Transcript Human Resources Planning

Introduction

HRD is a continuous process to facilitate a sustained
development of employees’ competencies, dynamism,
motivation and effectiveness in a systematic and planned
way.
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Daftur defines HRD “as a system and process
concerned with organized series of learning activities
within a specified time limit, designed to produce
behavioral changes in the learner, in such a way that it
acquires desired level of competence for present or
future role”.
The analysis of any definition of HRD further shows
that there are three important aspects viz.,
1. It helps/motivates the employees of an
organization.
2. It acquires, develops and moulds various aspects of
human resources.
3. It contributes to the organizational, group,
individual and social goals.
Forecasting
The use of historic data to determine the direction of future trends. Forecasting is used by
companies to determine how to allocate their budgets for an upcoming period of time. This
is typically based on demand for the goods and services it offers, compared to the cost of
producing them.
Forecasting Techniques
Quantitative - Simple regressions
Multiple regressions
Time trends
Moving averages
Qualitative - Delphi method
Nominal group technique
Jury of executive opinion
Scenario projection
Maintaining personnel inventories
Inventory management involves the development and administration of policies, systems and
procedures, which will minimize total costs relative to inventory decisions and related functions
such as customer service requirements, production scheduling and purchasing. Viewed in that
perspective, inventory management is broad in scope and affects a great number of activities in a
company’s organization.
Succession planning
Getting the right number of people with the right skills, experiences, and competencies in the
right jobs at the right time.
Key Elements
Assessment of
Key Positions
Identification of
Key Talent
Assessment of
Key Talent
Development
Monitoring &
Review
Generation of
Development Plans
Modeling career paths
Understanding the structure and dynamics of the job market is important from a variety of
perspectives. Individuals are clearly very much concerned with establishing good career paths.
Knowing what skills and combinations of skills are valued in various positions is very valuable.
Understanding how to plan a career and seek positions that will lead to desirable career
outcomes is another vital capacity. Institutions and policy makers should also understand
patterns and trends in the job market in order to set policy and focus training resources where
they can be most effective.
Employment
 Recruitment
 Selection
 Orientation
Recruitment - The process of identifying and hiring the best-qualified candidate (from
within or outside of an organization) for a job vacancy, in a most timely
and cost effective manner.
Selection - Employee Selection is the process of putting right men on right job. It is a
procedure of matching organizational requirements with the skills and qualifications of people
Step 1 – Application
Step 2 – Minimum Recruitments
Step3 – Written Test
Step 4 – Interview
Step 5 – Medical Evaluation
Orientation - New employee orientation effectively integrates the new employee into the
organization and assists with retention, motivation, job satisfaction, and quickly enabling each
individual to become contributing members of the work team.
Training and Development
Devising Programs
Hourly workers
Managerial Staff
 Primary Skills Training
 Advanced Skills Training
 Promoting Diversity
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Equal Employment Opportunity
Ensuring EEO Compliance
 Administering affirmative action
 Handling discrimination complaints
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Compensation
The old model was, “How do you get people to serve
the organization’s goals?” Today we have to ask, “How
do you build organizations that merit the gifts of
creativity and passion and initiative?”
Administering Compensation
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Decide on the form of pay system: Cash/benefits
Level of pay structure : Compensation paid by the
organisation vis-à-vis its competitors
◦ Conduct a pay survey
◦ Level of pay relates to productivity of employees
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Structure: Nature of wage differentials
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No. of grades
How big should the pay differential be?
Timing of payment
All of this requires Job evaluation
Design pay policies keeping in mind perception of fairness
Decide on the mix : Fixed / variable pay.
Conduct Job analysis
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Decide on incentive pay plans :
◦ Incentive plans recognize individual effort and rewards the same thus
serving as a motive for employees to work hard and reap the benefits.
◦ Incentive plans can be based on individual or group performance.
◦ Individual : Straight piece-work plan, Bedeaux plan, Taylor’s differential
piece rate plan, Halsey’s 50-50 etc
◦ Group: Scanlon plan, Rucker plan, impro-share.
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Decide on performance review
◦ The systematic evaluation of the individual with respect to his
performance on the job and his potential for development.
◦ Aids performance related pay-increases and promotions
◦ Not only needs to be transparent and fair but must also be perceived
so
◦ Can be done through Ranking,Standard rating scales,Behaviorally
Anchored Rating Scales (BARS), MBO,Essay.
Labour Relations
Its all about establishing a connect..
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Good labour relations involve instituting labormanagement cooperative programs which ensure the
hearing of employee concerns and complaints and also
monitors the morale level within the organisation.
Experts agree no cooperative program can succeed
unless top management expresses a firm commitment to
employee and/or union participation. The following
illustrate private sector policies or contract provisions:
1. Dayton-Hudson Corporation: To provide an
atmosphere that encourages employee initiative and
input and which fosters trust, creativity and economic
security.
2. Intel Corporation: Open (constructive)
confrontation is encouraged at all levels of the
corporation and is viewed as a method of problem
solving. Decision by consensus is the rule.
