Transcript Ir. Muhril Ardiansyah, M.Sc., Ph.D.

Ir. Muhril Ardiansyah, M.Sc., Ph.D.
Email: [email protected]
HRPA
Ir. Muhril A., M.Sc., Ph.D.
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Ir. Muhril Ardiansyah, M.Sc., Ph.D.
* Ir. (IPB, Bogor, Indonesia; 1985-1990).
* M.Sc. (Oklahoma State University,
Stillwater, Oklahoma, USA; 1991-1993).
* Ph.D. (Oklahoma State University,
Stillwater, Oklahoma, USA; 1996-2001).
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Ir. Muhril A., M.Sc., Ph.D.
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Ir. Muhril Ardiansyah, M.Sc., Ph.D.
Lecturer at:
• Bina Nusantara University, Jakarta, Indonesia.
• Pelita Harapan University, Jakarta, Indonesia.
• Sahid University, Jakarta, Indonesia.
• Indonusa Esa Unggul University, Jakarta,
Indonesia.
• Paramadina University, Jakarta, Indonesia.
• Fashion & Design Institute, Jakarta, Indonesia.
• STIE Gandhi, Jakarta, Indonesia.
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Ir. Muhril A., M.Sc., Ph.D.
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Ir. Muhril Ardiansyah, M.Sc., Ph.D.
Consultant and/or Researcher at:
• INDEF.
• STRATEGY.
• SCORE.
• GLOBAL.
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Ir. Muhril Ardiansyah, M.Sc., Ph.D.
Director and Owner:
• Muhril Ardiansyah’s Consulting,
Educating & Training.
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Ir. Muhril Ardiansyah, M.Sc., Ph.D.
Manager Marketing:
• Beeyon-PT Dewi Fortuna
Komunikasi.
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Ir. Muhril A., M.Sc., Ph.D.
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Blog
http://hrpa.wordpress.com/
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Human Resource
Planning & Auditing
(HRPA)
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After Studying this materials,
We should be able to such as:
1. Explain the main techniques used in
employment planning, forecasting and
auditing.
2. List and discuss the main outside sources of
candidates.
3. Effectively recruit job candidates.
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After Studying this materials, We should be
able to such as (continued):
4. Name and describe the main internal
sources of candidates.
5. Explain how to recruit a more diverse
workforce.
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Questions?
•
How many staff do we have/need?
•
How are they distributed?
•
What is the age profile?
•
How many will leave in each of the next five years?
•
How many will be required in one year, five years,
ten years?
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Results?

The penalties for not being correctly staffed are costly.

Understaffing loses the business economies of scale and
specialization, orders, customers and profits.

Overstaffing is wasteful and expensive, if sustained, and it is
costly to eliminate because of modern legislation in respect of
redundancy payments, consultation, minimum periods of notice,
etc.

Very importantly, overstaffing reduces the competitive efficiency
of the business.
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Future Staff?
Future staffing needs, will derive such as from:
 Sales and production forecasts.

The effects of technological change on task needs.

Variations in the efficiency, productivity, flexibility of
labor as a result of training, work study,
organizational change, new motivations, etc.
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Future Staff? (continued)
Future staffing needs will derive from
(continued):
 Changes in employment practices
(e.g. use of subcontractors or agency).

Variations, which respond to new legislation, (e.g.
payroll taxes, new health and safety requirements).

Changes in government policies
(investment incentives, regional or trade grants,
etc.).
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Future Staff (continued)

Planning staff levels requires that an
assessment of present and future needs of
the organization,
be compared with present resources and
future predicted resources.
Appropriate steps then be planned to bring
demand and supply into balance.
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“ In order to do human resource planning,
you need to have a sense of both the current
external environment, and anticipate things that
may happen in the future in the labor market
place.”
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What Is Human Resource
Planning & Auditing?

