HUMAN RESOURCES MANAGEMENT

Rahul Kulkarni 6th July 2013

Introduction Expectations

What is Human Resources Management?

HRM- Balanced Score Card

REAL PROFIT INCREASE

STOCK INCREASE

SUSTAINABLE GROWTH

ENGAGED CUSTOMERS

ENGAGED EMPLOYEES

ENTER HERE

GREAT MANAGERS IDENTIFY STRENGTHS

THE RIGHT FIT

Copyright 2002 The Gallup Organization, Princeton, NJ. All rights reserved.

HRM is concerned with the people dimension in management acquiring their services developing their skills motivating them to high levels of performance Ensuring that they continue to maintain their Commitment to the organization & Organizational Objectives

Administration Industrial Relations Support Function Knowledge function

PEOPLE MATTERS : HUMAN RESOURCES

Talent Acquisition

Talent Engagement & Development

Human Resources Operations

Identify the total Resource requirement Identify the source

Define and develop selection methods

Selection and new recruits orientations

Development of Skills and Capabilities Organization development Career development / Planning Job Satisfaction Performance Appraisal Rewards & Recognition Assessment & Development Centers Employee Engagement

Payroll and Employee benefits

HR- MIS

Employee Life cycle Records in the Org.

Industrial Relations Statutory Compliances

HR Scorecard

Career Planning- Concept Building Career Structure Evaluating career structure / policies in corporate world Career Planning Tips

What do you mean by Career Planning? Why career planning?

What is Career/ Role / Job

Career Management is the combination of structured planning and the active management choice of one's own professional career.

The outcome of successful career management should include personal fulfilment, work/life balance, goal achievement and financial assurity.

The word career covers all types of employment ranging from semi-skilled through skilled, and semi professional to professional. The term careers has often been restricted to suggest an employment commitment to a single trade skill, profession or business firm for the entire working life of a person. In recent years, however, career now refers to changes or modifications in employment during the foreseeable future.

There are many definitions by management scholars of the stages in the managerial process. The following classification system with minor variations is widely used:

Development of overall goals and objectives, Development of a strategy (a general means to accomplish the selected goals/objectives), Development of the specific means (policies, rules, procedures and activities) to implement the strategy, and Systematic evaluation of the progress toward the achievement of the selected goals/objectives to modify the strategy, if necessary.

What is the kind of work I like to do? What activities give me the most satisfaction? What is the environment in which I would like to work? What kind of people do I like to work with? What kind of abilities do I want to build on?

Reflect Talk to colleagues, friends and mentors Undergo formal assessments

Hands Assembly, operation and repair of machines Words Reading, writing, speaking Senses Observation, inspection, diagnosis Analytical thinking Researching, analyzing, prioritizing Creativity Invention, design Artistic abilities Fashioning or shaping things, decoration Leadership Initiating new projects, organizing, direction, decision making

Stick to decision Where should you change or improve?

Keep continual improvements

Action Items

Short-term planning

Assess your skills, knowledge, values, constraints and interests

Long-term planning

Identify which new skills and knowledge you want to develop Research career opportunities Formulate a careers action plan with contingencies

Up to 5 years ahead

Check the careers action plan for realism

From 5 to 10 years ahead

Knowing yourself The career management process begins with setting goals/objectives. Utilizing career assessments may be a critical step in identifying opportunities and career paths that most resonate with someone. Career assessments can range from quick and informal like those on CareerBuilder or may be more in-depth like those such as Myers-Briggs and CareerLeader supported assessments found on MyPath. Regardless of the ones you use, you will need to evaluate them. Most assessments found today for free (although good) do not offer an in-depth evaluation.

Career Mapping process Leadership Development Plan

Career Paths

1.

2. 3. 4. 5. 6. 7. 8. 9.

Building a Career Today, and more than ever, most people are responsible for building their own careers. Never Stop Learning Life-long learning is your keyword. Ask, Listen And Learn A good listener can learn a lot. Fulfill Your Current Job Your current job might be best place to start your career. Build Your Network Your next career step might arise from your contact network. Identify Your Current Job Your current job should be identified, not assumed. Identify Your Next Job Your dream job must be identified. Prepare Yourself Your dream might show up tomorrow. Be prepared. Pick The Right Tools Pick the tools you can handle. Realize Your Dreams Put your dreams into action.

- Form a group of 6 students - create a Career Planning based on A) Knowing yourself- strength B) Exploring Options C) Taking decision In a format

All the best for your career Planning

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What is HR Audit? Methodology of HR Audit Reasons for HR Audit Role of HR Audit in Business Improvements Benefits of HR Audit Scope of HR Audit Research Approaches to HR Audit HR Audit checklist

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"The unexamined work life is not worth living."

The things that get measured gets managed.

HR Audit means the systematic verification of job analysis and design, recruitment and selection, orientation and placement, training and development, performance appraisal and job evaluation, employee and executive remuneration, motivation and morale, participative management, communication, welfare and social security, safety and health, industrial relations, trade unionism, and disputes and their resolution.

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HR Audit is an annual health check-up, it plays a vital role in instilling a sense of confidence in the Management and the HR functions of an organization

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An audit is a means by which an organization can measure where it currently stands and determine what it has to accomplish to improve its human resources function. It involves systematically reviewing all aspects of human resources, usually in a checklist fashion, ensuring that government regulations and company policies are being adhered to. The key to an audit is to remember it is a learning or discovery tool, not a test.

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It is a Comprehensive Evaluation of Human Resource Development

Strategies, Systems and Practices, Structures and Competencies Styles and Culture

And their appropriateness to achieve the short and long term business goals of the organization

A human resource audit evaluates the personnel activities used in an organization. The audit may include one division or entire company. It gives feedback about : 1. The function of operating managers. 2. The human resource dept. 3. How well managers are meeting their human resource duties. In short, the audit is an overall quality control check on human resource activities in a division or company and how those activities support the organizations strategy
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Examines long term and short term plans and vision to assess Competency Requirements Identifies broad Competency requirements for future Business Goals Examines the existing HRD strategies, systems and practices and assess their appropriateness to have the required competencies

Examines the adequacies and inadequacies of HRD structure, staff and their competencies, line managers and their attitudes, top management and their support, unions and their role in competence building for future Suggests mechanisms for improving all these in the business context

Interviews
Individual and group Top Management Line Managers HRD Staff Workmen and others

Questionnaires Observation Analysis of records and secondary data

1. Interviews with employees and managers are one source of information about human resource activity. Employees and managers comments help the audit team find that need improvement. Another useful source of information is the exit interview. Exit interview are conducted with departing employees to learn their views of the organization.

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Because interviews are time-consuming, costly, and often to only few people, many human resource departments use questionnaires. Through questionnaire surveys, a more comprehensive picture of employee treatment can be developed. Questionnaire may also lead to more candid answers than face-to-face interviews. employee attitude about supervisors Employee attitude about their jobs Perceived effectiveness of human resource department
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Not all the issues of interest to human resource audit are revealed through interviews or questionnaires. Sometimes insight can be obtained by an analysis of historical records, such as: Safety and health records Grievances records Compensation studies Turnover and absenteeism records Selection records Affirmative action plan records Training program records

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Outside comparisons give the audit team a perspective against which their firms activities can be judged. Through Department of Labor, industry association, professional association numerous statistics and report are compiled. These organizations regularly publishes information about future employment opportunities, employee turnover rates, work force projection, area wage and salary survey, work force demography, accident rates, and other data that can serve as benchmark for comparing internal information.
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For expanding, diversifying and entering into a fast growth phase. For promoting more professionalism and professional management. Bench-marking for improving HRD practices. Growth and diversification Dissatisfaction with any component Change of leadership

HRD audit is cost effective It can give many insights into a company's affairs. It could get the top management to think in terms of strategic and long term business plans. Changes in the styles of top management Role clarity of HRD Department and the role of line managers in HRD

Improvements in HRD systems Increased focus on human resources and human competencies Better recruitment policies and more professional staff More planning and more cost effective training Strengthening accountabilities through appraisal systems and other mechanisms Streamlining of other management practices TQM Interventions

1. To insure the effective utilization of an organizations human resources. 2. To review compliance with administrative regulations. 3. To instill a sense of confidence in management and the human resources function that it is well managed and prepared to meet

potential challenges.

4. Motivation of the HR personnel. 5. Find out the problems and solve them smoothly. 6. Provides timely legal requirement. 7. Sound Performance Appraisal Systems. 8. Systematic job analysis.

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9. Smooth adoption of the changing mindset. 10. To maintain or enhance the organizations and the departments reputation in the community. 11. To perform a due diligence review for shareholders or potential investors/owners.

12. To find out the proper contribution of the HR department

towards the organization. 13. Development of the professional image of the HR department of the organization. 14. Reduce the HR cost. 15. Aligning the corporate vision/ objectives with HR objectives .

