Human Resource Planning (Hrp)

Human Resource Human Resource PlanningPlanning

(HRP)(HRP)

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HRP: An OverviewHRP: An Overview

HRP is a HRP is a processprocess of of analyzing & analyzing & identifyingidentifying the the need for & availability need for & availability of human resourcesof human resources (HR) so that (HR) so that organization can meet its objectivesorganization can meet its objectives

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Defining HR PlanningDefining HR PlanningStrategy OrientedStrategy Oriented DEFINITION DEFINITION

– ““A strategy for the acquisition, utilization, improvement & retention A strategy for the acquisition, utilization, improvement & retention of an organization’s human resources”of an organization’s human resources”

– AIMS of HRPAIMS of HRP: : 1.1. to ensure the optimum use of the people currently employed to ensure the optimum use of the people currently employed 2.2. to provide for the future staffing needs of the organization in terms of to provide for the future staffing needs of the organization in terms of

skills, number, & ages of peopleskills, number, & ages of people– HRP establish controlHRP establish control: planner work as a “policeman” who checks : planner work as a “policeman” who checks

whether staffing levels are optimumwhether staffing levels are optimum

Process OrientedProcess Oriented DEFINITION DEFINITION– HRP is as a HRP is as a continuous process of analyzingcontinuous process of analyzing an organization’s HR an organization’s HR

needs under the changing conditions & developing the activities needs under the changing conditions & developing the activities necessary to satisfy these needs like staffing, recruitment, necessary to satisfy these needs like staffing, recruitment, selection, training, etc.selection, training, etc.

– Process aimed at assisting management to determine Process aimed at assisting management to determine how the how the organization should moveorganization should move from its current staffing position to its from its current staffing position to its desired staffing positiondesired staffing position

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Business Strategy & HRPBusiness Strategy & HRP

Business Business strategy focus strategy focus

(Porter)(Porter)

HR strategyHR strategy HRP activitiesHRP activities

Cost leadershipCost leadershipCost controlCost controlStable business Stable business environmentenvironmentEfficiency & qualityEfficiency & quality

Job & employee Job & employee specializationspecializationEmployee efficiencyEmployee efficiencyLong HR planning Long HR planning scopescope

Internal promotionsInternal promotionsEmphasis on trainingEmphasis on trainingHiring & training for Hiring & training for specific capabilitiesspecific capabilities

DifferentiationDifferentiationLong term focusLong term focusGrowthGrowthCreativity in job Creativity in job behaviourbehaviourDecentralization Decentralization

Shorter HR planning Shorter HR planning scopescopeHire HR capabilities Hire HR capabilities requiredrequiredFlexible jobs & Flexible jobs & employeesemployees

External staffingExternal staffingHire & train for broad Hire & train for broad competenciescompetencies

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Business Strategy & HRPBusiness Strategy & HRPBusiness Business

strategy focus strategy focus (Miles & Snow)(Miles & Snow)

HR strategyHR strategy HRP activitiesHRP activities

DefenderDefenderFinds change Finds change threateningthreateningFavors strategies Favors strategies which encourage which encourage continuity & securitycontinuity & security

Bureaucratic approachBureaucratic approachPlanned & regularly Planned & regularly maintained policies to maintained policies to provide for lean HRprovide for lean HR

Build HRBuild HRLikely to emphasize Likely to emphasize training programs & training programs & internal promotioninternal promotion

Prospector Prospector Succeed on change Succeed on change Favors strategies of Favors strategies of product & / or market product & / or market developmentdevelopment

Creative & flexible Creative & flexible management stylemanagement styleHave high quality HRHave high quality HREmphasize Emphasize redeployment & redeployment & flexibility of HRflexibility of HRLittle opportunity for Little opportunity for long-term HRPlong-term HRP

Acquire HRAcquire HRLikely to emphasize Likely to emphasize recruitment, selection & recruitment, selection & performance base performance base compensationcompensation

