UNIT 2 PROCESS AND FUNCTIONS OF HUMAN RESOURCE PLANNING (HRP)

Transcription

1 Baic of Human Reource Planning UNIT 2 PROCESS AND FUNCTIONS OF HUMAN RESOURCE PLANNING (HRP) Objective After reading thi unit, you hould be able to: l the concept and proce of HRP, l the determination of the manpower required and the mean of upplying thoe requirement, l the review proce of manpower plan and how it balance the competing and conflicting element, and l the manning and utilization of manpower. Structure 2.1 Concept and Proce of HRP 2.2 Preliminarie to Review 2.3 Manning Standard and Utilization 2.4 HR Information Sytem 2.5 HR Inventory and Analyi 2.6 HR Supply Planning 2.7 HR Control and Audit 2.8 Management HR Planning 2.9 Application to Individual Deciion 2.10 Summary 2.11 Self-Aement Quetion 2.12 Further Reading 2.1 CONCEPT AND PROCESS OF HRP 18 The objective of human reource planning i to provide continuity of efficient manning for the total buine and optimum ue of manpower reource, although that optimum utilization of people i heavily influenced by organization and corporate culture. A manpower planning i concerned with manning in the buine, it cannot be a tandalone activity, but mut exit a a part of the planning proce for the buine itelf. The lack of uitable manpower can place evere retriction on the ability of a buine to achieve it objective, which highlight both the importance of realitic manpower planning and the need for it to be fully integrated with the overall buine planning proce. Human reource planning contitute an integral part of corporate plan and erve the organizational purpoe in more way than one. For example, it help organization to (i) capitalize on the trength of their human reource; (ii) determine recruitment level; (iii) anticipate redundancei; (iv) determine optimum training level; (v) erve a a bai for management development programme; (vi) cot manpower for new project; (vii) ait productivity bargaining; (viii) ae future requirement; (ix) tudy the cot of overhead and value of ervice function; and (x) decide whether certain activitie need to be ubcontracted.

2 Human reource planning influence corporate trategy and i in turn influenced by it. The HRP proce may incorporate all the tage hown in Figure below. The planning proce may not alway give exact forecat, and to be effective it hould be a continuou proce with proviion for control and review. The manpower plan itelf fall into two part the determination of the manpower required to run the buine at a erie of point in time into the future, and the mean of upplying thoe requirement. Thi not limited to central or pecialit activitie but hould involve all the manager fully in the review of option. The review proce, which bring need and upply together, i frequently given inufficient time and attention. Thi may be becaue, once all data are brought together, the reult can eem complex and difficult to grap, but any reduction in complexity if achieved only by ignoring ome of the data and taking a limited view, which could reduce the potential for achieving the mot effective reourcing. The purpoe of the comprehenive periodic review i to conider all of the need acro the buine and to match thee with the career preference and development of the people o that a complete pattern of deciion can be devied for the reourcing action anticipated over the month ahead. Thi review provide a bae of preliminary deciion for all following action regarding people. There may be ound reaon for a ubequent change of deciion, but then the option and alternative, which were conidered in the review, provide a tarting point for the freh aement. If ome Proce and Function of Human Reource Planning (HRP) The HRP Proce Company Objective & Strategic Plan Market Forecat Production Objective/proce Capital/financial plan Time horizon (Short/long term) P H A I S E Human Reource Etimating Human Human Reource Demand Forecat Reource Inventory N Number Requirement baed on O Objective & top R Category management approval M Human Reource Supply S Skill Forecat P H A II S E Action Plan l Recruitment l Retraining l Redundancy l Productivity l Retention Monitoring and Control P H A III S E Source: Peronnel Management and Human Reource by C.S. Venkat Ratnam and B.K. Srivatava, Tata McGraw Hill Publihing Co. Ltd. New Delh, p

