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2Lal Bahadur Shastri Institute of Management, Dwarka

Human Resource Planning - Todays session

Surplus and

Deficit of

Employees

Job Analysis &

Methods

Job Description

& Job

Specification

Human

ResourcePlanning:

Demand

forecasting &

Supply

Forecasting

Recruiting Yield Pyramid

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It is a systematic exploration of the activities within a job. It is the process of studying &collecting information related to the operations & responsibilities of a specific job.

Human Resource Management

Job facts are gathered, analyzed, and recorded, as the job exists.Job Analysis

Job Analysis is performed on three occasions:

When an organization is founded & a job analysis program is initiated for the first time.

It is formed when new jobs are created.

Jobs being significantly changed as a result of new technologies, methods, proceduresor systems.

Job Description & Job Specification are products of job analysis.

Job Analysis in a jobless world - flatter organization, work team, boundary less

organization

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Objectives of HRM

JobAnalysisHelps in

Job Analysis

Human Resource Planning

Staffing

Training & Development (role based competencies)

The goal is todefine the idealindividual for a jobfrom theperspective of thecompany, its

strategy, & theemployees withwhom the new hirewill work.

Performance Appraisal / Management

Compensation & Benefits

Job design and redesign

Employee safety

Job evaluation

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.


Job Analysis Methods

Questionnaires*

Observation

Interviews

Diary method

Critical incidents

Panel of experts

* Position Analysis Questionnaire

Developed by researchers at Purdue University

It is a structured job analysis instrument to

measure job characteristics and relate them to

human characteristics.

It presents a more quantitative and finely tuneddescription of jobs.

It consists of 194 job elements that represent in acomprehensive manner the domain of human behaviorinvolved in work activities.

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.


Position Analysis Questionnaire

The items fall into sixcategories:

Information inputwhere and how the worker gets the information he or she useson the job.Eg., use of written material

Mental processes - What reasoning, decision making, planning are involved in thejobEg., coding / decoding

Physical activities - What physical activities does the employee perform and whattools or devices does he/she use?Eg., assembling/disassemblingUse of keyboard devices

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.


Position Analysis Questionnaire

The items fall into sixcategories:

Job context- In what physical and social context is the work performed?

Relationships with other people - What relationships with other people arerequired in performing the job?

Eg., instructingcontacts with people, customers

Other job characteristicswhat activities, conditions, or characteristics other thanthose described above are relevant to the job?Eg., specified work place

amount of job structure

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Put the worker at ease; establish rapport.

Make the purpose of the interview clear.

Help the worker to think and talk according to the logical sequence of theduties performed.

Ask the worker only one question at a time.

Phrase questions carefully so that the answers will be more than just yes or

no.

Avoid asking leading questions

Secure specified and complete information pertaining to the work performedand the workers traits

Consider the relationship of the present job to other jobs in the department.

Control the time and subject matter of the interview.

Be patient and considerate to the worker.

Summarize the information obtained before closing the interview.

Guidelines for Conducting Job Analysis Interviews

Interviews

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.


Job Analysis

Who should conduct

Job incumbents themselves

Supervisors

External analysts

Process of Job Analysis

Organizational analysis

Selection of representative positions to be analyzed

Collection of job analysis data

Preparation of job description

Preparation of job specification

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Job Analysis

Contents

Job Description

Job Title

Job Location/Department

Job No./CodeWritten statement ofwhat the job holderis expected to do,how it is done,under whatconditions it is done

and why it is done.

Grade/Level

Job Summary

Duties to be performed

Reporting Relationship

Percentage of time to be devoted to each task if possible

Machines, Tools & Materials

Relation to other jobs

Nature of supervision

Working environment & possible hazards

Inputs can be takenfrom observation ofthe job beingperformed,discussion withsupervisor &

employees,questionnaires filledby the supervisors& employees

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Job Analysis

Contents

Job Specification

Age Limit

Education & Qualifications

Previous Experience

Job Specification is a

document which

states the minimum

acceptable human

qualities &

qualifications

necessary to performa job properly.

Physique & health

AppearanceMental Abilities

Special Abilities

Professional/Technical skills

Personality Traits

Job Specification

translates the job

descriptions into

human qualifications

& at times levels of

performance.

It Serves as guide in

hiring & is used in

job evaluation.

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Both the Coca-Cola Company and PepsiComanage their employees in unique ways thatmatch their strategies. Coke hires liberal artsgraduates (and rarely MBAs) with no corporateexperience and trains them extensively.

