Human Resource Planning Process

1

Master of Business managementHuman Resource Management

Human resource planning

2

Samitha jayaweeraMBM/02/BII/11

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Organizational HR situation

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Ensure the sustainability of our existing businesses and to exploit appropriate

opportunities for growth.

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Finlays worldwide

6

Organization:• Hapugastenne Plantations PLC• Company Reg. No. PQ 62

Business : • Plantation Management• Main Products : Tea, Rubber, Timber

Strategic Business Units:• 21 Estates in 04 Groups• 19 Tea factories

Hapugastenne Plantations plc

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Sample Estate

8

Product Production Nature

Total Production

Tea Revenue - 66.5

97.0

Immature - 30.5

Rubber Young - 60.5

217.0

Old - 123.5

Immature - 33

Forestry 159.0

Cinnamon 10.5

Total 461.5

Production Area (ha)

Galbode Estate

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• Tea 525,000 kg

• Rubber 3,575 kg

• Cinnamon 2,000 kg

Annual Production

Galbode Estate

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Superintendent

Asst. Supdt.

Field Office

Asst. FO

Field workers

Field Officer

Asst. FO

FW

Asst. Supdt.

Field Officer

Asst. FO

FW

Factory Officer

Asst. Fac. O

Fac. Workers

Technical Stafff

Office Med/ WF Drivers

Organizational Structure

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• Executives– Superintendent 01– Asst Superintendent 02

• Field Staff– Field Officers 06– Junior Field Officers 07

• Factory Staff– Factory officer 01– Asst. Factory Off 02– Jnr. Asst Factory Off 03

• Office– Chief Clerk 01– Clerk 02– Jnr. Clerk 01

Staff at Galbode Estate

12

• Medical / Health Staff– Midwife 01– Welfare officer 01– Child Develop: Officer 01

• Technical Staff– Elect: / Mechanic 01– Lathe machine operator 01– Boiler Operator 01

• Drivers– Lorry Drivers 02– Tractor driver 01– Jeep driver 01

Supporting Staff at

Galbode Estate

13

• Workers

– Rubber• Permanent 140• Casual

46 • Worker out turn 96%

– Tea• Permanent 191 • Casual

56• Worker out turn 76%

Workers at Galbode Estate

Forecasting future HR demand

Influenced by

• Strategic Plan Ex: Crop diversification

• Production method Ex: Sheet Rubber instead of direct latex, CTC instead of Orthodox Tea

• Employee Retirement, Death

• External factor Ex: Foreign Employments, Competitors, Labour demand in other trades

Factors effects Forecasting future HR demand

Strategic Plans.• Crop diversification


•Sheet Rubber instead of Direct latex

•CTC instead of Orthodox Tea


• Foreign Employments

• Competitors

• Labour demand in other trades

External factor


Company uses following technique for forecast future HR demand

1.Ratio Analysis method

2.Unit Forecasting method


Ratio analysis method

Each estate uses this method to forecast their HR requirement

Examples:Superintendent :01 for each estate

Field officers :01 for each division

Factory officers :01 for each factory

Tea Pluckers :01 for 6,000 kg /year

Rubber Tappers : 01 for 1,300 kg/year


• Each and every manager does their own forecasting and forward it to top management. Then the final forecast will be done by top management. Ex:

Each estate forecast future HR demand using Ratio Analysis method for next 03 years

forward to the General Manager

General Managers the accumulate the forecasts - Forward to the head of HR of the company

