HUMAN RESOURCE MANAGEMENT1

DIAGRAMMATIC VIEW
HRM MODEL
Framework
&
Challenges

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Employee
Relation
&
Assessment

Preparation
&
Selection
OBJECTIVES
Societal
Organizational
Functional
Personal

Compensation
&
Protection

Job analysis & Design

HR planning
Recruitment
Selection

Development
&
Evaluation

SOCIETAL

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CHAPTER - 6

HUMAN RESOURCE (HR)

PLANNING

HUMAN RESOURCE (HR)

PLANNING
SALIENT ASPECTS
HR PLANNING
HR planning (loaded with Information about jobs & their
design), systematically
forecasts an orgs future demand for & supply of employees
HR planning / employment planning, enables managers & HR
depts to develop
staffing plans that support the orgs strategy by allowing it to
fill job openings
proactively
INTERNATIONAL HR PLANNING
The international expansion strategies depend on the depts
ability to fill key
jobs with foreign nationals
As more Corporate strategies involve global operations, the
need for HR
planning will grow in importance because of the increased

HUMAN RESOURCE (HR)

PLANNING
SALIENT ASPECTS
LARGE COMPANY BENEFITS HR planning Is more common in
large orgs because it allows them to:
Integrate strategic demands with appropriate staffing levels
Improve the utilization of human resources
Match HR activities & future orgl objectives efficiently
Achieve economies in hiring new workers
Expand the HR information base to assist other HR activities & other
orgl units
Make major demands on local labor markets successfully.
Coordinate different HR programs e.g as affirmative action plans &
hiring needs

DEMAND FOR HUMAN RESOURCE

(HR)

DEMAND FOR HR

CAUSE OF DEMAND
INFLUENCING CHALLENGES Although many challenges
influence the demand for human talent, however the below
mentioned factors that have an impact on the corporate strategy
are of primary concern: Changes in the environment
Organization
Workforce

COMMON These factors are common to short- range longrange employment plans. Some of these causes are within the
orgs control & others are not

DEMAND FOR HR
CAUSE OF DEMAND
The future causes of demand for HR are summarized in the below
figure ( book page-158, Figure 6-1)

DEMAND FOR HR
CAUSE OF DEMAND
EXTERNAL CHALLENGES
Developments in the orgs environment that affect the its
strategies are
difficult to predict in the short run & sometimes impossible in
the long run
Other economic developments have a noticeable effect but are
difficult to
estimate e.g inflation, unemployment & changing workforce
patterns
Social, political & legal challenges are easier to predict, but
their implications
are seldom clear
ORGANIZATIONAL DECISIONS
As orgs respond to these changes in their environment,
decisions are made to

DEMAND FOR HR
CAUSE OF DEMAND
WORKFORCE FACTORS
It is modified by employee actions such as retirements,
resignations, deaths,
terminations, & absence leaves
When large numbers of employees are Involved, past
experience usually serves
as a reasonably accurate guide
Reliance on past experience means that managers and HR
specialists must be
sensitive to changes that alter past trends

DEMAND FOR HR
CAUSE OF DEMAND
FORECASTING TECHNIQUE HR forecasts are attempts to
predict an orgs future demand for employees. Forecasting
techniques for estimating future HR needs are shown in below
figure (book page 160 Figure 6-2 ) :-

DEMAND FOR HR
CAUSE OF DEMAND
Expert Forecasts
- These are based on the judgments of the those who are
knowledgeable about
future HR needs as most employment decisions are made by
line managers
- HR planners must devise methods to learn about managers
staffing needs
- In small orgs, the director of operations-or the HR manager
may have all the
needed knowledge
- In larger orgs; the simplest method is to survey those
managers who are the
ultimate experts in the future staffing needs of their depts

DEMAND FOR HR
CAUSE OF DEMAND
Trend Projection Forecasts
- Perhaps the quickest forecasting technique is to project past
trends. The two
simplest methods :+ Extrapolation Involves extending past rates of change into the
future. For example, if
an average of 20 production workers was hired each month for the
past two years,
extrapolating that trend into the future means that 240 production
workers will be
added during the upcoming year
+ Indexation Involves a method of estimating the future needs by
matching by matching
an employment growth with an index . For example, a ratio of
production employees
to sales

DEMAND FOR HR
CAUSE OF DEMAND
Other Forecasting Methods There are several other ways for
planners to
estimate the future demand for human resources. Few of the
approaches are:- Budget & Planning Analysis. Orgs that need HR planning
generally have detailed
budgets & long-range plans
- New Venture Analysis . It requires planners to estimate HR
needs through
comparisons with firms that perform similar operation
- Computer Models . It is the most sophisticated forecasting
approach, which is
the series of mathematical formulas that simultaneously uses
the following
methods that changes to compute future staffing, needs

DEMAND FOR HR

CAUSE OF DEMAND
FORECASTING STAGES

DEMAND FOR HR
HUMAN RESOURCES REQUIREMENTS
KEY CONSIDERATIONS/COMPONENTS Following key
considerations/components involved in estimating the demand
for HR shows that forecasts translate the cause of the demand into
short range & long range statements of needs: Causes of demands
- External
- Orgl
- Workforce

Forecasting techniques
- Expert
- Trend
- Other

Demand for HRs

- Long range
- Short range

Note Refer to book page 162 , figure 6-4 & 6-5

SUPPLY
OF
HUMAN RESOURCES (HRs)

SUPPLY OF HRs
SALIENT ASPECTS
Supply of Worker Once the future demand for HR is projected,
the next
major concern is filling projected openings
Sources of Supply There are two sources of supply:- Internal Supply It is consist of present employees who can fill
the expected
openings though :+ Promotion
+ Transferred
+ Demoted

