Module -5

Human Resource Planning and Job

analysis
If you pick the right people and give them the
opportunity to

spread their wings and put compensation as a

carrier behind it you almost don't have to manage

them.

—Jack Welch
Human Resource Planning
• Human resource planning is defined as “The
process (Including forecasting, developing,
implementing and controlling) by which a firm
ensures that it has the right number of people and
right kind of people, at the right places, at the right
time, doing things for which they are economically
most useful” – Edwin B Geisler
• Manpower planning A “the process of determining
manpower requirements in order to carry out the
integrated plan of the organization”
Activities
• Fore casting
• Making an inventory
• Anticipating
• Planning
objectives
• Forecasting human resources requirements
• Effective management of change
• Realizing organizational goals
• Promoting employees
• Effective utilization of human resources
Needs of HRP
• Future personnel needs
• Coping with change
• Creating highly talented personnel
• Protection of weaker sections
• International strategies
• Foundation of personnel functions
• Increasing investments in human resources
• Resistance to change and move
• Other benefits
Introduction

The recruitment and selection process is a series of hurdles aimed at selecting

the best candidate for the job.
Workforce Planning and
Forecasting
• Also known as employment or personnel planning.
• The process of deciding what positions the firm will
have to fill, and how to fill them.
Workforce Planning by Towers
Watson Maps

Source: © Towers Watson 2012. Used with permission.

Strategy and Workforce
Planning
• Workforce planning should be an integral part of the
firm’s strategic planning process.
Human resource planning
process
 HR Planning process
• (i) considering organizational objectives and
strategies,
• (ii) assessment of external environment,
• (iii) preparation of an in-house skill and
competency inventory,
• (iv) HR forecasting—need assessment,
• (v) HR forecasting—estimation of availability, and
• (vi) developing HR plans and programmes. We shall
now discuss these steps in detail.
Considering the Organizational
Objectives and Strategies
• The mission and vision statement clearly expresses
the future intent of the organization
• Organizational strategy has direct and indirect
implications for the human resources of the
organization.
Scanning the Environment
• Economic Situation: boom vs recession
• Legislative Measures
• Labour Market Scenario
• Technological Advancements
Preparation of In-house Skills
and Competency Inventory
• Skills Audit: Before preparing the HR plans, HR
managers should know what skills and knowledge
the organization requires and what it possesses
currently
• Core Competency Analysis: Core competencies are
the extraordinary abilities of an organization that
enables it to acquire competitive advantage in the
market. These abilities may be its advanced
technology, well-reputed management, problem-
solving ability and employee KSA
HR Forecasting—Need
Assessment
• Estimating the future requirements of the
organization in terms of the nature and the number
of people.
• The information gathered through external
environmental scanning and internal skill
assessments are used to predict the future HR
requirements of the organization
• Trend analysis: HR requirements on the basis of past events –
project it to future
• Ratio Analysis : Ratio analysis is the analysis of the
relationship between any two numerical variables
• If an organization produces 50,000 units of a product with 1,000
current employees, the ratio of the units produced to the number
of employees would be 50:1.
• In such a scenario, when the organization estimates that the
production would increase by another 25,000 units in the near
future, the HR forecasting based on the ratio analysis would state a
requirement of 500 more employees (25,000/50 = 500).
• The Delphi technique is basically a group-based systematic
forecasting method.
• In the first phase of the Delphi technique, a group of independent
experts forecast the HR requirement of the organization on the
basis of the input provided by the organization.
• In the second phase, a summary of the experts’ forecasts is
prepared and sent back to them for their opinions and suggestions.
• Managerial Judgement
• In this method, forecasts are made about the HR requirements,
usually by the senior managers of the organization.
• The forecasting here is based on the managers’ subjective
views on the possible human resource requirements in the
future.
• The decisions are mostly based on the experience and
expertise of the managers and there is little emphasis on data
collection and interpretation.
• Few historical trends, ratios, or relationships will continue
unchanged into the future. Judgment is thus needed to adjust
the forecast.
• Important factors that may modify initial forecast of personnel
requirements include decisions to upgrade quality or enter into
new markets; technological and administrative changes
resulting in increased productivity; and financial resources
available, for instance, a projected budget crunch.
• Top Down and Bottom up Approach
• Work Study Technique
• The work study technique aims at examining the business operations to
achieve the optimum utilization of the human and physical resources
available.
• Zero-base Forecasting
• This method is a new entrant in the existing series of techniques to forecast
the HR requirements of an organization. It requires lines managers to justify
the need to continue with the positions or jobs that fall vacant in their
department. It does not consider any position as eligible for routine
continuance
• Simulation Model:
• For example, what would be the impact if the organization laid off two per
cent of its workforce? What would be the impact on HR requirements if the
organization increases its production by 5,000 units?
• Human Resource Allocation Approach:
• It is an HR forecasting method based on object-oriented simulation model.
This method has four components:
• Employees, including their education, experience and competencies,
• Functions, including job structure and the changes in them,
• A matching model, and
• A formal rule structure comprising the HUMAN RESOURCE PLANNING policy of the
organization towards job allocation.
Scatter Plot