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Each group to focus on 3/5 benefits and list down the details of each and discuss the impact of the same. Audit Benefits / Connections / Impact

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Identifies the contribution of the HR Department to the organization Improves professional image of the HR Encourages greater responsibility and professionalism among members of the HR Team Clarifies the HRs duties and responsibilities Finds critical HR problems

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 Audit of Corporate Strategy Corporate Strategy concerns how the organization is going to gain competitive advantage. Audit of the Human Resource Function Audit touches on Human Resource Information System, Staffing and Development, and Organization Control and Evaluation. Audit of Managerial Compliance Reviews how well managers comply with human resource policies and procedures. Audit of Employee Satisfaction To learn how well employee needs are met.

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Human resource professionals do not set corporate strategy, but they strongly determine its success. By assessing the firms internal strengths and weaknesses and its external opportunities and threats, senior management devises ways of gaining an advantage, such as : stresses superior marketing channels, low-cost production, etc. Understanding the strategy has strong implications for human resource planning, staffing, compensation, employee relations, and other human resource activities

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1. Human Resource Information System - Human Resource Plans : Supply and demand estimates; skill inventories; replacement charts and summaries - Job Analysis Information : Job standards, Job descriptions, Job specifications - Compensation Management : Wage, salary, and incentive levels; Fringe benefit package; Employer-provided services
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Recruiting : sources of recruits, availability of recruits, employment applications Selection : selection ratios, selection procedures, equal opportunity. Training and development : orientation program, training objectives and procedures, learning rates Career development : internal placement, career planning program, human resource development efforts

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Performance appraisals : standards and measures of performance, performance appraisal techniques, evaluation interview. Labor-Management Relations : Legal compliance, management rights, dispute resolution problems.

Human Resource Controls : employee communications, discipline procedures, change and development procedures,
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Compliance Audits- in particular, how well is the company complying with current State, Central laws & regulations? Best practices audits- in particular, to what extent is the employers recruitment, performance practices, and so on comparable to those of companies for exceptional practices? Strategic Audits- in particular, assessing to what extent HRM practices are helping organisation to achieve its strategic objectives/goals. Functional Specific audits- in particular, concentrate on one or more specific HRM area, like Comp, Training, Appraisal etc.

Are we legal compliant? Are HRM practices aligned with our needs and strategy? Are we administering our HRM function as productively as we might be? Did our key HRM project/ initiatives last year/ enforce produce the results we intended? Are employees issues like low moral or poor performance that might respond to improved HR Practices? What improvements can we institute within HR to reduce cost while improving the value HR adds to our company?

How can HR improve the company's PMS process?- aligning employees goals with company performance. Have we instituted policies & practices that ensures fair treatment of all employees? Are there any persistent safety & health issues we need to address?

Hiring- JD, employment contract, reference procedure Employee evaluation- PMS, promotion etc Employee Discipline- evidence, rules, procedure Termination- proper warning, complaint procedure.. Calculations of Pay and benefits Inadequate personnel files, including PMS records Insufficient documentation statutory/ regulations

Identify who is responsible for each activity. Determine the objectives sought by each activity. Review the policies and procedures used to achieve these activities. Prepare a report commending proper objectives, policies, and procedures. Develop an action plan to correct errors in each activity. Follow up the action plan to see if it solved the problems found through the audit.

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Compliance with laws is especially important. When safety, compensation, or labor laws are violated, the government holds the company responsible. If managers ignore policies or violate employee relations laws, the audit should uncover these errors so that corrective action can be started.

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Employee satisfaction refers to an employees general attitude toward his or her job. When employee needs are not met, turnover, absenteeism, and union activity are more likely. To learn how well employee needs are met, the audit team gathers data from workers. The team collects information about wages, benefits, supervisory practices, career planning assistance, and other dimensions of job

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Findings of research are used to developed a picture of the organizations resource activities. For this information to be useful, it is compiled into audit report. The audit report is a comprehensive description of human resource activities that includes both commendations for effective practices and recommendations for improving practices that are less effective. Audit report often contain several sections. One part is for line managers, another is for manager of specific human resource function, and the final part is for

the human resource manager.

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How line managers handle their duties such as: Interviewing applicants Training employees Evaluating performance Motivating workers Satisfying employee needs The report also identifies people problems. Violations of policies and employee relations law are highlighted

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1. 2. 3. 4. 5.

The specialists who handle employment training, compensation, and other activities also need feedback. Such feedbacks are : Unqualified workers that need for training Qualified workers that need for development What others company are doing Attitude operating managers toward personnel policies Workers pay dissatisfaction

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It is contains all the information given to both operating managers and staff specialists. In addition, HR Mangers gets feedback about : Attitude operating managers and employees about services given by HRD A review of HRD plans Human resource problems and their implication Recommendations for needed changes and priorities for their implementation
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HR Audit Process HR Audit checklist HR Audit reports

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Briefing and Orientation Scanning material information Surveying employees Conducting interviews Synthesising Reporting

Process of HR audit include steps as follows:

STEP 1: Briefing and Orientation: Key Staff Members meet: i. To discuss particular issues considered to be important. ii. To chart out audit procedures, and iii. To develop plans and program of audit. STEP TWO: Scanning material information: Scrutiny of all available information pertaining , - personnel handbooks and manuals, - guides, appraisal forms, -computer capabilities and any other related information.
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STEP THREE: Surveying employees: a. Interview with key managers, functional executives, b. The purpose is to pinpoint issues of concern, c. Present strengths, anticipated needs and managerial views on human resources. STEP FOUR: Conducting interviews: I. What questions to be asked, are developed during scanning of information. II. It is better for H.R. Audit, if clarity about the key factors of H.R.M. selected for audit and the related questions that need to be examined.

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STEP FIVE: Synthesising: The data gathered is synthesized to present the a. Current Situation. b. Priorities. c. Staff pattern, and d. Issues identified. STEP SIX; Reporting: 1. The results of the audit are discussed with Managers and Staff Specialists, in several rounds. 2. Important issues are identified for inclusion in the formal Report.

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Auditing HR Professionals: Developing an HR Competency Model

Audit of HR professionals in an important parameter of HR audit, as it assesses their competence. To carry out effective audit of HR professionals, a competency model must be developed, along with behavioral attributes that complement these competencies and indicate a successful HR professional. Different tools can be used in collecting data that identifies the extent to which the modeled competencies are exhibited by the HR professionals. The results obtained should be quantified in order to have a clear understanding of the strength areas and areas that need improvement, based on these figures further action plan can be devised on how to overcome areas for improvement

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It takes humility to seek feedback. It takes wisdom to understand it, analyze it, and appropriately act on it. --Stephen R. Covey in First Things First

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HR Audit Checklist

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HR Audit Reports

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Audit of Business Goals and Plans Audit of Business Assumptions Audit of Business Personnel practices Audit of business Human resources utilization Audit of business productivity norms Audit of business personnel budgeting Human resources accounting

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A. are based on the present and future needs and expectations of stakeholders. B .are based on information from performance measurement, research, learning and external related activities

C .are developed, reviewed, updated policy and strategy

D. are communicated and deployed through a framework of key processes

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A .are based on the present and future needs and expectations of stakeholders - gathering and understanding information to define the market and market segment the organization will operate in both now and in the future; - identifying, understanding and anticipating the needs and expectations of current and future stakeholders including customers, employees, partners, society and shareholders; - identifying, understanding and anticipating developments in the market place, including competitor activity;

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B .are based on information from performance measurement, research, learning and external related activities - analysing output from internal performance indicators; - analysing external images and brand awareness data; - analysing the performance of competitors and best in class organization; - analysing data regarding existing / potential partners core competencies; - analysing data for both long and short term social, environmental, safety and legal issues; - analysing data on the effects of products and services throughout their entire life-cycle; - identifying and understanding economic and demographic indicators; - analysing data to determine the impact of new technologies and business odels on the performance of the organization.

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C. are developed, reviewed, updated - developing, reviewing and updating policy and strategy consistent with the organizations mission, vision and concepts of Excellence; - balancing both long and short-term needs and expectations of stakeholders; - assessing risks and identifying ways of addressing these risks; - identifying present and future competitive advantage; - identifying core capabilities and needs for partnerships / alliances to deliver policy and strategy; - reaffirming presence in established markets or requirement to change market approach; - aligning strategy with those of partners and alliances; - identifying critical success factors; - aligning and continuously developing social and environmental standards with partners; - evaluating the relevance and effectiveness of policy and strategy.

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D. are communicated and deployed through a framework of key processes - identifying and designing and communicating the framework of key processes needed to deliver the organizations policy and strategy; - communicating policy and strategy to stakeholders and evaluating the awareness of it; - aligning, prioritising, agreeing, cascading and communicating plans, objectives and targets as well as following up achievements; - establishing organization wide reporting mechanisms to track progress.

