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8/21/2019 HRM Unit-2 (2)
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Meaning:HRP is a process of striking balancebetween human resources required andacquired in an organization.
Definition:
Human Resource Planning is a process ofdetermining and assuming that theorganization will have an adequate number
of qualified persons, available at the propertimes, performing jobs which meet the needsof enterprise and which provide satisfactionfor the individuals involved. Beach.
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Ensure adequate supply of manpower as and
when required
Ensure proper use of existing human
resources in the organization Forecast future requirements of human
resources with different levels of skills
Assess surplus or shortage, if any, of human
resources available over a specifies period oftime
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Anticipate the impact of technology on jobs and
requirements of human resources
Control the human resources already deployed in
the organization
Provide lead time available to select and train the
required additional human resource over a specifiedtime period
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Type and Strategy of Organization
Organizational Growth Cycles and Planning
Environmental Uncertainties
Time Horizons
Type and Quality of Information
Labour Market
Outsourcing
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Environmental Scanning
Economic factors Eg., General and regional conditions
Technological Changes Eg., Robotics and Automation Demographic changes Eg., Age, Literacy
Political and legislative issues Eg., Laws and
administrative rulings
Social concerns Eg., Educational facilities
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Organizational objectives and policies
Specific policies need to be formulated to address
them following questions: Are vacancies to be filled by promotions from within or
hiring from outside?
How to enrich employees job? Should the routine and
boring jobs continue or be eliminated? How to ensure continuous availability of adaptive and
flexible workforce?
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HR Demand forecast
Demand forecasting is the process of estimating the
future quantity and quality of people required. Thebasis of the forecast must be the annual budget and
long-term corporate plan, translate into activity
levels for each functions and department.
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Demand Forecasting Techniques
Managerial Judgement
Ratio-trend analysis
Regression analysis
Work-study techniques
Delphi technique Flow models
Others
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Managerial Judgement
Bottom-up Approach: Managers submit theirdepartmental proposals to top managers who arrive
at the company forecasts.
Top-down Approach: Top managers prepare company
and departmental forecasts. These forecasts are
reviewed with departmental heads and agreed upon
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Ratio-Trend Analysis
Involves studying past ratios and forecasting future
ratios making some allowances for changes in theorganization or its methods.
Regression Analysis
Forecast is based on the relationship between salesvolume and employee size.
Regression analysis is more statistically
sophisticated.
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Planned output for next year 25,000 units
Standard hrs/unit 4
Planned hours required for the year(25,000x4)1,00,000
Productive hrs per worker/year (after allowing
normal overtime, absenteeism and idle time)2,000
Number of workers required 50
(1, 00,000/2,000)
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The members are asked to provide their estimates of
human resource requirements through a series of
carefully designed questionnaire.
Each member anonymously and independently completes
the first questionnaire
Results of the first questionnaire are compiled at acentral location, transcribed and copied.
Each member receives the copy of the result
After viewing the results, members are again asked to
review their estimates. The initial results typicallytrigger new estimates or cause changes in the original
position.
Steps d and e are repeated as often as necessary until a
consensus is reached.
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Flow Models
Among the flow models, the simplest one is
called theMarkov Model.
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Supply forecast determines whether the HR
department will be able to procure the
required number of personnel
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The supply analysis covers
Existing Human Resources
Internal sources of supply
External sources of supply
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Existing human resources (PresentEmployees)
Analysis of present employees is greatlyfacilitated by HR audits. HR audits
summarise each employees skills and
abilities
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Turnover rate
Turnover rate is the traditional and simple
method of forecasting internal supply. The
turnover rate is:
Number of separations during one year X 100Average number of employees during the year
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Conditions of work and absenteeism
Number of persons days lost X 100
Average number of persons x number of
working days
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Movement among jobs
Some jobs are sources of personnel for otherjobs. For example, secretaries may be
obtained by the promotion of typists and
branch managers are obtained from a pool of
section managers.
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External Supply
New blood and new experience will be
available
Organization needs to replenish lost
personnel
Organizational growth and diversification
create the needs to use external sources to
obtain additional number and type of
employees.
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What is Recruitment?
Recruitment is generating of
applications or applicants for specific
positions to be filled up in the organization.
Define Recruitment.
A process of searching for prospective
employees and stimulating and encouraging
them to apply for jobs in an organization Flippo
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1.Present Employees2. Employee Referrals
3. Former Employees
4. Previous Applicants
1. Employment Exchanges
2. Advertisements
3. Employment Agencies
4. Professional Associations
5. Campus Recruitment
6. Deputation
7. Word-of-Mouth
8. Raiding
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