HR division forecasts for entire company - forward to the board of directors


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Crop

Description

General Charges

Field works & Cultivation

Plukcing Variable

Plukcing Fixed

Direct Fatory Labour

Factroy Fixed Labour

Labour on Bought Leaf Manufacture - Direct

- Fixed

Other Revenue Labour

Total Labor on Revenue Work

57,643 51,703 57,643

Jan Feb Mar

590 590 590

673 163 916

1,593 1,416 1,593

191 191 191

134 119 134

27 26 27

705 627 705

130 129 130

4,043 3,261

4,286

56,703 57,643 56,703

Apr May Jun

590 590 590

987 949 205

1,416 1,593 1,416

189 191 191

119 134 119

26 27 26

627 705 627

130 130 130

4,084 4,319 3,304

61,703 61,703 62,643

Jul Jul Sep

590 590 590

514 514 559

1,416 1,416 1,593

191 191 191

119 119 134

27 27 26

627 627 705

130 130 130

3,614 3,614 3,928

61,703 61,703 56,707

Oct Nov Dec

590 590 591

802 598 225

1,416 1,416 1,412

191 191 189

119 119 124

27 26 27

627 627 629

130 130 130

3,902 3,697 3,327

704,200 Total

7,081

7,163

17,696 2,286 1,493 319

7,838

1,559

45,435


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Description

Total Labour on Revenue Work

Labour on Capital Tea:

Infilling Re-

Planting- Upkeep

Rehabilitation -Grass

Timber/Fuelwood

Cinnamon

RubberTOTAL LABOUR DAYS

JAN FEB MAR

4,043 3,261 4,286

11 19 10

1,701 694 620

- - -

- 41 -

235 95 193

117 117 117

6,107 4,227 5,226

TOTAL

45,435

2,396

7,299

3,188

820

1,600

1,407

62,145

OCT NOV DEC

3,902 3,697 3,327

11 448 442

346 1,137 25

- 313 -

38 - 164

100 80 140

117 117 118

4,514 5,792 4,216

JUL AUG SEP

3,614 3,670 3,928

452 440 463

358 578 371

906 - -

115 164 102

100 132 105

117 118 117

5,662 5,102 5,086

APR MAY JUN

4,084 4,319 3,304

1 66 33

235 345 889

- - 1,969

196 - -

200 95 125

118 117 117

4,834 4,942 6,437

ExampleUnit forecast

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• Employee turnover – Workers 7%, Staff 1.5%

• Labor outturn– Tea 76%, Rubber 96%

• Productivity improvements– Tea 10% per year

• Crop improvements / new crop– Annual 10% increment,

Cinnamon

• Crop intake per worker– Tea: 21.5 kg / day & Rubber : 05

kg /day

• No of working days per year– Collective agreement : Tea 300 days,

Rubber 260 days


Executives

03Field Staff13

Factory Staff

06Office Staff

04 Medical / Health

Staff03

Technical Staff03

Drivers04

Workers433

Currently Estate Workers


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Requirement Available

Executives 2014 2015 2016 2014 2015 2016

Superintendent

01 01 01 01 01 01

Asst. Superintende

nt02 02 02 02 02 02

Total 03 03 03 03 03 03


Field Staff 2014 2015 2016 2014 2015 2016

Field Officers 06 06 06 06 05 05

Jnr. Field officers 06 07 07 06 06 06

Total 12 13 13 12 11 11


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Factory Staff 2014 2015 2016 2014 2015 2016

Factory Officer- Tea 01 01 01 01 0 0

Factory Officer - Rubber

00 01 01 00 00 00

Factory Officer -

Cinnamon00 00 01 00 00 00

Asst. Factory Officer 02 04 04 02 02 02

Jnr. Asst Factory Officer

03 04 04 03 03 03

Total 06 10 11 06 05 05


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Office Staff 2014 2015 2016 2014 2015 2016

Chief clerk 01 01 01 01 00 00

Clerk 02 02 02 02 02 02

Junior Clerk 01 01 01 01 01 01

Total 04 04 04 04 03 03


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Factory Staff 2014 2015 2016 2014 2015 2016