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Perspectives of HRPPerspectives of HRP MACRO HRP –

Assessing & forecasting demand for & availability of skills at national / global level

Predict the kinds of skills that will be required in future & compare these with what is / will be available in the country

Eg. Gillette merger with P&G whereby decided to restructure & move

from business units based on geographic regions to global business units based on product lines which resulted in redundancy of some employees (Relocation to Singapore & VRS for others)

MICRO HRP –

Process of forecasting demand for & supply of HR for specific organization

Eg. Wipro (a software giant in India) raising wages / short-listing

students in their 2nd yr. of college for future employment in India Genpact (an IT solution company in India) launching an associate

trainee program with Osmania University in India

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JOB ANALYSISJOB ANALYSIS

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Terminology commonly used in JA Terminology commonly used in JA literatureliterature

JOB – group of positions that have similar duties, tasks, & responsibilities

POSITION – set of duties & responsibilities performed by one person

A job is a general term, a position is more specific.

Eg. as my job, I am a teacher. But to be specific, my position is Elementary Gifted Specialist.

Eg. someone might work at the grocery store as their job, but specifically, their position is produce assistant.

JOB FAMILY – group of 2 / more jobs that have similar duties / characteristics

TASK – separate, distinct & identifiable work activity

DUTY – several tasks that are performed by an individual

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Terminology commonly used in JA Terminology commonly used in JA literatureliterature RESPONSIBILITIES – obligations to perform certain

tasks & duties

DUTY**BEHAVIOR SHOWING A PROPER REGARD / SENSE OF OBLIGATION, JUSTICE MORALITY, OCCUPATION OR POSITION.

RESPONSIBILITY**OBLIGATION,TO DO WHAT IS ASK,IF YOU SAY YOUR GOING TO DO SOMEHTHING DO IT,TRUST,HONEST, TO CARE FOR ANOTHER WHEN ONE

JOB DESIGN – process to ensure that individuals have meaningful work & one that fits in effectively with other jobs

JOB DESCRIPTION – written summary of the content & context of the job, outlining the tasks, duties, & responsibilities of a job, as well as performance standards of each job

JOB SPECIFICATION – written statement of the KSA & other characteristics (human requirements) that are necessary for performing the job effectively & satisfactorily

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Information obtained from JAInformation obtained from JA

What is to be done? How is to be What is to be done? How is to be done? (CONTENT)done? (CONTENT)

Under what conditions is the job to Under what conditions is the job to be done (CONTEXT)be done (CONTEXT)

What KSA & other characteristics are What KSA & other characteristics are required to perform the job (HUMAN required to perform the job (HUMAN REQUIREMENTS)REQUIREMENTS)

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Information obtained from JAInformation obtained from JA JOB CONTENT JOB CONTENT

Duties & responsibilitiesDuties & responsibilities Job demandsJob demands Machines, tools, & equipmentMachines, tools, & equipment Performance standardsPerformance standards

JOB CONTEXTJOB CONTEXT Physical, organizational & social context Physical, organizational & social context Work conditions, & work scheduleWork conditions, & work schedule

HUMAN REQUIREMENTSHUMAN REQUIREMENTS KSA, KSA, Education, Experience & personal attributes Education, Experience & personal attributes

(personality, interests, etc.)(personality, interests, etc.)

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Components of a JAComponents of a JA

JOB DESCRIPTIONJOB DESCRIPTION Statement of tasks, duties, responsibilities, & Statement of tasks, duties, responsibilities, &

context of the jobcontext of the job

JOB SPECIFICATIONJOB SPECIFICATION KSA required to perform the job satisfactorilyKSA required to perform the job satisfactorily

JOB EVALUATIONJOB EVALUATION Comparison of relative value of jobs in Comparison of relative value of jobs in

organization for making compensation organization for making compensation decisionsdecisions

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Methods of collecting information Methods of collecting information for JAfor JA

Number of ways – may be used in Number of ways – may be used in combination or in isolationcombination or in isolation

