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HUMAN RESOURCE PLANNINGHRP The key facet of HRP is that it is proactive innature. It attempts to plan and what might happen in the various domains of the organization and to develop plans to address these events prior to their actual happening.HRP HRP is the first component of HRM strategy.HRP HRP goes far beyond simple hiring and firing.It involves planning for the deployment of the organization's human capital in the most effective ways in line with organization strategy.
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HUMAN RESOURCE PLANNING
HRP
The key facet of HRP is that it is proactive in nature. It attempts to plan and what might happen in the various domains of the organization and to develop plans to address these events prior to their actual happening.
HRP
HRP is the first component of HRM strategy.
HRP
HRP goes far beyond simple hiring and firing. It involves planning for the deployment of the organization's human capital in the most effective ways in line with organization strategy.
HRP
Objectives of HRP- Prevent overstaffing and understaffing.- Ensure that organization has right employee
in the right place at the right times.- Provide direction to all other HR activities.- Ensure the organization is responsive to
changes in environment.
HRP
- Unite perspectives of both line and staff managers.
HRP
Types of planning.
Planning is done on two different levels.
-Aggregate planning.
- Succession planning
HRP
-Aggregate planning.
Anticipates needs for groups of employees in specific, usually lower level jobs to ensure sustained growth.
HRP
Steps in aggregate planning.
-Step I
- Environmental Scanning
External environment
Internal environment.
HRP
Step II - Forecasting the demand for employees.
- Organisation needs to consider its strategic plan.
- Technological development
- Labor turnover
-Change in the production process, any new initiatives.
- Promotions and transfers.
HRP
Most organizations rely more on the judgment of experienced and knowledgeable managers in determining employee requirements.
- Bottom Up Plan- Top Down Plan
HRP
Step III Supply forecasting
- This process involves estimating the actual number of employees and skills these employees must have.
-Internal Supply
Availability of people internally for Promotions, transfers – Skill inventory.
HRP
External supply
Consists of those individuals in the labor force who are potential recruits of the firm, including those working for another firm.
- Level of skill being sought determines the relevant labor market.
HRP
Step IV HR Programming (Gap analysis)
Reconcile the forecasts of the labor demand and supply.
This process identifies the potential shortages or surpluses of employees and the measures to be taken to ensure that personnel demand equals personnel supply.
HRP
Step – V – Action programming
Includes converting an HR plan into action.
HRP
Step –VI – Control and evaluation.
- Deviations from the plan are identified and actions are taken.
HRP
Managing HR Shortage
- In planning for anticipated shortages an organization needs to consider whether the shortage is temporary or permanent & then has to come up the measures.
HRP
Measure to overcome HR Shortages. - recruit new permanent employees. - Offer incentives to postpone retirement -Rehire retires part-time - Attempt to reduce turnover -Overtime -Outsource the work -Contract employees
HRP
Hire temporary employees
HRP
Strategies for managing Surpluses - Stop Hiring or recruiting - Do not replace those who leave. - Offer early retirement incentive - Reduce work hours - Leave of absence - Lay offs - Retrenchments- Reduce outsourcing
HRP
Succession Planning.
SP involves identifying key management positions that the organization can not afford to have vacant.
HRP
Succession planning serves two purposes
- It facilitates the transition when an employee leaves.
HRP
- Secondly succession planning identifies development needs of high potential employees
HRP
Traditional Succession Planning utilizes a relatively simple tool called replacement chart.
RC identifies
- key positions
-Possible successors for these positions
- Whether each potential successor has background to assume the job responsibilities
HRP
- Expected time it will take for the potential successor to be ready.
HRP
Some Organisation are much more systematic about their SP.
Their replacement chart may contain specific skills,competencies,and experiences rather than subjective time readiness.
HRP
VP-Human Resource
SM - HRD SM-CompensationSM – Employee
Relations
HRP
Succession Planning helps not only to fill the key positions but also it identifies the training and development needs of the managers.
HRP
Succession planning investment-oriented approach.
Though the benefits of a well –developed succession planning can be siginficant,such programme can also involve significant cost.
Employer has to that there is at least one individual to assume every critical position if something prevents the incumbent to continue.
HRP
The more prepared an individual is for a promotion that he or she does not receive, the greater the possibility that he might seek such position elsewhere.
Result is organization invests on individual and competitor gets the benefits.
HRP
Another key issue is to whether or not disclose the promotion well in advance.
If we disclose,
-Employees can be motivated and can be retained.
- But he may develop unrealistic expectations.- If we don’t disclose,
- Allows flexibility as business needs change.
- High performers may leave the organization.
HRP
HR Policies Human resource management policies are vital for
organizations who are serious about resolving HR issues and finding HR solutions.
Policies provide guidelines for action for people management & for the development of HR programs and practices.
It provides the clear guidelines to the various HR strategies.
HRP
It gives transparency and clarity. Avoids lawsuits.
HRP
Steps involved in the development of policies.- Identification of needs.- Goals of the HR policies- Development of the HR policies- Review of the policies- Submit the policy to the management for their review
& support.- Review of legal implications- Implementations.
This deals with how all the other HR activities implemented.Thus it is a significant SHRM activity.