Factory Officer- Tea 01 01 01 01 00 00

Factory Officer - Rubber

00 01 01 00 00 00

Factory Officer -

Cinnamon00 00 01 00 00 00

Asst. Factory Officer

02 04 04 02 02 02

Jnr. Asst Factory Officer

03 04 04 03 03 03

Total 05 10 11 06 05 05




Office Staff 2014 2015 2016 2014 2015 2016

Chief clerk 01 01 01 01 00 00

Clerk 02 02 02 02 02 02

Junior Clerk 01 01 01 01 01 01

Total 04 04 04 04 03 03

Medical / Health Staff

2014 2015 2016 2014 2015 2016

Midwife 01 01 01 01 01 01

Welfare officer 01 01 01 01 01 01

Child Develop: Officer

01 01 01 01 01 01

Total 03 03 03 03 03 03


Technical Staff

2014 2015 2016 2014 2015 2016

Elect: / Mechanic 01 01 01 01 01 01

Lathe machine operator

01 01 01 01 01 01

Boiler Operator 01 01 01 01 01 01

Total 03 03 03 03 03 03

Drivers 2014 2015 2016 2014 2015 2016

Lorry Drivers 02 02 03 02 02 03

Tractor driver 01 01 01 01 01 01

Jeep driver 01 01 01 01 01 01

Total 04 04 05 04 04 05



Workers 2014 2015 2016 2014 2015 2016

Tea Harvesting 59 58 57 59 54 51

Rubber Tappers 100 102 104 101 94 87

Sundry workers 74 74 74 70 63 57

Factory - Tea 37 40 44 37 40 44

Factory - Rubber 0 12 14 0 0 0

Factory - Cinnamon 0 0 15 0 0 0

Total 270 286 293 267 251 239



Capital Works 2014 2015 2016 2014 2015 2016

Tea: Infilling 8 6 4 8 6 4

Re-Planting- Upkeep

24 30 29 24 30 29

Rehabilitation

-Grass11 8 11 11 8 11

Timber/Fuel wood 3 3 3 3 3 3

Cinnamon 5 5 5 5 5 5

Rubber 5 5 5 5 5 5

Total 56 57 57 56 57 57


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Estimate HR supply

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Estimate HR

supply

• Company uses both Internal & External Supply to estimate HR supply

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• Executives and senior staff vacancies –

• from internal Supply

• Trainee Executives and junior staff vacancies - from external Supply

• Permanent labour vacancies – from internal Supply – Casual workers

• Special skills & casual labour – from external Supply

Estimate HR

supply

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• Internal & external HR recruitment

• Executives – by Group HR Head & Directors

• Staff - by Head / HR with GM

• Workers – by Estate Superintendent

Estimate HR

supply

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• Senior staff will not promote as plantation executives (i.e. Superintendents or Asst. Superintendents)

• Workers will not promote as staff

• Children of executives, staff or workers can recruit for any position upon qualifications

• Recruitment priority is for employee children

Estimate HR

supply

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For executive & managers

• “skills inventory” model in ERP system

• Basic “management inventory” model – need improvements (No info on Mgt. systems developed & implemented, creative works and innovations )

Estimate HR

supply

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For staff,

• Basic “skills inventory” model available

• No proper “management inventory” model

• Only basic information

• Need improvements

Estimate HR

supply

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• Head of HR & Board of directors develop “Succession Plan” for the Managers / executive

• “Routes to Grow” - 03 year on the job management training for the Managers/ executives

• It analyze the competencies of employee

• Develop plan for individuals to enhance the competencies in weaker areas

Estimate HR

supply

Excess / Shortage

Vacancy due to

Filling method

2014 2015 2016

Field Officers 0 -1 0 Retire Promotion

Jnr. Field officers 0 -1 -1 Expansion Recruitment

FO - Tea 0 -1 0 Retire Promotion

FO - Rubber 0 -1 0 Expansion Recruitment

FO - Cinnamon 0 0 -1 Expansion Recruitment

Asst. FO 0 -2 0 Expansion Recruitment

Jnr. Asst FO 0 -4 -3 Expansion Recruitment

Chief clerk 0 -1 -1 Retire Promotion

Tea pluckers 0 -4 -6 Retire Suppressed

Rubber Tappers 1 -8 -17 Retire Recruit

Sundry workers -4 -11 -17 Retire Suppressed

Fac: workers - Rubber 0 -12 -14 Expansion Recruit

Fac: workers - Cinnamon 0 0 -15 Expansion Recruit

Excess / Shortage

Vacancy due to

Filling method

2014 2015 2016

Jnr. Field officers 0 -1 0 Expansion Recruitment

FO - Rubber 0 -1 0 Expansion Recruitment

FO - Cinnamon 0 0 -1 Expansion Recruitment

Asst. FO 0 -2 0 Expansion Recruitment

Jnr. Asst FO 0 -4 -3 Expansion Recruitment

Rubber Tappers 1 -8 -17 Retire / Exp

Recruitment

Fac: workers - Rubber 0 -12 -14 Expansion Recruitment

Fac: workers - Cinnamon 0 0 -15 Expansion Recruitment

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Compare forecast demand with estimated supply