Employees are committed to the companybecause they can count on lifetime employment,seniority-based salary increases, and promotionfrom within. In this family culture, decision makingis centralized.

The companys human resource management

practices produce career managers who havebeen thoroughly socialized into understanding the

company trademark, which is the most recognizedin the world, and its value.

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Pepsi is not Coke. Pepsi succeeds by targeting market

niche where coke is not dominant and finding newmarkets through diversification.

The human resource management practices have toproduce employees who are innovative. Its peoplemanagement practices have to produce employees whoare innovative. Its people-management process consistsof hiring experienced employees, many with advanced

degrees, and fast tracking those employees whodemonstrate early successes.

In this individualistic culture, there is almost no jobsecurity and no guaranteed promotion from within. WhatPepsi achieves is a continuous flow of new ideas (fromexperienced and intelligent employees)

These two succinct examples illustrate the concept ofaligning HR practices, policies and philosophies withorganizational strategy.

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In the opinion of Coleman, HRP is the process of determining manpowerrequirements and the means for meeting those requirements in order to

carry out the integrated plan of the organization.

HRP is a forward looking function as human resource estimates are madewell in advance. It is, of course, subject to revision.

Aggressive domestic and global competition, have made strategic planningvirtually mandatory.

2 phases of HRP

a. Projection of future manpower requirementsb. Developing manpower plans for the implementation of projections.


HRP

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Objectives of HRM

HRPHelps to

HRP

Forecast personnel requirements

Cope with changes such as changes in technology, marketing,

management

Use existing manpower productively

The basic purposeof HRP is to decidewhat positions theorganization willhave to fill and howto fill them.

Organizations useHRP to meet futurechallenges, cutcosts, and achievegreatereffectiveness

Promote employees in a systematic way

Prepare people for future thus creating a talent pool

The demographic changes like changing profile of the workforce in

terms of age, gender, education etc

Government policies w.r.t reservation, child labor.

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.


Information / Records for HRP

How many employees does the company currentlyemploy?

What is the age profile by department?

How many employees leave the organization every year?

In which areas of business do we tend to lose themaximum number of employees?

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.


HRP Process

Environmental Scanning

Strategic Planning

HRP

Demand Forecasting

Comparingrequirements &

availabilitySupply Forecasting

Surplus of workersDemand = Supply

Restricted hiring, Reducedhours, VRS, Layoffs,Restructuring,Retrenchment

Shortage of Workers

R&S, Overtime, Outsourceactivities, BPR, Rehireretired employees,temporary employees,Retraining

No Action

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.


External Environment

Economic factors, including general, regional & global conditions.

Industry & competitive trends , including new processes, services

Technological changes, including IT, innovations & automation

Government & legislative issues.

Social concerns, including child care, elder care, the environment& educational priorities

Demographic & labor market trends including age, composition,and literacy

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Involves a set of procedures for making decisions about the organizations long term

goals and strategies.

Human Resource Management

Process of anticipating & making provision for the movement of people into, within,

and out of an organization

StrategicPlanning

Combines strategic planning & HR planning. It can be considered as the pattern ofhuman resource deployments and activities that enable an organization to achieve itsstrategic goals

HumanResource

Planning

StrategicHuman

Resource

Planning

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.


Linking Strategic Planning & Human Resources

Mission, Vision & Values

StrategyImplementation

Evaluation

Strategy Formulation

Internal Analysis

External Analysis

Structure & People

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Corporate Strategy

Strategic alliances & joint ventures; Sony Ericsson, Renault SA and Mahindra & MahindraLtd.Sony Ericsson is a joint venture established in 2001 by the Japanese consumer electronicscompany Sony Corporation and the Swedish telecommunications company Ericsson to makemobile phones.Reason was to combine Sonys consumer electronics expertise with Ericssons technological

leadership.Renault is Frances largest car maker and Mahindra & Mahindra Ltd. Is Indias largest makerof SUVs. The two companies have come together to make Logan Sedan in India.

