HUMAN RESOURCE PLANNING

M.HIMA BINDU

Contents:

• Unit-5:1. Man power utilization2. Indices and techniques3. Scheduling techniques4. Factors affecting performance5. Human resource accounting --- methods,

significance

Man power utilization:

• Identifying areas for improvement in labour utilization & efficiency

• Failure to get the best efforts of which employees are capable:-

Failure to commend exceptional performance Failure to explain as much about the work so

as to make it interesting Lack of interest in employees progress and

affairs

Failure to admit mistakes Lack of attention to employees Failure to view employees as individuals in

order to motivate them Countenancing the formation of cliques Rating employees on any grounds but

competence, racial, religious.

Keeping an employee in a job for which he is not mentally of physically suitable

Permitting employees to work when they are sick

Not giving employees the support and help they need.

Failure to promote an employee when it is possible and appropriate

Lack of due consideration of

problems affecting wages and

working conditions

Failure to train an understudy

Man power utilization improvement system:

• It is a platform independent application that helps the manufacturing companies to keep track of various skills acquired by the employers.

• This system is developed for a automobile manufacturer to effectively utilize their manpower. The system deals with various activities in a manufacturing industy like;

Operation management

Work area management

Training skills

Various skill reports

with exporting facility

Indices, scheduling & techniques

• The planning tools are techniques manugers

can use to develop plans.

• Two most important tools are

1. Forecasting

2. Scheduling

Forecasting:

• It is the process of predicting future environmental

happenings that will influence the operation of the

organization.

• Although sophisticated forecasting techniques have

been developed only rather recently the concept of

forecasting can be traced at least as far back as

Fayal.

• The importance of forecasting lies in its ability

to help managers understand the future

makeup of the organizational environment,

which in turn helps them formulate more

effective plans.

How forecasting works:

• Inspect control services forecasts by

attempting to do the following;

Establish relationships between industry sales

and national economic and social indicators.

• Determine the impact government restrictions

on the use of chemical pesticides will have on

the growth of chemical, biological and electro

magnetic energy pest control markets

Evaluate sales growth potential, profitability,

resources required, risks involved in each of its

market areas

Evaluate the potential for expansion of

marketing efforts in geographical areas of the

country and abroad

• Determine the likelihood of technological

breakthrough that would make existing

product lines obsolete.

Types of forecasts:

• Various types of forecasts include;

Economical, technological, social trends ,sales

forecasting etc.,

although a companies complete forecasting process

should and usually does include all these types of

forecasting, sales forecasting is considere3d the key

forecast for a company.

A sale forecast is a prediction of low high or low

sales of the organizations products and/ or services

will be over the period of time in reference.

It is the key forecast for organizations because it

services as the fundamental guideline for planning.

Only after the sales forecast has ben

completed can managers decide.

Managers must continuously monitor

forecasting methods to improve them and to

reformulate plans based on a inaccurat

forecasts.

Scheduling:

• It is the process of formulating a detailed

listing of activities that must be accomplished

to attain an objective, allocating the resources

necessary to attain the objective and setting

up and following timetables for completing

the objective.

It is an integral part of every organizational

plan

Two popular scheduling techniques are gantt

charts and PERT –program evaluation and

review techniques.

• It is the process of deciding how to commit

resources between a variety of possible tasks.

Time can be specified or floating as part of a

sequence of events.

Factors affecting performance:

• Ability• Effort• Motivation

Basic needsSafety needsSocial needsEsteem needs

Self realization needs

• Task or role , perception• Environmental factors

• Environmental factors

abilities

environmental effort jobFactors performance

task direction

Human resource accounting:

Definition:• Flamoitz(1974) defined HRA as “ accounting

for people as an organizational resource. It involves measuring the costs incurred by business firms and other organizations to recruit, select, hire, train and develop human assets. It involves measuring the economic value of people to the organization.”

• HRA therefore shows how the organization

makes investment in its people and how the

value of the people change over time.

• Value of employees increased by training and

experience over a time period such

information on human resources facilitates

effective management with in the

organization.

• Information pertaining to employees can be listed under the following heads:

No. of employeesCategoriesGradesTotal value of HRValue per employee

HR Acquisitions:

• No. of employees acquired during the year

• Cost of acquisition

• Levels for which they were acquired

• HR Development

• HR maintenance

• Cost related to HR maintenance

• HR separation

• Cost related to HR separation, attrition rate

• Details of benefits provided to the employees

Methods:

• Non-monetary measurement• Monetary measurement

Capitalization of historical cost methodsReplacement cost methodsOpportunity cost methodEconomic value methodPresent value method

• HRA helps to understand many pertinent

issues like developing skill inventory,

performance appraisal, assessing the

individuals capacity for development, attitude

surveys and subjective appraisal