Corp.+Objective+&+Hrp

7/31/2019 Corp.+Objective+&+Hrp

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Corporate Objectives and

Human Resource Planning

In an organization everything & everyone is a part of abigger system that are interrelated and interdependent


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Objective

Statements of specific outcome that are to beachieved.

Objectives are often set in financial terms. Thatmeans that the objective is expressed in terms ofa financial outcome that is to be achieved. Thosecould include:

Desired sales or profit levels

Rates of growth

Amount of cash generated

Value of the business or dividends paid toshareholders


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Some objectives are hard to measure, but areoften important. For example, an objective to

be:

An innovative player in the marketA leading in the quality of customer service


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Objective as a part of hierarchy


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Corporate objectives

Corporate objectives are those that relate to

the business as a whole. They are usually set

by the top management of the business and

they provide the focus for setting more

detailed objectives for the main functional

activities of the business.

They can be illustrated as follows:


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Peter Drucker suggested that corporate objectives shouldcover eight key areas:

Market standing - Market share, customer satisfaction,product range

Innovation - New products, better processes, usingtechnology

Productivity - Optimum use of resources, focus on core

activities Physical & financial resources - Factories, business locations,

finance, supplies

Profitability - Level of profit, rates of return on investment

Management - Management structure; promotion &development

Employees - Organizational structure; employee relations

Public responsibility - Compliance with laws; social andethical behavior


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Business Strategy

Business strategy is about how thosecorporate objectives are to be achieved.

Strategy is the way in which a company

orients itselftowards the market in which itoperates and towards the other companies in

the marketplace against which it competes. It

is a plan an organization formulates to gain a

sustainable advantage over the competition.
http://www.1000ventures.com/business_guide/marketing_strategy.htmlhttp://www.1000ventures.com/business_guide/crosscuttings/competing_strategy.htmlhttp://www.1000ventures.com/business_guide/crosscuttings/competing_strategy.htmlhttp://www.1000ventures.com/business_guide/marketing_strategy.html


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Business Strategy is about making high-leveldecisions and forms the management gameplanfor

Satisfying customers (meeting customer

needs) Running the business (organizing resources in

the most efficient and effective way)

Beating the competition (strategies andtactics to gain competitive advantage)

Achieving corporate objectives


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Human Resource Planning

Human resource planning is a process bywhich an organization ensures that it has rightnumber and kind of people, at the rightplaces, capable of effectively and efficiently

completing those tasks that will help theorganization achieve its goals.

HRP is the process offorecastinga firms

future demand for and supply of the righttype of people in right number.


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Relationship between strategic and

HR plans

Overall

Corporate

Strategy

Human

Resource

Objective

Human

Resource

Plans

Operational/Tactical Plans


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Factors Affecting Human Resource Planning

Government Policies Strategies of co.

Level of Economic Devlpmnt. HR Policies of co.

Business Environment Formal/Informal groups

Information Technology Job Analysis

Level of Technology Time HorizonsNatural Factors Type/Quality of

International Factors information

Trade unions

External Factors Internal Factors


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Corporate StrategyGrowth (Mergers & Acquisitions)

HR Strategy Improving the employee morale

Managing and unifying the cultural diversity

Counsel the employees regarding resistance to

change and adoption to new systems & procedures

Corporate StrategyGrowth (Horizontal Integration,

conglomerate diversification)HR StrategyT&D of existing employees, employingnew candidates for the diversified business..etc.


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Corporate StrategyDownsizing strategies

HR Strategy

retrenchment Outplacement assistance

Cut in salaries, perks, long leave without pay

Redeploy employees in sister organizations


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Human Resource Planning Process

Defining organizational objectives and policies

Forecast of personnel needs and supplies.

HR programming HRP implementation

Control and evaluation programmes.


