III. HR PLANNING & PROCUREMENT
Yes, the very simple & interesting chapter, just make mind maps, this way, so that you understand better the topic for Company Secretaryship (CS) Final Group -III subject Human Resource Management & Industrial Relations (HRMIR). Just read it once, get the flow, you can win the exams very easily, I guarantee. See Yes with Vj.
Manpower Planning: "continuous process". The process of developing & determing Objectives, Policies & Programs and to develop, utilise & distribute manpower so as to achieve Goals of organisation.
The two phases include,
1. Management to project the future manpower requirements &
2. Develop manpower plans to accommodate the implication of projections.
NATURE of HR Planning:
Like, "FILL THE WATER IN THE GLASS THEOREM."
1. Ascertain Manpower NEEDS (Number & Kind).
2. Ascertain in INVENTORY (water tank) of Existing Manpower (water) – status & untapped talent.
3. Determine shortfall/surplus of manpower.
4. Initiation of Organisation programs depending on Demand & Supply of HR.
5. Encompass Acquisition, Utilisation, Improvement & Preservation of HR.
OBJECTIVES – HR Planning:
1. Ensure optimum use of HR.
2. Avoid balance in Distribution & Allocation of HR.
3. Assess/Forecast future skill requirement.
4. Control measure to ensure available resources, when required.
5. Control of cost aspect.
6. Formulate Transfer & Promotion policies.
SCOPE/Elements – HR Planning:
1. Listing of Current HR.
2. Assess the "Extent of Utilisation" of current HR.
3. Phasing out surplus HR.
4. Analysing HR requirements.
5. HR Forecast.
6. Training Programs for different categories.
BENEFITS – HR Planning:
1. Reduce Labour cost.
2. Make optimum Use of workers Skills.
3. Identify gaps of existing HR.
4. Improvement in overall business planning process.
5. Formulating managerial Succession plan.
6. Greater awareness of importance of sound HR.
7. Tool to evaluate effect of alternative HR actions & policies.
HR Planning Process:
1à2à3à4à5à6à7à8à1
1. Objectives – filling the future vacancies with right type of people. Relate Future HR –to Future Enterprise Needs –tomaximise future Return on Investment in HR.
2. Inventory of HR skills (finding gaps): ensure Reservoir of talent is available when vacancies occur. Make Index of Inventory.
3. Work Study & Demand Forecasting: Study,
A. Employment Trends
B. Replacement Needs
C. Productivity: growth potential & healthy wage increase
D. Growth & Expansion: perpetuation
E. Absenteeism: fails to come for work when is scheduled to work;
% = (Mandays lost) divided by (Mandays – both worked & lost)
F. Work study/load analysis
4. Determine Job Requirements: Quantum of work which an average person can do on a job in a day through Job Analysis
5. Recruitment Plan – Programs for R&S
6. Selection Procedure
7. Training & Development Program – T&D
8. Performance Appraisal (find deficiencies in T&D) – PA.
QUANTITATIVE ASPECT OF HR PLANNING: Demand & Supply Forecasting.
QUALITATIVE ASPECT OF HR PLANNING: Job analysis, evaluation, etc…
QUANTITATIVE ASPECT OF HR PLANNING
I. Demand Forecasting: process of estimating the requirement of different kinds of personnel in future.
METHODS –
i. Managerial Judgement
ii. Work study techniques
iii. Statistical techniques
iv. Combination of above
Managerial Judgement: Includes,
o Bottom-up basis: with Line Managers submitting Proposals
o Top-down approach: Company & Departmental forecast prepared by Top Management.
Work Study Techniques: When there is a possibility to apply Work Measurement to know HOW Long operations should take & amount of Labour required. Through,
1. Work Load analysis (short term projections)
Step1: Determine Manpower required per unit of product.
Step2: Determine how many employees of various types are required to achieve Total Production Target.
2. Work Force analysis (long term projections): Keep sufficient margin for absenteeism, labour turnover & idle time.
Statistical Techniques:
1. Ratios & Trend Analysis (Refer Costing)
2. Econometric Models:
Step 1: Describe relationship between numbers of variables in Math formula.
Step 2: Apply Formula to forecast of movements in these variables.
3. Regression Analysis: When dependant & independent variables are functionally related.
II. Supply Forecasting:
- as to Current Resource & Future Resource;
- as to External Supply & Internal Supply;
METHODS:
1. Markov Analysis: By arranging probabilities of Personnel Transition in Transition Matrix.
2. Simulation: Create an Environment resembling real situation. Also called Vestibule when it comes to Tranining.
3. Renewal Analysis.
4. Goal Programming.
FACTORS affecting Internal Supply:
1. Existing HR
2. Labour Wastage measured using,
1. Labour Turnover Index
2. Labour Stability Index
3. Length of service analysis
4. Survival Rate: proportion of engaged employees REMAIN after 'x' years.
3. Internal Promotions & Transfers
4. Effect of changing conditions of work & absenteeism
5. Sources of supply from within the firm. It is influenced by,
1. Local Factors:
1. Population densities within reach;
2. Current & Future competition;
3. Local Unemployment;
4. Immigration & Emigration;
5. Local housing;
6. Attractiveness of the area to live in & the company to work with;
1. National Factors:
1. Growth of working population;
2. Output of Universities;
3. Demand for Specialised Professionals;
4. Impact of Government Training Schemes;
5. Government Employment Regulation.
QUALITATIVE ASPECT OF HR PLANNING
I. Job Analysis: Process of obtaining all pertinent job facts; studying the nature & operation of specific job. It can be further divided into Job Description & Job Specifications.