3. Xerox Corporation :Involves employees in
discussions about work-related issues. Solicits ideas from
employees. Guides team decisions to match overall
organizational objectives. Involves employees in decisionmaking. Encourages employees toward cooperation
rather than competition. Establishes a climate of
openness and trust.
SAFETY
→ENSURING OSHA COMPLIANCE
→PHYSICAL ENVIRONMENT
→CONDUCTING ACCIDENT
INVESTIGATIONS
EMPLOYEE BENEFITS
DESIGN OF VACATION & SICK BENEFITS
 401K PLAN
 HEALTH INSURANCE & WELLNESS
PROGRAMS
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MEDICAL HEALTH
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CONDUCTING HEALTH & WELLNESS
PROGRAMS
Opinion surveys
An opinion poll, sometimes simply referred to as a poll is a survey of public opinion
from a particular sample. Opinion polls are usually designed to represent the opinions of
a population by conducting a series of questions and then extrapolating generalities in
ratio or within confidence intervals.
HR Audit
A Human Resources Audit is a comprehensive method (or means) to review current
human resources policies, procedures, documentation and systems to identify needs for
improvement and enhancement of the HR function as well as to ensure compliance with
ever-changing rules and regulations
Sections of review include:
Hiring and Orientation
Benefits
Compensation
Performance evaluation process
Termination process and exit interviews
Job descriptions
Form review
Personnel file review
Purpose of HR Audit
Ensuring the effective utilization of the
organization’s human resources
 Reviewing compliance concerns with a myriad of
administrative regulations
 Instilling a sense of confidence in management
and the human resources function
 Maintaining or enhancing the organization’s and
the department’s reputation in the community
 Performing “due diligence” review for
shareholders or potential investors/owners
 Establishing a baseline for future improvement for
the function
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Personnel Research
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Publishing statistical analysis
Discipline
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Formulation and coordination of policies
Assistance and advice in major disciplinary
actions
Provide technical expertise and consultation to
help supervisors determine what course of
administrative action is most appropriate in
specific situations.
Determine whether sufficient evidence exists to
justify taking disciplinary action once the
investigation of any misconduct is complete.
HR Audits
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Employee turnover
Grievances
 Attendance
 Accidents
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Compliance with federal and state
regulations
CASE STUDY
The Other Side of HR Function
M/s Sukumar Engineering Works, on the outskrits of kolkata, with over
800 employees was making a good amount of profit due to their
highly dedicated employees. The level of job satisfaction of the
employees was very high. HR practices and the relationship with the
recognized union were also satisfactory. The management was proud
of their employees and the union.
The company had one electric arc furnace and a re-rolling mill. The raw
material was steel scrap. The mill was working in three-shift , 7 day
operation as the process was continuous. The furnace was producing
pencil steel ingots which were sent to re-rolling mills for further
operations.
It was 29th August,2010. On the evening of that day, before leaving the
works, the HR manager, Prabir Chatterjee, as usual went to the office
of the GM, Alok Bannerjee. He found him in a state of tension and
asked him the cause of his worry. The GM asked him to sit down and
revealed that due to non-availability of manila rope in the stores, the
electric furnace had to be closed down on that night shift and the
next morning.
Because of this, there would be a loss of ingots production and the
target for the month could not be met. Only 2 days were left. Before
the beginning of the month, the MD had particularly had emphasized
the need to meet the target due to pressing orders . The GM had
assured him that he would definitely produce the required tonnage
and would rather try to produce more. Now, almost at the end of
the month, he had never expected that he would face a problem like
this. 3 employees who requested for urgent leave were also refused
due to the commitment of the production. There was absolutely no
problem of any raw material. But a small item like manila rope’s nonavailability created an acute problem. The GM admitted that the
mistake was due to the stores staff, who could have procured the
material on time. On enquiry, it was revealed that the production
staff had already drawn its monthly requirements from the stores.
The consumption of this material this month was little more due to
poor quality of manila rope. There might some other unknown
reasons too. At that time, the GM, instead of digging out further
reasons, wanted an immediate solution first.
Prabir knew the general of this factory. When he joined this company
3 years ago during his orientation program he studied and learnt
thoroughly the manufacturing process. He also read a book on
‘Making and Shaping of Steel’ as suggested by the GM. He obtained
sufficient knowledge to know the process. Prabir was not a
technical person and therefore did not go deep into the subject.
For some doubts, he got clarifications from technical staff who
were quite cooperative.
A brief narration on the function of electric arc furnace was:As a first step, the steel scrap would be loaded in the scrap charging
bucket which had petals underneath. The petals were tied with a
manila rope. When the over head crane took the loaded scrap
charging bucket just over the open arc furnace, the manila rope
would be burnt due to the heat of the furnace. The petals would
open out to drop the steel scrap into the furnace. The electric
furnace produced pencil ingots to be rolled in the re-rolling mills
for the final finished products, such as rounds, angles, etc., to be
used for reinforcement jobs. Thus, the role played by manila rope
during the process was very important.
