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Human Resource Planning
Tejashree Talpade
HR Planning
HR Planning is the process of examining an organizations’ future human resource need.
It involves: Identifying and acquiring the right number of people with the proper skills Motivating them to achieve high performance Creating interactive links between business objectives and resource
planning activities
Human Resource Planning (HR Planning) is both a process and a set of plans.
It is how organizations assess the future supply of and demand for human resources.
An effective HR plan also provides mechanisms to eliminate any gaps that may exist between supply and demand. Thus, HR planning determines the members and types of employees to be recruited into the organization or phased out of it.
Dynamic by nature, the HR planning process often requires periodic readjustments as labor market conditions change.
Human Resource Planning
Technological forecastsEconomic forecastsMarket forecastsOrganizational planningInvestment planningAnnual operating plans
Technological forecastsEconomic forecastsMarket forecastsOrganizational planningInvestment planningAnnual operating plans
Annual employment requirements
NumbersSkillsOccupational categories
Annual employment requirements
NumbersSkillsOccupational categories
Existing employment inventory
After application of expected loss and attrition rates
Existing employment inventory
After application of expected loss and attrition rates
VariancesVariances EndEnd
If surplusIf surplus If shortageIf shortage
Decisions
Layoff,retirement,
etc.
Decisions
Layoff,retirement,
etc.
Decisions
Overtime,recruitment,
etc.
Decisions
Overtime,recruitment,
etc.
EndEnd EndEnd
Strategic Planning Human Resource Demand Human Resource Supply
Compared
with
If none
ActionDecisions
HRP Process
All effective HR planning shares certain features. It is generally agreed that HR planning involves four distinct phases or stages:
Situation analysis or environmental scanningSituation analysis or environmental scanning
Forecasting demand for human resourcesForecasting demand for human resources
Analysis of the supply of human resourcesAnalysis of the supply of human resources
Development of plans for actionDevelopment of plans for action
The HRP Process
Why is HRP important ?
Even an imperfect forecast is better than none at all Anticipating needs – prepare for the future gives you an edge Address potential problems – avoid skill deficiencies
What is HRP?
HRP is a sub-system of total organizational planning. HRP facilitates the realization of the company’s objectives for
the future by providing the right type and number of personnel HRP is also called Manpower planning, Personnel planning or
Employment planning
HRP ensures that the organization has: Right Number Right Kind Right Place Right Time
Benefits of HRP
Create reservoir of talent Prepares people for future Expand or Contract Cut Costs Succession Planning
Forecasting Techniques
Managerial Judgment Ratio trend analysis Work Study Techniques Delphi Technique Flow Models Others
Factors in Demand forecasting
Social factors – Working conditions, Govt. regulations, environmental conditions, religious, cultural.
Technological Factors Political Factors – Trade restrictions, War etc. Economic Factors Demand generation Growth Employee Turnover
Job Analysis
Job Analysis is not a one time activity as jobs are changing constantly
The job and not the person – an important consideration in job analysis is conducted of the job and not of the person
It simply highlights what are the minimum activities that are entailed in a job.
Job Analysis
Skill Range Does the job cover a reasonable but not too extensive range
of different tasks? Are there opportunities to use knowledge and skills
associated with effective performance of the job? Can the individual make full use of their skills and develop
their skill base?
Job Purpose Is the purpose of the job clearly and unequivocally Is its contribution to the organisation’s objectives evident? Is its contribution to its dept obvious? Is the post holder responsible for the successful completion
of the whole job? Do the internal systems help the post holder do the job?
Job Analysis
Job Analysis
Relationships Are the formal relationships clearly specified and related to
the achievement of the objectives? Is there opportunity to develop working relationships within
and across the department’s boundaries? Are colleagues available with whom the post holder can
discuss professional issues
Job Analysis
Job Outcomes: Can the post holder see the result of their efforts? Can the results of the post holders efforts be recognised? Does the post holder have the opportunity to influence their
own levels of performance?
Rewards Are the rewards appropriate and obtainable? Are the rewards linked directly with the performance of the
post holder?
Steps in Job Analysis
1. Organizational Analysis – Overview of various jobs in the organization and the linkages between them and the contribution of various jobs towards achieving organizational efficiency and effectiveness.