METHODS:METHODS:InterviewsInterviewsQuestionnairesQuestionnairesObservationsObservationsParticipant diaryParticipant diary

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JA ProcessJA Process Determine purpose of JADetermine purpose of JA Review organization chartReview organization chart

OC shows the division of work in organization, OC shows the division of work in organization, how the job in question related to other jobs, how the job in question related to other jobs, how the job fits into the overall organization, how the job fits into the overall organization, who reports to whom, & whom the incumbent who reports to whom, & whom the incumbent reports toreports to

Select representative jobs for analysisSelect representative jobs for analysis Analyze jobs using data gathering methodsAnalyze jobs using data gathering methods Check information for accuracyCheck information for accuracy Write JD & JS for use in HR activitiesWrite JD & JS for use in HR activities

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Writing JDsWriting JDs Job title & identificationJob title & identification Job summaryJob summaryRelationshipsRelationshipsResponsibilities & dutiesResponsibilities & dutiesStandards of performance & working Standards of performance & working

conditionsconditionsEquipment & toolsEquipment & toolsWorking conditionsWorking conditions

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HRP Process HRP Process

HRP PROCESS:HRP PROCESS:

1.1. Environmental scanningEnvironmental scanning

2.2. Forecasting & analyzing demand for Forecasting & analyzing demand for HRHR

3.3. Forecasting & analyzing supply of HRForecasting & analyzing supply of HR

4.4. Developing action plans to match HR Developing action plans to match HR demand & supplydemand & supply

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Environmental Scanning Environmental Scanning Systematic process of studying & Systematic process of studying &

monitoring the external environment of the monitoring the external environment of the organization in order to pinpoint organization in order to pinpoint opportunities & threatsopportunities & threats

Involves long range analysis of employmentInvolves long range analysis of employment

Factors include economic factors, Factors include economic factors, competitive trends, technological changes, competitive trends, technological changes, socio-cultural changes, politico-legal socio-cultural changes, politico-legal considerations, labour force composition & considerations, labour force composition & supply, & demographic trendssupply, & demographic trends

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Environmental Scanning Environmental Scanning Eg., competitive pressures are likely to increase resulting in Eg., competitive pressures are likely to increase resulting in

enhanced productivity requirements & HRP objective may be enhanced productivity requirements & HRP objective may be ‘to increase employee productivity by 5% in 2 yrs.’ which will ‘to increase employee productivity by 5% in 2 yrs.’ which will require the firm to determine current employee productivity require the firm to determine current employee productivity (output / employees)(output / employees)

Attempts to answer 2 questions:Attempts to answer 2 questions:

Which jobs need to be filled (or vacated) during the next 12 Which jobs need to be filled (or vacated) during the next 12 months?months?

How & where will we get people to fill (or vacate) these jobs?How & where will we get people to fill (or vacate) these jobs?

Demand & supply of labour in loose & tight labour marketDemand & supply of labour in loose & tight labour market

Major impact of the shortage of skilled workforce (tight labour Major impact of the shortage of skilled workforce (tight labour market) in India has been on staff cost (increased by 35% in market) in India has been on staff cost (increased by 35% in 2005)2005)

Fast growing sectors like retail, ITeS, telecom are new & do not Fast growing sectors like retail, ITeS, telecom are new & do not have historical talent to bank on & hence they are hiring from have historical talent to bank on & hence they are hiring from other sectors with skill sets that are relevant to their industriesother sectors with skill sets that are relevant to their industries

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Forecasting HR Demand Forecasting HR Demand FORECASTING ‘makes use of information FORECASTING ‘makes use of information

from the past & present to identify from the past & present to identify expected future conditions’.expected future conditions’.

Forecasts are not perfectly accurate & as Forecasts are not perfectly accurate & as the planning scope becomes shorter the the planning scope becomes shorter the accuracy of forecasts increasesaccuracy of forecasts increases

HR demand forecasts may be internal / HR demand forecasts may be internal / external external

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Qualitative Methods of Demand Qualitative Methods of Demand ForecastingForecasting

Method Advantages Disadvantages

Estimation

People in position estimate the number of people the firm will require in the next yr.

