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Meaning Assessment of Human Resource requirements and time and stages of requirement. Right Person- Right Place- Right time. Definition HRP process identifies current &future HR needs for an organization to achieve its goals. It serves as link between HRM & overall strategic plan for the organization. systematic analysis of HR needs in order to ensure that correct number of employees with the necessary skills are available when they are required. What is Strategy? A strategy is a step-by-step plan of action prepared by an organization and by which it aims to achieve its plan or plans, thus, ensuring its success and survival.
OBJECTIVES OF HRP
Objectives of HRP To ensure optimum use of existing HR. To forecast future requirement for HR. To provide control measures to ensure that necessary HR are available as and when required. To asses the surplus and shortage of HR. (Downsizing). Objectives of HRP Contd. To anticipate the impact of technology on jobs and HR. To determine the level of Recruitment and Training. To estimate the cost of HR and Housing needs of employees. To meet the needs of expansion and diversification programmes.
IMPORTANCE OF HRP
Forecast future personnel needs: To avoid the situations of surplus or deficiency of manpower in future, it is important to plan your manpower in advance. For this purpose a proper forecasting of futures business needs helps you to ascertain our future manpower needs. Cope with change: HRP enables an enterprise to cope with changes in competitive forces, markets, technology, products and government regulations. Such changes generate changes in job content, skills demands and number of human resources required.
Importance of SHRM
The organization's "ends" is its financial success. Human resource strategy is one of the means to attain this. Organizations have always tried to comply with legal obligations in the course of carrying out their business activities. Also, finance and technology are important assets. But people are required to make effective and efficient use of them. Effective development and implementation of an HR strategy requires HR professionals who are conversant in finance, negotiation, change management, and the overall operations of the organization. An HR strategic plan aligns the HR function to the corporate plan. Good knowledge about the organization, its objectives, systems and processes, can assist HR people in doing this task well.
ISSUES OF SHRM
The strategic human resource choices involved in low cost of production strategy include: Train some of the employees in the area of time management, material handling at work etc. Retrenchment of surplus employees caused due to superior speed Pay for performance Promotions based on efficiency High quality work environment at the production place. These human resource issues are also known as functional strategies of HRM. Approach to SHRM This is the new way of managing people ensuing from the strategic human resource definition. Human resources with all the competencies and potential are required to attain the HR objectives. These objectives are aligned to the organizational objectives by way of a strategic plan.
HR as Strategic Partner
Recruiting the right employees. Align corporate values to your recruitment strategy. Well-developed competencies of the workforce, and their relevance to organizational core business. Participative culture where HR initiatives fully support the overall strategic plan. Effective use of information technology. Effective leadership through appointment of the right HR Head. Identification of human resource practices that make HR as strategic partner, namely, serving the business needs of your organization. Discard ineffective HR practices that do not contribute to the success of your organization.
Demographic changes :Demographic changes refer to things referring to age, population, composition of work force etc. A number of people retire every year. A new batch of graduates with specialization turns out every year. This can change the appointment or the removal in the company. Shortage of skill due to labour turnover :Industries having high labour turnover rate, the HRP will change constantly i.e. many new appointments will take place. This also affects the way HRP is implemented.
Pressure groups :Company has to keep in mind certain pleasure. Groups like human rights activist, woman activist, media etc. as they are very capable for creating problems for the company, when issues concerning these groups arise, appointment or retrenchment becomes difficult.
PROCESS OF HRP
1. Review of Organisation's Objectives The HRD Manager first studies the objectives of the organisation. Then he prepares a list of all the activities (jobs) that are required to achieve the objectives. He also does Job's analysis.
2. Estimation of Manpower Requirements The HRD manager then estimates the manpower requirement of the organisation. That is, he finds out how many people (manager and employers) will be required to do all the jobs in the organisation. Estimation of manpower requirements must be made in terms of quantity and quality.
PROCESS OF HRP
3. Estimation of Manpower Supply
The HRD manager then estimates the manpower supply. That is, he finds out how many managers, and employers are available in the organisation. 4. Comparison of Manpower
The HRD manager then compares the manpower requirements and manpower supply. 5. In case of no difference If there is no difference between the manpower requirements and the manpower supply, then the HRD manager does not take any action. This is because manpower requirements are equal to the manpower supply.
PROCESS OF HRP
5. In case of no difference
If there is no difference between the manpower requirements and the manpower supply, then the HRD manager does not take any action. This is because manpower requirements are equal to the manpower supply. 6. In case of difference If there is a difference between the manpower requirements and the manpower supply the HRD manager takes the following actions.
PROCESS OF HRP
1. Manpower Surplus
If the manpower requirements are less then the manpower supply then there is a surplus. During manpower surplus, the HRD manager takes the following actions :Termination i.e removal of staff. Lay-off. Voluntary retirement. 2. Manpower Shortage If the manpower requirements are greater than the manpower supply then there is manpower shortage.
PROCESS OF HRP
8. Monitoring Manpower Requirements The HRD manager must continuously monitor the manpower requirements. This is because many employees and managers leave the organisation by resignation, retirement, etc. and new work force must take their place fill the manpower gap. This helps in uninterruptible functioning of the organisation. During manpower shortage, the HRD manager takes the following actions Promotions Overtime Training to improve quality. Hire staff from outside, etc. 7. Motivation of Manpower HRP also motivates the employers and managers by providing, financial and non-financial incentives.
EMPLOYEE FORECASTING
How to Forecast Your Workforce? Step 1: Scan the External Job Market Start developing a workforce strategy by looking outside of your company at whats going on in work and employment in your community. External Factors Affecting Labor Supply Unemployment rate Graduation rates Demographic make up of local market Knowledge of direct competitors
EMPLOYEE FORECASTING
Step 2: Take an Internal Scan Now you have to analyze the jobs that need to be done in your organization and the skills of your current employees available to do them. Its important to take a look at the whole business and get a sense for all of your human resources needs. Jobs and skills required by the organization
EMPLOYEE FORECASTING
Step 3: Jobs that exist now Number of employees doing each job Importance of each job Characteristics of anticipated jobs Forecasting Workforce Demand Now that you know what you have available to you both inside and outside of you start by gathering some basic supply and demand information. First, gather information about the possible demand for replacement of positions.
EMPLOYEE FORECASTING
Retirement trends Turnover rate Internal fill rates Once youve gained a sense of Step 4: Forecast Workforce Supply At this point, you have a good idea of what resources are available to you and what needs may come up. Now you can drill down to the details of a plan for hiring for the coming years. Remember that workforce forecasting should be done for the short term, intermediate and long term. Here are the practical steps:
Set a Realistic Timetable That Includes Fill time for open positions. Economic conditions and availability of labor. Needed ramp time. Take an Assessment of Internal Workforce Supply Whos in line to step up? What are the training needs? Are there succession plans in place?
Adjusting to Unexpected Changes in Workforce Supply and Demand Once you have completed the steps above for forecasting your workforce supply and demand, you cannot sit back and just hope that everything goes smoothly in the roll out of the plan. You next need to know how to deal with unexpected changes to your workforce plans and how to keep consistent, company-wide interest in following through with this HR plan. In our future post, I will discuss dealing effectively with HR surplus, how to maintain support for your HR workforce plan and give you a list of things to keep in mind so that you achieve success with forecasting workforce supply and demand no matter what changes come.