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Process use by Finlays

• Enterprise resource planning (ERP)

• Digital / ICT culture• Linked network

Compare forecast demand

with estimated

supply

DemandSupply method

2014 2015 2016

Field Staff 0 2 1 Promotion

Factory Staff 0 8 1 Promotion

Office Staff 0 1 0 Promotion

Tea Field workers 4 15 23 Suppressed

Rubber Field workers 0 8 17 Recruit

Factory workers 0 12 17 Recruit

Compare forecast demand

with estimated

supply

Highest demand for Tea, Rubber & sundry workers

Can Finlays achievedemand

2014 2015 20160

5

10

15

20

25

Field Staff Factory Staff Office Staff Tea Field workers Rubber Field workers Factory workers

below 20

20 -25 26 - 30

31- 35 36 - 40

41 - 45

46 - 50

51 - 55

above 55

0

5

10

15

20

25

30

35Age distribution of workers – Galbode Estate

Tea Rubber

Risk of future supply – young generation migrate to cities

State in danger

Demand

2014 2015 2016 01 Field Officers 0 1 1 02 FO - Tea 0 1 0 03 Chief clerk 0 1 0New Asst. Field Officer 1 1

01. Field Officer vacancy

An Assistant Field Officer will promote to the vacant position

A Trainee Assistant Field Officers will recruit 06 months prior to the retirement

Vacancy due to

Supply method

01 Field Officers Retire Promotion 02 FO - Tea Retire Promotion 03 Chief clerk Retire PromotionNew Asst. Field Officer Promotion Recruit

Example cont:

Demand

2014 2015 2016 01 Field Officers 0 1 1 02 FO - Tea 0 1 0 03 Chief clerk 0 1 0New Asst. Field Officer 1 1

NewJnr. Asst. Fact:

Officer 1

02. Factory Officer – Tea vacancy

An Assistant Factory Officer will promote to the vacant position

A Junior Assistant Factory Officer will promote to fill the vacancy of Asst. FO created by above promotion

A Junior Assistant Factory Officer will recruit 06 months prior to the retirement

Vacancy due

toSupply method

01 Field Officers Retire Promotion 02 FO - Tea Retire Promotion 03 Chief clerk Retire PromotionNew Asst. Field Officer Promotion Recruit

NewJnr. Asst. Fact:

Officer Promotion RecruitExample

cont:

DemandVacancy due to

Supply method

2014 2015 2016

01 Field Officers 0 1 1 Retire Promotion

02 FO - Tea 0 1 0 Retire Promotion

03 Chief clerk 0 1 0 Retire Promotion

NewAsst. Field

Officer1 1 Promotio

n Recruit

NewJnr. Asst.

Fact: Officer

1 Promotion Recruit

New Junior Clerk 1 Promotio

n Recruit

Example cont:

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• 03. Chief Clerk vacancy

• A Clerk will promote to the vacant position

• A Clerk will promote to fill the vacancy of clerk created by above promotion

• A trainee junior clerk will recruit 06 months prior to the retirement

Example cont:

Demand Vacancy due to

Supplymethod

2014 2015 2016

Jnr. Field officers 0 1 0 Expansion Recruitme

nt

FO - Rubber 0 1 0 Expansion Recruitment

FO - Cinnamon 0 0 1 Expansion Recruitme

nt

Asst. FO 0 2 0 Expansion Recruitment

Jnr. Asst FO 0 4 3 Expansion Recruitment

Rubber Tappers 1 8 17 Retire /

ExpRecruitme

ntFac: workers

- Rubber 0 12 14 Expansion Recruitment

Fac: workers - Cinnamon 0 0 15 Expansion Recruitme

nt

Why and when

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• Jnr. Field Officer & Jnr. Asst. FO - recruit as trainees

• FO – Cinnamon – recruit on recommendations of Export Ag. Dept.