- Job Description: Factual statement of duties & responsibilities which will have,
1. Job Title 2. Location 3. Job Summary
4. Working conditions 5. Hazards.
- Job Specification: Statement of Minimum acceptable Human quality necessary to perform job properly. It will give details as to,
1. Education & Experience 2. Physical skills 3. Communication skills
4. Emotional Characteristics 5. Judgement.
Steps in Job Analysis:
1. R&S 2. Manpower Requirement 3. Compensation Package
4. Performance Appraisal 5. Training (Channelise energy)
6. Job Assignment 7. Job Re-engineering (working methods for higher productivity) 8. Job Analysis Process.
Techniques of Job Analysis:
1. Interview (Individual/Group)
2. Questionnaire – Types,
A. CODAP – Comprehensive Occupational Data Analysis Program;
B. FJA – Financial Job Analysis;
C. MPDQ – Management Position Description Questionnaire;
D. JAIF – Job Analysis Information Form.
3. Observation
4. Data from daily log books.
II. Job Evaluation: Systematic & orderly process of determining the worth of a job in relation to other job.
III. Job Design: Scientific art by which maximum output can be obtained with Minimum Input to the extent possible under given circumstances.
PROBLEMS – HR PLANNING:
1. Identity crisis 2. Support of Top Management 3. Size of Initial Effort
4. Co-ordination with Management Functions 5. Integration with Organisation Plans 6. Involvement of Operating Manager.
HRA – HUMAN RESOURCE ACCOUNTING:
Measurement & reporting of Cost & Value of people as Organisational resources.
- Benefits: assist Managers w.r.t.,
1. Recruit Vs. Promotion 2. Transfer Vs. Retention
3. Retrench Vs. Retention 4. Utility of Cost Reduction Program
5. Impact of Budgetary Control 6. New dimension to Capital Budgeting
7. Return of Investment in Human Assets.
8. Decision on relocating or streamlining, etc…
- Methods:
1. Historical or Actual Cost Method: First Investment is capitalised as Opening Value; Further Investment amortised.
2. Multiplier Method: It divides Cost & Value. Categorise into,
a. Senior Management (Highest) b. Middle Management
c. Supervisor d. Clerical & Operative (Lowest Multiplier)
Multiplier = Personal values of employees relating to Total assets value of organisation.
3. Replacement of Cost Method:
4. Economic Value Method: Discounts to a present value that, portion of companies' future earnings Directly Attributable to HR.
RECRUITEMENT: process of identification of different sources of personnel. Two sources include,
1. Internal Sources: a. Transfer (one job to another) b. Promotion (filling the higher jobs).
2. External Sources:
a. Recruit at Factory Gate b. Casual Callers or Unsolicited Applications
c. Media Advertisement d. Employment Agencies e. Management Consultants f. Campus Recruitments g. Recommendations
h. Labour Contractors i. Telecasting.
SNO. | Internal Sources | External Sources |
1. | From within the organisation. | From outside the organisation. |
2. | Quick process | Lengthy process |
3. | Cheaper as no cost of contracting | Costly as to be notified |
4. | Limited choice of candidates | Infusion of new blood & new ideas |
5. | Lethargic | Competitive Spirit. |
R&S
RECRUITMENT: Attract applicants for vacant jobs;
SELECTION: Rejection of unsuitable candidates.
SNO. | Basis | Recruitment | Selection |
1. | Meaning | Process of searching candidate for vacant jobs & making them apply for the same. | Process of selection of right type of candidates & offering them jobs. |
2. | Nature | Positive Process | Negative Process |
3. | Aim | Attract more & more candidates. | Reject unsuitable candidate |
4. | Procedure | Firm notifies vacancies through various sources & distributes Application Forms to candidates. | Firm ask candidates to pass through a number of stages such as filling of form, Employment Test, etc… |
5. | Contract of Service | Only communication of vacancies. | Leads to Contract of Service. |
Employment Test includes, Intelligence Test, Aptitude Test, Proficiency Test, Interest Test, Personality Test.
Interview includes, Patterned, Unstructured, Press, Group Interview in which,
1. Find Suitability;
2. Seek more information;
3. Gives accurate picture of job;
CAREER: A sequence of positions held by person during course of his working life.
CAREER ANCHOR: Basic drives that create the urge to take up a certain type of career. It is concerned with,
1. Technical Competence; 2. Managerial Competence;
3. Security of career; 4. Autonomy;
5. Creativity.
CAREER PLANNING: To provide Continuity, Order & Meaning to person's life. The features include,
1. Process of developing HR
2. Means of managing people to obtain optimum results
3. Continuous process
4. Integration of Individual & Organisational needs.
HR PLANNING facilitates Career Planning.
SUCCESSION PLANNING: Career Planning for higher level executives.
The PROCESS of Career Planning:
Step1: Preparation of HR Inventory;
Step2: Identify Individual Career Needs (to help individual to do their own planning). Also, identify the employees, who are,
· Fit & Willing to Take Up;
· Potential & Willingness to Take Up;
· Capacity to Take Up higher responsibilities.
Step3: Analysing Career Opportunities;
Step4: Matching the Employees Needs with Career Opportunities;
Step5: Formulation & Implementation of Training & Development (T&D) program;
Step6: Review of Career Plan.
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