3 Baic of Human Reource Planning new requirement emerge, the conideration noted in the original review hould help define the updated option quickly, and the implication of alternative action. Should the cale of unplanned change of extenive, a freh review might be initiated, at leat locally. In the review proce itelf, the management tak i to balance the many competing and ometime conflicting element. Some example might be: l conflicting demand for available reearch and development reource at peak of activity, with an exce upply available; l imbalance of kill emerging a technology alter the product range; and l uncertain timing of development, which affect the timing of deployment. Thee review cannot anticipate ituation which develop at hort notice, but hould take into account the need for flexibility to cope with the manpower implication of event uch a intended future acquiition, new buine opportunitie not allowed for in plan or retention action needed to avoid the lo of key individual which might damage etablihment plan. The review proce may be viewed a the mater programme which integrate reourcing activitie with buine planning at an operational level to enure that organization tructure and the prepration of manpower reource are matched with the manpower requirement neceary to achieve buine objective and repond to a changing and poibly hotile enviroment. In parallel, the proce hould optimize the utilization and growth of the human reource available. The emphai in mot review may be on the hort-term (one to two year) action, but there mut be a longer term (three to five or five to ten year) perpective particularly for management continuity, which i a pecial ection of the ame proce a the lead time for upply can require thi notice. Meaningful manpower plan are only poible if the review proce bring together all of the relevant information at regular interval and ue thee data to re-examine, at every level, the relevance of preent and planned future organization and the competencie which will be required againt thoe available. Output from each review hould include: detailed deciion on future organization change and anticipated manpower deployment for a period through two to three month after the next cheduled review; outline deciion on longer term organization change, deployment and culture change plan; plu confirmation that buine requirement can be adequately reourced (or not). All manpower upply plan and action hould tem from thi proce and hould incorporate proviion for continuou reappraial to identify freh problem, to repond to new or changed need, and then to implement action or monitor progre toward action. Thi i eentially the mean of driving the proce of effective reourcing within the buine and involve management at every level in a network of aociated deciion and action. 2.2 PRELIMINARIES TO REVIEW 20 Review require ound preparatory work and comprehenive peronnel record, which give accurate and objective data on all employee. We cannot make judgement on the upply of particular kill unle we have ufficient data on the kill poeed by exiting employee. Building up full record require both an effective ytem and determination to enure the data are complete, up-to-date and accurate. Alo, the information mut be in a form that facilitate eay acce during a review. Peronnel record can be een imply a raw data and their contribution to review may come more from analyi of the overall inventory of peronnel. Any flaw in that

4 inventory, identified before the review begin, provide part of the review agenda. For example, heavy lo rate for a key employee group can be analyed carefully in advance, o that part of the action agreed in the review addree the identified problem. Or, a progreively worening ditortion of the age profile of a category may need to be tackled. Analye of the manpower inventory and of flow can etablih whether problem are developing which are likely to affect required manning level, and hould play key part in preparing the agenda for review. Equally, a other agenda item emerge, analye may offer potential olution. Proce and Function of Human Reource Planning (HRP) 2.3 MANNING STANDARDS AND UTILIZATION The whole manpower planning proce depend enormouly on the bae of manning tandard. Thi will tart with what exit and what hould be, and take in all of thoe factor which will change current tandard, including by how much and when. Without ome meaure of thi ort, meaninglful planning i very difficult. Many organiation tart with what exit now and refine the poition a they identify the eparate forecatable categorie, the bae for aeing tandard and the rate of change. Manager, upervior and employee involvement and interet i needed to determine tandard of all ort; the firt-hand meaure they have of the utilization of people are key factor in planning forward need and ubequent implementation and control. Ideally, manning tandard hould be developed from analyi of eential work requirement, with ome form of productivity meaurement wherever poible. Meaurement i by no mean retricted to direct manufacturing operation it can alo be applied to many office or upport function. Where local attitude or management tyle make traightforward meaurement difficult, exiting data in the hand of upervior and manager can provide ueful tandard which will encourage upervior to improve their own human reource utilization, thereby improving manpower productivity. Wherever thi type of analyi i carried out, opportunitie hould be ought to retructure and enrich job and to match people abilitie to job demand, thereby raiing the level of job atifaction. With thi come lower manpower lo rate, lower abenteeim and tighter manning tandard generally. For all thi, exiting tandard have an inertia which we mut try to overcome. If we aim to improve the ue of people in partnerhip with ubordinate upervior and manager, we may find the ecret of radical improvement in overall manning quality a well a number. Thi i an area for experimentation to determine what work in your environement. Manpower requirement planning follow on from the etablihment of the main aumption in the buine plan. Once we know the level of ale volume and mix, the manufacturing chedule required, the reearch and development programme, etc., we are well on the way to etablihing the matching manpower requirement. The plan hould include built-in aumption about the organization tructure to be ued, and their effect on the level of manpower required. Plan hould be et out with chedule of aociated manpower requirement, giving precie categorie, kill and level for every function. Thi detail will be neceary a a tarting point when the quetion of upply planning are tackled. Where appropriate, requirement plan hould be baed on manning tandard aociated with work demand factor to facilitate modification a volume or ytem change. 21