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Business continuity (BC) plan audits provide a systematic way to evaluate how business processes are being managed, particularly in light of a company's business objectives. These Includes, Facilities Personnel Security Papers and Electronic Documents Information Technology Suppliers Customer Location Insurance Public Relations/ Media

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FACILITIES Do you have evacuation procedures for your buildings? Are the fire exits clearly marked and fire procedures in place? Do you regularly practice fire drills? Do you have primary and secondary evacuation points at a suitable distance away from the building(s)? Do you have a site plan of your building(s)? Do you have generator backup systems in place? Do you have an alternative building to use in an emergency i.e. where your business or critical elements of your business could continue to operate from? Do you check on a regular basis that that the heating and air conditioning is working? Have you familiarised yourself and your staff with the location of the mains switches and valves (electricity, gas, water)? Do you carry out end of day inspections i.e. to check everybody has left? At the end of the working day do you have procedures in place to make sure that all appliances are switched off and doors and windows are locked? Do you regularly check the integrity of external fences and doors?
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PERSONNEL Have you got a list of all employee contact telephone numbers and home addresses? Do your staff know who is in charge in the time of a crisis? Have your staff been given specific roles in the event of a crisis? If your business could not operate from its present location could your staff work from an alternative location, or some of them work from home etc? Do you have members of staff with first aid or medical training?

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SECURITY Is there a security system installed? Do you have a security policy? Do you give advice or training on security? Do you check references fully? Are contractors checked fully (i.e. company as well as each individual)?

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PAPER AND ELECTRONIC DOCUMENTS Do you copy/back up your information? Do you store your critical paper documents in fire/waterproof containers? Do you have copies of critical accounts and contracts at a separate location? Is someone responsible for the upkeep of your files and accounts?

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INFORMATION TECHNOLOGY Are your IT systems critical to the running of your business? If your IT systems went down do you have manual processes that could maintain critical documentary/administrative functions? Do you know how long it would take to recover IT functions if your system went down? Who would restore your system if it went down and do you have their contact details? Do you have a tested IT disaster recovery plan? Is your computer anti-virus software up to date? Are documented IT security policies and procedures in place? Are all your computer users fully aware of email and internet usage policies? Is your company system part of a larger network? Do you know how many platforms/servers/applications or operating systems support critical business functions? Is expertise of how to use your IT system, knowledge of where critical documents are electronically stored etc, limited to one individual? Do you have vital computer information stored on back up disks held off premises?

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SUPPLIERS Do you have alternative suppliers for critical equipment/ stores/ parts/ goods/ products etc? Do you have an arrangement with your critical suppliers where they will inform you if they cannot make a delivery? Do your suppliers have a business continuity plan? Do you have your suppliers correct contact details both office hours and out of office hours?

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COMPANY EQUIPMENT Do you have someone accountable for the assets of your company? Do you have an inventory and is it regularly checked? Do you have controls over the movements of your company equipment? CUSTOMERS Do you have the correct contact details for all your main customers? Do you have any key customers who you will need to be in constant contact with during a crisis? LOCATION Have you thought about the types of risk that might occur due to the actions/operations of other businesses near to you? Have you thought about the types of risk associated with the environment i.e. flooding from nearby river, snow, severe weather etc?

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INSURANCE Do you have sufficient insurance to pay for disruption to business, cost of repairs, hiring temporary employees, leasing temporary accommodation and equipment etc? Do you have your insurance companys details in order to contact them immediately at the time of an incident? ASSESS THE RISKS Consider what are the most likely and greatest risks to your business? Analyse the risk by asking yourself the following questions: How likely is it to happen? What effect will it have on the business? How can you cope with it i.e. what do you need to do to stay operational if it takes place? What preventative measures can you take to prevent them from happening or minimise the effect they will have on your business? Are you insured against the worst eventualities?

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PUBLIC RELATIONS (MEDIA) Bad publicity or incorrect information given out during an incident can make or break a companys reputation. If your business has a major incident then PR will influence how existing and potential customers, suppliers and all other stakeholders will view your business. Nominate a company spokesperson, ensure all staff know who it is, ensure that they have some training in media handling during an incident ensure: That your company gives out a consistent message Staff are kept informed Advertisements are placed in local or national papers as needed

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Leave Working Hours Compliances under the statues Compensation and benefits Training Retirements process

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Performance Management Systems- SMART Customer feedback Productivity/ output ration Scientific Manpower Planning

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The Business Productivity Audit (BPA) is done to assess the efficiency and effectiveness of your organizations execution of business processes, both manual and automated. The end products of the productivity audit include 1) what processes to change 2) what they should be changed to, and 3) a proof of concept demonstration that the changed processes will facilitate the productivity increases promised in the scope.

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Parameters for Business Process Market Related Reaching new customer, Promoting product, Time to market, Responsiveness to change, pricing of product Product related time to develop, new product, design of product, technology of product, support of product Production related cost of product, quality of product, lead time to manufacture, flexibility of production, process design, product differentiation, delivery reliability product options Finance related cost of funds, source of funds, product financing, financial stability

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Parameters of process measurement Cost, cycle-time, level of defects, reliability Examples of quantifiable goals by industry sector Service: 1) reduce turnaround time for pricing (x days to same day) 2) Eliminate customer call back by 20% 3) Reduce printed report distribution operation by 60%

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HR Accounting looks at how to calculate return on investment in human resources and the benefits of such an assessment for a company.

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Engagement Score vis a vis Revenue HR = Employee Ratio Revenue per FTE Compensation and Benefits vis a vis Revenue Absence Rate (#days absent in a month/ average number of employees during the month x # of workdays x 100)

Cost per Hire (Total Talent Acquisition Exp / Total number of Hires) Health care cost per employee Human Capital ROI Revenue all expenses / comp + benefits cost

Advantages Calculating the return on investment on its staff will help a company to improve its recruitment and training process, and determine how efficient its HR department is. Putting in place a good selection process for employees will enhance a companys performance. Disadvantages Calculating the ROI in human resources involves a long and tedious process of accumulating data before it can be done. Some subjective aspects of HR work, such as staff morale and satisfaction, are difficult to assess with certainty. Uncertain situations- market conditions- global economy Checklist Appoint an efficient HR managers. Assess whether training programs have any relation to staff turnover and try to determine the contribution they make to the productivity of the company. Look at engagement score and Revenue

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Agenda What is Human Resources Planning Process, Importance/ Advantages and Limitations / Problems HRP Techniques Case Study

To understand the Human Resource Planning

First, we will see what is Planning? and why is it needed? What is planning? Plans are methods for achieving a desired result. Goals or objectives are specific results you want to achieve. Planning is thus the process of establishing objectives and courses of action prior to taking action.

What is planning concerned with?

Planning provides a sense of purpose and direction. It is a comprehensive framework for making decisions in advance. It also facilitates the organizing, leading, and controlling functions of management. Planning: allows you to make your decisions ahead of time, it helps you to anticipate the consequences of various courses of action, Planning provides direction and a sense of purpose. Planning provides a unifying framework against which to measure decisions, and thus helps you avoid piecemeal decision making. Planning also helps identify potential opportunities and threats, and facilitates control. Planning is concerned with the end (what is to be done) as well as with means (how it is to be done). Planning is one of the functional areas of HR.

HRP
Human resource planning (HRP): is the process of systematically reviewing human resource requirements to ensure that the

number

of employees, with the required

skills, is available when they are needed

required

After an organizations strategic plans have been formulated, human resource planning shall be undertaken. Human resource planning has two components: requirements and availability. Forecasting human resource requirements involves determining the number and type of employees needed by skill level and location. In order to forecast availability, the human resource manager looks to both internal sources and external sources . Goal : The systematic review of human resource requirements getting the right people at the right place at the right time.

What is HRP

The ongoing process of systematic planning to achieve optimum use of an organization's most valuable asset - its human resources. The objective of human resource (HR) planning is to ensure the best fit between employees and jobs, while avoiding manpower shortages or surpluses. The three key elements of the HR planning process are forecasting labor demand, analyzing present labor supply, and balancing projected labor demand and supply.

The HR plan needs to be flexible enough to meet short-term staffing challenges, while adapting to changing conditions in the business and environment over the longer term. Human resource planning is also a continuous process.

Human resource planning can be defined as the process of identifying the number of people required by an organization in terms of quantity and quality. All human resource management activities start with human resource planning. So we can say that human resource planning is the principle/primary activity of human resource management. From human resource planning the organization identifies how many people it has currently and how many people will be required in future. Based on this information major human resource decisions are taken.

1. Personnel requirement forecast :This is the very first step in HRP process. Here the HRP department finds out department wise requirements of people for the company. The requirement consists of number of people required as well as qualification they must posses. 2. Personnel supply forecast :In this step, HR department finds out how many people are actually available in the departments of the company

3. Comparison:Based on the information collected in the 1st and 2nd step, the HR department makes a comparison and finds out the difference. Two possibilities arise from this comparison a) No difference :It is possible that personnel requirement = personnel supplied. In this case there is no difference. Hence no change is required. b) Yes, there is a difference :There may be difference between supply and requirement. The difference may be I. Personnel surplus II.Personnel shortage

4. Personnel surplus :When the supply of personnel is more than the requirement, extra employees increase expenditure of company the company must try to remove excess staff by methods of Layoff Termination VRS 5. Personnel shortage :When supply is less than the requirement, we have personnel shortage. In such case the HR department can adopt methods like Overtime, Recruitment, Sub-contracting to obtain new employees.

