Human resource planning and Job Evaluation

Human Resource PlanningHuman Resource Planning&&

Job EvaluationJob Evaluation

Flow of Presentation• Human Resource Planning

• HRP Process

• HR Demand and Supply Forecasting

• HRP in Selected Industries

• Job Evaluation

• JE Process

• Methods of JE

• Catch in JE

• Conclusion

2HRP and Job Evaluation

Human Resource Planning

• Definition

Process by which an organization ensures that it has the right number &

kind of people at the right place and at the right time, capable of

effectively and efficiently completing those tasks that help the

organization achieve its overall objectives.


Human Resource Planning (contd..)

• HR Planning is the process of examining an organizations’ future human resource need

• Human Resource Planning (HR Planning) is both a process and a set of plans

• It involves:• Identifying and acquiring the right number of people with the proper skills

• Motivating them to achieve high performance

• Creating interactive links between business objectives and resource planning activities


Importance of Human Resource Planning

• Provides quality workforce

• Reduces labor costs

• Facilitates rise in skills

• Effective motivation

• Safety of health


Human Resource Planning Process


Human Resource Planning Process (contd..)

• Interfacing with strategic planning and scanning the environment

• Taking an inventory of the company’s current human resources

• Forecasting demand for human resources

• Forecasting the supply of HR from within the organization and in the external labor market


Human Resource Planning Process (contd..)

• Comparing forecasts of demand and supply

• Planning the actions needed to deal with anticipated shortage or overages

• Feeding back such information into the strategic planning process


HRP Demand Forecasting

• Forecasting human resource demand is the process of estimating the future human resource requirement of right quality and right number

• Factors affecting HR demand forecasting • Employment trends

• Replacement needs

• Productivity

• Absenteeism and

• Expansion and growth


HRP Demand Forecasting (contd..)

• Techniques of estimating/forecasting human resources demand:

• Managerial Judgment

• Wwork Study Technique

• Ratio-trend Analysis

• Econometric Models

• Delphi Model

• Other Techniques, such as Statistical techniques, Estimates based on historical record and so on


HR Supply Forecasting

• HR supply forecasting is the process of estimating availability of human

resource followed after demand for testing of human resource

• Forecasting supply of human resource we need to consider internal and

external supply.

- Internal supply of human resource available by way of transfers, promotions, retired

employees & recall of laid-off employees, etc.

- External supply of human resource is availability of labour force in the market and

new recruitment.


Status of HRP in Selected Industries

• Blue Star• In case of Blue Star, HR planning is done at the beginning / expansion of project, for

replacement of manpower on account of resignation/termination; vacancies are approved and filled up.

• Reliance Industries• In Reliance Industries Limited, Human HR planning is done at the project/ expansion

stages. All the levels are filled up according to the organization structure created at the time of project/expansion. This was the first human resources system which was implemented in Reliance.


Status of HRP in Selected Industries (contd..)

• Hindustan UniLever Limited

It is observed that Human Resources planning is done at the time of project implementation in case of new projects and expansion of existing project. The organization structures are drawn and the vacancies are filled accordingly. After the completion of projects, for replacement of manpower on account of resignation/termination; vacancies are approved and filled up.

• Raymond Limited,

HR planning is done at the beginning / expansion of project, for replacement of manpower on account of resignation/termination; vacancies are approved and filled up.


Job Evaluation


Job Evaluation

• Job evaluation is the process of determining the worth of one job in

relation to that of other jobs in a company

• Is a process of determining the relative worth of a job

• A practical technique to judge the size of a job relative to others


Features of Job Evaluation

• It tries to assess jobs, not people.

• The standards of job evaluation are relative, not absolute.

• The basic information on which job evaluations are made is obtained from job analysis.

• Job evaluations are carried out by groups, not by individuals.

• Some degree of subjectivity is always present in job evaluation.

• Job evaluation does not fix pay scales, but merely provides a basis for evaluating a rational wage structure.


Job Evaluation Process

• HR takes the lead in this exercise with approval from the management .

• Analyze and prepare job description (JA, JD, JS)

• Select and prepare a JE plan (jobs should be divided into detailed tasks and positions)

• Classify jobs (assigning money values to each class)

• Install / roll out the program

• Maintain / upgrade the program


Methods of Job Evaluation

• Quantitative Methods-

• Point Method

• Factor Comparison Method

• Non- Quantitative Methods-

• Ranking Method

• Job Grading / Classification Method


Quantitative Methods of JE

• Point Method

• It was introduced by Merill R. Lott

• The earliest approach for evaluating job based on quantitative values

• Aspects or parts of the job such as education and experience required to

perform the job are assessed and a points value awarded

• The higher the educational requirements of the job the higher the points scored

• The point method is usually seen as the most reliable and valid evaluation

method by employees


Quantitative Methods of JE (contd…)

Point Method

• Advantages

• Highly stable over time

• Perceived as valid by users and

employees

• Likely to be reliable among committee

that assesses the jobs

• Provides good data to prepare a response

to an appeal

• Disadvantages

• Time, money, and effort required to set

up

• Relies heavily on key (benchmark) jobs,

so if key jobs and correct pay rates don’t

exist, the point method may not be valid


Quantitative Methods of JE (contd…)

• Factor Comparison Method

• Jobs are compared against other jobs on the basis of how much of some desired

factor they possess

• Each job’s factors are ranked against each other job’s factors

• The market pay rate for each job is then allocated among the factors based

upon a market pay rate scale


Non-Quantitative Methods of JE

• Ranking Method

• Ranking simply orders the job descriptions from smallest to largest based on the evaluator’s perception of relative value or contribution to the organization’s success.

• Advantages

• Simple, Fast and Most commonly used

• Disadvantages

• May appear arbitrary to employees

• Can be legally challenged

• Unreliable


Non-Quantitative Methods of JE (contd..)

• Job Grading / Classification Method

• Job descriptions are slotted into a series of classes that cover the range of jobs. Each class has a definition. These definitions are the standards against which the jobs are compared

• Advantages

• Uses job families / groups instead of individual jobs

• May produce same results as Point Method, but is less costly

• Disadvantages

• Not useful when jobs are very different from each other

• May be confusing to employees about why jobs are included in class


Catch in Job Evaluation

• Not a scientific technique

• Problem of adjustment

• Unrealistic

• Organizational limitation

• Opposition by workers

• Subjectivity


Presented byPresented by

Sr. No. Name Roll No.

1 ANSHARI NAWED ABDUL VAHID 61

2 ATTRA GURUDEV RAVINDERSINGH 62

3 COUTINHO JOHN PETER 63

4 JAIN ASHISH GANPATHLAL 74

5 KHAN DANISH WAHID 80

6 PAYYAPPATE RASHMI RAVINDRAN 103

Thank youThank you

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Human resource planning and Job Evaluation