Human Resource Planning & Auditing:
links people management to the organization's
mission, vision, goals and objectives,
as well as its strategic plan and budgetary
resources.
A key goal of Human Resource Planning & Auditing
is to get the right number of people with the right
skills, experience and competencies in the right jobs
at the right time at the right cost.
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Question!
Is Human Resource Planning & Auditing
only relevant to large companies or should
small businesses do Human Resource
Planning & Auditing too?
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
Many people associate Human Resource
Planning & Auditing with what very large
companies do – such as Astra.
That's because, almost by necessity, large
companies need to have a much more formal
and comprehensive approach to Human
Resource Planning & Auditing because of
their size and the complexity of their
businesses.
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
Business owner with a very few employees need to think (that is,
plan) about various personnel and human resources issues.
Many small business owners do this without really thinking about
it.
For example, a small business owner needs to think and plan
about what benefits to offer:
- how to manage growth of staff,
- how to plan how many staff are needed,
- how to evaluate employee performance, and so on.
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“So, even if you have one or two employees,
it's useful to "plan like the big boys" regarding
human resource and personnel issues. The
methods you use may be simpler but you still
need to do it, so you are prepared.”
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What human resource functions
need to be planned?
Human resource planning refers to the planning of
human resource functions,
or in other words, planning how human resource management will
be executed:
 Recruiting.
 Selecting .
 Hiring.
 Orienting.
 Training and Retraining.
 Motivating.
 Coaching.
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What human resource functions
need to be planned?







Recognizing Achievements.
Empowering.
Communicating.
Evaluating.
Promoting.
Laying off.
Dismissing.
So, in effect Human Resource Planning refers to the
development of plans in above areas or in similar
areas.
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Some Ways Of Making Human
Resource Planning More Effective?
1. Human Resource Planning needs to be
linked to the larger business planning or strategic
planning process.
Human Resource Planning is NOT an end to itself,
and neither is Human Resource Management an
end in itself.
The function is meant to support and enable the
company to attain its business goals, so as such it
needs to be linked to and driven by those business
or strategic goals.
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Some Ways Of Making Human Resource
Planning More Effective? (continued)
2. The planning process MUST actively involve
those stakeholders and customers – such
as managers, executives, even line
employees.
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Some Ways Of Making Human Resource
Planning More Effective (continued)?
3. Human Resource Planning can't be effective
without an understanding of the company or
organization, its managers and employees,
its mission and issues, etc, and the
environment in which it works.
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How Is Human Resource Planning
Linked To Overall Strategic planning?

Since human resources functions and strategies are
a means to achieve corporate ends, they need to be
tied to, and driven by the corporate role, mission,
vision and strategic goals, or else they simply end
up as processes that add overhead, but down
increase return.
The solution is obvious. Human resource planning
needs to reference the details of the overall strategic
plan of the organization. In effect, it serves the
strategic plan.
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Human Resource Planning & Auditing
(HRPA):

Used by organization to ensure that the right
person is in the right job at the right time.

Involves forecasting the organization’s future
human resource needs and planning for how
those needs will be met.
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Human Resource Planning & Auditing
(HRPA) (continued):

Includes establishing objectives and then
developing and implementing programs (such
as: staffing, appraising, compensating, and
training).
To ensure that people are available with the
appropriate characteristics and skills when
and where the organization needs them.
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Human Resource Planning & Auditing
(HRPA) (continued):

May involve developing and implementing
programs to improve employee performance,
or to increase employee satisfaction and
involvement in order to boost organizational
productivity, quality, or innovation.
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Human Resource Planning & Auditing
(HRPA) (continued):

Can be used to evaluate the effectiveness of
ongoing programs and informs planners when
revisions in their forecasts and programs are
needed.

Entails knowing in advance what the staffing needs
of the organization will be,
assessing the supply of the relevant employee in
the organization and labor market, and finding ways
to fulfill the staffing needs.
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Human Resource Planning & Auditing
(HRPA) (continued):