After knowing the problem of non-availability of this material in the
stores, Prabir immediately volunteered to procure the rope. He
filled up a purchase requisition and got it signed by GM. He then
went to the purchase department. Since it was already 6:30pm, all
staff members had left the office, except 1 purchase officer, who was
busy in clearing out some of his pending jobs. Prabir requested him
to help him on this matter. The officer asked him to wait for the
next day as manila rope not a material to be procured so urgently.
Prabir explained all the steps in the manufacture of pencil steel
ingots and the importance of this rope during the process. He also
said that the production would be stopped in the night shift and in
the next morning. The purchase officer, an engineer, was very happy
to know the technical details narrated by a personnel man. He also
understood Prabir’s anxiety and contacted on phone 2 or 3
hardware merchants. He wrote down a formal purchase order and
directed Prabir to go to the city to collect the material. Prabir took
the jeep and quickly drove to the shop before it was closed.
He collected 4 bundles of manila rope and went straight to the
factory. When the GM saw the material in the jeep, he thanked
Prabir profusely for taking such an initiative to procure the
material. That month the target was exceeded. The reason for
taking up such a non routine job was his prudence. If the target of
production was not met the bad consequences would have been
many, including HR problems. The employees would receive less
incentive bonus, the cordial relationship with the recognized union
would have been damaged, the morale of the GM and the
production staff might have plummeted, etc. Prabir Chatterjee, a
highly committed and dedicated officer, was always looking out for
some challenging and non routine jobs of this nature. Once, the
company received a notice from the state government, which
could not be dealt with by any executive in the company. It was
Prabir who took the letter and got a solution after personally
contacting some government officials.
On the foundation day of the company, the GM and Personnel
manager received special mementos from MD, who made a special
mention of Prabir in his speech and thanked him for his
involvement. Prabir, in his reply, said that all Personnel officers need
not have technical qualification but surely they could, by their
involvement know the process of production. They should be
thoroughly familiar with all materials required for production right
from the raw materials stage to the finished products. This
knowledge would definitely help them to grasp and understand the
problems much better.
QUESTIONS FOR
DISCUSSION
1.
2.
3.
4.
Is it correct for an HR to enter into an area
not his own?
Do you advocate a change of policy for
recruitment of HR managers with technical
qualification?
Do you find every aspect of HR functions
working well in M/s Sukumar Engineering
Works?
Can the HR take all credit for himself
where excellent industrial relations exist?
1. Is it correct for HR manager to enter into an area
not his own?
Ans. The job of HR manager is a very responsible one and has unlimited
scope. Knowledge is power. Acquiring knowledge of other areas,
therefore, will enable the HR manager to grasp the problems effortlessly.
When an HR executive is dealing with persons, he should preferably have
some functioning knowledge of the employees with whom he is working.
When once he knows the condition of workplace and other matters, he
can do his job in an enhanced and efficient manner. Further, this
additional knowledge will bring better discipline among the employees.
Understanding the area of work of the employees with whom he is
involved, day in and out, will undoubtedly bring competence. The HR
manager’s knowledge about the occupation of the workers will always
help him to discharge his responsibilities very effectively. It is not
necessary that he should thoroughly possess the entire process of
production, but at least working knowledge will definitely help him in
several ways. His scope of work will enlarge. The HR manager, therefore,
should devote some time to learn the technical aspect of the
department in which he is posted. It should not be misconstrued as
entering into the area of work with which he is not connected.
2. Do you advocate a change of policy for recruitment
of HR managers with technical qualification?
It is not necessary. The specialization in HR for personnel of IT,
Engineering or Marketing will be an added advantage. There are
several engineers who have opted to be HR executives. Some
production engineers, with their immense involvement in dealing
with a few problems in HR area, are doing very well as HR
managers. The dual knowledge of these persons help them take up
various crucial HR activities for the benefit of the management.
However, there may not be a change of policy basically for
recruiting HR managers with technical knowledge.
3. Do you find every aspect of HR functions working
well in M/s Sukumar Engineering Works?
Ans. From the case study, it is known that M/s Sukumar
Engineering Works were maintaining a very cordial relationship
with the recognized union.The employee’s morale was also high.
4. Can the HR manager take all the credit for
himself where excellent industrial relations exist?
Ans. Yes, he can. But it is a collective effort. The top
management should give all opportunities to line
executives to discharge their responsibilities in an
efficient manner. Interference of the superiors should be
judicious. However, the job knowledge of the executives
in all areas including HR should be judged by their
performance. Decision-making at their level with regard
to IR or HR matters may sometimes bring a negative
effect. The intelligent and experienced HR executive will
play a vital role in dealing with all IR topics, with the
cooperation of all, and give the credit to himself for
excellently maintaining a peaceful industrial harmony.
Bibliography

HR through case studies by Ravi Dharmarao,
excel books, first edition, pp 37-39 and 112113.