Incorporates knowledge of corporate plans in making estimates

May be subjective

Expert opinion

Panel of experts forecast HR requirements for particular future business scenarios. For this method, there may be a single expert, or estimates of several experts may be pooled together

Delphi Experts go through several rounds of estimates with no face-to-face meeting

Incorporates future plans & knowledge of experts related to mkt., industry & technical development

Subjective, time consuming & may ignore data

Group brainstorming

Face-to-face discussion based on multiple assumptions about future business direction

Generates lot of ideas Does not lead to conclusion

Nominal group technique

Face-to-face discussion Group exchanges facilitate plans

Subjective which may ignore data

Simple averaging

Simple averaging of viewpoints

Diverse view points taken

Extremes views are masked when averaged

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Quantitative Methods of Demand Quantitative Methods of Demand ForecastingForecasting


Trend analysis & projection

Based on past relationship between a business factor related to employment & employment level itself

Simple long-run trend analysis

Extrapolates past relationship between volume of business activity & employment levels into the future

Recognizes linkage between employment & business activity

Assumes that volume of business activity of firm for forecast period will continue at same rate as previous yrsIgnores multiplicity of factors influencing employment levels

Regression analysis

Regresses employment needs onto key variables

Data drivenUses multiple business factors

Difficult to use & apply

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Quantitative Methods of Demand Quantitative Methods of Demand ForecastingForecasting


Simulation models

Uses probabilities of future events to estimate future employment levels

Makes several assumptions about the future regarding external & internal environmentSimultaneously examines several factors

Costly & complicated

Workload analysis

Based on actual content of work

HR requirements based on expected output of the firmProductivity changes taken into account

Job analysis may not be accurateDifficult to apply

Markov analysis

Probabilistic Based on past relationship between business factor related to employment & employment level itself

Data driven Assumes that nature of jobs has not changed over timeApplicable to stable environment

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Causes of DemandCauses of Demand EXTERNAL CHALLENGES:– Economic developments – noticeable effect but

are difficult to estimate (Inflation, unemployment, & changing workforce patterns)

– Social, political & legal challenges – easier to predict, but their implications are not very clear (Implication of abolishing mandatory retirement age in US may not be known until a generation has lived without “65 & out” tradition)

– Technology changes – difficult to predict & assess but may radically alter strategic & HR plans (PC would cause mass unemployment vis-à-vis IT field as a large one employing millions of people directly / indirectly – complicates HR, because it tends to reduce employment in one dept. while increasing it in another)

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Causes of DemandCauses of DemandORGANIZATIONAL DECISIONS:– As orgs. respond to changes in their environment, decisions

are made to modify the strategic plan, which commits firm to long-range objectives – growth rates & new products, markets / services & these objectives dictate number & types of employees needed in future

– To achieve long-term objectives, HR specialists must develop long-range HR plans that accommodate strategic plan

– In short run, planners find strategic plans become operational in form of budgets

– Sales & production forecasts are less exact than budgets but may provide even quicker notice of short-run changes in demand for HR

– New ventures means changing HR demands – when a new venture is begun internally from scratch, lead time may allow planners to develop short-run & long-run employment plans – merging HR group with Corporate Planning staff

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Causes of DemandCauses of Demand

WORKFORCE FACTORS (ATTRITION):– Demand is modified by employee actions

such as retirements,

resignations,

terminations,

death, &

leaves of absence

– Analysis Technique – Markov Analysis of Attrition Rates

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Forecasting TechniquesForecasting TechniquesTrend Projection Forecasts:Trend Projection Forecasts:– Quickest forecasting techniquesQuickest forecasting techniques– Two simplest methods – Two simplest methods –

1.1. ExtrapolationExtrapolation: involves extending past rates of change into : involves extending past rates of change into future (if an avg of 20 production workers was hired each future (if an avg of 20 production workers was hired each month for past 2 yrs, extrapolating that trend into future month for past 2 yrs, extrapolating that trend into future means that 240 production workers will be added during means that 240 production workers will be added during upcoming yr.) upcoming yr.)