Successfully HRPA for and handling labor
needs can thus be a competitive advantage.
Organization who makes and implements
better HRPA than others will adjust better to
environmental changes, and have the most
suitable workforces.
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The HRPA Processes
There are three broad keys of HRPA:
1. Know the strengths and the weaknesses of
current workforce, both with regard to number,
skills, etc.
2. Have clear strategic plans for the future, and ideas
of how the current employee fit in that plan.
3. In the current employee do not fit in any way, a
plan to alter it to do so.
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The HRPA Processes
(continued)
The steps of the HRPA processes:
1. Deciding on strategic plans and resultant
design of the organization.
There are business plans for the future.
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The HRPA Processes
(continued)
The steps of the HRPA processes:
2.
Out of the strategic plans, determining the organization’s labor
demand needs for both the short term and longer terms.
3.
Assessing the labor supply situation (both internal and external
supply), and in light of it to draw up plans for effectively and
continuously filling staffing needs.
4.
Implementing the staffing plans, also monitoring and
evaluating.
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Projected,
Environmental
Conditions,
Competitive
strategy,
Asses HR
Demand
& Supply
Develop
Objectives
Design &
Implement
Program
Evaluate
Outcome
Life cycle
stage, Industry
sector
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Strategy, Design HRPA

To serve as a competitive advantage, the
acquisition of staff must first and foremost be
strategic.

One cannot hire, fire or relocate staff without
there being a strong link to the core business
needs.
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Strategy, Design HRPA
(continued)

The objectives and design:
Allow those doing human resource planning
to know the number and type of employees
needed at each horizontal and vertical level.
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Forecasting Personnel Needs
Linking Strategy Employers To Plans
Employer’s Strategic Plan:
Diversity?
Integrate vertically?
Expand geographically?
Employer’s
Functional
Plans
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Marketing And
Sales Plans
Production
Plans
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Financial
Plans
HR Plans
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Forecasting Personnel Needs
Linking Strategy HR Plans
HR Plans
Personnel
Plans
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Training And
Development
Plans
Compensation
Plans
Ir. Muhril A., M.Sc., Ph.D.
Labor
Relations
Plans
Security
And Safety
Plans
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Forecasting Personnel Needs
Linking Strategy Personnel Plans
Personnel Plans
Personnel
Forecast
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Recruitment
Plans
Ir. Muhril A., M.Sc., Ph.D.
Employee
Selection Plans
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Forecasting Personnel Needs

Explain the main techniques used in
employment planning and forecasting.

Forecasting labor demand arising from
strategic objectives.
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Forecasting Personnel Needs
(continued)

To fulfill strategic objectives, need to ask several
questions:
- How many employees are needed to enable
the strategy and design?
- Of what type and qualities?
- Where (in what
departments/jobs/positions)?
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Forecasting Personnel Needs
(continued)

Demand for labor:
- It is a derived demand.
- Demand labor is dependent on more
primary demands.
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Forecasting Personnel Needs
(continued)

Several techniques of forecasting personnel
needs:
1. Trend analysis.
2. Ratio analysis (Personnel ratios).
3. The scatter plot.
4. Time series on staffing levels.
5. Productivity ratios.
6. Regression on leading indicators.
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Forecasting Personnel Needs
(continued)

Trend analysis:
- Study of a firm’s past employment, needs over a period of years
to predict future needs.
- Might compute the number of employee at the end
of each of the last five years.
- Might compute the number of employee in each
group (such as sales, production, secretarial, administrative) at
the end of each those years.
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Forecasting Personnel Needs
(continued)

Trend analysis (continued):
- Provide an initial estimate, but employment
level rarely depend just on the passage of
time.
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Forecasting Personnel Needs
(continued)

Ratio analysis (continued):
A forecasting technique for determining future
staff needs, by using ratios between.
For example sales volume and the number of
employees needed.
- assumes the productivity remains about the
same.
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Forecasting Personnel Needs
(continued)

Ratio analysis (continued):
Example:
Suppose a sales person traditionally
generates Rp. 5 000 000 in sales.
If the sales revenue to sales people ratio
remains the same, you would require 6 new
sales people next year to produce a hoped
for extra Rp 30 000 000 in sales.
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Forecasting Personnel Needs
(continued)

The scatter plot:
A graphically method used to help identify
the relationship between two variables.
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Forecasting Personnel Needs
(continued)