- External Supply It is consist of people who do not work for the

org & are the
outsiders

SUPPLY OF HRs
ESTIMATES OF INTERNAL SUPPLY
The planners audit the present workforce to learn about worker
capabilities &
information allows them to estimate tentatively which openings
can be filled by
present employees
Audit & replacement charts are also important addition to
information base of
HR dept which allows proactive HR work
HUMAN RESOURCE AUDIT
Skills & Management Inventories
HR audits summarize each employees skills, knowledge &
abilities
Audits of non-managers are called skills inventories while of
managers are known
as management inventories
Whatever name is used, an inventory represents a catalog of

SUPPLY OF HRs
ESTIMATES OF INTERNAL SUPPLY
A summary of this sort gives planners a comprehensive
understanding of the
capabilities that are to be found in the orgns workforce
A skills inventory form is shown in (book page167 , Figure 6-7) .
It is divided
into four parts
- Part I it identifies the employees job title, experience, age &
previous jobs
- Part II Seeks information about the skills; duties, responsibilities &
education of worker
- Part III The employees future potential is briefly summarized by the
immediate senior
- Part IV It is added as a final check for completeness & for addition of
recent employee
evaluations which can provide more insight into the past experience

SUPPLY OF HRs
ESTIMATES OF INTERNAL SUPPLY
Management Inventories
These should be updated periodically since they are also used
for key
personnel decisions
In fact, some employers use the same form for managers & non
managers.
When the forms. differ, the management inventory requests
information about
management activities. Common topics include :-

Number of employees supervised.

Types of employees supervised
Management training received.
Total Budget Management
Duties of subordinates
Previous management duties

SUPPLY OF HRs
ESTIMATES OF INTERNAL SUPPLY
SUCCESSION PLANNING
Succession planning Is the process , HR planners & operating
managers use to
convert information about current employees into decisions
about future
internal job placements
Since potential promotions & other place. merit decisions are
usually the
responsibility of operating managers, the HR dept plays a
confidential
advisory role
Global companies use succession planning for the same purpose
with a more
global perspective

SUPPLY OF HRs
ESTIMATES OF INTERNAL SUPPLY
REPLACEMENT CHART & SUMMARIES
Replacement charts are a visual representation of who will
replace whom if
there Is a job opening (book page 170. figure 6-8)
To supplement the replacement charts, senior managers & HR
specialists
develop replacement summaries which are more detailed than
replacement
charts, indicating their relative strength & weaknesses (book
page 171. figure 6-9)

To consolidate the results of HR audits & succession planning,

the HR dept
works use the replacement charts & replacement summaries

SUPPLY OF HRs
ESTIMATES OF EXTERNAL SUPPLY
Externally Filled Jobs Not every opening can be met with present
employee & therefore there is a need for external supplies of HRs
External Needs Employer growth & the effectiveness of the HR dept
largely determine the need to bring people in from outside the org. A
lack of promotable replacement creates jobs opening that must be
filled externally
Labor Market Analysis
- Success in finding new employees depend on the relevant labor
market &
the skills from which the org recruits
- Its size depends on the skill levels being sought
- Labor market for unskilled jobs is generally the local community
- Guest workers are foreign nationals allowed to work in another
country
generally alleviate a labor shortage or provide desired skills/
knowledge
- Lack of jobs causes still more people to leave the local labor market
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SUPPLY OF HRs
ESTIMATES OF EXTERNAL SUPPLY
Community Attitude It also affect the nature of the labor
market anti-business or no-growth attitudes may cause
employers to locate elsewhere . The fewer jobs mean a loss of
middle-class workers. The shrinking workforce discourages new
businesses, and the cycle is complete
Demographics: Demographic trends are another long-term
development that affects the availability of external supply.
Fortunately for planners, these trends are known years in
advance of their impact

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IMPLEMENTATION
OF
HR PLANS

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IMPLEMENTATION OF HR PLANS
SUPPLY & DEMAND CONSIDERATION S IN HR PLANNING (Figure 610) The short
& long-range plans outline future demands & likely the sources of supply :Causes
Major causes of HR demand includes external, orgl , & workforce factors
Causes of demand are forecast by experts, trend data & other methods
to determine the short & long-range demand s for HRs
Demand
Demand is fulfilled either internally by present employees or externally
by newcomers
External sources are identified through an analysis of relevant labor
market
The results include short & long-range HR plans, fulfilled through internal
& external staffing processes
Surplus & outplacement
If the internal supply of workers exceeds firms demand, an HR surplus
exists

If the surplus is expected to persist into the foreseeable future,

employers often encourage early, retirement on a voluntary basis or
employees are discharged ( blow of discharge may be softened through
formal outplacement procedures, which help present employees find new jobs
with other firms)
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IMPLEMENTATION OF HR PLANS
HR Shortages
If the internal supply cannot fulfill the orgs needs, an HR shortage
exists
In the short run, HR Planners have little flexibility & must rely on the
external staffing process to find new employees
In the long run, responses can be more flexible. Planners can use the
internal staffing process; that is, they can double their efforts to have
employees develop, knowledge, skills; & attitudes needed to fill
these jobs
HRIS
The information (knowledge of the firms internal & external employment
needs) in the HR plan serves as a guide to recruiters, trainers, career
planners, & other HR specialists
It is an art important addition to the orgs HRIS
HR specialists, operating managers, and individual employees can
direct their efforts toward the themselves & orgs future
- Staffing needs
- Specific training & development
- Preparations for future openings though education & self help

HR plan is only one part of the depts information systems while the
other part is the information of the people who are hired from outside
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the org

THANKS