Focuses on domain selection; where will they compete. For example, IBM vis--vis Ford

HRP: Strategy Formulation

Growth & diversification ; IBM & GE

Mergers & acquisitions; HP & Compaq

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Key HR Activities Associated with Merger or Acquisition Phases

Participate in preselection assessment of targetfirm

Assist in conducting thorough due diligenceassessment

Participate in planning for combination Assist in developing HR practices that support

rapid learning & knowledge transfer

Identifying reasons for the M&A Forming M&A team/leader Searching for potential partners Selecting a partner Planning for & learning from managing the

process

HR Issues Key HR Activities

Selecting the integration manager (s)

Designing/implementing transition teams Creating the new

structure/strategies/leadership Retaining key employees Managing the change process Communicating to and involving

stakeholders Developing new policies & practices

Assist in recruiting & selecting Assist with transition team design & staffing Develop retention strategies & communicate to

top talent Assist in deciding who goes Facilitate establishment of a new culture Provide assistance to ensure implementation of

HR policies & practices

Solidifying leadership & staffing Assessing the new strategies & structures Assessing the new culture Assessing the concerns of stakeholders Revising & learning

Participate in establishing criteria & proceduresfor assessing staff effectiveness Monitor the new culture & recommend

approaches to strenghten it Participate in stakeholder satisfaction

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Business Strategy

Viewed in terms of domain navigation; how the company will compete against rival firms in

order to create value for customers.


Low cost strategy by competing on productivity & efficiency and outsourcing; Wal-Mart,Southwest Airlines

Differentiation strategy by competing on value addition; Fed-ex and Sony

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Functional Strategy

Translate strategic priorities into functional areas of organization. In this regard HR policies &

practices need to achieve two types of fit: external & internal.


External Fit/Alignment - Focuses on fit between the business objectives and & the majorinitiatives in HR.

Internal Fit/Alignment - HR practices should be aligned with one another internally to establish

a configuration that is mutually reinforcing.Job design, staffing, training, PA, compensation, all need to focus on the same workforceobjectivesCharles Schwab & Co.

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Assessing Current Human Resourcescurrent labour supply

Internal analysis includes information about the employees and skills they currently posses

HRPInternal Analysis

.

Staffing tablesMarkov Analysis

Inventory ReportHRIS / HRMSReplacement ChartsSuccession Planning

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Assessing Current Human Resourcescurrent labour supply

Staffing Table


.

These are graphic representations of all organizational jobs, along with numberof employees currently occupying those jobs.

Future employment requirements derived from demand forecasts may also form a part

of staffing tables.

Markov Analysis

.

It shows the percentage (and actual number ) of employees who remain in each jobfrom one year to the next, as well as the proportions of those who are promoted,

demoted, or transferred, or exit the organization

It can be used to track the pattern of employee movements through various jobs

and to develop a transition matrix for forecasting labor supply.

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Markov Analysis for a Hypothetical Retail Company


Figures in circles show the transition percentages

80%

12

20%

3

6%

2

11%

4

83%

30

11%

11

66%

63

8%

8

10%

29

72%

207

2%

6

16%

46

6%

86

74%

1066

20%

288

15%

14

2003-2004 St ore Asst. Store Section Dept. Sales Exit

Managers Managers Heads Heds Executives

Store Managers

(n = 15)

Asst. Store

Managers

(n = 36)

Section

Heads(n = 94)

Departmental

Heads

(n = 288)

Sales

Executives

(n = 1440)

Forecasted

Supply 16 41 92 301 1072 353

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Inventory Report

S.Is vary greatly in sophistication

The audits of non-managers is called skills inventories & those of managers are called management

inventories


Purpose: to note what kind of skills, abilities, experiences & training the employees currently have

Useful in career planning, management development & related activities

Personal DataSkills, education, experience, trainingSpecial qualificationsSalary & job history

Capacity of individuals-scores on

psychological tests, health information

Special preference of individual : geographiclocation, type of job, work timings

Promotion potentialNumber & types of employees supervisedTotal budget managed

Previous management duties

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Inventory Report


Name : A.K. Sen Date printed : 1-4-2004

Number : 429 Department : 41

Key words Work experience

Word Description Activity From To

Accounting Tax Supervision 1998 2000 Tax clerk ABC Company

and analysis

Book Keeping Ledger Supervision 2000 2002 Accountant XYZ Co.

Auditing Computer Anal ysis 2002 2003 Chief Accounts TT Bank

records Officer

Education Special Qualifications Memberships

Degree Major Year Course Date 1. AIMA

MBA Finance 1998 DBF 1996 2. ISTD

B.Com Accounts 1995 Risk Management 1999 3. ICA

Computer Languages Position Location Hobbies

Literacy preference choice

Tally French Accounting Kolkata Chess

Banking Auditing Delhi Football

Software Bangalore Boating

Employees Signature __________ HR Department________

Date _______________________ Date ________________

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HRIS / HRMS

HRIS is an integrated approach to acquiring, storing, analyzing, and controlling the flow ofinformation throughout an organization.

The system might contain a program for tracking applicants, a skill inventory, a careerplanning program, and employee service programs such as an electronic bulletin board.