The scatter plot (continued):
Example:
Assume a 500 bed hospital expects to expand to 1200 beds over
the next 5 years.
The director of nursing and the human resource director want to
forecast the requirement for registered nurses.
The human resource director decides to determine the
relationship between size of hospital (in terms of number of beds)
and number of nurses required. She calls 8 hospitals of various
size and gets the following figures:
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Forecasting Personnel Needs
(continued)
The scatter plot (continued):
Size of Hospital
Number Of Regsitered
(Number of Beds)
Nurses
200
240
300
260
400
470
500
500
600
620
700
660
800
820
900
860

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Forecasting Personnel Needs
(continued)

The scatter plot (continued):
Number Of
Registered
Nurses
Hospital Size (No. of Beds)
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Forecasting Personnel Needs
(continued)

Time series on staffing levels:
- The past trends of staffing are extrapolated
to the future.
- Time series takes into account past cycles,
seasonal ups and downs, and long term
trends.
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Forecasting Personnel Needs
(continued)

Productivity ratios:
- Look at the number of people required to
deal with different levels of workload.
P=W/N
P : productivity ratio
W: workload
N: number of staff
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Forecasting Personnel Needs
(continued)

Productivity ratios (continued):
P = 0.5 (2 staff members for every unit of
work)
If workload drops by 0.2 (20%) then staffing
must drop by 0.4 (40%).
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Forecasting Personnel Needs
(continued)

Regression on leading indicator:
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Forecasting The Supply Of
Inside And Outside Candidates
Some steps in assessing, such as:
1. Asses what human resource capabilities
currently exist in the organization to fulfill
needs.
2.
HRPA
In light of this, assess how adequately the
current workforce supplies needs
(is there shortage or surplus of the right kind
of staff based on forecasted demand?)
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Forecasting The Supply Of Inside And
Outside Candidates (continued)
Some steps in assessing, such as (continued):
3. Therefore, asses what changes need to be
made to perfect the human resource supply
(strategic staffing goals and plans; do we
hire?/downsize?/relocate?).
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Forecasting The Supply Of Inside And
Outside Candidates (continued)
Manual systems and replacement charts:
- Use “a personnel inventory and
development record form” compiles
qualification information on each
employee.
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Forecasting The Supply Of Inside And
Outside Candidates (continued)
Division Vice President
Vice President
Production,
Vice President Sales,
Vice President
Finance,
Amir Hamzah
Rudi Suhartono
Laris Sagala
a, f
s, g
d, h
Required
development:
none
recommended
Required
development: job
rotation into finance
and production
Required
development:
none
recommended
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Forecasting The Supply Of Inside And
Outside Candidates (continued)
a : present performance “outstanding”
b : present performance “satisfactory”
d : present performance “needs improvement”
f : promotion potential “ready now”
g : promotion potential “needs further training”
h: promotion potential “questionable”
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Forecasting The Supply Of Inside And
Outside Candidates (continued)
Forecasting the supply outside candidates:
- If there won’t be enough inside candidates to
fill the anticipated openings.
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Organizational Supply Capabilities

The step looks at current people and skill.

There are should several readily available information sources:
- Skill inventory
-- A register of current human resource
capabilities.
-- Incorporating information on each
employees’ skills, demographic, test
scores, etc.
- Management inventory
-- tailored to management.
-- subjective assessments of ability.
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Organizational Supply Capabilities
(continued)
Various ways to forecast the supply of future
people/skills:
1. Markov analysis
- Uses historical flow rates of workforce to
predict future rates.
- Just looking at the current internal supply,
not external labor market supply.
- The organization uses its own internal workforce
movements as a proxy for future movements.
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Organizational Supply Capabilities
(continued)
Various ways to forecast the supply of future
people/skills (continued):
2. Replacement planning
- Short term replacement schedules.
- Who can replace whom within the
organizational hierarchy.
- Useful in predicting internal supply.
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Organizational Supply Capabilities
(continued)
Various ways to forecast the supply of future
people/skills (continued):
3. Succession planning
- A longer term career development
approach.
- Effectively “earmark” employees for
development through the hierarchy.
- Long term internal supply situation.
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Organizational Supply Capabilities
(continued)
Various ways to forecast the supply of future
people/skills (continued):
4. Vacancy analysis
- Essentially Markov analysis based on
judgment instead of history.
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Assessing Adequacy Of
Current Staff

