Human Resource Information System and Human Resource Planning

Human Resource Information System (HRIS)

&Human Resource Planning (HRP)

HRM Process

Organization goals & strategies

Staffing

Employeeneeds

Appraisal

Rewards & Relations

Development

Performance

HR Information

HRIS

• A database system that keeps important information about employees in a central and accessible location.

• Feeds information into HR policy and planning as well as other HR decision process.

Why HRIS?• HRIS can significantly improve the

efficiency of the HR operation and therefore a company’s bottom line.

• Help increase in number and variety of HR reports produced.

• Help shift HR’s attention from transaction-processing to strategic HR.

Input Data• Personal information• Organization• Occupation history• Performance & potential assessment• Qualifications, training & competency• Salaries & benefits• Development & succession plans• Others (disciplinary, medical, references,

absenteeism)

Output Data

• Skill inventory• Training & development report• Compensation report• Employee benefit record• Turnover & absenteeism report• Human resource plans

Human Resource Planning

Man is the key to our problems, not money. Competent people can work miracles even with small resources and draw wealth out of barren land.

What is HRP?• Human resource planning is a systematic

approach to ensure that the right people will be in the right place at the right time.

• It is a process of deciding what positions the firm will have to fill, and how to fill them.

• It is a process of determining HR needs of the organization in the context of its strategic planning.

The Need for HRP• To ensure that HR is available: provide the information

and data to an organization on when, where and how many employees need to be recruited.

• To assess the future supplies of and demands for HR: reduce shocks and disturbances within the employment patterns of large organizations.

• To match supplies and demands, making them compatible with the achievement of the organization’s future goals.

Needs determined by

• Assessing current human resources• Analyzing corporate plans• Forecasting staffing level and categories in

the light of corporate objectives• Assessing availability of HR• Determining HR needs• Formulating HR programs to address the

needs.

Steps in HRP

1. Assessing Current Human Resources

2. Demand Forecasting 3. Supply Forecasting4. Matching demand and supply5. Action Plan

Step 1: Assessing Current HR

1. HR Inventory (details of workforce: something like CV or personal history form)

2. Job Analysis (details of jobs, resulting in JD and JS)

Step 2: Demand Forecasting • Estimates the number of people required in

future and their capacity.

To forecast personnel needs: – Project the demand for the product or

service– Project sales and revenues– Plan the volume of production or activity

level to meet the planned sales, revenue or activity requirements

– Estimate the size of the staff required to achieve it

How to forecast personnel needs?

• Staffing plans also must reflect:Projected turnover of staffQuality and skills of employees in relation to

the changing needs of the organizationStrategic decisions (eg. Upgrade quality,

enhance productivity, enter into new markets)Technological and other changes resulting in

increased productivityFinancial resources

HR Forecasting Methods

• Trend analysis– Study the past staffing needs over a period of years to predict

future needs.

• Ratio analysis– Use of ratios between one or more business factors and

staffing level as well as between different staff categories if the current year to forecast future needs.

• Ratio trend analysis– Use of ratios of the past years to predict needs

• Managerial judgement– A big role– Trends, ratios and relationships unlikely to continue unchanged– Judgement needed to modify the forecast based on the factors that are

likely or should be changed

Step 3: Supply Forecasting

1. Internal supply forecasts

2. External supply forecasts

Forecasting Internal Supply

• Qualifications inventories– Manual or computerized records listing

employees’ education, career and development interests, languages, special skills etc to be used in selecting inside candidates for promotion

• Personnel inventory and development– Information is complied about each

employee manually and recorded.

Forecasting Internal Supply

• Personnel replacement charts– Company records showing present

performance and promotability of inside candidates for the most important positions

• Position replacement card– A card prepared for each position in a

company to show possible replacement candidates and their qualifications

Forecasting External Supply

• Monitoring general economic conditions

• Local market conditions

• Occupational market conditions

Step 4: Matching demand & supply

• To determine future shortages or surpluses

– Additional staff will be needed to meet the shortage

– Retrenchment will be needed for surplus staff

Step 5: Action Plan

Concerned with the preparation of action plans to deal with shortages and surpluses of human resource

Recruitment planTraining and Development planRetention planPromotion planRedeployment planRedundancy planTransfer planSuccession plan

Issues to be addressed in HR Planning • How many employees does the organization

currently employ?• What is the age profile, by department, of

employees?• Where in the organization are these employees

to be found?• Which are the biggest departments in the

organization?• What skills do the employees possess?• How many employees, on average, leave the

organization every year?• In which areas of expertise do the organization

tend to loose more employees?

HRP in Nepal

• Analysis is in its infancy• Fire-fighting tendencies• Kowledge base (ad-hoc, guess work)• Short term planning• Overstaffing (govt. & public organizations)• Nepotism/ favouritism (private org.)