Advantages of HRP/need/importance/role/benefits The process of HRP plays a very important role in the organization. 1.Anticipating future requirement :Thru this process of HRP, the company is able to find out how many people will be required in future. Based on this requirement the company could take further actions.

This method also helps the company to identify the number of jobs which will become vacant in the near future.
2. Recruitment and selection process :The recruitment and selection process is a very costly affair for a company. Therefore recruitment and selection must be carried out only if it is extremely necessary. HRP process helps to identify whether recruitment and selection are necessary or not.

3. Placement of personnel :Since the HRP process is conducted for the entire organization, we can identify the requirements for each and every department. Based on the requirement, we can identify existing employees and place them on those jobs which are vacant. 4. Performance appraisal :HRP make performance appraisal more meaningful. Since feedback is provided in performance appraisal and employee is informed about his future chances in same company, the employee is motivated to work better. 5. Promotion / Career opportunity :HRP identifies vacancies in the entire organization including all the branches of all the company. Therefore when the company implements promotion policy it can undertake its activities in a very smooth manner.

Although HRP is a very advantageous method it has some limitations which can be explained as 1. The future is uncertain :HRP can only be a guiding factor. We cannot rely too much on it and do every action according to it. 2. Conservative attitude of top management :-

top management adopts a conservative attitude and is not ready to make changes.
3. Problem of surplus staff :HRP gives a clear out solution for excess staff i.e. Termination, layoff, VRS,. However when certain employees are removed from company it mostly affects the psyche of the existing employee, and they start feeling insecure, stressed out and do not believe in the company. This is a limitation of HRP i.e. it does not provide alternative solution like re-training so that employee need not be removed from the company.

4. Time consuming activity :HRP collects information from all departments, regarding demand and supply of personnel. This information is collected in detail and each and every job is considered. Therefore the activity takes up a lot of time. 5. Expensive process :The solution provided by process of HRP incurs expense. E.g. VRS, overtime, etc. company has to spend a lot of money in carrying out the activity. Hence we can say the process is expensive.

1. Employment :HRP is affected by the employment situation in the countries / Industries. Similarly some company may force shortage of skilled labour and they may have to appoint people from other countries. 2. Technical enhancement :Technology changes at a very fast speed and new people having the required knowledge are required for the company. In some cases, company may retain existing employees and teach them the new technology and in some cases, the company have to remove existing people and appoint new. 3. Organizational changes :Changes take place within the organization from time to time i.e. the company diversify into new products or close down business in some areas etc. in such cases the HRP process i.e. appointing or removing people will change according to situation.

4. 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. 5. 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. 6. Multicultural workforce :Workers from different countries travel to other countries in search of job. When a company plans its HRP it needs to take into account this factor also. 7. 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 determining an organization's human resources needs: * Future personnel needs * Coping with change * Creating highly talented personnel * International strategies * Foundations of HR functions * Increasing investment in human resources * More time is provided to locate talent

* People are unpredictable: they can easily upset plans through resigning, being sick, refusing to do certain things etc. * People are all different so it is difficult to produce policies and approaches that are equally appropriate to all. * People are required in a particular place at a particular time and are less easy to move from one location to another. * Surpluses and deficits are more difficult to manage- staff numbers cannot usually be reduced at the stroke of a pen and acquiring more people can be time consuming and costly. * People need careful and sensitive handling, which requires substantial thought and care on the part of managers. * There are more environmental conditions to take into account money can be kept in a safe but people need offices, canteens etc.

Questions What does the environment look like?

What are our future personnel needs?(forecast demand)

Judgmental

Statistical Tools

Quantitative & Qualitative Statistics Model -Demographic Model Mathematical model - Econometric models -- Ecological Model Network model Stochastic Model Simulation Model

Managerial Judgement Method Nominal Group Technique Delphi Technique Rule of Thump Brainstorming

Regression Analysis

Personnel Ratio

Time series analysis

Judgemental Techniques

This is the most commonly practiced and conventional method of forecasting human resource needs. Here the managers prepare the forecast of human resource needs of various categories in their respective departments based on their past experience.

This method can be applied in two alternative ways: Top-down approach or Bottom-up approach

A small group of 4-5 people gathers around a table. Leader identifies judgment issue and gives participants procedural instructions.

Leader asks each participant to present ideas and writes them on a blackboard or flipchart, continuing until all ideas have been recorded.

Participants rank ideas privately in their own personal order and preference.

The idea that ranks highest among the participants is adopted as the groups judgment.

Leader identifies judgment issues and develops questionnaire. Prospective participants are identified and asked to cooperate.

Leaders send questionnaire to willing participants, who record their judgments and recommendations and return the questionnaire.
Leaders compiles summaries and reproduces participants responses. Leader sends the compiled list of judgment to all participants. Participants comment on each others ideas and propose a final judgment. Leader looks for consensus Leader accepts consensus judgment as groups choice.

This technique is used in group decision making in the present world. In a conventional Delphi technique a small group designs questionnaire about the problem under study. This is then sent out to experts in that field to be filled by them independently. The filled questionnaires are analyzed by the designer, and if any divergence in opinions of experts, a revised questionnaire is prepared and sent to a larger group. This exercise is repeated till some consensus is reached. Delphi technique is useful when the problem cannot be solved by using analytical techniques but its solution requires subjective judgments on collective basis.

For example , what will be the trend of fashion next year, can be known by using Delphi technique. It can be used for forecasting human resources needs in two forms:
First , it can be used to know the trends for changing job profile and consequently ,the changing personnel profile across the country or international level. Second, this can be used to solicit views of experts in different functional areas of an organization about the changing profile of personnel in their respective department in the light of changing environment.

Brainstorming is a group or individual creativity technique by which efforts are made to find a conclusion for a specific problem by gathering a list of ideas spontaneously contributed by its member(s). Brainstorming was more effective than individuals working alone in generating ideas, although more recent research has questioned this conclusion. Today, the term is used as a catch all for all group ideation sessions.

b. Statistical

Regression Analysis Productivity Ratio Personnel Ratio Time series analysis

Statistics is the most widely used branch of mathematics in quantitative research. Statistical methods are used extensively within fields such as economics, social sciences and biology. Quantitative research using statistical methods starts with the collection of data, based on the hypothesis or theory. Usually a big sample of data is collected - this would require verification, validation and recording before the analysis can take place. Software packages such as SPSS (Statistical Package for the Social Sciences) and R are typically used for this purpose. Quantitatively based opinion surveys are widely used in the media, with statistics such as the proportion of respondents in favor of a position commonly reported. In opinion surveys, respondents are asked a set of structured questions and their responses are tabulated. In the field of climate science, researchers compile and compare statistics such as temperature or atmospheric concentrations of carbon dioxide. Experiential relationships and associations are also frequently studied by using some form of analysis.

1. Regression Analysis

statistics, regression analysis is a statistical process for estimating the relationships among variables. It includes many techniques for modeling and analyzing several variables, when the focus is on the relationship between a dependent variable and one or more independent variables. More specifically, regression analysis helps one understand how the typical value of the dependent variable changes when any one of the independent variables is varied, while the other independent variables are held fixed. Most commonly, regression analysis estimates the conditional expectation of the dependent variable given the independent variables that is, the average value of the dependent variable when the independent variables are fixed. In all cases, the estimation target is a function of the independent variables called the regression function.

In regression analysis, it is also of interest to characterize the variation of the dependent variable around the regression function, which can be described by a probability distribution. Regression analysis is widely used for prediction and forecasting, Regression analysis is also used to understand which among the independent variables are related to the dependent variable, and to explore the forms of these relationships. In restricted circumstances, regression analysis can be used to infer causal relationships between the independent and dependent variables. However this can lead to illusions or false relationships, so caution is advisable for example, correlation does not imply cause.

Regression models involve the following variables: The unknown parameters, denoted as ,

The independent variables, X.

The dependent variable, Y.

A regression model relates Y to a function of X and .

Regression example of Compensation to Age

The performance of regression analysis methods in practice depends on the form of the data generating process, and how it relates to the regression approach being used. Since the true form of the data-generating process is generally not known, regression analysis often depends to some extent on making assumptions about this process. These assumptions are sometimes testable if many data are available. Regression models for prediction are often useful even when the assumptions are moderately violated, although they may not perform optimally. However, in many applications, especially with small effects or questions of causality based on observational data, regression methods can give misleading results

2. Time Series Analysis / Work Study Technique

 Work

study technique is based on the volume of operation and work efficiency of personnel.

Volume

of operation is derived from the Organizational plan documents.

efficiency or productivity is measured by time and motion study which specifies standard output per unit of time

Work

Planned output standard output per hour * standard hours per person

Forecasting of manpower requirement by work study technique Particulars At constant productivity At increase productivity by 10%

Standard output per annum Standard output per hour Standard hours per person per annum (300*8 No of persons required

10,00,000 5 2400 83

10,00,000 5.5 2400 75

3. Personnel Ratio Trend Analysis

In a Personnel Ratio Trend analysis

The main emphasis is on the ratios between production/sales level and direct operatives, direct operatives and other personnel ,say supervisory and managerial personnel.