5 Baic of Human Reource Planning 2.4 HR INFORMATION SYSTEMS Modern management depend on having comprehenive data on which to make deciion. For any ytem, pecification of required input and output i eential. In building up the manpower databae, full coverage of traditional peronnel record i required, and it i increaingly poible to cover ophiticated element, uch a competencie required for effective performance of a job, and the competencie poeed by individual. Data on abenteeim and overtime are alo part of the ytem. 2.5 HR INVENTORY AND ANALYSIS Who are our employee; what kill do they have; how good are they; how are they developing? Thee are jut ome of the many quetion to which we need anwer. Much of the analyi hould come from the information ytem, but the current inventory i altering all the time with recruitment and loe, promotion and tranfer. Aeing the rate and form of change in the inventory i vital to quetion of manpower upply becaue, what we cannot provide from within, we mut eek out from other ource. Data of appraial of performance, aement of future potential and the ue of pychological tet are all part of the information we ue to get the anwer we need. Flow Analye of the pattern or flow of people through part of the organization are invaluable to the manpower planner; flow provide the major part of our upplie data and identifying change in flow pattern can point to poible difficultie, uch a when an exiting flow pattern become inufficient to meet a changing demand. Flow tell u about the availability of people who are ready to advance to their next career tage and alo provide information uch a the average rate at which individual progre through job, and how thoe rate vary for different type of people in different function. 2.6 HR SUPPLY PLANNING Thi i the crunch point where we bring together all the data we have on our future requirement, and on our preent manpower tock and the way we expect it to change. From thee analyi, we ee the future manpower upply et againt the developing inventory, detailed by function, category, kill and level. Thee how our future recruitment need, highlight need to increae the promotion rate of ome categorie by intenive training and development, how retraining and redevelopment need and idenfify exce taff who are likely to become redundant. In all thee area, we need action programme to enure that we meet our recognized need. We mut be ure that the action required are taken and are ucceful. Otherwie, baic aumption on the proviion of human reource within the buine plan may be adverely affected o that buine of objective are endangered. 2.7 HR CONTROL AND AUDIT 22 The philoophy i one of planning ahead, but thi require baic control and audit. The logic of control on every apect of manning hould be evident. We are dealing

6 with an expenive reource that can be eaily miued or underutilized. Control hould be low key, yet quietly enure that we continually try to ue thoe reource in the bet way poible, and do not caually add additional and non-eential reource. Control are exercied on current action and deciion. Subequently, we audit reult to be ure that intention have been achieved and that deciion have not been overlooked or ignored. Thi happen far more than we expect where there i little or no audit. In the whole area of management development in particular, and acro the pectrum of planning following the review proce, enuring that plan are followed through i eential. If thi i not done, there i little benefit from the coniderable ue of valuable time involved. Proce and Function of Human Reource Planning (HRP) 2.8 MANAGEMENT HR PLANNING Above a certain level, manpower planning ceae to be a matter of number by category, and become linked to individual poition and individual incumbent. For the top lice of the company, we are dealing with a combination of buine development, organization development and individual career development. It mut be handled with coniderable care, by unbiaed and imaginative executive; it mut alo take into account the employee viewpoint and preference, and involve them fully if it i to be a workable plan. Corporate culture How a company i managed, it organization tructure, it manning tandard and thinking on how we do thing around here are alo determined within a corporate culture. Any ignificant change in efficiency i almot certainly going to be culture related, but culture i both difficult and low to change. If the buine demand a change of pace or efficiency, or a different way of doing thing, it i not going to come about olely from planning change in manpower tandard or utilization. There will be a need for ome radical action to change what people accept a norm for many apect of their work behaviour, which may well reult in a evere diturbance in current manpower and organization. Periodic full review The way review are carried out i likely to vary enormouly from one enterprie to the next, but the principle hould be more uniform. The mot critical i involvement. All of management hould participate, with the lowet level contributing their part firt and progreive review forming a revere cacade up through the organization tructure, finihing with a review of the overall manpower plan and the management continuity poition at the top. At the bottom end, each manager hould dicu requirement of and deployment with hi direct ubordinate. Then he can prepare for the review with hi bo. A reaonable target time per level might be three week, if planned early into buine diarie. A review progre up the tructure, they hould concentrate on the continuou two or three level in the organization, progreively dropping off the lower level a the review progre upward. However, iue thought to be of concern at higher level will be carried forward, uch a kill hortage which may have an impact on the buine. The upporting paper work will vary, with much being prepared a working note by the participating manager, but it i enible to aemble and retain ome baic record of the dicuion and agreement to enable progre to be monitored later, or a the 23