2.2. IndexationIndexation: a method of estimating future employment : a method of estimating future employment needs by matching employment growth with an index, needs by matching employment growth with an index, such as ratio of production employees to sales (eg., for such as ratio of production employees to sales (eg., for each million $ increase in sales, production deptt. requires each million $ increase in sales, production deptt. requires 10 new assemblers)10 new assemblers)

– Both are crude approximations in short run because Both are crude approximations in short run because they assume that causes of demand remain they assume that causes of demand remain constant which is seldom the case – making it very constant which is seldom the case – making it very inaccurate for long-range HR projectionsinaccurate for long-range HR projections

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Methods of Demand Methods of Demand EstimationEstimation

TREND ANALYSIS & PROJECTIONTREND ANALYSIS & PROJECTION

• Study of firm’s past employment needs over a period of yrs. to Study of firm’s past employment needs over a period of yrs. to predict future needspredict future needs

• Appropriate business factor that relates significantly to Appropriate business factor that relates significantly to employment levels differs across industries (University – student employment levels differs across industries (University – student enrollment, Sales firm – sales volume, Manufacturing firm – total enrollment, Sales firm – sales volume, Manufacturing firm – total units produced)units produced)

• Steps:Steps:

1.1. Determine & Determine & identify a business factoridentify a business factor that relates to the number & that relates to the number & type of people employedtype of people employed

2.2. Identify historical trendIdentify historical trend of the relationship between this business of the relationship between this business factor & the number of people employedfactor & the number of people employed

3.3. Determine the ratioDetermine the ratio of employees to the business factor, that is, the of employees to the business factor, that is, the average output per individual employee per year – labour productivityaverage output per individual employee per year – labour productivity

4.4. Determine the labour productivity ratioDetermine the labour productivity ratio for the past 5 yrs at least & for the past 5 yrs at least & calculate the average annual rate of change in productivitycalculate the average annual rate of change in productivity

5.5. Calculate the human resource demandCalculate the human resource demand by dividing the business factor by dividing the business factor by the productivity ratioby the productivity ratio

6.6. ProjectProject human resource demand for the target year. human resource demand for the target year.

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SIMPLE LONG-RANGE TREND ANALYSISSIMPLE LONG-RANGE TREND ANALYSIS

• ExtrapolatesExtrapolates the volume of current the volume of current business activity for the years for business activity for the years for which the forecast is being madewhich the forecast is being made

• Since there is a correlation between Since there is a correlation between volume of business activity & volume of business activity & employment level, employment level, linear linear extrapolationextrapolation would also indicate HR would also indicate HR demand by job & skill category demand by job & skill category

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RATIO ANALYSISRATIO ANALYSIS

• RATIO between output & manpower RATIO between output & manpower deployed to achieve that output is deployed to achieve that output is established at a given point of timeestablished at a given point of time

• Eg., revenue per employee, sales vol. per Eg., revenue per employee, sales vol. per salesperson, service contract per engineer, salesperson, service contract per engineer, units produced per employee, etc.,units produced per employee, etc.,

• Historical ratio between:Historical ratio between:

• Some causal factor (sales volume)Some causal factor (sales volume)

• No. of employees required (number of No. of employees required (number of salesperson)salesperson)

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REGRESSION ANALYSISREGRESSION ANALYSIS

• Drawing a statistical comparison of Drawing a statistical comparison of past relationship among variablespast relationship among variables

• Statistical relationship between no. of Statistical relationship between no. of patients (business factor) & patients (business factor) & employment level of nurses in a employment level of nurses in a nursing home may be useful in nursing home may be useful in forecasting the no. of employees that forecasting the no. of employees that will be needed if the no. of patients will be needed if the no. of patients increases by say 20%increases by say 20%