2. Uses of Job Analysis Information3. Selection of jobs for analysis4. Collection of Data5. Preparation of Job description – tasks, duties, responsibilities6. Preparation of Job Specification – personal attributes required
in terms of education, training, aptitude and experience to fulfill the job description
Reasons For Conducting Job Analysis
Staffing – would be haphazard if recruiter did not know qualifications needed for job
Training and Development – if specification lists a particular knowledge, skill, or ability, and the person filling the position does not possess all the necessary qualifications, training and/or development is needed
Compensation and Benefits – value of job must be known before dollar value can be placed on it
Reasons For Conducting Job Analysis (Continued)
Safety and Health – helps identify safety and health considerations Employee and Labor Relations – lead to more objective human resource
decisions Legal Considerations – having done job analysis important for supporting
legality of employment practices
Work Activities – work activities and processes; activity records (in film form, for example); procedures used; personal responsibility
Worker-oriented activities – human behaviors, such as physical actions and communicating on the job; elemental motions for methods analysis; personal job demands, such as energy expenditure
Machines, tools, equipment, and work aids used Job-related tangibles and intangibles – knowledge dealt with or applied
(as in accounting); materials processed; products made or services performed
Summary of Types of Data Collected Through Job Analysis
Work performance – error analysis; work standards; work measurements, such as time taken for a task
Job context – work schedule; financial and nonfinancial incentives; physical working conditions; organizational and social contexts
Personal requirements for the job – personal attributes such as personality and interests; education and training required; work experience
Summary of Types of Data Collected Through Job Analysis
Conducting Job Analysis
The people who participate in job analysis should include, at a minimum:
The employee The employee’s immediate supervisor Other key stakeholders in the organization
Methods of collecting information
Job Questionnaire: Most cost effective method Elicits information from workers & their immediate supervisor You can get intimate detailed knowledge of their jobs Questionnaire needs to be structured in advance Responses can be used to create a job description
Questionnaire method
Disadvantages
Right population – questions can be interpreted differently Not everyone is able to describe fully & exactly Questionnaire not easy to make to cover all aspects
Interview
Disadvantages:
Time consuming Quality and experienced analyst Distrust of interviewers
Observation
It is good for simple and repetitive jobs
Disadvantages:
Presence of analyst can cause stress Jobholder may purposely reduce the pace of
activity to justify overtime Cannot be used where job requires personal
judgment and intellectual ability
Independent Observers
Diary – One or more incumbents note duties and frequency of tasks performed
Critical Incidents – Incumbents brainstorm of critical incidents that happen routinely and infrequently – this method is excellent for training
Photo tape recording Review of records – Maintenance records, repair records at
seasonal variations
Data collected
List of tasks List of decisions made Amount of supervision received Supervision exercised Diversity of functions performed Interaction with other staff Physical conditions Software used
Tasks Responsibilities Duties
Job Analysis
Job Descriptions
Job Specifications
Knowledge Skills Abilities
Human Resource Planning
Recruitment
Selection
Training and Development
Performance Appraisal
Compensation and Benefits
Safety and Health
Employee and Labor Relations
Legal Considerations
Job Analysis for Teams
Job Analysis: A Basic Human Resource Management Tool
Job Description
Difficult to have a perfect and fully inclusive JD – as one moves up in the hierarchy of the organization, a detailed JD becomes very difficult.
Most orgs would prefer not to describe the job fully, because employees would stick to it and not do anything beyond
Supervisors job may become redundant Rapid technological changes
Job Description
A job description Clarifies work functions and reporting relationships, helping
employees understand their jobs. Aids in maintaining a consistent salary structure. Aids in Performance evaluations. Is a set of well written duty statements containing action words
which accurately describe what is being done.
Duty statements should focus on primary, current, normal, daily duties and responsibilities
of the position (not incidental duties, an employee’s qualifications or performance, or temporary assignments). Related or similar duties should be combined and written as one statement.
Should be a discreet, identifiable aspect of the work assignment, described in one to three sentences, and should be outcome-based, allowing for alternate means of performing the duty, changes in technology, preferences of employees and supervisors, and accommodations of workers with disabilities, without altering the nature of, and/or the duty itself.
Writing a JD
Duties are to be listed in order of importance, not necessarily frequency.
There is no need to group tasks/duties under sub headings, however it is acceptable.
Commence each statement with a verb eg 'processes', 'maintains', 'records' etc, .
Avoid using the term 'responsible for' rather describe the action e.g. 'obtains', 'coordinates' etc.
Writing a JD Frequencies should be identified in multiples of 5%. Duties that
take less than 5% of the officer's time should not be shown as separate but grouped with other duties.