The graphical representation of two variables to forecast the business activity

Eg.: 500 bed capacity Hospital expects to expand to 1200 beds over next 5 years, HR
director want to know the number of nurses required for 1200 capacity bed, for
determining the no. of nurses needed he obtained the data of no. of beds and nurses
needed data from the 8 hospitals
Quantitative methods
1. Regression analysis method
By examining the relationship between two different variables (independent and dependent), businesses can
determine how one factor may affect another. For example, they can compare the volume of sales to the changing
seasons. If results show that sales tend to increase or decrease depending on the time of year, the company's
sales would be the dependent variable as it relies on the season. From here, they can examine how closely these
two variables are related to gain a more accurate picture of how different seasons will affect future sales demand
based on that HR requirement will be determined

2. Econometrics model
This method involves using mathematics to develop equations that help to explain the relationship between
different economic agents. Information from this forecast can show the connection between variables such as
inflation, exchange rates, GNP, and how changes in these factors affect a business's performance.

3. Input-output analysis
Also referred to as the end-use technique or I-O, this is another form of quantitative economic research.
Information from this forecast allows businesses to predict how a specific input might create a certain output. For
example, an I-O system will take into account the price of materials, worker input to meet demand, and how
much money they may invest.

4. Trend or time series analysis

This method of forecasting is based on extensive historical data as it assumes past trends will continue and repeat
in the future. This method is recommended for short-term projections, as the only information utilized is previous
sales data.
• Normal Group Technique
• This is also a group forecasting method. It is an
interactive mode of decision making with a difference.
• Each expert in the group independently develops HR
requirements and presents it before other experts in the
group
HR Forecasting—Estimation of
Availability
• Internal Supply of Employees
• Replacement Charts
• Position replacement chart
• Personnel replacement chart
• Turnover Rate
• Human Resource Management Information System (HRIS)
• Productivity Level
• Overtime and Absenteeism
• Succession Planning
• Other Factors
• External Supply: unemployment rate, labour statistics
Replacement Chart
• A chart used to estimate vacancies in higher level jobs and identify how
potential HR supply can fill these vacancies via internal movements from lower
levels jobs.
• Replacement charts provide identification of potential replacements for
vacancies within an organization.
• A comprehensive replacement chart will include information regarding possible
replacements for vertical or horizontal movement.
• Generally, a replacement chart includes information about employees’
performance, readiness to fill the position, and education.
Staffing table
• A clear graphical view of all organizational jobs and the current
number of employees at each job.
• Staffing tables are graphic representations of all organizational
jobs, along with the numbers of employees currently occupying
those jobs and future (monthly or yearly) employment
requirements, which can be derived from demand forecasts.
• It presents a simple visual understanding of an organization’s
staffing level within each department and the organization as a
whole, in an effort to help understand the combination of
employees that make up an organization’s internal workforce.
• This information is useful in evaluating staffing levels by
department, branch, or project; the types of staff at each level;
and the combination of staff in all categories.
Staffing table
Markov Analysis
Markov Analysis
• Analysis that helps to predict internal employee movement from one year to
another by identifying percentages of employees who remain in their jobs, get
promoted or demoted, transfer, and exit out of the organization
• To help predict internal employee movement from one year to another by
identifying percentages of employees who remain in their jobs, get promoted or
demoted, transfer, and exit out of the organization.
• By tracking and predicting employment movement within an organization, the
Markov analysis allows for the development of a transition matrix to forecast
internal Laboure supply.
• Markov Analysis is the statistical technique used in forecasting the future
behavior of a variable or system whose current state or behavior does not
depend on its state or behavior at any time in the past in other words, it is
random.
• The technique is named after Russian mathematician Andrei Andreyevich
Markov. A transition matrix, or Markov matrix, can be used to model the internal
flow of human resources.
• These matrices simply show as probabilities the average rate of historical
movement from one job to another.
• To determine the probabilities of job incumbents remaining in their jobs for the
forecasting period.
Forecasting the Supply of Inside
Candidates
Personnel Replacement Charts
Personnel or Management Replacement Chart Showing Development Needs
of Potential Future Divisional Vice Presidents
Forecasting the Supply of Outside
Candidates
• Managers’ sense of what’s happening
• Supplement with formal labor market analysis
• Unemployment rate
• Monthly Labor Review
• Labor statistics
Predictive Workforce
Monitoring
• Annual plans may not be sufficient.
• Plan continuously
• Matching projected labor supply and demand with a
plan.
Succession Planning