No of operatives Actual 3 years ago 2 years ago Last year Forecast Next year After 2 years After 3 years 1,000 1,200 1,500 1,800 2,000 2,200

Number of Supervisor 100 120 125 150 154 157

Supervisor Ratio 10:1 10:1 12:1 12:1 13:1 14:1

Five Groups Each Group with a leader 15 Minutes to discuss and 5-7 minutes to present the Goal/ Planning Q&A after every presentation Case Study HRP City Hotel

Statistical Model
Demographic Model

Mathematical model Econometric models Ecological Model Network model Stochastic Model Simulation Model

Demography is the statistical study of human population. It can be a very general science that can be applied to any kind of dynamic human population, that is, one that changes over time or space. It encompasses the study of the size, structure and distribution of these populations, and spatial and/or temporal changes in them in response to birth, migration, aging and death. Demographic analysis can be applied to whole societies or to groups defined by criteria such as education, nationality, religion and ethnicity. Formal demography limits its object of study to the measurement of populations processes, while the more broad field of social demography population studies also analyze the relationships between economic, social, cultural and biological processes influencing a population. The term demographics refers to characteristics of a population

A mathematical model is a description of a system using mathematical concepts and language.

The process of developing a mathematical model is termed mathematical modeling.

Mathematical models are used not only in the natural sciences (such as physics, biology, earth science, meteorology) and engineering disciplines (e.g. computer science, artificial intelligence), but also in the social sciences (such as economics, psychology, sociology and political science); physicists, engineers, statisticians, operations research analysts and economists use mathematical models most extensively. In general, mathematical models may include logical models, as far as logic is taken as a part of mathematics.

Econometric models are statistical models used in econometrics. An econometric model specifies the statistical relationship that is believed to hold between the various economic quantities pertaining a particular economic phenomenon under study. An econometric model can be derived from a deterministic economic model by allowing for uncertainty. However, it is also possible to use econometric models that are not tied to any specific economic theory. A simple example of an econometric model is one that assumes that monthly spending by consumers is linearly dependent on consumers' income in the previous month. Then the model will consist of the equation

Econometric models for manpower planning are built up by analyzing the past statistical data and by bringing the relationship among variables

Econometric models for estimation of manpower requirement differ from the statistical methods. Past statistical data are analysed in the hope that it will prove possible to describe precisely the relationships between a number of variables in mathematical and statistical terms. To portray the relationships between different types of manpower requirements and measures of investment, profitability, sales, complexity and quality of the product, any other factors which may be thought important in a particular company, in terms of a single equation or more likely building a series of equations, which together described the various relationships can be worked out with the help of econometric models. Very often, such models are based on multiple regression analysis of the types described above. Econometric models have considerable inherent practical difficulties. The use of such complex models for forecasting future manpower needs, or indeed any other variable, at the company level, is still very much in its infancy and the effort and cost involved is high.

An ecosystem model is an abstract, usually mathematical, representation of an ecological system which is studied to gain a deeper understanding of the real system. Ecosystem models are formed by combining known ecological relations (e.g. the relation of sunlight and water availability , or the relation between predator and prey populations) with data gathered from field observations. These model systems are then studied in order to make predictions about the dynamics of the real system. Models enable researchers to simulate large-scale experiments that would be too costly or unethical to perform on a real ecosystem. They also enable the simulation of ecological processes over very long periods of time (i.e. simulating a process that takes centuries in reality, can be done in a matter of minutes in a computer model). Ecosystem models have applications in a wide variety of disciplines, such as natural resource management, environmental health,agriculture,and wildlife conservation.
[Ecopath

is a free ecosystem modelling software suite, initially developed and widely used in fisheries management as a tool for modelling and visualising the complex relationships that exist in real world marine ecosystems

Types of models There are two major types of ecological models, which are generally applied to different types of problems: (1) analytic models (2) simulation/computational models. Analytic models are often more complex mathematically, and work best when dealing with relatively simple (often linear) systems, specifically those that can be accurately described by a set of mathematical equations whose behavior is well known. Simulation models on the other hand, utilize numerical techniques to solve problems for which analytic solutions are impractical or impossible. Simulation models tend to be more widely used, and are generally considered more ecologically realistic, while analytic models are valued for their mathematical elegance and explanatory power.

The network model is a database model conceived as a flexible way of representing objects and their relationships. Its distinguishing feature is that the scheme, viewed as a graph in which object types are nodes and relationship types are sweep, is not restricted to being a hierarchy or pattern.

The chief argument in favour of the network model, in comparison to the hierarchic model, was that it allowed a more natural modeling of relationships between entities. Although the model was widely implemented and used, it failed to become dominant for two main reasons. Firstly, IBM chose to stick to the hierarchical model with semi-network extensions in their established products. Secondly, it was eventually displace by the relational model, which offered a higher-level, more declarative interface. The extra productivity and flexibility of the relational model led to the gradual obsolescence of the network model in corporate enterprise usage

Stochastic programming is a framework for modeling optimization problems that involve uncertainty. Whereas deterministic optimization problems are formulated with known parameters, real world problems almost invariably include some unknown parameters. When the parameters are known only within certain bounds, one approach to tackling such problems is called robust optimization. Here the goal is to find a solution which is feasible for all such data and optimal in some sense. Stochastic programming models are similar in style but take advantage of the fact that probability distributions governing the data are known or can be estimated. The goal here is to find some policy that is feasible for all (or almost all) the possible data instances and maximizes the expectation of some function of the decisions and the random variables.

More generally, such models are formulated, solved analytically or numerically, and analyzed in order to provide useful information to a decision-maker.
Stochastic dynamic programming is a useful tool in understanding decision making under uncertainty.

Simulation is the imitation of some real thing available, state of affairs, or process. The act of simulating something generally entails representing certain key characteristics or behaviors of a selected physical or abstract system. Simulation is used in many contexts, such as simulation of technology for performance optimization, safety engineering, testing, training, education, and video games. Training simulators include flight simulators for training aircraft pilots in order to provide them with a lifelike experience. Simulation is also used for scientific modeling of natural systems or human systems in order to gain insight into their functioning. Simulation can be used to show the eventual real effects of alternative conditions and courses of action. Simulation is also used when the real system cannot be engaged, because it may not be accessible, or it may be dangerous or unacceptable to engage, or it is being designed but not yet built, or it may simply not exist.

Interactive simulation is a special kind of physical simulation, often referred to as a human in the loop simulation, in which physical simulations include human operators, such as in a flight simulator
or a driving simulator. Human in the loop simulations can include a computer simulation as a so-called artificial

environment

A computer simulation (or "sim") is an attempt to model a real-life or hypothetical situation on a computer so that it can be studied to see how the system works. By changing variables, predictions may be made about the behaviour of the system.It is a tool to create a virtual environment of the real time system. Computer simulation has become a useful part of modeling many natural systems in physics, chemistry and biology, and human systems in economics and social science as well as in engineering to gain insight into the operation of those systems. Traditionally, the formal modeling of systems has been via a mathematical model, which attempts to find analytical solutions enabling the prediction of the behaviour of the system from a set of parameters and initial conditions. Computer simulation is often used as an adjunct to, or substitution for, modeling systems for which simple closed form analytic solutions are not possible. There are many different types of computer simulation, the common feature they all share is the attempt to generate a sample of representative scenarios for a model in which a complete enumeration of all possible states would be prohibitive or impossible. Several software packages exist for running computer-based simulation modeling (e.g. Monte Carlo simulation, stochastic modeling, multimethod modeling) that makes all the modeling almost effortless. Modern usage of the term "computer simulation" may encompass virtually any computer-based representation.

Developing a Manpower strategy Faced with rapid change organizations need to develop a more focused and coherent approach to managing people. In just the same way a business requires a marketing or information technology strategy it also requires a human resource or people strategy. In developing such a strategy two critical questions must be addressed. What kinds of people do you need to manage and run your business to meet your strategic business objectives? What people programs and initiatives must be designed and implemented to attract, develop and retain staff to compete effectively?

In order to answer these questions four key dimensions of an organization must be addressed. These are: Concentrate on the organization's COPS Culture: the beliefs, values, norms and management style of the organization. Organization: the structure, job roles and reporting lines of the organization People: the skill levels, staff potential and management capability Systems: the people focused mechanisms which deliver the strategy employee selection, communications, training, rewards, career development, etc.

There are seven steps to developing a Manpower strategy Imp : active involvement of senior line managers should be sought throughout the approach Step 1: Get the 'big picture Understand your business strategy.

Highlight the key driving forces of your business. What are they?
e.g. technology, distribution, competition, the markets. What is the fundamental people contribution to bottom line business performance?

Step 2: Develop a Mission Statement or Statement of Intent

That relates to the people side of the business.

Do not be put off by negative reactions to the words or references to idealistic statement. Step 3: Conduct a SWOT analysis of the organization Focus on the internal strengths and weaknesses of the people side of the business. Consider the current skill and capability issues. Vigorously research the external business and market environment. High light the opportunities and threats relating to the people side of the business. What impact will/ might they have on business performance? Consider skill shortages? The impact of new technology on staffing levels?