Use action verbs which tell what the position does. Examples include "supervises", "programs", "directs" and "analyzes". Provide specific examples to illustrate the duties Avoid ambiguous terms such as "oversees" or "manages", instead, describe the activities involved in overseeing or managing. Quantify activities when possible. Examples may include: How often is the activity performed? How much money does this position manage? What is the volume of work handled?
Writing a JD : Primary Function
What is the Position's objective? What is the Role of Position (including key relationships)? Position summary [Briefly state the purpose or objective of the
position]: Essential job functions [State the major responsibilities, indicate
New (N) or Existing (E), and the estimated percent of time devoted to each - include descriptive statements of typical or representative tasks associated with the major responsibilities/functions]:
State briefly the general function of your position, including the basic nature of the department and the relationship of your position with other positions in your work area
Person Specification
Person Specification is a statement derived from the job analysis process and the job description
Of the characteristics that an individual would need to possess in order to fulfill the requirements of a job
Compiling a person specification
Attainment: What educational requirements and specialist knowledge are really required for successful completion of the task
Experience: What roles and tasks should have been occupied to ensure that the post holder is adequately equipped?
Abilities: What skills need to be deployed for the competent performance of the tasks?
Aptitude: Where will the post-holders strengths lie;what particular talents do they need to possess?
Interests: What interest relevant to the work will suggest possession of sought after skills /aptitudes?
Exercise
Recruitment and Selection
HR Processes – An Employee Life Cycle
Routine HR Functions
Manpower planning Recruitment and Selection Training & Development Appraisals – Performance Management Transfers / Promotions Compensation and Benefits
Non Routine HR Functions
Culture Management Change Management Cross Cultural Issue Management HR Audit HR Accounting Outsourcing of HR VRS / Existing Employee Management / Succession
Planning
HR Process Mapping
Business Planning
HR Policy HR Planning
Recruitment Selection
Performance Management
Compensation Management
TalentManagement
Training Development
HR Systems Data Mgmt
EmployeeRelations
OccupationalHealth and Safety
Recruitment: Overall process of defining jobs profiles and inviting applicants.
Selection: Specific process of narrowing the focus and selecting the perfect fit
Definitions
Manpower Planning
Business Needs Financial Feasibility Future Plans Brand Name
Manpower Planning
Why does the position exist? Temporary Replacement Permanent Replacement Creation of new position
Manpower Planning
Do we need to review the position? Current and Ongoing need Sufficient budget Is the position description current Appropriate current level Is a full time employee required?
Manpower Planning
What about existing staff? Do we have a succession plan for the replacement? Does the vacancy create career development
opportunities for existing people?
Recruitment and Selection process
Business Plan Related HR Plan
Competencies People
Compensation and Benefits Numbers
Current : Budgeted and Actual Future : Short Term and Long Term
Three Conditions Current = Future
Maintenance B = A Vacancy Filling B > A
Current > Future Redundancy Planning
Current < Future Recruitment Plan
Recruitment and Selection process
Recruitment Plan Position Description/Specifications Person Specifications
Method of Recruitment Internal
Reference/Promotions/Transfers External
Advertisement Where to advertise Writing an advertisement
Consultants Retainer Multiple
Internet Receiving Applications and Screening/Filing
Recruitment and Selection process
Screening /Short-listing Coding Computer aided screening
Selection Tools Written Tests Group Discussions Interviews Assessment Centres Reference Checks
Offer Joining
Process Key Parameters
Process must be Equitable Objective Open to scrutiny Transparent Merit based Confidential
Common Hiring Mistakes
Relying on an interview to evaluate a candidate Using successful people as model Using too many criteria Evaluating”personality” not job skills Using yourself as an example Not using statistically validated data
Exercise
Performance Management
An objective is a simple statement of an end result to be achieved within a specified time frame.
It should be short, clear and specific. It can also be in the form of an activity as it may not
always be possible to quantify the end results.
Objective setting
Gives direction to job. Helps focus on important job areas. Assists review and change in job emphasis. Provides a basis for appraisal, counselling and
feedback. Increases mutual job understanding with superior.
Why objective setting?
Are significantly important areas of job. When performed well, improves overall results. Are maximum payoff job areas. Represent the work which account for 80% of results.
Objectives
Targets – are specific conditions to be achieved/indicates how much of what and by when
Activities – action steps which lead to the end results / used when targets are not quantifiable / indicate what by when
Objectives
What is the job ? What are the end results expected ? What policies / procedures / work methods are impeding
performance ? What changes are needed for better results ? How can work assignments be regrouped/altered to improve
schedule ? What problems need to be overcome next year ?
