Prepared By:Sakshi SaxenaSanjeev BijlaniShailie NaikShefali AgrawalShivani Nehru

HUMAN RESOURCE PLANNINGHuman Resource Planning is the process by which organizations anticipate future staffing needs and plan programs to ensure that the correct number and type of employees are available when they are needed.

Reference : Human Resource Management by Fisher , Schoenfeldt n Shaw

Why HRP ??????????

WHY MAN POWER PLANNING ???To reduce Waste in employing people.To lessen the uncertainties about manpower levels & future needs.To stop the profit-eroding effects of being over or understaffed.To prepare succession plans.To shape the optimum future work force by hiring the right managers and skilled workers.

HRP PROCESS

FACTORS AFFECTING HRPOrganizational Growth Cycle and PlanningEnvironmental UncertaintiesOutsourcingLabor MarketType and Quality of Forecasting informationType and strategy of organizationTime HorizonsHRP

LABOUR MARKET

Definition:A labour market is the place where workers and employees interact with each other. In the labour market, employers compete to hire the best, and the workers compete for the best satisfying job.

Labour market analysis is the process of:

Identifying the appropriate labour market for various types of positions.Surveying the market to determine the salaries that are being paid for like positions.Identifying market trends such as: ancillary pay, and merit and pay practices.Establishing, adjusting, and/or recommending salary changes and/or structures for staff positions.Consulting with management on their workforce needs.

LABOUR MARKET IN INDIAThe Indian labour market can be categorized into three sectors:

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LABOR FORCE IN INDIAThe chart below describes the estimated increase in the number of labours from 1977-78 to 2004-05. The labour force has grown from 276.3 million to 500 million in 2006.

Steps in Manpower PlanningDemand ForecastingSupply Forecasting

Methods of Demand ForecastingManagement ForecastsBottom Up TechniqueDelphi TechniqueRatio- AnalysisRegression Analysis

Management Forecasts

The opinions (judgments) of supervisors, department managers, experts, or others knowledgeable about the organizations future employment needs.

Bottom Up Technique This method of forecasting starts at the lowest level and progresses upwards, through various levels of the organization, till an aggregate projection for the organization as a whole is ready. While comparing Present and future needsMarket demandsMobility of staff in the department

Delphi Technique Objective of Delphi Technique is to predict future requirements in a particular area by integrating judgments and opinions provided independently by many experts. Disadvantages:Time consumingIntegration problem

HUMAN RESOURCE PLANNINGHuman Resource Planning is the process by which organizations anticipate future staffing needs and plan programs to ensure that the correct number and type of employees are available when they are needed.

Reference : Human Resource Management by Fisher , Schoenfeldt n Shaw

Ratio-AnalysisThis method involves comparing the number of employees to a workload index.The level of activity in each job may vary from department to department in the same organization

Eg:- To produce 100 units of a product, if 10 workers are required, the same department would require 15 workers to produce 150 units.

Markov AnalysisA method for tracking the pattern of employee movements through various jobsA mathematical techniqueForecasts the availability of internal job candidatesIts use is limited to very large organizations

A hypothetical Markov Analysis

Methods of Supply Forecasting Once the demand forecasting is made, the planners have to go out and find the kind of work force needed.

The sources of manpower supply may beInternal SupplyExternal Supply

Internal supplyTransferPromotion

External supplyEducational InstitutesAdvertisementPlacement agenciesTelecasting

Work Scheduling

What is work Scheduling?Assigning employee job tasks, bearing in mind job descriptions, employee abilities, and time restraints of the day.Putting the right employees on the right jobs at the right times to meet your business demands

Why work scheduling?

Types of Scheduling

Forward Scheduling

Backward Scheduling

StepsDetermining workload and coverage requirementsDesigning a scheduling framework to meet demandsBuilding employee work schedules from the frameworkPublishing, monitoring and adjusting work schedules as required

Types of work schedulesFixedFlexibleFull timePart timeRotating/Shift

ChallengesTime consumingMeet budget requirementsKeep overtime under controlUnion rules are metHandle shift swapsHandle last minute changes.

ExampleWork schedule for 8 hours a day, 7 days a week operation. Employees work 40 hours per week, 5 days on, 2 off.

Example Contd

What kind of work schedule is employed in manufacturing sectors?

Fixed Rotating

Scheduling Softwares

Attrition

AttritionA Reduction in the number of employees or participants that occurs when people leave because they resign, retire, etc. and are not replaced

It is also sometimes referred to as churn , turnover , wastage rate and defection

Biggest challenge for the HR fraternity.

Attrition Rate(%) = (A/B) * 100A= Number of employees resigned during the month B= Average number of employees during the monthwhere B = (Total number of employees at the start of the month + Total number of employees at the end of the month) / 2

Note : Attrition Rate is the highest in the lowest paying jobs.

Types of AttritionGood Attrition : Less productive employees leaving Bad Attrition: High performers leavingMarket Driven Attrition : Influenced by market changes

Benefits of good AttritionLow productive employees leave High pay scale employees leaveNew ideas, attitudes, approach will enter

Reasons for AttritionMore expectation from the work placeExpect better payMismatch of job roles with the skills of the employeeLack of growth opportunitiesLack of appreciationUncooperative team membersLong work timings

ContdUnfriendly work place environment.Health problemsInability to manage pressureWomen Employee : Because of motherhoodManager :Higher StudiesSelf Employment

Effects of AttritionLow Productivity because of loss of knowledge and expertiseLoss of business relationshipsThreat of trade secrets being revealedNegative impact on other team membersBenefit to the competitor (taking away the client base)Excess workload

Attrition - ClassifiedFreshers% fresher's leaving the organization within one yearInfant Attrition% of people leaving the organization within one yearCritical Resource AttritionKey men/women leaving the organizationLow performer AttritionThose who left due to poor performance.

Costs involvedRecruiting costsRecruiting time and manpowerTraining and orientation costsLow productivity costsNew hire costs

Video

What is Succession planning?

Process for identifying and developing internal people with the potential to fill key business leadership positions in the company.

What went wrong.Succession planning is not a one time event Not decided by an individual Deciding on the basis of comfort with candidate

Inability to identify future talent needs of the organization

Lack of assessment tools

Steps for Succession planning

Who do you think is a better option for the next CEO?.ShailieSakshi

Advantages of Succession Planning Maintains a diverse pool of talent. Ensures you have leaders to fulfil your business plans Reduces turnover of key top talent Helping individuals realize their career plans and aspirations within the organizationThe opportunity for timely corporate knowledge transferincreases the availability of experienced and capable employees

Where it workedThe Dabur Group Founded by : Dr. S.K Burman

How Succession planning helped: majority of the assets were held by a trust. The board of trustees appointed a professional CEO and the company has gone from strength to strength.

Ranbaxy: chairman (Dr. Parvinder Singh)

How succession planning helped Although his two sons (Malavinder Singh and Shivinder Singh) were working in the companies (Ranbaxy Laborites, Fortis Hospitals and Religare) they did not have senior Positions until they were trained and ready to take over the reins of the business. The transition was smooth and there were no disputes

Where it did not work..The Reliance Group: Founded by : Dhirubhai Ambani Invested in : Refineries, hotels, textiles, telecommunications, gas, petroleum, mining, insurance, hospitals, education, cinemas, retail and film production.Problems with Succession planning: Mr. Ambani didnot make a will and this led to a power struggle between his sons to control his companies. This struggle lasted two years and wiped close to USD$2billion from the groups market share.

Where it definitely did not work.Rahul Gandhi

Thank You !!

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