7 Baic of Human Reource Planning tarting point for freh conideration if an unforeeen development occur. There might be ection in the note for: l l buine and environmental change; organization and manning review; and l human reource action plan. The firt ection hould record the buine ituation and aumption on which the review wa baed. The note might include a brief appraial of actual buine progre againt the buine plan, and change in the environment which differ from the aumption in the aociated environmental cenario, followed by updated view and an evaluation of the implication for human reource management. The organization and manning plan ection hould concentrate on: the immediate organization tructure, including any freh thinking on it evolution; the filling of all enior poition at each review level, both currently and in the future, including preparatory development; and review of manning pecification, tandard and level, and how they may change. It will be ueful if all the main aumption made in the plan are recorded, o that any need ha a firm bae on which to build. The third ection, covering human reource action plan will include reference to major human reource trategie aociated with the achievability of buine objective. There hould be note on progre againt the miletone in current action plan, plu detail any new plan triggered by new buine or environmental development, and the aociated human reource implication. Frequency The frequency of thi proce hould be determined by need. One company in a rapidly changing high-technology ector run through it at quarterly interval with trong line management upport for what they ee a enible dicipline which keep their organization and manpower utilization finely tuned. In le dynamic indutrie, a major annual review plu a le formal, but ongoing, mid year update may be ufficient. The drive to carry through the review proce mut come from the top and from the line, who mut recognize it value to themelve and to the buine or they will not pend the time doing it! The human reource function may need to provide ome of the drive plu ome trong upporting back up. Review compete for management time and mut demontrate their contribution to buine development and profitability. Local management i generally upportive if the proce i working properly and they can ee value for their effort but, even then, reitance to allocating ufficient time may arie a a reult of operational preure. Eential action triggered by thee review, uch a manpower movement between diviion, may be difficult to arrange without the involvement of higher management. Uually, thee move need to capitalize on knowledge of the immediate buine and be local to thoe buine area the individual concerned know well. Movement hould generally be within functional dicipline, o that the fat learning i limited to the new buine area. 24

8 Activity A Auming you are a HRD Manager in a organiation, you need to create an HR taffing plan. Briefly explain what criteria will be undertaken and why? Activity B Briefly decribe the practice of human reource planning of your organiation or any organiation you are aquainted with. Lit out the reaon, why thi practice i being adopted. Proce and Function of Human Reource Planning (HRP) 2.9 APPLICATION TO INDIVIDUAL DECISIONS The periodic in-depth manpower review etablihe a cenario or framework of preliminary deciion. Following thi, there will be many day-to-day action to take before gaining a final overview and implementing the deciion. For example, a chain of individual move and appointment may be planned to follow a retirement. Thee hould be under crutiny a the implementation time approache and they would normally be implemented in a traightforward fahion. However, one of the link in a chain may fail. Someone may reign, performance may falter, or other event may change the ituation, cauing the plan to be rehaped. If circumtance change, the obviou tarting point for freh conideration hould be the note from the previou review upporting the original intention, which may record the option and contingencie conidered. It i logical to go over thi ground in detail, tarting from the original review. It hould not be acceptable to take a freh ad hoc deciion, which i quite unrelated to the careful, and wider ranging conideration, which took place in the review proce. Action involving change from plan hould require the dicipline of reference back to the comprehenive dicuion. For example, a deciion to end omeone on a training coure hould fit into hi longer term development plan; econdment to meet an emergency are unlikely to have been planned far ahead, but hould match a need to broaden experience; a change to a career plan may have been propoed on the bai of one incident, but hould be viewed againt the full aement and track record; and o on. Perhap the mot eriou uncheduled action occur when a key peron reign, or when an unplanned buine opportunity require an immediate appointment. (The review proce may have covered thee poibilitie and noted contingency action but, more often, the neceary repone will upet the plan). One uch appointment wa followed by a chain of even other change down the line, everely: diturbing an entire plan. If that happen, a freh examination of that ector of the buine become a neceity. Indeed, any event which trigger a ignificant volume of uncheduled deployment change hould be followed by a full review to ae the degree of it weakne caued and the action which can be taken to reinforce the reerve of management. 25