MCI Telecommunications uses SmartSearch2, an automated resume tracking system, toidentify qualified applicants quickly & accurately.

Ford (B2E)

HRIS (HRMS) is a database system that keeps important information about employees in a

central and accessible location, even information on the global workforce.


An effective HRIS also provides online data and forecasts related to business operations:

Exception reports: highlight variations in operations that are serious enough to require managements

attention. For example, quality exception report.On demand reports: provides information to a specific request.

Forecasts: A forecast applies predictive models to specific situations. For example, forecasts and the

number and types of employees required to satisfy projected demand for the firms product.

Succession Planning

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Succession Planning

Jack Welch

In 1994, years before he retired from GE, Jack Welch had startedthe succession planning process. SP is an ongoing, rigorous andchallenging process at GE. GE adopted SP right from the mid1900s. At GE, succession planning was not confined to only thetop management, but was applies across all tiers of management.The managers of GEs various businesses were encouraged to

identify potential candidates and fulfil their development needs,and transform them into efficient leaders ready to take up top jobsat the company.

The company mainly used annual performance reviews foridentifying potential candidates, until early 1980s. However, afterWelch took over as the CEO, the SP process at GE became amore systematic process, with the use of various analytical toolsand the involvement of the top management in leadership

development and SP. Since early 1980s, the annual HumanResource Reviews had been at the heart of SP at GE. Thisprocess was reportedly given as much importance as financialmonitoring in GE.

The process of identifying, developing, & tracking key individuals so that they may eventually assume

top-level positions.

Research suggests that in organizations where S.P efforts occur, employee morale is increased by 25%.

Succession Planning

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Succession Planning

Jack Welch

CEO Succession Planning

During Welchs tenure of two decades as CEO, GE transformeditself from a manufacturer of light bulbs and appliances into anindustrial conglomerate, with annual revenues increasing from$27.9 billion to $130 billion.

He developed a list of qualities, skills and characteristics a CEOshould essentially have. So, GE was ready for its nest CEO, yearsbefore it finally had to make the decision in 1999. The SP by Welch

for his post had started way back in 1994, when Welch with help ofBill Conaty and Chuck Okosky, both VPs, HR & ED, created a listof essential qualities, skills and characteristics an ``ideal CEO

should possess. The list mainly included elements such as integrityand values, vision, leadership, experience, edge stature, fairness,energy, balance, insatiable appetite for enhancing knowledge,courageous advocacy, and most importantly, stomach to play forhigh stakes and being comfortable operating under a microscope.

As part of CEO succession planning, GE shifted its key candidatesfrom one business to another to enable them to gain experienceacross all its businesses.

Succession Planning

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Succession Planning

Jeff Immelt

The three candidates for the top spot at GE were Jeff Immelt the

President and CEO of GE Medical Systems, W.James McNerneyCEO of GE Aircraft System, and Robert L. Nardelli President andCEO of GE Power Systems.

Jeff Immelt gets Selected

In Nov2000, GE announced that Jeff Immelt would be the

successor to Jack Welch, the Chairman and CEO of the Company.

Welch was to retire in Sep, 2001, after a successful stint at GE.The announcement ended the battle that was viewed on WallStreet as the hottest corporate succession race of the decade.

Succession Planning

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Succession Planning

Jack Welch

Welch wrote in his autobiography, that choosing between the final

trio ``was the most difficult and agonizing decision I ever had tomake...all the three exceeded every expectation we set for them.Their performance was off the charts. Any one of the three couldhave run GE. Acc. To Welch it was his nose and his gut which

prompted him to select Immelt. Analysts believed that the fact thatImmelt was younger than the other two aspirants at 44 years ofage, contributed to his selection. GE is known to favour steadyleadership over a long period. Since Immelt was six years younger

than his rivals, he would have an opportunity to plan for a further20 years at GE, like Welch who became the CEO at about thesame age, and stayed with the company to implement his plans.Welch too characterised Immelt as `a natural leader, and ideallysuited to lead GE for many years adding weight to this view.

The fact that McNerney and Nardelli were taken on as the CEOs of3M and Home Depot resp., within weeks of their losing out toImmelt, was itself taken by observers as testimony of Corporate

Americas confidence in leaders groomed by GE.

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HRP Internal Analysis

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Acceleration Pools

Succession planning is a lost art-a casualty of mergers, downsizing, and reengineering


Management succession programs typically focus on placement rather than skill development.