Once one has assessed the current or future
workforce capabilities,
one needs to assess those capabilities against
demand
There are 3 possibilities:
1. Too few people/skills
(shortage-we need to add).
2. Too many people/skills
(surplus-need to remove employees).
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Assessing Adequacy Of
Current Staff (continued)
3. Need to reduce some staff and hire others
(possible the number of people remain
the same, but type/quality will have
changed).
- Involves skills (not numerical) deficiencies.
- Current staff lack necessary skills and
cannot be trained, replacing them with adequately
skilled staff.
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Employment
Planning And
Forecasting
Recruiting:
Build A Pool
Of
Candidates
Supervisors And
Other Interview
Final Candidates
To Make Final
Choice
HRPA
Candidates
Applicants
Complete
Application
Form
Use Selection
Tools Like Test
To Screen Out
Most Applicants
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Effective Recruiting

Develop an applicant pool.

The more applicants, the more selective in
hiring.

The recruitment efforts should make sense in
terms of the company’s strategic plans.
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Organizing The Recruitment
Function
1. Conduct all recruiting from central
recruitment officer.
- Easier to apply the company’s strategic
priorities.
- It reduces duplication (having several
recruitment offices instead of one).
2. Conduct all recruiting from decentralize
recruitment officer.
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Measuring Recruiting
Effectiveness

What to measure? And how to measure it?

What to measure?
- “How many applicants did we generate
through each of our recruitment sources?”
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Selection Devices That Could Be
Used To Initially Screen Applicants
Selection Device
Validity For Predicting Job
Performance
Construct
General mental ability tests
0.51
Conscientiousness tests
0.31
Integrity tests
0.41
Method
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Work sample tests
0.54
Job knowledge tests
0.48
Structured interviews
0.51
Biographical data
0.35
Grade point average
0.23
Rating of training and experience
0.11
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The Recruiting Yield Pyramid

