HRP
System as such includes following elements or sets for planning
Overall
Organization Objectives
Business
Environment
Forecasting
Manpower Needs
Assessing
Manpower Supply
Matching
Manpower Demand-Supply factors
Based on these elements we can
draw “HRP System Architecture” as under.
Organizational Objectives & Policies: -
The objectives of HR plan must be
derived from organizational objectives like specific requirements of numbers
and characteristics of employees etc. HRP needs to sub-serve the overall
objectives by ensuring availability and utilization of human resources.
Specific policies need to be formulated to address the following decisions.
·
Internal Hiring or External Hiring?
·
Training & Development plans
·
Union Constraints
·
Job enrichment issues
·
Rightsizing organization
·
Automation needs
·
Continuous availability of adaptive and flexible
workforce
Manpower Demand Forecasting: -
It is the process of estimating
the future quantity and quality of people required.
The basis should be annual budget
and long term corporate plans
Demand forecasting should
be based on following factors.
Internal
Factors: -
·
Budget constraints
·
Production levels
·
New products and services
·
Organizational structure
·
Employee separation
External
Factors: -
·
Competition environment
·
Economic climate
·
Laws and regulatory bodies
·
Technology changes
·
Social Factors
Reasons
for Manpower Demand Forecasting: -
·
To quantify jobs
·
To determine the Staff-mix
·
To assess staffing levels and avoid unnecessary
costs
·
Prevent shortages of people
·
Monitor compliances of legal requirements with
regards to reservations
Manpower
Forecasting Techniques: -
Management Judgment: In
this techniques managers across all the levels decide the forecast on their own
judgment. This can be bottom-up or top-down approach and judgments can be
reviewed across departments, divisions and top management can conclude on final
numbers of manpower required.
Ration-Trend Analysis:
This technique involves studying past ratios, and forecasting future ratios
making some allowance for changes in the organization or its methods.
Work Study Techniques: It
is possible when work measurement to calculate the length of operations and the
amount of manpower required. The starting point can be production budget,
followed by standard hours, output per hour; man-hours required etc could be
computed.
Flow Models: This
technique involves the flow of following components. Determine the time
required, Establish categories, Count annual movements, Estimate probable
transitions. Here demand is a function of replacing those who make a
transition.
Manpower Supply Forecasting: -
This process measures the number
of people likely to be available from within and outside the organization after
making allowance for absenteeism, internal movements and promotions, wastages,
changes in hours and other conditions of work.
Reasons for Manpower Supply
Forecasting:
·
Clarify Staff-mixes exist in the future
·
Assess existing staff levels
·
Prevent shortages
·
Monitor expected future compliance of legal
requirements of job reservations
Supply Analysis covers:
Existing Human Resources:
HR Audits facilitate analysis of existing employees with skills and abilities.
The existing employees can be categorized as skills inventories (non-managers)
and managerial inventories (managers)
Skill inventory would include
the following;
·
Personal data
·
Skills
·
Special Qualifications
·
Salary
·
Job History
·
Company data
·
Capabilities
·
Special preferences
Management
inventories would include the following
·
Work History
·
Strengths
·
Weaknesses
·
Promotion Potential
·
Career Goals
·
Personal Data
·
Number and Types of Subordinates
·
Total Budget Managed
·
Previous Management Duties
Internal
Supply: -
Internal supply techniques help
to assess the following
·
Inflows and outflows (transfers, promotions,
separations, resignations, retirements etc.)
·
Turnover rate (No. Of separations p.a. / Average
employees p.a. X 100)
·
Conditions of work (working hours, overtime,
etc.)
·
Absenteeism (leaves, absences)
·
Productivity level
·
Job movements (Job rotations or cross functional
utilizations)
External
Supply: -
External sources are required for
following reasons
·
New blood,
·
New experiences
·
Replenish lost personnel
·
Organizational growth
·
Diversification
External sources can be colleges
and universities, consultants, competitors and unsolicited applications.
HR Plan Implementation: -
A
series of action programs are initiated as a part of HR plan implementation as
under.
Recruitment & Selection: Employees are hired against
the job vacancies. Based on the manpower demand and supply forecasts made,
hiring of employees is initiated based on supply forecasts. For this internal
and external sources of manpower are utilized. A formal selection board is
established to interview and select the best of the candidates for the required
vacancies. Finally the selected employees also need to be placed on proper
jobs. Here some companies recruit employees for specific jobs while others
recruit fresh trainees in large number and train them for future manpower
needs.
Training and Development: The training and development
program is charted out to cover the number of trainees, existing staff etc. The
programs also cover the identification of resource personnel for conducting
development program, frequency of training and development programs and budget
allocation.
Retraining and Redeployment; New skills are to be
imparted to existing staff when technology changes or product line
discontinued. Employees need to be redeployed to other departments where they
could be gainfully employed.
Retention Plan: Retention plans cover actions, which
would reduce avoidable separations of employees. Using compensation plans,
performance appraisals, avoiding conflicts, providing green pastures etc, can
do this.
Downsizing plans: Where there is surplus workforce
trimming of labor force will be necessary. For these identifying and managing
redundancies is very essential.
Managerial Succession Planning; Methods of managerial
succession plans may vary. Most successful programs seem to include top
managements involvement and commitment, high-level review of succession plans,
formal performance assessment and potential assessment and written development
plans for individuals. A typical succession planning involves following
activities.
·
Analysis of demand for managers and
professionals
·
Audit of existing executives
·
Projection of future likely supply from internal
and external sources
·
Individual career path planning
·
Career counseling
·
Accelerated promotions
·
Performance related training and development
·
Strategic recruitment
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