• Systematically identifying, assessing, and developing

organizational leadership to enhance performance.
• Three steps:
• Identify key position needs
• Develop inside candidates
• Assess and choose those who will fill the key positions
Why Effective Recruiting Is
Important
• Improving recruitment effectiveness:
– Recruiters
– Sources
– Branding
Developing HR Plans and
Programme
• Once the organization completes the process of
forecasting HR requirements and availability, the next
step is its comparison. The estimated HR needs are
matched with the estimated HR availability to identify
the skill shortage or surplus
• In case of shortage of labour, the organization would
undertake HR activities like recruitment and selection,
training and development, and placement of employees.
In the event of surplus, the organization might resort to
employee reduction programmes like a hiring freeze,
downsizing, voluntary retirement schemes, reduced
working hours or days, and restricted overtimes.
Job Analysis
• It is the detailed study of jobs to know the nature
and characteristics of the people to be employed for
each job
• The process of job analysis is based on data analysis
• The data mostly related to
• Work activities
• Human behaviors
• Machines, tools, equipment, and work aids
• Performance standards
• Job context
• Human requirements
Objectives of the job
analysis
• Work simplification
• Establishment of work standards
• Improving the safety of the organization
• Support of other HR activities
Methods of job analysis
• Observation methods
• Interview method
• Questionnaire
• Check list
• Diaries and log reports
• Technical and conference methods
• Critical incidents
Uses of job analysis

• Human resource planning

• Recruitment selection and placement
• What you need to do
• What skills you need to have
• Matching the job requirement with skills must have
• Training and development
• Job evaluation
Uses of job analysis

• Performance appraisal
• Job design : designing and redesigning of jobs
based on work specialization, work improvement
etc.,
• Safety and health
• Identify job that is hazardous to health
• Communicate the conditions with the employee
• Corrective actions must be taken accordingly
Process of job analysis
• Step 1: organize and plan the programme
• Assign a person or a team for the process
• A schedule and estimate is provided to complete the activity
• Step 2: Defining the objective of the job analysis
• Step 3: set the priorities for the job to be analysed
• Step 4: start collecting the job Information
• Information related to work flow
• Job description
• Job specification
• Procedure manuals
• Step 5: prepare the Job Description and Job Specification
Job Analysis
• Types
• Job description
• Job Specification
Job Description
• It tell the job seeker about the nature and type of
the job
• It explain
• What is to be done
• How it is to be done
• Why it is to be done
Contents of job description

• Job title
• Job Location
• Job Summary
• Duties to be performed
• Machines and tool if requires
• Nature of supervision
Job Specification

• It is a document which states the minimum

acceptable human qualities necessary to perform a
job properly
• It translates the job description into human
qualification
• It serves as a guide while hiring someone
• Most of the companies do not prepare it but
interviewer do keep this in their mind before hiring
someone
Writing Job Specifications
• “What human traits and experience are required to do this job
effectively?”
• Shows what kind of person to recruit and what qualities you
should test that person for
Specifications for Trained Versus
Untrained Personnel
• Trained/experienced people
• Length of service
• Quality of relevant training
• Previous job performance
• Untrained people
• Specify qualities
Specifications Based on
Judgment
• Educated guesses
• “What does it take in terms of education, intelligence, training,
and the like to do this job well?”
• Use common sense
Job Specifications Based on
Statistical Analysis
• Predictor
• Criterion
• Five Step Procedure
• This procedure has five steps:
(1)analyze the job and decide how to measure job performance;
(2)select personal traits like finger dexterity that you believe should
predict performance;
(3)test candidates for these traits;
(4)measure these candidates’ subsequent job performance; and
(5)statistically analyze the relationship between the human trait
(finger dexterity) and job performance. Your aim is to determine
whether the trait predicts performance.
Talent Management
process
Managers traditionally view these activities as a series of steps:
1. Decide what positions to fill, through job analysis, personnel planning, and
forecasting.
2. Build a pool of job applicants, by recruiting internal or external candidates.
3. Obtain application forms and perhaps have initial screening interviews.
4. Use selection tools like tests, interviews, background checks, and physical
exams
to identify viable candidates.
5. Decide to whom to make an offer.
6. Orient, train, and develop employees so they have the competencies to do
their
jobs.
7. Appraise employees to assess how they’re doing.
8. Compensate employees to maintain their motivation.
The Recruiting Yield Pyramid
Recruiting Yield Pyramid