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LINEAR REGRESSION LINEAR REGRESSION ANALYSISANALYSIS

• Relationship between Relationship between two variables which is two variables which is directly & precisely directly & precisely proportionalproportional

• Production output & Production output & manpower are the two manpower are the two variables & the variables & the relationship between relationship between these two is plotted on these two is plotted on a graph by drawing a a graph by drawing a “line of best fit”“line of best fit”

• Analysis aims at Analysis aims at providing a measure of providing a measure of the extent to which the extent to which changes in the values changes in the values of two variables are of two variables are correlated with one correlated with one anotheranother

X

a

b Y

Manpow

er

Production level

x

x

x

x

x x

x

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MARKOV ANALYSISMARKOV ANALYSIS

• Shows the percentage (& actual no.) of employee who Shows the percentage (& actual no.) of employee who remain in each job from one yr. to the next, as also the remain in each job from one yr. to the next, as also the proportion of those who are promoted or transferred or proportion of those who are promoted or transferred or who exit the organizationwho exit the organization

• Internal mobility among different job classifications can be Internal mobility among different job classifications can be forecast based upon past movement patterns – past forecast based upon past movement patterns – past patterns of employee movements (transitions) used to patterns of employee movements (transitions) used to project future patternsproject future patterns

• Pattern is used to establish transitional probabilities & to Pattern is used to establish transitional probabilities & to develop a transition matrixdevelop a transition matrix

• Transitional probabilities:Transitional probabilities:• Indicate what will happen to the initial staffing levels in each Indicate what will happen to the initial staffing levels in each

job category / probability that employee from one job job category / probability that employee from one job category will move into another job categorycategory will move into another job category

• Determine the forecasted employee levels at the end of the Determine the forecasted employee levels at the end of the yryr

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Forecasting & Analyzing HR Forecasting & Analyzing HR SupplySupply

– Internal supply forecasts relate to Internal supply forecasts relate to conditions inside the org. such as conditions inside the org. such as age distribution of workforce, age distribution of workforce, terminations, retirements, etc.terminations, retirements, etc.

– External supply forecasts relate to External supply forecasts relate to external labour market conditions & external labour market conditions & estimates of supply of labour to be estimates of supply of labour to be available to the firm in the future in available to the firm in the future in different categoriesdifferent categories

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Methods of Forecasting External HR Methods of Forecasting External HR SupplySupply

INTERRELATED FACTORS THAT MUST BE CONSIDERED IN PROJECTING INTERRELATED FACTORS THAT MUST BE CONSIDERED IN PROJECTING EXTERNAL HR SUPPLYEXTERNAL HR SUPPLY

• Government estimates of population available for workGovernment estimates of population available for work

• Net migration into and out of the areaNet migration into and out of the area

• Numbers entering the workplaceNumbers entering the workplace

• Numbers leaving the workplaceNumbers leaving the workplace

• Numbers graduating from schools / collegesNumbers graduating from schools / colleges

• Changing workforce compositionChanging workforce composition

• Technological shiftsTechnological shifts

• Industrial shiftsIndustrial shifts

• Trends in the industry (actions of competing employers)Trends in the industry (actions of competing employers)

• Economic forecastsEconomic forecasts

• Government regulations & pressures such as job reservations for Government regulations & pressures such as job reservations for certain groupscertain groups

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Methods of Forecasting Internal HR Methods of Forecasting Internal HR SupplySupply

HR INVENTORYHR INVENTORY

• Obtains & stores information about each employee of the org. in Obtains & stores information about each employee of the org. in a manner that is easily accessible because it is necessary for a manner that is easily accessible because it is necessary for HRPHRP

• Employee information stored in the inventory relates to KSA, Employee information stored in the inventory relates to KSA, experience, & career aspirations of the present workforce of the experience, & career aspirations of the present workforce of the firmfirm