• FO – Rubber – Head hunting • Rubber tappers & factory

workers – from casual workers

• Cinnamon workers – recruit as trainees from adjacent villages

Who and how

DemandVacancy due

to

Supplymethod201

42015 2016

Tea pluckers 0 4 6 RetireHiring Freeze

Sundry workers 4 11 17 Retire

Hiring Freeze

•Instead of Tea pluckers – Outsourcing of tea fields & shear harvesting

•Instead of Sundry workers – Mechanizing ( weeding by brush cutters) & outsourcing

Tea pluckers

and sundry workers

Demand Supply

Net employee

requirement

Supply method

Field Officers 1 1 0 PromotionJnr. Field officers 4 0 4 Recruitme

ntFO - Tea 1 1 0 Promotion

FO - Rubber 1 0 1 Recruitment

FO - Cinnamon 1 0 1 Recruitment

Asst. FO 2 0 2 Recruitment

Jnr. Asst FO 5 0 5 Recruitment

Chief clerk 1 1 0 Promotion

Junior Clerk 1 0 1 Recruitment

Tea pluckers 10 0 10 Hiring

Rubber Tappers 25 25 0 RecruitSundry workers 32 0 32 Hiring

Fac: w – Rubber 14 0 14 Recruit

Fac: w – Cinnamon 15 0 15 Recruit

Net employee

requirement

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Finlays reduce

uncalculate

d the shortage

• Give promotions• Giving bonus• Rewarding best workers• More rubber• Welcome relations• Hand to next generation• Love and affection• Job verification

•Galbode Estate indicates net shortage of employees

•Highest Shortage in worker category

•Currently worker supply available through casual worker force

•Estate plans freeze further hiring of workers for tea field works

GalbodeEstate and Finlays….

•No difficulty to recruit new executives or staff due to the company reputation

•At present company has 86 applications for trainee executives

•208 applications at GM’s office for different staff categories

•Estate has identified risk of labour migration due to post war development in other parts of the country

GalbodeEstate and Finlays….

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Strategies to be taken

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Galbode Estate…

• Negative Employment requirements

• No requirement of executives• Mediocre demand for staff• Highest demand for workers• Estate plans to freeze hiring of

workers in tea fields/ sundry

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Executives • Yet enough attraction• But downward trend

– New opportunities– Traditions– Infrastructure– Remoteness

Staff• No or insignificant change in

attraction• Downward trend in skills

RECRUITMENT

63

Internal supply through promotions

• Only junior positions will be recruited• All employee have equal opportunity

to climb the ladder • Company provides enough space and

time to grow

HR SUPPLY

EXECUTIVES

&

STAFF

64

Internal supply – Executives & Staff

• Identify competencies

• Evaluate performance

• Training individuals

• Succession plan

PREPARING

EXECUTIVES

&

STAFF

FOR FUTURE

DEMAND

65

POTE NTIAL

High Growth

PotentialENIGMA – New

to Role/Role Mismatch

GROWTH EMPLOYEE

NEXT GEN: LEADER

Growth Potential

-Role

Expansion

DILEMMA – Role Dilemma /

New to Role

CORE EMPLOYEE

HIGH IMPACT

PERFORMER

No/Limited Growth Potential

UNDER PERFORMER

EFFECTIVE

TRUSTED PROFESS-

IONAL

New Role/Does not

meet/Partially meetsExpectations

Meets expectations

Exceeds expectations

PERFORMANCE

THE TALENT GRID

TO SUCCESSION PLAN

66

Workers

• Migration to towns for new jobs• Foreign employment• Social status• Attractive new industries

HR SUPPLY

WORKERS

67

• nnsnsn

Strategy method objectives

Freeze hiring

Reduction of work force introducing less labour intensive crops.

To restructure / right size the work force by 2016. Continue with crop diversification

Increase Labour Productivity

Outsourcing of fields for harvesting and contract work.

To out source 20% of tea fields for harvesting

Capital substitution

Shears harvesting /machine harvesting of tea fields. Automation of factories.

To continue trials with 500 shears and 02 machines in 2014/15 & automate 04 factories by 2016

STRATEGY FOR WORKERS

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Thank you

72

Thank

you