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Man Power Planning
MANPOWER PLANNING
Bhakta Bandhu DashAsian School of Business management
Bhubaneswar
What is Man Power Planning?
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A strategy for the acquisition, utilisation,improvement and retention of an enterprise’s human resources
METHODOLOGY1.Forecasting demand2.Forecasting supply
1. Internal2. External
3.Reconciling supply/demand4.Monitoring manpower utilisation
May 3, [email protected]
HR PlanningHR Planning is the process of examining an
organizations’ future human resource need. 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
May 3, 20233 [email protected]
Human Resource Planning (HR Planning) is both a process and a set of plans.It is how organizations assess the future supply of and demand for human resources.An effective HR plan also provides mechanisms to eliminate any gaps that may exist between supply and demand. Thus, HR planning determines the members and types of employees to be recruited into the organization or phased out of it.Dynamic by nature, the HR planning process often requires periodic readjustments as labor market conditions change
Human Resource Planning
May 3, 20234 [email protected]
Technological forecastsEconomic forecastsMarket forecastsOrganizational planningInvestment planningAnnual operating plans
Annual employment requirements
NumbersSkillsOccupational categories
Existing employment inventory
After application of expected loss and attrition rates
Variances End
If surplus If shortage
Decisions
Layoff,retirement,
etc.
Decisions
Overtime,recruitment
,etc.
End End
Strategic Planning Human Resource Demand
Human Resource Supply
Comparedwith
If none
ActionDecisions
HRP Process
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All effective HR planning shares certain features. It is generally agreed that HR planning involves four distinct phases or stages:
Situation analysis or environmental scanning
Forecasting demand for human resources
Analysis of the supply of human resources
Development of plans for action
The HRP Process
May 3, 20236 [email protected]
Why is HRP important ?Even an imperfect forecast is better than none at all
Anticipating needs – prepare for the future gives you
an edge
Address potential problems – avoid skill deficiencies
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Contemporary Approaches to Manpower Planning/ HRP
8
Effective HRP is a process of analyzing an organization’s HR needs under changing conditions and developing the activities necessary to satisfy these needs.
HRP EffectivenessAn Integrative ProcessNeed ForecastingAdvance PlanningWork AnalysisImproved HR InformationPerformance Measurement and ManagementChanging Work LifeCareer managementManagement developmentIndividual career PlanningCareers and Retirement.
May 3, [email protected]
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DevelopingProcedures/Processes
Tasking
Budgeting
Developing Objectives
Activities of
Planning
Forecasting
Scheduling
Developing Strategies
Developing Policies
Planning: To Predetermine a Course of Action.
May 3, [email protected]
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Forecasting: Estimating and predicting future conditions & Events and the needs & opportunities associated with them.
Techniques for Forecasting1. Determine forecasting period. (First of all, we need to specify
period which may be 1 year or more)2. Determine critical factors to be forecasted. (Than we need to
identify critical Factors in the environment internal & external factors like industry trend, market condition, & internal growth plans & requirement of manpower, these factors will affect our Manpower Planning)
3. Select Forecasting methods. (Than after we will select a forecasting method For ex. Managerial Judgement, Trend analysis, and ratio analysis.)
4. Gather information about the predicted environment. 5. State assumptions and develop scenarios. (Develop worst
case, best case or most likely case,)6. Complete Performance (SWOT) analysis. (Estimate how the
environment will affect our Manpower planning, positively or negatively.
7. Validate or develop a new mission. (Get the understanding & acceptance of your peer customers/client; your direct report group & approval of your manager.)
May 3, [email protected]
Techniques for Developing StrategiesStep 1 Validate or develop a new mission. (Assure it is
still relevant to the needs of key Peer Group, external customer, i.e. applicants.)
Step 2 Determine type of strategy you need. (Customer/Client Strategy i.e. we will maintain the policies, programme, selection, retention practices that assure strong employee relation.)
Step 3 Identify alternative strategies. (Purpose, Customer/client, Product/service, People Strategy.)