Process of Goal Setting
Objectives vs targets
Focus on imp. Areas Related to job description Signposts Direction of work Optimum number 6
Measures imp. Results Related to objectives
Milestones/Pathways Specific condition One or more for each
objective
Observable Basis for appraisal Jointly evolved Extra effort Clear/consistent with dept. objective Time bound Initiative Verifiable End result- emphasis on Satisfying
Criteria for objectives
S - Specific M - Measurable A - Attainable R - Relevant T - Time-bound
Objectives
Establishing specific goals to support stated purpose. Determining the importance of these goals. Making plans for action. Arriving at performance standards and measurement
criteria. Stating anticipated problems.
Process
Weighing the resources required to carry out the planned action.
Providing for interaction of organization and individual goals.
Following up with actual performance measurement and evaluation.
Process…
HRs role in Performance Management
Delivering time-lines Ensuring timely adherence Auditing the objectives jointly with line managers Ensuring objectives are in line with organisational goals Requesting modification if required
Competency
It is derived from the Latin word ‘Competere’, which means to be suitable.
The concept was originally developed in Psychology denoting Individual’s ability to respond to demand placed on them by the environment.
Competencies defined
A collection of characteristics (i.e. skills, knowledge and self-concept, traits, behaviour, motivation, etc.), that enables us to successfully complete a given task.
Self-concept Self-concept (Attitude)(Attitude)
SkillsSkills KnowledgeKnowledge
Iceberg Model of Competencies
Competencies in the Corporate World
Communication Critical Thinking Ethics / Social Responsibility Information Technology Interpersonal Diversity Leadership Managing Change Self-managed Learning Teamwork Technical know-how
Emotional Competency Framework
Personal Competence Social Competence
Self Awareness: Knowledge of one’s self-concept and values
Empathy: Awareness of others’ feelings and emotions
Self Regulation:
Management of one’s impulses and emotions
Social Skills: Adeptness at inducing desired responses in others
Motivation:
Self-guidance and direction
* from Working With Emotional Intelligence, by Daniel Goleman
Competency Classification
Individual Organisation
Social BehaviouralLeadershipGeneric competencies
OrganisationalCultural
Technical Functional / operational knowledgeSkill knowledgeThreshold competencies
Core competenciesCorporate competenciesDistinctive competencies
Why use competencies
Competencies help individuals and organisations to improve their
performance and deliver results can be quantified and communicated can be taught, learned, measured and monitored
Benefits of competency-modeling
Integrates fragmented management and practices Links individual or group performance to strategic direction Helps develop high value activities for the organisation Focusing on what people do, not what they are Leads to organisational flexibility and stability Leads to competitive advantage Is participatory and involving Is objective; therefore, can be geared to possible change in business future
and to ensure relevance
Benefits of competency-modeling – HR Delivery
Matching of Individuals and Jobs Employee Selection Training and Development Professional and Personal Development Performance Measurement Succession Planning
Who Identifies competencies? Competencies can be identified by one of more of the following category of
people: Experts HR Specialists Job analysts Psychologists Industrial Engineers etc.
in consultation with: Line Managers, Current & Past Role holders, Supervising Seniors, Reporting and Reviewing Officers, Internal Customers, Subordinates of the role holders and Other role set members of the role (those who have expectations from the role holder and who interact with him/her).
What Methodology is used?
The following methods are used in combination for competency mapping:
Interviews Group work Task Forces Task Analysis workshops Questionnaire Use of Job descriptions Performance Appraisal Formats etc.
How are they Identified?
The process of identification is not very complex. One of the methods is given below:
1. Simply ask each person who is currently performing the role to list the tasks to be performed by him one by one, and identify the Knowledge, Attitudes, and Skills required to perform each of these.
Consolidate the list. Present it to a role set group or a special task force constituted
for that role. Edit and Finalize.
What Language to Use?
Use Technical language for technical competencies. For example: knowledge of hydraulics.
Use business language for business competencies. Example: Knowledge of markets for watch business or Strategic thinking.
Use your own language or standard terms for Behavior competencies. Example: Ability to Negotiate, Interpersonal sensitivity, Sales techniques. Too technical and conceptual knowledge align to the organization and people may create more problems than help
HRD Audit
HRD audit is a comprehensive evaluation of the current HRD strategies, structure, systems, styles and skills in the context of the short- and long-terms business plans of a company. It attempts to find out the future HRD needs of the company after assessing the current HRD activities and inputs and thus proving to be an effective tool for the organization development process.
