbers and characteristics
of employees must be derived
from organizational
objectives.


HR demand Forecast- estimating
the quantity & quality of
people required to meet future
needs of the organization.
Forecasting techniques
Managerial judgment
top down & bottom up
Lower departments + HR
Top management+ HR
1.
Ration Trend analysis-
studying
past ratio say between the
number of workers and sales in
an organization
Delphi technique- estimated
prepared first my sales
experts then submitted to HR
experts who give their opinion
and resend it back and this
continues till there come to a
common point of agreement.
 The distinguishing feature is
the absence of interaction
among the experts.

Supply forecast
Determines whether the hr
department will be able to
procure the required number of
personnel .
 It measures the number of
people likely to be available
from within & outside on
organization.
 They also identify the outside
source.

Supply forecast prevents
shortage
 Management inventory and
skill inventory( related to non
managers) catalogue gives
planners a comprehensive
understanding of the
capabilities which can be found
within an organization.
 External supply – is important
for (a) new blood new
experience & additional number
and type of employees.


Hr programming- creating demand
and supply balance
Hr plan implementationrecruitment, selection placement,
training – no of training ,type,
entire calendar is prepared.
 Control & evaluation
Surplus – restricts hiring,
reduced hours (VRS, lay off etc)
Shortage – recruitment and
selection

Downsizing plan
Who is made redundant when and where.
 Plan for re development and retraining where
this has not been covered in redevelopment,
 Planning for outplacement
 Policy for declaring redundancies and making
payment.
 Program for informing those affected.
 Reduced working hours
 Forced leave
 VRS

Managerial succession
plan

Includes training programmes
and series of job assignments
leading to top positions.
Managerial succession planTATA Motors
Fast track selection- any one from management
grade has been in tata motor for more than two
years can apply.
 Boss recommendation
 15 people from all over India, all or no one may
be selected
 Written test, 2 aptitude test one on tata
motors, GD, interview
 3 day residential assessment- case study, group
activities, debates
 Reaches MT grade 5 straight away


Ess- executive selection scheme
Goal: Match Person & Job
Person
Job
KSAs
Talents & Interests
Motivation
Tasks & Duties
Rewards
Job Outcomes
Performance
Satisfaction

Need information about the Person &
about the Job
26
Job Is………..
JOB- A BUNDLE OF RELATED Task
 SYNONYM OF JOB IS WORK
 WORK IS UNDERSTOOD AS PHYSICAL
AND MENTAL ACTIVITY THAT IS
CARRIED OUT AT A PARTICULAR
PLACE & TIME ACCORDING TO
INSTRUCTIONS IN RETURN FOR MONEY.
 MONEY IS IMPORTANT TO CONSIDER IT
WORK.

Example of task in sales
Identifying target customer
 Tele calling
 Visiting customer
 Selling a product
 Preparing sales report
 Training subordinates
 Giving test
 Maintaining customer database

Definitions

Job Analysis: the process of
collecting & analyzing
information about jobs
◦ Job Description: a document that
identifies the tasks & duties
performed by a job
◦ Job Specification: a document that
identifies the human qualifications
required for a job
29
Job Description



A job description is a written statement of the tasks,
duties, machine tools, equipments, supervision given or
received, working conditions, hazards required and
reporting relationships of a particular job.
The job description is based on objective information
obtained through job analysis.
Job description acts as an important resource for
◦ Describing the job to potential candidates
◦ Guiding new hired employees in what they are
specifically expected to do
◦ Providing a point of comparison in appraising
whether the actual duties align with the
stated duties.
Restaurant Manager
Job Summary:
Plan, organize, direct, and coordinate the workers and resources of the restaurant for the
efficient, well-prepared, and profitable service of food and beverages.
Tasks and Duties:
1.
Work with chefs and other personnel to plan menus that are flavorful and popular
with customers. Work with chefs for efficient provisioning and purchasing of
supplies. Estimate food and beverage costs. Supervise portion control and
quantities of preparation to minimize waste. Perform frequent checks to ensure
consistent high quality of preparation and service.
2.
Supervise operation of bar to maximize profitability, minimize legal liability, and
conform to alcoholic beverage regulations.
3.
Work with other management personnel to plan marketing, advertising, and any
special restaurant functions.
4.
Direct hiring, training, and scheduling of food service personnel.
5.
Investigate and resolve complaints concerning food quality and service.
6.
Enforce sanitary practices for food handling, general cleanliness, and maintenance
of kitchen and dining areas.
7.
Comply with all health and safety regulations.
8.
Review and monitor, with bookkeeper or other financial personnel, expenditures
to ensure that they conform to budget limitations. Work to improve performance.
9.
Perform other duties as assigned by management.
Qualifications:
1.
Bachelor of Science degree in hotel/restaurant management is desirable. A
combination of practical experience and education will be considered as an
alternate.
2.
Good organizational skills for dealing with diverse duties and staff.
3.
Pleasant, polite manner for dealing with public as well as staff.
Reports to:
Supervises:
Date:
Department:
Division:
Approved:
Source (revised from): http://www2.hrnext.com/Article.cfm/Nav/2.4.0.0.6719.0
31
Job specification
• Job
specifications
specify
the
minimum
acceptable qualifications required by the
individual to perform the task efficiently.
Based on the information obtained from the job
analysis
procedures,
job
specification
identifies the qualifications, appropriate
skills, knowledge, and abilities and experience
required to perform the job.
• Job specification is an important tool in the
selection process as it keeps the attention of
the selector on the necessary qualifications
required for that job.
Objectives/Purpose of Job
Analysis
Recruitment
HRP
Selection
Job
Analysis
T&D
Job design
Performance
appraisal
Placement
Job
evaluation
Process of job
analysis
Decide the purpose of analysis
Review Organizational Charts & Process Charts
Select a sample
Collect and analyze the information
Verify the analysis with the worker performing
the job and with the supervisor
Develop job description & specification
Which method to use ?

Factors to be considered before
choosing the method of
collecting data are:
◦ No. of job/employees to be
considered.
◦ Time limit
◦ Cost factors
◦ Education levels of incumbents
◦ Type of data required.
Decide purposes of the job
analysis project
◦ How do you want to use the Job
Descriptions?






Job design
Recruiting
Selection
Performance appraisal
Training
Compensation
◦ At a minimum, for each job being
analyzed, we need data on:
 Tasks & duties performed on the job
 Qualifications required by the job
37
Identify sources of job data
◦ Job incumbents:
◦ Supervisor of job
◦ Training manuals
◦ From equipments used
◦ Magazines , newspaper
◦ Other sources
38
Methods of Job Analysis
Observation
 Interview

◦ Individual
◦ Group
Questionnaires
 Diary method

Methods of Job Analysis

Observation Method
◦ Analyst observes incumbent
 Directly
 Videotape
◦ Useful when job is fairly routine
◦ managerial positions are difficult to
observe using this method.
◦ workers will not perform their tasks
to their actual capabilities.
Interview Method
◦ Individual
 Several workers are interviewed
individually
 The answers are consolidated into a
single job analysis
◦ Group
 Employees are interviewed
simultaneously
 Group conflict may cause this method to
be ineffective
Methods of Job Analysis

Questionnaires
◦ Employees answer questions about the
Job’s tasks and responsIbIlItIes
◦ Each question is answered using a
scale in- close ended -that rates the
importance of each task
◦ Best questionnaires is combination of
both close & open ended
◦ Time consuming and expensive
Methods of Job Analysis

Diary Method
◦ Employees record information into
diaries of their daily tasks
 Record the time it takes to complete
tasks
◦ Must be over a period of several
weeks or months