1. Human Resource Management Human Resource Planning By Engr. Attaullah Shah BSc. Civil ( Gold Medal), MSc. ( Str. Engg), MBA, MA ( Eco), MSc ( Envir design), PGD ( Comp Sc) PhD Scholar ( UET TAXILA) Project Director Allama Iqbal Open University E-mail: pd@aiou.edu.pk pd@aiou.edu.pk pdaiou@yahoo.com Website: www.aiou.edu.pk www.aiou.edu.pk Telephone/Fax: 051-9250100 Cell: 0333-5729809

2. Some quotes on Human Resource n The most beloved of you by me, and nearest to me in the next world, are those of good dispositions;...the farthest from me are the ill-tempered. wisdom, 119 n Our progress as a nation can be no swifter than our progress in education. The human mind is our fundamental resource. John Fitzgerald Kennedy n “it is very, very hard to get ahead without being a positive person because, very simply, no one likes to work under or near a dark cloud. Even if the “cloud” is very smart.” – Jack Welch, Winning n Human beings, who are almost unique in having the ability to learn from the experience of others, are also remarkable for their apparent disinclination to do so. Douglas Adams

3. n Human labor cannot be treated merely as a resource necessary for production -- the so-called 'work force.' Man cannot be regarded as a tool of production. Man is the creator of work and its craftsman.” Pope John Paul II quotes Pope John Paul II quotes Pope John Paul II quotes n “We need to equip ourselves with specific skills, such as change management, business process consulting and human resources in order to have an edge over competing markets or countries.” Mark Edwards n A boss creates fear, a leader confidence. A boss fixes blame, a leader corrects mistakes. A boss knows all, a leader asks questions. A boss makes work drudgery, a leader makes it interesting. A boss is interested in himself or herself, a leader is interested in the group. Russell H. Ewing n Show me a man who is a good loser and I'll show you a man who is playing golf with his boss. Jim Murray n Teamwork: Simply stated, it is less me and more we. Anonymous n It is amazing how much you can accomplish when it doesn't matter who gets the credit. Anonymous n A leader is a dealer in hope. Napoleon Bonaparte

4. What is Human Resource Management and its functions?

5. Human Resource Strategy: A People-Centered Approach n Human Resource Management (HRM) u The proactive acquisition, retention, development, adjustment and managing changes of human resources necessary for organizational success. u HRM has moved from a support staff function (personnel) to a more strategic role in organizations.

6. n Human Capital or Human Resource. u A term that recognizes the greater societal value of developing all present and future work force participants to their fullest potential. Is your HRD playing these functions. If No then Why?

7. People-Centered Organizations Enjoy a Competitive Advantage n People-centered Practices: u Protection of job security u Rigorous hiring process u Employee empowerment u Compensation linked to performance u Comprehensive training u Reduction of status differences u Sharing of key information

8. HRM activities and Responsibilities of Line Manager and the HR Department Activity Line Manager HRD Staffing Data for job, Min qualification, integrating strategic plans with HR plan, Interviewing candidates, making final decision on entry level hires and promotion Job Analysis HRP Recruitment & Selection Employees Laws and Regulations. Retention Fair Treatment Fair Treatment Open Communication, team work, performance based pay increases, Respect and dignity of employees. Open Communication, team work, performance based pay increases, Respect and dignity of employees. -Compensation and benefits. - Health and Safety - Employee Services. Development - On job training, - Job enrichment, - Motivational strategies, - performance feedback to employees, - Coaching -Dev legally sound performance Mangt. - Technical Training - Moral Surveys - Managerial and OD - HR research Adjustments - Discipline, - Discharge - Lay offs - Investigate Employees Complaints. - Investigate Employees Complaints. - Replacement Services - Retirement Counseling Managing Changes - Provide vision to unit as to where the Organization is going? - Provide expertise to manage the overall process of managing change.

9. Human Resource Planning n What is planning? To establish the long term and short objectives and identify the ways and means to achieve these. n Planning Types: - Strategic: Creating the tomorrow’s Org. - Tactical: Dealing with growth of current operations. - Operational: Day to day operations. Human Resource Planning ( HRP) The process of understanding the available competencies in an Org and allow the Org to plan for changes to new jobs required to achieve the Org goals. Human resource planning involves getting the right number of qualified people into the right jobs at the right time.