Step 4: Conduct a detailed human resources analysis Concentrate on the organization's COPS (culture, organization, people, HR systems) What gaps exists between the reality of where you are now and where you want to be? Step 5: Determine critical people issues Go back to the business strategy and examine it against your SWOT and COPS Analysis Identify the critical people issues namely those people issues that you must address.

Prioritize the critical people issues.

Step 6: Develop consequences and solutions For each critical issue highlight the options for managerial action generate, elaborate and create - don't go for the obvious. This is an important step as frequently people jump for the known rather than challenge existing assumptions about the way things have been done in the past.

Think about the consequences of taking various courses of action.

Consider the mix of HR systems needed to address the issues. Once you have worked through the process it should then be possible to translate the action plan into broad objectives. These will need to be broken down into the specialist HR Systems.

Step 7: Implementation and evaluation of the action plans Implement and evaluate the action plans at regular intervals. Keep reviewing the implementation and action plan. The ultimate purpose of developing a Manpower strategy is to ensure that the strategic objectives are exceeded and new benchmark has set.

Culture Do your staff identify with the organization and 'the success of the organization' as being of direct benefit to themselves? Do your staff see themselves as having common interests with their work colleagues and group? Is there a strong team spirit? Is work allocated on the basis of individual expertise rather than position in the organization? Are there sufficient skills in the organization? Are there appropriate leadership skills within the organization? Are your staff encouraged to say what they think about the organization? Does your organization encourage innovation and creativity amongst staff? Do your staff feel a sense of personal responsibility for their work? Is quality emphasized in all aspects of the organization?

Organization

Does the structure of your organization encourage effective performance?

Is the organization structure flexible in the face of changing demands? Is the structure too complex? If so in what areas? Do your staff have clear roles and responsibilities? Does your organization structure tend to push problems up rather than resolve them at the point where they occur? Do your procedures and management practices facilitate the accomplishment of tasks? Do you constantly seek to challenge your organization structure?

People

Do your staff have the necessary skills and knowledge to perform their jobs in the most effective manner?
Do your staff understand their jobs and how they contribute to overall business performance i.e. have clear goals and objectives? Do your staff have a customer service orientation? Are people with potential spotted and developed for the future? Are your staff encouraged to perform well through the giving of recognition, feedback, etc.? Do your people know what their expected performance standards are?

Systems Do your organization's systems (e.g. employee selection and recruitment, promotion, planning, management, information and control) encourage effective performance among your staff? Are these systems consistent across the organization? Are there clear rewards for effective performance within your work group? Does the organization review its systems frequently and ensure they mutually support each other?

Management science as "the business use of operations research However, in modern times the term management science may also be used to refer to the separate fields of organizational studies or corporate strategy. Like operational research itself, management science (MS), is an interdisciplinary branch of applied mathematics devoted to optimal decision planning, with strong links with economics, business, engineering, and other sciences.

It uses various scientific research-based principles, strategies, and analytical methods including mathematical modeling, statistics and numerical algorithms to improve an organization's ability to enact rational and meaningful management decisions by arriving at optimal or near optimal solutions to complex decision problems.
In short, management sciences help businesses to achieve their goals using the scientific methods of operational research.

The management scientist's mandate is to use rational, systematic, science-based techniques to inform and improve decisions of all kinds. Management science is concerned with developing and applying models and concepts that may prove useful in helping to illuminate management issues and solve managerial problems, as well as designing and developing new and better models of organizational excellence. The application of these models within the corporate sector became known as Management science.

Some of the fields that have considerable overlap with Management Science include:

Data mining Decision analysis Engineering Forecasting Game theory Industrial engineering Logistics Mathematical modeling

Mathematical optimization Probability and statistics Project management Simulation Social network/Transportation forecasting models Supply chain management Financial engineering

Applications of management science:

Applications of management science are abundant in industry as airlines, manufacturing companies, service organizations, military branches, and in government.
The range of problems and issues to which management science has contributed insights and solutions is vast. It includes: 01. scheduling airlines, including both planes and crew, 02. deciding the appropriate place to site new facilities such as a warehouse, factory or fire station, 03. managing the flow of water from reservoirs, 04. identifying possible future development paths for parts of the telecommunications industry, 05. establishing the information needs and appropriate systems to supply them within the health service, and 06. identifying and understanding the strategies adopted by companies for their information systems

Management science is also concerned with so-called soft-operational analysis, which concerns methods for strategic planning, strategic decision support, and Problem Structuring Methods (PSM). In dealing with these sorts of challenges mathematical modeling and simulation are not appropriate or will not suffice. Therefore, during the past 30 years, a number of non-quantified modeling methods have been developed. These include: 01. stakeholder based approaches including metagame analysis and drama theory 02. morphological analysis and various forms of influence diagrams. 03. approaches using cognitive mapping 04. the Strategic Choice Approach 05. robustness analysis

Manpower Planning / HRP is a continual process used to align the needs and priorities of the organisation with those of its workforce to ensure it can meet its legislative, regulatory, service and production requirements and organizational objectives. Manpower Planning enables evidence based workforce development strategies.

Workforce Planning is the business process for ensuring that an organization has suitable access to talent to ensure future business success.
Access to talent includes considering all potential access sources (employment, contracting out, partnerships, changing business activities to modify the types of talent required, etc.). By talent is meant the skills, knowledge, predisposition and ability to undertake required activities including decisions making. The cycle of workforce planning includes filling resource requests, analyzing resource utilization, forecasting capacity, managing and identifying the resources (human) to fill that capacity, and then re-starting the cycle.

Regression models predict a value of the Y variable given known values of the X variables. Prediction within the range of values in the dataset used for model-fitting is known informally as interpolation. Prediction outside this range of the data is known as extrapolation. Performing extrapolation relies strongly on the regression assumptions. The further the extrapolation goes outside the data, the more room there is for the model to fail due to differences between the assumptions and the sample data or the true values. It is generally advised that when performing extrapolation, one should accompany the estimated value of the dependent variable with a prediction interval that represents the uncertainty. Such intervals tend to expand rapidly as the values of the independent variable(s) moved outside the range covered by the observed data. For such reasons and others, some tend to say that it might be unwise to undertake extrapolation. However, this does not cover the full set of modelling errors that may be being made: in particular, the assumption of a particular form for the relation between Y and X. A properly conducted regression analysis will include an assessment of how well the assumed form is matched by the observed data, but it can only do so within the range of values of the independent variables actually available. This means that any extrapolation is particularly reliant on the assumptions being made about the structural form of the regression relationship. Best-practice advice here is that a linear-in-variables and linear-in-parameters relationship should not be chosen simply for computational convenience, but that all available knowledge should be deployed in constructing a regression model. If this knowledge includes the fact that the dependent variable cannot go outside a certain range of values, this can be made use of in selecting the model even if the observed dataset has no values particularly near such bounds. The implications of this step of choosing an appropriate functional form for the regression can be great when extrapolation is considered. At a minimum, it can ensure that any extrapolation arising from a fitted model is "realistic" (or in accord with what is known).

To carry out regression analysis, the form of the function f must be specified. Sometimes the form of this function is based on knowledge about the relationship between Y and X that does not rely on the data. If no such knowledge is available, a flexible or convenient form for f is chosen. the regression analysis provides the tools for finding a solution for unknown parameters that will, for example, minimize the distance between the measured and predicted values of the dependent variable Y.

Productivity in economics is the ratio of what is produced to what is required to produce. Productivity is the measure on production efficiency. Productivity model is a measurement method which is used in practice for measuring productivity. Productivity model must be able to solve the formula Output / Input when there are many different outputs and inputs.

The principle of comparing productivity models is to identify the characteristics that are present in the models and to understand their differences.