Acceleration pools is management succession planning system that develops a group of high potentialcandidates for undefined executive jobs and focus on increasing their skills and knowledgeratherthan targeting one or two people for each senior management position.


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Predicting Future Labour Supply

Increase in Internal Supply of Labor


.

New hiresContingent workers

Transfer-in

Promotions-inDemotion-in

Individuals returning from leaves

Decrease in Internal Supply

RetirementsDismissals

Transfer-out

PromotionoutLayoffs

Voluntary quits

Sabbaticals

Prolonged illness


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Estimated Internal Labour Supply for a Given Firm

Can be used where it is possible to apply work measurement to calculate the length of operations and the

amount of labor required


The FirmSources of Inflows

Transfers

Promotions

New Recruits

Recalls

Promotions

Quits

Terminations

Retirements

Deaths

Layoffs

Employees In Employees Out

Current

staffing

level

Projectedoutflows

this year

Projected

inflows

this year

Firms internal

supply for this

time next year

+ =

Projected Outflows

Current Staffing

Level


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Demand Forecasting

Demand forecasting is the process of estimating the future quality and quantity of people required.


.

Expert ForecastsDelphi TechniqueNominal Group TechniqueRatioTrend Analysis

Workload Analysis

A forecast of labor demand is derived from a projection of how business needs will affect HR.

Basis would be the annual budget & long term strategic plan, translated into activity levels for each

function and department

Qualitative and Quantitative methods


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Demand Forecastingexpert forecasting

Bottomup or top down approach; Involves expert forecasting-experience, intuition & guesswork


Considerations-work load, abilities of employees, future workload, future capabilities of employees

Analysis-person by person & job by job, present & future needs.

Demand Forecastingdelphi technique

Originally developed by the Rand Corporation, this technique elicits expert estimates from a no. of

individuals.

The HRP experts act as intermediaries, summarize the various responses & report the findings back to

the experts.

The distinguishing feature of Delphi technique is the absence of interaction between the experts.


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Demand ForecastingNominal Group Technique

Individual estimates are followed by group brainstorming sessions


It can also help to offset domination by a single person in group decision making by providing an equal

opportunity to provide opinions.

Demand ForecastingRatio Trend Analysis

Forecast is developed based on a past relationship between a factor related to employment &

employment itself

E.g., Sales levels, production level, activity/workload level to employment needs

Trend projections relate a single factor to employment.

2001-02 Production of Units : 5,000

2002-03 No. of Workers : 100

Ratio : 100:5000

2003-04 Estimated Production : 8,000

No. of Workers required : 8000 100 = 160

5000


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Demand ForecastingWorkload Analysis

Can be used where it is possible to apply work measurement to calculate the length of operations and the

amount of labor required


WLA is used to determine how many employees of various types are required to achieve total production

targets.

Planned output for the year 10,000 pieces

Standard hours per piece 3 hoursPlanned hours required 30,000 hours

Productive hours per person per year 1,000 hours (estimated on annual basis)

(allowing for absenteeism, turnover, idle time etc.)

No. of workers required 30

If span of control in the unit is 10 per officer, then 3 officers are also required.

HRP

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Manpower Gap Analysis

This is used to reconcile the forecasts of labor demand and supply. This process identifies potential skill

shortages or surpluses of employees, skills and jobs

Estimating Manpower Requirements

Year

1 2 3

1. Number required at the beginning of the year

2. Changes to requirements forecast during the year DEMAND3. Total requirements at the end of the year (1+2) ------- ------

4. Number available at the beginning of the year

5. Additions (transfers, promotions) SUPPLY

6. Separations (retirement, wastage, promotions out and other losses)

7. Total available at the end of year (4+5+6) --------------------

8. Deficit or surplus (3-7) RECONCILIATION

9. Losses of those recruited during the year OF THE ABOVE

10. Additional numbers needed during the year (8+9) MANPOWER NEEDED

HRP

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Surplus & Deficit of Workforce

Organizational downsizing & restructuring

Making layoff decisionsRetrenchment

Voluntary Retirement SchemeRestrict Hiring

Reduce work hoursUse slack time for employees training or

equipment maintenanceTransfer out, promotion out, demotion out

Surplus of Workforce

Hire new full time employeesOvertime

Outsource activities to othercompanies/consultantsAttempts to reduce labor turnover

Business Process Reengineering to reducethe needs

Rehire retired employees on a part time basisHire temporary employeesTraining & Development

Transfer in, promotion in, demotion inRetraining & Redeployment(to assign people

to new positions or tasks).

Deficit of Workforce

Documents

HRP S