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STRATEGY &

WORKFORCE PLANNING

STRATEGIC PLANNING

A set of procedures for making decisions


about the organizations long-term goals and
strategies.

How the organization will position itself


relative to competitors in order to achieve
long-term survival, value and growth.

HUMAN RESOURCE PLANNING

The process of anticipating and making provision for the


movement of people into, within and out of an organization.

Getting the right number of qualified people into the right job
at right time.

The process of matching internal & external supply of people


with job openings anticipated in the organization over a
specified period of time.

HR provides a mechanism to climate any gap that might exist


between demand & supply.

HR Planning Process

It involves four distinct phases:

Situation analysis, environment scanning and


strategic planning
Forecasting HR demands
HR supply forecasting
Action decisions in HRP

I. Situational Analysis,
Environmental Scanning

HRM & strategic planning initially interact in this


stage.
Requires consideration of both external & internal
environment.
Determination of overall organizational purposes &
objectives and how they are to be achieved.
Without an effective HR plan to support the
recruitment & selection functions in the organization
it will be impossible to stay competitive.

II. Forecasting Demand for Human


Resources

Estimating how many and what kinds of employees


will be needed.

Forecasting yield advanced estimates or calculations


of the organizations staffing requirements.

There are two approaches to HR forecasting:


quantitative and qualitative.

Quantitative Approaches:

Quantitative approaches to forecasting involve the


use of statistical or mathematical techniques.

A.

Trend Analysis:
A quantitative approach to forecasting labor
demand based on an organizational index such as
sales.

Modeling
or
techniques:

B.

Multiple

predictive

Trend analysis relies on a single factor (such as


sales) to predict employment needs, the moreadvanced methods combine several factors, such
as interest rates, gross national product,
disposable income, and sales, to predict
employment levels.

Qualitative Approaches:

Qualitative approaches to forecasting are less statistical,


attempting to reconcile the interests, abilities, and
aspirations of individual employees with the current and
future staffing needs of an organization.

A.

Management forecasts/ Expert forecasts:

The opinions (judgments) of supervisors, department managers,


experts, or others knowledgeable about the organizations future
employment needs.

Delphi technique:

B.

Attempts to decrease the subjectivity of forecasts by


soliciting and summarizing the judgments of a
preselected group of individuals.

The final forecast represents a composite group


judgment.

This method works best in organizations in which


dynamic technological changes affect staffing levels.

FORECASTING HR REQUIREMENTS
(DEMAND ANALYSIS)

(Trying to predict future staffing needs)


Managerial Estimates
Sales Projections
Simulations
Vacancy Analysis (projected turnover)

Ideally, forecasting should include the use of


both quantitative and qualitative
approaches.

FORECASTING HR AVAILABILITY

(SUPPLY

ANALYSIS)

(Predicting worker flows and availabilities)


Succession or Replacement Charts
Skills Inventories (use of HRIS)
Labor Market Analysis
Markov Analysis (Transition Matrix)
Personnel Ratios

Succession or Replacement Charts


Who has been groomed/developed and is ready for promotion right NOW?

Human Resource Information Systems (HRIS)


An employee database that can be searched when vacancies occur.

Transition Matrices (Markov Analysis)


A chart that lists job categories held in one period and shows the proportion of
employees in each of those job categories in a future period.
It answers two questions:
1.
Where did people in each job category go?
2.
Where did people now in each job category come from?

Personnel / Yield Ratios


How much work will it take to recruit one new accountant?

Work Study Technique Or


Workload Forecasting

It can be used when it is possible to apply


work measurement to know how long
operations should take and the amount of
labour required. This is known as workload
analysis. On the basis of work load of each
plant during the forthcoming years work force
analysis is done considering the rates of
absenteeism and labour turnover.

Work Load Analysis

Manpower planning experts need to find out sales forecasts,


work schedule and thus determine the manpower
requirement per unit of product sales forecasts are
translated into work performance. Departmental workloads
are converted into man-hours in terms of different skills
required. Work load analysis is use to achieve total
production targets similarly plans are made concerning
amount of work that all other departments of org. are
expected to accomplish during the coming year. Past
experience can be utilized to translate workloads into man
hours required.

ExampleAnnual production budget


Standard man-hour required per unit
Planned man-hours per year
Annual contribution of workers
Number of workers required

-180000 units
- 2hrs
- 360000hrs
- 2000hrs
- 180

But the actual production is influenced by


many other factors such as availability of
inputs and power, breakdowns of machinery,
strike. Lockout etc. it is suitable for shortterm projections. Long term projections based
on work force analysis.

Work Force Analysis

Two factors taken into considerations are


Absenteeism
labour Turnover
Both these operate to reduce the no. of workers available. Therefore
to do work force analysis is light of these problems and hence
sufficient margin of absenteeism, labour turnover & idle time based
on past experience should be considered and a margin kept.

Benefits Of Human Resource Planning

It results in reduced labour costs as it helps


might to anticipates shortages or surpluses &
correct the imbalances before they become
unmanageable.
Better basis for planning employee
development.
To impost effective training programmers.

To improve the overall business planning


process
Helps in formulating managerial succession
plan
Serves as tool to evaluate the effect of
alternative manpower actions & policies

Problems In HRP

Support of top management


Size of initial effort
Coordination with other mgmt functions
Integration wit organizational plans

Manpower Planning At Different Levels

Corporate
Divisional
Plant levels
Purpose of carrying out at various levels is the
systematic
projection
of
manpower
requirements for the future. If personnel lower
down take part in the planning process they are
more willing partners in the implementation.

Manpower planning at the plant level can be


conducted by operating committee on the basis of the
past data & future projections; then it submit to the
next organization level, there the divisional
committee reviews & integrates plans of all plants
into a comprehensive divisional manpower planning
report & submit to the top level mgmt. The committee
of the top executives review all the plans submitted
by divisional committees and take the final decisions.

JOB DESCRIPTION

It is a factual statement of duties and


responsibilities of a specific job. It is an
important document, which is basically
descriptive in nature and contains a statement
of job analysis. Its main focus of job
description is to define job activities, major
responsibilities and positioning of the job in
the organization.

A complete job description should contain:


Job and locations
The work to be performed
Context in which the action takes place.

Includes

Job Title: it should indicate as clearly as possible


the function in which the job is carried out and the
level of the job within tat function.
Reporting To: the job title of the manager or
supervisor to whom the job holder is directly
responsible is given here.
Reporting To Him: the job title of all the workers
directly reporting to the job holder should be given
under this heading

Overall Responsibilities: the overall purpose of


the job should be stated. Aim should be stated.
Aim should be to convey in more than two or
three sentences. A broad Picture of the job
which will identify it from other jobs and
establish role of the job holder and the
contribution he should make towards achieving
objectives of the company and his own
functions or unit.

Guidelines Are Provided For Writing Descriptions:

Give clear, concise and readily understanding


picture of the work job.
Describe in sufficient detail each of the main duties
and responsibilities
Indicate the extent of direction received a supervision
given
Ensure that the new employee understands the job if
he reads the job description

Data For Job Description Obtained

By observation of job being performed


By discussion with the supervisor of the job
By requesting the supervisor of the job to fill in a
questionnaire describing the job
By discussion with some employees working on the
job
By requesting some of the employees working on
the job to fill in the questionnaire describing the job

Types Of Job Description

Job grading and job classification


Providing base for preparing job satisfaction
ending to recruitment and selection
Procurement and placement of employees
Developing career paths
Training and development
Setting performance standards and appraisal

Promotion and transfer


Developing work procedures and processes.
Taking preventive measures to minimize the
of hazardous conditions
Employees and vocational training.