This task is alleviated by the fact that such characteristics can unmistakably be identified by their measurement formula.
Based on the model comparison, it is possible to identify the models that are suited for measuring productivity. A criterion of this solution is the production theory and the production function. It is essential that the model is able to describe the production function. Dimensions of productivity model comparisons The principle of model comparison becomes evident in the figure. There are two dimensions in the comparison. Horizontal model comparison refers to a comparison between business models. Vertical model comparison refers to a comparison between economic levels of activity or between the levels of business, industry and national economy. At all three levels of economy, that is, that of business, industry and national economy, a uniform understanding prevails of the phenomenon of productivity and of how it should be modelled and measured. The comparison reveals some differences that can mainly be seen to result from differences in measuring accuracy. It has been possible to develop the productivity model of business so as to be more accurate than that of national economy for the simple reason that in business the measuring data are much more accurate. (Saari 2006b)

Differences in the accounting technique do not imply differences in accounting results but differences in clarity and intelligibility. Variance accounting gives the user most possibilities for an analysis. Adjustability of the model. There are two kinds of models, fixed and adjustable. On an adjustable model, characteristics can be changed, and therefore, they can examine the characteristics of the other models. A fixed model can not be changed. It holds constant the characteristic that the developer has created in it. Based on the variables used in the productivity model suggested for measuring business, such models can be grouped into three categories as follows: Productivity index models PPPV models PPPR models In 1955, Davis published a book titled Productivity Accounting in which he presented a productivity index model. Based on Davis model several versions have been developed, yet, the basic solution is always the same (Kendrick & Creamer 1965, Craig & Harris 1973, Hines 1976, Mundel 1983, Sumanth 1979). The only variable in the index model is productivity, which implies that the model can not be used for describing the production function. Therefore, the model is not introduced in more detail here. PPPV is the abbreviation for the following variables, profitability being expressed as a function of them:

Profitability = f (Productivity, Prices, Volume)The model is linked to the profit and loss statement so that

profitability is expressed as a function of productivity, volume and unit prices. Productivity and volume are the variables of a production function, and using them makes it is possible to describe the real process. A change in unit prices describes a change of production income distribution. PPPR is the abbreviation for the following function:

Profitability = f (Productivity, Price Recovery)In this model, the variables of profitability are productivity and price
recovery. Only the productivity is a variable of the production function. The model lacks the variable of volume, and for this reason, the model can not describe the production function. The American models of REALST (Loggerenberg & Cucchiaro 1982, Pineda 1990) and APQC (Kendrick 1984, Brayton 1983, Genesca & Grifell, 1992, Pineda 1990) belong to this category of models but since they do not apply to describing the production function (Saari 2000) they are not reviewed here more closely

Business models There are several different models available for measuring productivity. Comparing the models systematically has proved most problematic. In terms of pure mathematics it has not been possible to establish the different and similar characteristics of them so as to be able to understand each model as such and in relation to another model. This kind of comparison is possible using the productivity model which is a model with adjustable characteristics. An adjustable model can be set with the characteristics of the model under review after which both differences and similarities are identifiable. A characteristic of the productivity measurement models that surpasses all the others is the ability to describe the production function. If the model can describe the production function, it is applicable to total productivity measurements. On the other hand, if it cannot describe the production function or if it can do so only partly, the model is not suitable for its task. The productivity models based on the production function form rather a coherent entity in which differences in models are fairly small. The differences play an insignificant role, and the solutions that are optional can be recommended for good reasons. Productivity measurement models can differ in characteristics from another in six ways. First, it is necessary to examine and clarify the differences in the names of the concepts. Model developers have given different names to the same concepts, causing a lot of confusion. It goes without saying that differences in names do not affect the logic of modelling. Model variables can differ; hence, the basic logic of the model is different. It is a question of which variables are used for the measurement. The most important characteristic of a model is its ability to describe the production function. This requirement is fulfilled in case the model has the production function variables of productivity and volume. Only the models that meet this criterion are worth a closer comparison. (Saari 2006b) Calculation order of the variables can differ. Calculation is based on the principle of Ceteris paribus stating that when calculating the impacts of change in one variable all other variables are hold constant. The order of calculating the variables has some effect on the calculation results, yet, the difference is not significant. Theoretical framework of the model can be either cost theory or production theory. In a model based on the production theory, the volume of activity is measured by input volume. In a model based on the cost theory, the volume of activity is measured by output volume. Accounting technique, i.e. how measurement results are produced, can differ. In calculation, three

Statistical and Mathematical Models.

Burack-Smith

model: Burack-Smith model for personnel forecasting is based in the selected key variations that affect an organizations overall human resource needs.

En = (Lagg + G)/ X Y

Burack-Smith model En = (Lagg + G)/ X Y

En= estimated level of human resource needed in n plan period. Lagg= total business activity in n period based on current prices. G = total growth in business activity in n period based on the current prices. X = average productivity improvement in n period over the current period. (if X =1.08, it means average productivity improvement of 8 %) Y = business activity personnel ratio in the current year. (business activity divided by number of personnel). The main purpose of this model is to calculate EN that is the personnel required in future (n period) and for this purpose ,Lagg , G , X and Y variables have to be measured.

Quantitative and Qualitative approaches to Manpower planning

In the social sciences, quantitative research refers to the systematic empirical investigation of social phenomena via statistical, mathematical or computational techniques.

The objective of quantitative research is to develop and employ mathematical models, theories and/or hypotheses pertaining to phenomena.
The process of measurement is central to quantitative research because it provides the fundamental connection between experiential observation and mathematical expression of quantitative relationships. Quantitative research is used widely in social sciences such as psychology, economics, sociology, and political science. Qualitative methods produce information only on the particular cases studied, and any more general conclusions are only hypothesis. Quantitative methods can be used to verify, which of such hypotheses are true.

Quantitative research is generally made using scientific methods, which can include: The generation of models, theories and hypotheses The development of instruments & methods for measurement Experimental control and manipulation of variables Collection of experiential data Modeling and analysis of data Evaluation of results

Quantitative research is often contrasted with qualitative research which is the examination, analysis and interpretation of observations for the purpose of discovering underlying meanings and patterns of relationships. Although a distinction is commonly drawn between qualitative and quantitative aspects of scientific investigation, it has been argued that the two go hand in hand. Qualitative research is often used to gain a general sense of phenomena and to form theories that can be tested using further quantitative research.

Qualitative methods might be used to understand the meaning of the conclusions produced by quantitative methods. Using quantitative methods, it is possible to give precise and testable expression to qualitative ideas. This combination of quantitative and qualitative data gathering is often referred to as mixed-methods research.

12th August 2012

Manpower Planning Talent Acquisition Process, Sources Steps ROI Reports Effective Talent Acquisition Process Learning's

RECRUITMENT Recruitment is the process of searching the candidates for employment and stimulating them to apply for jobs in the organisation Recruitment process is to obtain the number and quality of the employees that can be selected in order to help the organisation to achieve its goal and objectives. Recruitment process helps to the management for select the right candidate for the right job from this pool.

RECRUITMENT PROCESS

Recruitment process is the first step towards creating the competitive strength and the strategic advantage for the organisation. Recruitment process is the systematic one.

RECRUITMENT PROCESS Identifying the vacancy Preparing the job description Sourcing Short listing Written test Group discussion Arrange the interview Select the candidates Salary negotiation Finalizing the candidate

SOURCE OF RECRUITMENT Organization follows their own recruitment process they follows two types of sources Internal External Transfers Press advertisements Promotions Educational institutes

THE RECRUITMENT INDUSTRY.

The Recruitment industry has four main types of agencies there are follows: TRADITIONAL RECRUITMENT INDUSTRY. ONLINE RECRUITMENT. IN-HOUSE RECRUITMENT . TRADITIONAL RECRUITMENT INDUSTRY ONLINE RECRUITMENT HEADHHUNTERS

Defined Position Critical Competencies Job Analysis Training and development Valid Assessment: Improved job/person match Realistic Job Preview

The Mission Of The Human Resources Department, As A Strategic Partner, Is To Recruit, Develop, And Retain The HighCaliber Diverse Workforce, Necessary for attaining organizational objectives.

Why manpower planning? Right fit

OLD Knowledge, skills, abilities Jobs defined as bundles of tasks Employees perform strictly definable tasks

New Competencies Jobs defined by competencies Jobs are flexible

Old Time Served Occupation-specific Minimal Requirements Limited assessment options Limited career mobility

New Whole person competency-based approach Optimal Profile More assessment options Encourages career mobility

Up-to Date Classification Criteria Job Related Qualifications Targeted Recruitment Valid Assessment

Lacks Skills to do the job

Not team Player Problems with co/workers Bad Hire

Not my job syndrome

Un-Professional

Part of the problem Not the solution

Able & Suitable

Manageability & Teamwork Ideal Candidate

Willingness

Professional Behavior & Demeanor

Problem Solving Abilities

Process :

Hiring Was Ne.ver Meant to Be Easy

The Cost of Hiring The Steps to Hiring

The Steps to Hiring

The hiring process includes recruiting, processing, eliminating, and selecting. It can involve
posting a job advertisement in appropriate places; evaluating the information provided on each job application; screening candidates to determine which ones to interview; verifying references and information; conducting personal interviews; and deciding who will be offered the job.

Drive: A desire to get things done. Goal-Oriented. Motivation: Enthusiasm and willingness to ask questions. Does extra on every job. Communication skills: The ability to talk and write effectively to people at all levels. Chemistry: Gets along with others, A team player. Energy: Someone who goes the extra mile, pays attention to detail, looks for solutions. Determination: Does not quit when a problem gets tough. Confidence: Not arrogant. Poise. Friendly, honest and open to employees high and low. Not intimidated by management, nor overly familiar.

Reliability: Following up, not relying on anyone else to ensure the job is well done, keeps management informed. Honesty/Integrity: Taking responsibility for own actions, Good and bad. Pride: Pays attention to details all jobs done to best of their ability. Dedication: Whatever it takes in time and effort to see a project through to completion. Analytical Skills: Weighing the pros and cons. Weighing the short-and long term benefits against all possible negatives. Listening Skills: Listening and understanding, as opposed to waiting your turn to speak.

The Profile is an all-purpose assessment that measures the qualities that make up The Total Person-Thinking-style and Reasoning, occupational interests, and behavioral traits.