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Human Resource planning Model

minus

Redeployment Retrenchment

outsourcing employment T&D internal

mobility

Reduced hours Work sharing Layoff VRS Golden Handshake CRS

Analysis

Corporate &Unit

level strategies

Control &

ReviewMechanisms

Demand forecast

resource

requirements

Supply forecast

present

inventory of HR

Net HR

requirements

for future

Surplus of future

available HR in

the organization

Forecast the

futuresupply of

HR in all

sources if

supply is

inadequate

Shortage of

future

available HR in

the

organization

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5

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Forecasting: A Critical Element of

Planning

Forecasting involves:

a. forecasting the demand for labor

b. forecasting the supply of labor

c. balancing supply and demand considerations


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Model of Forecasting HR Demand & Supply

FORECASTING DEMAND

Techniques

Trend analysis

Managerial

estimates

Delphi technique

Work-Study

Technique

External

Considerations

Demographic changes

Education of theworkforce

Labor mobility

Government policies

Unemployment rate

FORECASTING SUPPLY

BALANCING

SUPPLY AND DEMAND

(Shortage) Recruitment

Full-time Part-time

Recalls

(Surplus) Reductions

Layoffs

Terminations

Demotions

Retirements

Considerations

Product/servicedemand

Technology

Financial resources

Absenteeism/turnover

Organizational growth

Managementphilosophy

Techniques

Staffing tables

Markov analysis Skills inventories

Replacement charts

Succession planning


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(4) Delphi technique

This process involves a panel of experts using their

judgements to make estimates of short-term futuredemands.

Experts use a variety of factors to make theirjudgements, including economical, demographical,technological, legal, and social conditions outside of the

organization, as well as production, sales, turnover,experiences, and education levels of the workforcewithin the organization.

During the process, experts are not permitted to engage

in direct face-to-face contact or communication. This is in an effort to prevent groupthink, influence of

others, or confrontation of experts, which can influencethe results


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Techniques of Forecasting HR Supply

(1) Staffing Tablets To assess internal HR supply, a staffing table

provides a clear graphical view of all organizational

jobs and the current number of employees at each

job.

It presents a simple visual understanding of an

organizations staffing level within each department

and the organization as a whole, in an effort to helpunderstand the combination of employees that

make up an organizations internal workforce.


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(2) Markov analysis

A Markov analysis extends to help predict internal

employee movement from one year to another byidentifying percentages of employees who

remain in their jobs,

get promoted or demoted,

transfer, and exit out of the organization. By tracking and predicting employment movement

within an organization, the Markov analysis allows forthe development of a transition matrix to forecast

internal labour supply. This represents both a stock approach (quantities in

apoint of time) and a flow approach (comparingquantities that change over a period of time).


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(3) Skills/competency Inventories

Building on the skills inventory, the skills/competencymodels focus on matching the right skills orcompetencies needed for each job with the skillsavailable within the organization

Unlike other models that predict headcount (e.g., trendanalysis or Markov models), this model focus onidentifying the skills/competency supply within theorganization, and helping focus future recruitment,selection, retention, and training activity in core areas of

key skills/competencies needed for the organization tosucceed.

Use of HRIS aids this technique.


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(5) Succession Planning

succession planning focuses on identifying,

developing, and tracking future leaders for executivepositions or positions that are critical to the successof the organization.

Succession planning is a longer-term process ofgrooming a successor (selected from a pool ofcandidates on the basis of perceived competency) formanagement or critical positions.

An organization can use the skills inventory, HR audit,or a succession summary to help identify potentialsuccessors and skill gaps that can be addressedthrough succession planning


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Barriers to Human Resource

Planning

Resistance by Employers and Employees.

Uncertainties

Inadequacies of Information System.

Conflict between quantitative and qualitativeapproaches to HRP

Conflict between short-term and long term

needs.

Non-involvement of operating managersrenders HRP ineffective.


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The techniques of planning should be those bestsuited to the data available and the degree ofaccuracy required.

Plans should be prepared by skill levels ratherthan aggregates.

The impact of external forces like technologicalchanges, changes in labour market compositions ,

etc, needs to be considered HRIS should be used as a decision support

system.

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Corp.+Objective+&+Hrp