• Contents of HR InventoryContents of HR Inventory• Personal identification informationPersonal identification information

• Biographical informationBiographical information

• Educational achievementsEducational achievements

• Employment historyEmployment history

• Information about present jobInformation about present job

• Present skills, abilities, & competenciesPresent skills, abilities, & competencies

• Future focused dataFuture focused data

• Specific actions (like training needed for achieving career goals)Specific actions (like training needed for achieving career goals)

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• 2 types –2 types –

• Skills inventory: describes the skills & Skills inventory: describes the skills & knowledge of non-managerial employees knowledge of non-managerial employees & is used primarily for making placement & is used primarily for making placement & promotion decisions& promotion decisions

• Management inventory: contains the Management inventory: contains the same information as in skills inventory, same information as in skills inventory, but only for managerial employees which but only for managerial employees which describes the work history, strengths, describes the work history, strengths, weaknesses, promotion potential, career weaknesses, promotion potential, career goalsgoals

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• Can be used to develop employee Can be used to develop employee replacement chartsreplacement charts

• Replacement charts – lists current jobholders & Replacement charts – lists current jobholders & identifies possible replacements should there identifies possible replacements should there be a vacancy for reasons such as resignations, be a vacancy for reasons such as resignations, transfers, promotions, etc.transfers, promotions, etc.

• Replacement charts include the following Replacement charts include the following information on possible replacements like information on possible replacements like current job performance, potential for current job performance, potential for promotion, training experience required by promotion, training experience required by replacement to be ready for the key positionreplacement to be ready for the key position

• Chart also details ‘when’ a replacement is Chart also details ‘when’ a replacement is needed for a ‘job’ – short term forecasts in needed for a ‘job’ – short term forecasts in naturenature

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SUCCESSION ANALYSIS & PLANNINGSUCCESSION ANALYSIS & PLANNING

• A systematic & deliberate process of identifying, A systematic & deliberate process of identifying, developing & tracking key individuals within the developing & tracking key individuals within the firm to prepare them for assuming senior & top-firm to prepare them for assuming senior & top-level positions in future.level positions in future.

• Eg., SAIL poaching from global players & preparing Eg., SAIL poaching from global players & preparing a ‘defence system’ wherein 2a ‘defence system’ wherein 2ndnd & 3 & 3rdrd line of line of command is being prepared; IBM, ExxonMobil, GE, command is being prepared; IBM, ExxonMobil, GE, etc., have already hired its CEO for 2010etc., have already hired its CEO for 2010

• Eg., Godrej, Marico (fly. owned business) in India Eg., Godrej, Marico (fly. owned business) in India have ‘drop dead’ succession plan which keeps the have ‘drop dead’ succession plan which keeps the wheel moving where a promoter of the fly-owned wheel moving where a promoter of the fly-owned firm may always be around to guide the companyfirm may always be around to guide the company

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LABOUR WASTAGE ANALYSISLABOUR WASTAGE ANALYSIS

• Traditionally LW is measured by the Traditionally LW is measured by the employee turnover index (% wastage index)employee turnover index (% wastage index)

• (No. of empls leave in mth / avg. empls) x 100(No. of empls leave in mth / avg. empls) x 100

• Turnover classified into:Turnover classified into:

• Avoidable separations (resignations & dismissal)Avoidable separations (resignations & dismissal)

• Unavoidable separations (retirement, death, & Unavoidable separations (retirement, death, & marriage)marriage)

• Turnover rate = [(S-US) / M] x 100Turnover rate = [(S-US) / M] x 100

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ABSENTEEISM RATEABSENTEEISM RATE

No. of man-days lost due to No. of man-days lost due to absenceabsence

from work during the periodfrom work during the periodARAR = --------------------------------------- x 100= --------------------------------------- x 100 Avg. number of Total numberAvg. number of Total number empls. during this pd. of daysempls. during this pd. of days

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Thank YouThank You