9 Baic of Human Reource Planning Win for Employee Human Reource Planning: A Win-Win Proce Win for the Enterprie 1. Competitive pay and benefit plan. 1. Appropriate organization tructure and people to face challenge and meet corporate objective, both hort and long term. 2. Career development and 2. Development of internal reource, leading opportunitie for growth. to tability and culture building. 3. Reduced fear of redundancy. 3. Improved motivation and morale of employee, leading to improved performance. 4. Training and development, leading 4. Productivity gain, leading to cot reduction. to continued marketability. 5. Continuity of employment due to 5. Improved cutomer atifaction, leading to organization ability to retain improvement in buine. workforce. 6. Fuller realiation of potential, 6. Reduction in hiring and training cot due leading to job atifaction. to the improved ability to retain employee and development of internal reource to fill future vacancie. 7. Conducive work culture and management tyle leading to atifaction SUMMARY Human reource planning i a proce of human reource development. The objective of human reource planning i to provide continuity of efficient manning for the total buine and optimum ue of manpower reource, although that optimum utilization of people i heavily influenced by organiation and corporate culture. Human reource planning contitute an integral part of corporate plan and erve the organiational purpoe in more than one way. Human reource planning influence corporate trategy and i in turn influenced by it. The planning proce may not alway give exact forecat and to be effective it hould be a continuou proce with proviion for control and review. The review proce, which bring need and upply together, i frequently given inufficient time and attention. The purpoe of the comprehenive periodic review i to conider all of the need acro the buine and to match thee with the career preference and development of the people. The appropriate requirement plan hould be baed on manning tandard aociated with work demand factor to facilitate modification a volume or ytem change. Modern management depend on HR information ytem, HR inventory and flow of people through part of the organiation. Flow tell u about the availability of people who are ready to advance to their next career tage and alo provide information uch a the average rate at which individual progre through job, and how thoe rate vary for different type of people in different function. 26

10 2.11 SELF-ASSESSMENT QUESTIONS 1) Explain the review proce of human reource planning. Dicu how it balance the competing and conflicting element. 2) Explain the concept of human reource forecating. Dicu the manning and utilization of manpower. 3) Decribe the variou forecating technique. Explain how thee technique are being ued in forecating proce. Proce and Function of Human Reource Planning (HRP) 2.12 FURTHER READINGS Krihnawamy, K N, Manpower Planning Practice in Indian Manufacturing Organiation, ASCI Journal of Management, Vol. 15 no. 1, Sept. pp Mozine, S Guide to Planning for Manpower Development, ICPE: Ljubljana (Yugolavia). Walker, J.W Human Reource Planning, McGraw-Hill, New York. Agrawal, Satya Prakah, Manpower Demand: Concept and Methodology, Meenakhi Prakahan, Meerut. Sikula, Andrew, F Peronnel Adminitration and Human Reource Management, John Wiley, Santa Barbara. Stainer, Gereth, Manpower Planning: The Management of Human Reource, Heinemann, London. Suri, G.K Human Reource Development and Productivity: New Perpective, National Productivity Council. Vetter, Eric, W Manpower Planning for High Talented Peronnel, Ann Arbor Bureau of Indutrial Relation, Graduate School of Buine Adminitration, Univerity of Michigan, Ann Arbor. Bramham, J Human Reource Planning, IPM, London. Bramham, J Practical Staffing Planning, IPM, London. Flamholtz, E. and Lacey, J Peronnel Management: Human Capital Theory and Human Reource Accounting, UCLA Pre, Lo Angele. 27