Some employers use a recruiting yield
pyramid to calculate the number of applicants
they must generate to hire the required
number of new employee.
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Case1
Finding people who are passionate about what
they do
Trilogy Software, Inc., of Austin, Texas, is a fast
growing software company, with earning in the
$ 100 million to $ 200 million range.
It prides itself on its unique and unorthodox culture.
Many of its approach to business practice are unusual,
but in Trilogy’s fast changing and highly competitive
environment they seem to work.
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Case1 (continued)
There is no dress code and employee make
their own hours, often very long. They tend to
socialize together (the average age is 26), both
in the office’s well stocked kitchen and on
company sponsored events and trips to places
like local dance clubs and retreats in Las Vegas
and Hawaii.
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Case1 (continued)
An in house jargon has developed, and the
shared history of the eight year old firm has
taken on the status of legend.
Responsibility is heavy and comes clearly, with
“just do it now” attitude that dispense with long
apprenticeships.
New recruits are given a few weeks of intensive training, known as
Trilogy University and described by participants as “more like boot
camp than business school.”
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Case1 (continued)
Information is delivered as if with “fire hose,” and new
employees are expected to commit to their expertise
and vitality to everything they do.
Jeff Daniel, a director of college recruiting, admits the
intense and unconventional firm is not the employer for
everybody. “But it’s definitely an environment where
people who are passionate about what they do can
thrive.”
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Case1 (continued)
The firm employs about 700 such passionate people.
Trilogy’s managers know the rapid growth they seek depends on
having a staff of the best people they can find, quickly trained and
given broad responsibility and freedom as soon as possible.
Founder and CEO Joe Liemandt says “ At a software company,
people are everything. You cannot build the next great software
company, which is what we are trying to do here, unless You are
totally committed to that. Of course, the leaders at ever company
say “People are everything, but they do not act on it.”
HRPA
Ir. Muhril A., M.Sc., Ph.D.
81
Case1 (continued)
Trilogy makes finding the right people (it calls
them “great people”) a company wide mission.
Recruiters actively pursue the freshest, if least
experienced, people in the job market, scouring
college career fairs and computer science
departments for talented overachievers with
ambition and entrepreneurial instincts.
HRPA
Ir. Muhril A., M.Sc., Ph.D.
82
Case1 (continued)
Top managers conduct the first rounds of interviews,
letting prospects know they will be pushed to achieve
but will be well rawarded.
Employees take top recruits and their significant others
out on the town when they fly into Austin for the
standard, three day preliminary visit. Atypical day
might begin with grueling interviews but end with
mountain biking, roller blading, or laser tag.
Executives have been known to fly out to meet and
woo hot prospects who could not make the trip.
HRPA
Ir. Muhril A., M.Sc., Ph.D.
83
Case1 (continued)
One year, Trilogy reviewed 15 000 resumes,
conducted 4000 on campus interviews, flew
850 prospects in for interviews, and hired 262
college graduates, who account for over a third
of its current employees. The cost per hire was
$ 13 000, Jeff Daniel believes it was worth
every penny.
HRPA
Ir. Muhril A., M.Sc., Ph.D.
84
Case1 (continued)
Questions:
1. Identify some of the established recruiting
techniques that underlie Trilogy’s unconventional
approach to attracting talent.
2. What particular elements of Trilogy’s culture most
likely appeal to the kind of employees it seeks?
How does it convey those elements to job
prospects?
HRPA
Ir. Muhril A., M.Sc., Ph.D.
85
Case1 (continued)
Questions:
3. Would Trilogy be an appealing employer for
you? Why or why not? If not, what would it
take for you to accept a job offer from
Trilogy?
4. What suggestions would you make to
Trilogy for improving its recruiting process?
HRPA
Ir. Muhril A., M.Sc., Ph.D.
86
Case2
Carter Cleaning Company
Getting Better Applicants
If you were to ask Jennifer and her father what
the main problem was in running their firm, their
answer would be quick and short: hiring good
people.
HRPA
Ir. Muhril A., M.Sc., Ph.D.
87
Case2 (continued)
Originally begun as a string of coin operated
laundromats requiring virtually no skilled help, the
chain grew to six stores, each heavily dependent on
skilled managers, cleaner-spotters, and pressers.
Employees generally have no more than a high school
education (often less), and the market for them is very
competitive. Over a typical weekend literally dozens of
want ads for experienced pressers or cleaner-spotters
can be found in area newspaper.
HRPA
Ir. Muhril A., M.Sc., Ph.D.
88
Case2 (continued)
All these people are usually paid around $ 15
per hour, and they change jobs frequently.
Jennifer and her father are thus faced with the
continuing task of recruiting and hiring qualified
workers out of a pool of individuals they feel are
almost nomadic in their propensity to move
from area to area and job to job.
HRPA
Ir. Muhril A., M.Sc., Ph.D.
89
Case2 (continued)
Turnover in their stores (as in the stores of
many of their competitors) are often
approaches 40%. “Do not talk to me about
human resources planning and trend analysis”
says Jennifer. “We are fighting an economic
war and I am happy just to be able to round up
enough live applicants to be able to keep my
trenches fully manned.”
HRPA
Ir. Muhril A., M.Sc., Ph.D.
90
Case2 (continued)
In light of this problem, Jennifer’s father asked
her to answer the following questions:
1. How would you recommend we go about reducing
the turnover in our stores?
2. Provide a detailed list of recommendations
concerning how we should go about increasing our
pool of acceptable job applicants so we are no
longer faced with the need of hiring almost anyone
who walks in the door.
HRPA
Ir. Muhril A., M.Sc., Ph.D.
91
References:
Dessler, G. 2005. Human Resource
Management. Pearson Education, Inc. New Jersey.
Jackson, S.E. and Randall S.S. 1990. Human
Resource Planning Challenges For
Industrial/Organizational Psychologists. American
Psychologist February 1990.
Millmore, M; Philips, L; Mark, S; Adrian, T.; Trevor, M.
2007. Strategic Human Resource Management
Contemporary Issues. Pearson Education Limited.
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