Can be e-mailed to any location. May be taken in HR assessment center MonFri 8:00 a.m. to 3:00 p.m. (by appointment) Given in English or Spanish Results e-mailed directly to hiring manager

Placement Promotion Self-improvement Coaching Succession planning

Individual Report- A guide for self-understanding Placement Report- Selecting the right people through Job Match Multi-Job Match Report- Useful for succession planning and reassigning employees to new positions. Coaching Report- An excellent training and development tool Job Analysis Survey Report- Used with job descriptions to more accurately define job requirements. Summary Reports- To give you a snapshot of information.

Contains interview questions for both general and technical competencies. Modular format; Department determines which questions to ask. Benchmarks are used in scoring responses.

To ensure a systematic coverage of applicants. To provide a technique for gathering all the relevant facts. To provide a uniform strategy that objectively evaluates all job candidates. To determine candidates ability, willingness, and manageability.

The Job description

Skill 1

Skill 2

Skill 3

Skill 4

Skill 5

Interview Questions

Skill 1

Skill 2

Skill 3

Skill 4

Skill 5

A poor interviewer can be a wonderful manager ?

Interviewing skills are learned, not inherited.

Interviewers desk is cluttered, looks at the resume 5 minutes before the interview. Constant interruptions, phone calls Starts off with negative aspects of the job. Asks a long line of open ended questions. Makes up questions as they go along.

Have as much privacy as possible Call applicant by name when inviting them into the office Ensure that the applicant knows your name Greet the applicant courteously and sincerely Make the applicant feel that you are pleased with their interest in the position Establish an informal but business like atmosphere

Make the applicant feel important Talk to the applicant as though you were the only contact he would ever have with the University Compliment a good employment record Interrupt the conversation to keep interview on track Use active listening skills Relax and the applicant will relax Keep information given, confidential

Remember the applicants time is valuable Watch for gaps in work record Use application blanks and other data in planning the interview Make an outline in advance, of the main items of information you want to obtain during the interview Plan the time required for interview

Interview when worried, upset, ill or under stress Hold the interview in a noisy place Keep applicants waiting unnecessarily Give the impression of being abrupt or harsh Allow outside interruptions Seek information you already have

Antagonize the applicant Show emotion at any physical handicap Hurt the applicants feelings or destroy his faith in himself Forget that the applicant is sensitive to every word the interviewer speaks Appear to loose interest in the interview Pry into personal lives Break or delay an appointment Waste time on a long interview if the applicant is clearly not suitable

Fall into a set pattern of interviewing Conduct the interview in a haphazard manner

Greet the applicant. Start the interview promptly. Open with a warm, genuine greeting and firm handshake. Offer the applicant something to drink. Outline the interview. Give the applicant an overview of the process, length of the interview and what to expect after the interview. Give the applicant a realistic job preview. Research suggest that realistic job previews increase employee retention because the applicant gets honest information at the beginning of the process. Present the applicant with a copy of the job description, physical requirements of the job and a list of the responsibilities of the position.

Title VII of the Civil Rights Act of 1964 (Title VII) forbids employment discrimination based on race, color, religion, sex, or national origin; The Equal Pay Act of 1963 (EPA) protects men and women who perform substantially equal work in the same establishment from sex-based wage discrimination. The Age Discrimination in Employment Act of 1967 (ADEA) protects individuals who are 40 years of age or older against age based discrimination. Title I of the Americans with Disabilities Act of 1990 (ADA) forbids employment discrimination against qualified individuals with disabilities. The Civil Rights Act of 1991 provides monetary damages in cases of intentional employment discrimination.

Questions regarding religion, church, synagogue, or parish, the religious holidays you observe, political beliefs or affiliations. Does your religion allow you to work on Saturdays?

This job requires work on Saturdays. Is that a problem?

Regarding ancestry, national origin, or parentage; in addition, you cannot ask about the naturalization status of parents, spouse or children. Regarding place of birth.

Are you authorized to work in the United States?

May not ask about your native language, the language you speak at home, or how you acquired the ability to read, write, or speak a foreign language.

You indicated on your resume you are fluent in German, French and Spanish. How did you manage to learn all of those languages?

What languages are you fluent in

May not ask about age, date of birth, or the ages of children. May ask whether you are over eighteen years of age.

May not ask about maiden names or whether you have changed your name; marital status, number of children or dependents, or spouses occupation; or whether (if you are a woman) you wish to be addressed as Miss., Mrs., or Ms.

How would you like to be addressed (a common courtesy) and if you have worked for the University before under a different name.

In a scene from the first episode of The Mary Tyler Moore Show, Lou Grant is interviewing Mary for a job. Lou: So, Mary, what religion are you? Mary: You cant ask me that, Mr. Grant! Its against the law. Lou: Wanna call a cop?

In order to gain information without asking specific questions, many interviewers use the tell me about yourself approach, hoping that the applicant will tell all about spouse, kids, working on weekends, and so on.

Say the applicant is a woman who tells the interviewer she is divorced and has children. Another person is hiredperhaps equally qualified who is single. The first applicant, desperate for the job, becomes angry and files a complaint saying that the employer learned during the interview that she was divorced and had children and was not hired for that reason.

Even though the interviewer did not ask for the information, the fact is, the information came to light during the interview. If she files suit, it is then up to the employer to prove that the information was volunteered and not used as a basis of discriminatory actions, It is the interviewers responsibility and in the Universitys best interest that you stop the applicant from volunteering illegal information.

First, stop the flow of information and tell the applicant not to bring up the subject again. Courteously explain that the University does not base its hiring practices on that particular subject area. Specifically state that a decision to hire is never based on age, gender, race, or whatever subject was brought up.

We are open to the public from 8:00 a.m. to 5:00 p.m., and because of a small staff, its important that everyone be here daily and on time. Is there anything that would prevent you from being at work on time and on a regular basis? We feel that the first six months on the job is your training period. Because of the expense and time invested in our staff we are looking for people who give the University a commitment in return. Is there anything that would prevent you from staying with the University for a minimum of two years?

Be sure the requirements are reasonable and required of each applicant for the particular job. If a job takes one to two weeks of training, and the typical employee rarely stays over six months, we could be on shaky ground with the EEOC if your excuse for not hiring someone was the expectation tat they would be transferred with a spouse within a year, particularly a spouse in the military service.

Ask everyone the same, job-related questions and youll have little to fear if a rejected candidate has a legal bone to pick with your hiring practices.

Visit Human Resources Training website for additional classes. www.uth.tmc.edu/training

Definition of Succession Planning : Succession planning is a means of identifying critical management positions starting at manager and supervisor levels and extending up to the highest position in the organization.

Succession planning should not and must not stand alone. It must be paired with succession management which creates a more dynamic environment.

Need for Success Planning :

Need for future growth and skill development Proactive approach to fill key potential vacancies Aligns mission with workplace planning strategy

Succession Planning and Management : A deliberate and systematic effort by an organization to: ensure leadership continuity in key positions retain and develop future intellectual and knowledge capital encourage individual advancement Integrated into the HR System Succession Planning is managed to ensure success Should also address the needs for critical backups and individual development in any job category

Identify key replacement needs high-potential people and critical positions to include in the succession plan Clarify present and future work activities and work results Compare present individual performance and future individual potential Establish individual-development plans (IDPs) to prepare replacements and to develop high-potential workers

Succession Planning : Succession Planning Do you have an established succession plan? Replacement versus Succession Planning Do they have the skills and experience need to fill critical positions?

Succession Planning Components & Steps HR Audit Develop a Pool of High Potential Candidates Monitor and Evaluate Progress and Results Make Adjustments 1. Replacement Planning Identify Readiness of Successors for Key Positions 2.Review Performance and Development with Key Management Staff 3. Identify High Potential Successors Establish nomination criteria. Experience, Education, Manager/Mentor Recommendation 4. Identify Successor Developmental Needs Identify skills gap, set goals, create development plan Determine measurable goals and outcomes 5. Create Development Opportunities Developmental Activities/Projects Mentoring/Coaching Create a Leadership Succession Plan Leadership Support Gain Buy-in from Senior Management Identify Top Leadership Experience, Education, and Job Experience Integrated Leadership Development

Establishing a Succession Plan Understand the critical position being vacated what are the requirements of the job Benchmark the job against future job requirements Determine what the ideal candidate will look like Evaluate potential replacements Determine their performance and potential readiness level Establish a Development Plan and Goals Implement development plan Provide Coaching and Feedback Track and Monitor the plan

Succession Planning Policy Identifying those employees who have the right skills to meet the challenges facing the organization Evaluate the quality and readiness of named successors Define development requirements and implement development plan Review performance and development with key management staff Make recommendations Monitor and evaluate progress and results

Checklist to Succeed Identify a systematic approach for identifying, nominating and selecting potential successors Review background information on potential successors, such as education, experience, skills, appraisals and potential Determine training and development requirements of potential successors Develop skills of potential successors through work experiences, job rotation, projects and other challenging assignments Establish a system for monitoring candidate's development plan progress by senior management Succession planning must include a system for providing feedback and encouragement to potential successors