Step 4 Evaluate Alternatives.Step 5 Select the best strategy.
May 3, [email protected]
Developing Strategies:
Tasking: Establishing the sequence of work steps to be followed to achieve the objectives.
Techniques for TaskingStep 1 Identify action steps. (List separately each step you can
think of, without trying to define the sequence in which the steps must be accomplished.)
Step 2 Specify what is to be done. (Specify what is needed to be done in each action step.)
Step 3 Arrange the steps in Sequence. (Make sure that whether any step is prerequisite to other or not, whether the completion of one step overlap with the completion of another or not, will any steps be completed simultaneously or not.)
Step 4 Specify accountability for each step. (Indicate accountability for each action.
May 3, [email protected]
Scheduling: Establishing a time sequence for action steps.
Techniques for Scheduling
Step 1
Consider the principle of the Critical Few. The small no of causative factors in a situation which give rise to the largest part of the results. For example, some 20% of customers usually account for about 80% of the sales of a product or service.)
Step 2
Use the Minimax Scheduling technique.Determine how long similar projects have taken in the past.Calculate the minimum time.
Calculate the maximum time. Estimate the most likely time.
May 3, [email protected]
Budgeting: Allocating the Resources necessary to achieve the objective.
Techniques for BudgetingStep 1
Select the needed Resources.(Select the needed resources like Man, Machine, Money, Material, and Information. Although normally these resources are converted into the equivalent amount of money. In case of manpower planning, we need to select resources required to complete the Manpower planning. People (Work force), time, relevant information, and finance.)
Step 2
Allocate the Resources necessary to complete the work and Objective.
• Allot no of people, amount of time, relevant information, and finance to complete the work.
• How much time is required to complete the manpower planning project?• How many people are required to complete the manpower planning
project?• What information is required to complete the manpower planning
project?• How much finance is required to complete the manpower planning
project?May 3, [email protected]
Developing Policies: Establishing standing decisions that apply to recurring questions and problems of concern to the enterprise, or a component thereof, in achieving its objectives.
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Techniques for Developing Policies Step 1 Define the issue or problem: (In case of Manpower planning, first
we need to define problem that what is the problem,why we want to do manpower planning & i.e. Timely unavailability of Manpower)
Step 2 Gather necessary information on the issue: (Once we define the problem, we need to gather information to develop the policy Exp: No of employee, No of audit assignment handled previous year(s), No of new audit assignments in the coming year, No of employee required per audit.etc.)
Step 3 Secure recommendations from seniors: (Seniors & Departmental head would provide the suggestions & inputs for developing policy)
Step 4 Draft Policy (Develop the policy on the basis of inputs & information)
Step 5 Make revision (Review the policy) Step 6 Adopt policy (Implement the policy after final approval) Step 7 Oversee Policy Implementation (supervise/observe after
implementation effects.)Step 8 Policy Evaluation and Revision or Modification (Evaluate, review &
modify the policy, if any need arises.)
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Some Manpower Planning Issues
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How does manpower planning tie in with corporate planning?
Who should manpower plan? What detail and accuracy are required in
manpower forecasts? Over what period should forecasts and plans
be attempted? How does manpower planning link up with:
Recruitment? Training? Remuneration? IR? What changes in the organisation’s environment will need reflecting in the manpower plan?
May 3, [email protected]
What is the job?:
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The job is the smallest element of the organization.DefinitonsTask: A piece of work which can be identified in terms of its and
results or objectives.Job: A number of tasks are sufficiently alike to be groupped
together and allocated to as individual.Position: The individual‘s place in the organization.Job description: A summary report of information relating to a
particular jobPerson specification: A statement, derived from the job analysis
process and the job description, of the characteristics that individual would need to possess in order to fulfill the requirements of the job.
Occupation: A group of similar jobs.
May 3, [email protected]
Main Approaches to Job Design
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Restructuring individual job Job rotation Job enlargement Job enrichmentBroader organisational approachesDesirable task and job characteristicsAutonomous work groupsManagerial styleManagement of changePeople as ‘agents’Quality circles
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