HR PLANNING AND AUDIT

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HR PLANNING AND AUDIT

HR planning is process that identifies current and future human resources needs for an organization to achieve its goals.

An HR audit is a process to review implementation of your institutions policies and procedures, ensure compliance with employment law, eliminate liabilities, implement best practices and educate your managers.

HUMAN RESOURCE PLANNING

In simple words, HRP is understood as the process of forecasting an organization's future demand for, and supply of, the right type of people in the right number.

After this only the HRM department can initiate the recruitment and selection process

Its called by manpower planning, personal planning or employment planning

HR PLANNING

Recruitment, Selection & Placement

Training & Development

Retraining & Redeployment

Retention Plan

Downsizing Plan

HR PLANNING PROCESS

HR DEMAND FORECASTING Demand forecasting is the process of estimating the future

quantity and quality of people required. The basis of the forecast must be the annual budget and long-

term corporate plan, translated into activity levels for each function and department

Demand forecasting must consider several factors both internal and external.

Among external factors are competition(foreign and domestic), economic climate, laws and regulatory bodies, changes in technology and social factors.

Internal factors include budget constraints, production levels, new products and services, organizational structure and employee separation.

HR FORECASTING TECHNIQUES Managerial Judgment Trend Analysis Ratio Analysis Scatter Plot Computerized Forecast Work Study Technique Delphi technique Regression Analysis Econometric Models Nominal Group Technique H R Budget and Planning Analysis Scenario Forecasting Workforce Analysis Workload Analysis Job Analysis

IMPORTANCE OF HR PLANNING

1)Each Organization needs personnel with necessary qualifications, skills, knowledge, experience & aptitude .

2)Need for Replacement of Personnel - Replacing old, retired or disabled personnel.

3)Meet manpower shortages due to labour turnover – 4)Meet needs of expansion / downsizing programmes 5)Cater to Future Personnel Needs - Avoid surplus or deficiency

of labour. 6)Helps to cope with changes in competitive forces, markets,

technology, products and government regulations.

OBJECTIVES The role of HRP is to sub serve the overall objectives by

ensuring availability and utilization of Human Resources.

In developing these objectives, specific policies need to be formulated to address the following questions: Are vacancies to be filled from promotions from within or hiring

from outside? How do training and development objectives interfere with the

HRP objectives? What union constraints are encountered in HRP and what

policies are needed to handle these constraints? How to enrich employees job? Should the routine and boring jobs

continue or be eliminated? How to downsize the organization to make it more competitive?

HR AUDIT

An HR Audit is like an annual health check-up, it plays a vital role in instilling a sense of confidence in the Management and the HR functions of an organisation.

Need for HR Audit:

1. Increase size of Organization & Personnel 

2. Change Philosophy of Management towards HR     

3. Increase Strength & Influence of Unions

OBJECTIVES: 1.  Effectiveness: To review performance of Human resource

Department and its activities to determine effectiveness.

2.Implementation: To locate gaps, lapses, failings in applying Polices, Procedures, Practices & HR-directives. Also to see areas of wrong / non-implementation that hindered the planned programs & activities.

3.Rectification: To take corrective steps to rectify mistakes, shortcomings contesting effective work performance of HR Department.

4. Evaluation: To evaluate HR Staff & employees.

5. To evaluate the extent to which Line Managers Applied Policies Programmes & Directives initiated by Top Management & HR Department.

6.Modify: To review HR System and Modify to meet challenges in comparison with other organizations.

7.Questioning: To seek answers to ‘What,  Why   ‘When

Happened while implementing Policies, Practices & Directives in managing HRs

IMPORTANCE OF HR AUDIT

To make the HR function business-driven. Change of leadership. To take stock of things & to improve HRD for expanding,

diversifying, & entering into a fast growth phase. For growth & diversification. For promoting professionalism among employees & to switch

over to professional Management. To find out the reasons for low productivity & improve HRD

strategies. Dissatisfaction with a particular component. To become employer of choice.

FIVE APPROACHES TO HR AUDIT:

1. Comparative Approach.

2. Outside Authority Approach.

3. Statistical Approach.

4. Compliance Approach.

5. MBO Approach

Comparative Approach – Auditors Identify another Company as a

MODEL. Result of their Organization compared with those of Model Company.

Outside Authority Approach – Often, Auditors use standard set by Outside

Consultant as BENCHMARK for comparison of own Results.

Compliance Approach – Auditors review Past Actions to determine if those

activities comply with legal requirements and Company Policies, & Procedures. A Final approach is for Specialists & Operating Managers to set objectives in their areas of responsibility.

Management By Objectives Approach – creates Specific Goals against which performance

can be measured. Then the Audit Team Researches ACTUAL PEERFORMANCE and COMPARES WITH THE OBJECTIVES.

AUDIT OF HR FUNCTION:INVOLVES ALL ACTIVITIES OF HR FUNCTIONS, FROM HRP TO IR

Major Areas: 1. Planning -  Forecasting, 2. Scheduling; 3. Staffing & Development, 4. Organizing; 5. Motivation & commitment ; 6. Administration ; 7. Research & Innovation.