How is Human Resource Analysis Done?
Human Resource Audit Purpose:
To identify the size, skills and structure surrounding current employees and
to identify future human resource needs of the organization
Question Answered:Are the human resources a strength or a weakness?
The Audit: Principles
Obtain some basic information on the people and policies involved in the organization
Explore in detail the role and contribution of the human resources management function in the development of strategy
The Audit: Contents
People in the Organization Role and Contribution of HR strategy
HR Audit: People in the organization
Employee numbers and turnover
Organization structure
Structures for controlling the organization
Use of special teams, e.g. forInnovation
Level of skills and capabilitiesrequired
Morale and rewards
Employee and industrial relations
Selection, training and development
Staffing levels
Capital investment/employee
Role of quality and personal servicein delivering the products or services
of the organization
Role of professional advice indelivering the product or service
Role & Contribution of HR Strategy
Relationship with strategy Key characteristics of HR strategy Consistency of strategy across different levels Responsiveness of HR strategy in leading change in the
organization Role of HR strategy in leading change in the organization Monitoring and review of HR strategy Time horizon for operation of HR strategy
What the Audit Achieves
Provides information that is useful in deciding how feasible a strategy is
Identifies any human resource “gaps” (human resources necessary for a proposed strategy minus the current state of human resources)
Allows the organization to “benchmark” their performance against other organizations (benchmark is a process of comparison)
Human Resources as a CSF
Critical Success Factor (CSF) = a reason why one organization is superior to another
HR can be a CSF if employees have unique skills
The HR audit is based on the following premise
The Vision and Mission of the Organization: The Audit consultants are able to formulate their strategies
based on these objectives. They also analyze the competencies that the organization will need to achieve these targets whether long term or short term.
The consultant breaks down these organization level competencies to individual skills to be developed at various levels. These competencies may deal with various aspects like technical, conceptual or people management skills
Current competencies available in the company
This is generally done through examining the details of the employees like their qualifications, job descriptions, training undertaken, thus basically trying to identify the skill level of the employees at various levels.
Organization process documents like performance appraisal feedback and training need identification provide additional information on this.
Departmental heads and other employees provide insights into the competency and other skill requirements.
Available HRD systems that help build the competency levels required
achieving the long-term goals or the short-term goals.
These provide details for the HRD Systems maturity score in the HR scorecard.
The existing HR processes tell the auditors the maturity level of the process that is studied in detail to ensure the availability, utilization and development of skills in the organization.
Effectiveness of the HR systems and process
The presence of the HRD systems is not sufficient to achieve success. These processes also need to be efficient. Example: An organization may have an excellent Exit interview system in place. But if the feedbacks from the Exit interviews are not utilized for improving organization systems then the Exit interview process is of no use and becomes redundant over a period of time.
The exit interview should give inputs for training needs or improving people management skills or compensation policies in some cases.
Ability of the existing HR structure in managing the HR process and policies
The consultants identify whether the current HR structure is sufficient to handle the pressure of the future needs of the company. To implement any OD intervention or handle any Change management exercise the HR task force has to be at its best with all the required tools of competencies and skills.
Leadership styles of the Management team
The senior manager leadership style is very important for any change process and implementing the HR audit. It is necessary that their management style facilitate in creating a learning organization. The leadership styles define the culture of the organization
The HR audit process
Auditing a human resource department is a systematic process that involves at least two steps:
Gathering information to determine compliance, effectiveness, costs and efficiencies.
Evaluating the information and preparing a written report, with an action plan based on exposures, priorities and a timeline for instituting changes. In order to reduce exposure to legal liability, some changes will need to be implemented immediately, while others can be completed in three to six months.
Immediate benefits of an HR audit
Very typically, small to medium-size companies realize almost instant cost savings once an audit is complete and changes are implemented. For example: Correcting benefit premium errors and overpayments can
generate many thousands of dollars in savings. Examining the effectiveness of recruitment
A small or medium-size firm also may benefit from using an HR audit to: Study retention and turnover, employing a neutral party to solicit honest
feedback from employees, and allowing the company to develop an action plan.
Examine the company's foundation for its compensation philosophies and develop an objective method of grading jobs, with new ranges that are market-competitive and internally equitable.
Improve employee communication and ensure that the HR department is accessible.
Identify opportunities to outsource areas within human resources that offer more value to the company