10. II. Why is it important? A. often long lag times to fill positions B. often influences both turnover and productivity C. the “demographic imperative” demands more such planning

11. 3. When there are variances, action plans must be formulated, e.g., a. for surpluses, will organization use layoffs, retirement incentives, reduced hours, or something else? III. How do you do it? A. General Comments:

12. 3. When there are variances, action plans must be formulated, e.g., a. for surpluses, will organization use layoffs, retirement incentives, reduced hours, or something else? b. for shortages, will organization use overtime, temporary workers, or recruit new permanent workers? III. How do you do it? A. General Comments:

13. 1. Approaches to forecasting: a. Qualitative: III. How do you do it? B. Methods Used for Human Resource Planning: i. Expert opinions ii. Delphi technique iii. “Bottom-up” approach

14. 2. It works best when it is tied to: a. the organization’s strategic planning process b. all available forecasts (technological, economic, market, etc.) III. How do you do it? 1.It is a process of comparing human resource supply with human resource demand. A. General Comments:

15. Four Phases to HR Planning n “What will we need?” u Determine future HR requirements n “What’s available?” u Determine future HR availabilities F Internally F Externally n Reconcile requirements and availabilities u Anticipate “gaps” u Develop action plans n Control and evaluate

16. HR Planning Process Current Workforce Business Plans External & Internal Scanning Losses, Internal Moves, Accessions Organization Plans Forecasted HR Availabilities Reconciliation (Gaps) Forecasted HR Requirements Action Plans Staffing Activities Other HR Activities

17. HR Planning Strategy n Seven strategic staffing decisions: Organization Mission Goals & Objectives Organization StrategyHR Strategy Staffing Strategy Acquire or Develop Talent Staffing as a Lag or Lead System Specific or General Competencies Exceptional or Acceptable Workforce Quality External or Internal Hiring Active or Passive Pursuit of Diversity Core or Flexible Workforce

18. Organizational Life-Cycle Stages and HR Activities LIFE- CYCLE STAGE STAFFINGCOMPENSATION TRAINING AND DEVELOPMEN T LABOR / EMPLOYEE RELATIONS Introduction Attract best technical and professional talent. Meet or exceed labor market rates to attract needed talent. Define future skill requirements and begin establishing career ladders. Set basic employee- relations philosophy of organization. Growth Recruit adequate numbers and mix of qualifies workers. Plan management succession. Mange rapid internal labor market movements Meet external market but consider internal equity effects. Establish formal compensation structures. Mold effective management team through management development and organizational development. Maintain labor peace, employee motivation, and morale.

19. Organizational Life-Cycle Stages and HR Activities (cont’d) LIFE- CYCLE STAGE STAFFINGCOMPENSATION TRAINING AND DEVELOPMENT LABOR / EMPLOYEE RELATIONS Maturity Encourage sufficient turnover to minimize layoffs and provide new openings. Encourage mobility as reorganizations shift jobs around. Control compensation costs. Maintain flexibility and skills of an aging workforce. Control labor costs and maintain labor peace. Improve productivity. Decline Plan and implement workforce reductions and reallocations, downsizing and outplacement may occur during this stage. Implement tighter cost control. Implement retraining and career consulting services. Improve productivity and achieve flexibility in work rules. Negotiate job security and employment- adjustment policies

20. How does HR Planning occur? 1. What does the environment look like? 2. What are our future personnel needs? (forecast demand) a. Judgmental n Estimates n Rule of Thumb n Delphi Technique n NGT n Brainstorming

21. The Nominal Group Technique A small group of 4-5 people gathers around a table. Leader identifies judgment issue and gives participants procedural instructions. Participants write down all ideas that occur to them, keeping their lists private at this point. Creativity is encouraged during this phase. Leader asks each participant to present ideas and writes them on a blackboard or flipchart, continuing until all ideas have been recorded. Participants discuss each other’s ideas, clarifying, expanding, and evaluating them as a group. Participants rank ideas privately in their own personal order and preference. The idea that ranks highest among the participants is adopted as the group’s judgment.

22. The Delphi Technique 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 other’s ideas and propose a final judgment. Leader looks for consensus Leader accepts consensus judgment as group’s choice.

23. How does HR Planning occur? 1. What does the environment look like? 2. What are our future personnel needs? (forecast demand) b. Statistical n Regression

24. Statistical Techniques Used to Project Staffing Demand Needs Name Regression analysis Productivity ratios Description Past levels of various work load indicators, such as sales, production levels, and value added, are examined for statistical relationships with staffing levels. Where sufficiently strong relationships are found, a regression (or multiple regression) model is derived. Forecasted levels of the retained indicator(s) are entered into the resulting model and used to calculate the associated level of human resource requirements. Historical data are used to examine past levels of a productivity index (P): P = Work load / Number of People Where constant, or systematic, relationships are found, human resource requirements can be computed by diving predicted work loads by P.

25. Statistical Techniques Used to Project Staffing Demand Needs (cont’d) Name Personnel ratios Time series analysis Description Past personnel data are examined to determine historical relationships among the employees in various jobs or job categories. Regression analysis or productivity ratios are then used to project either total or key-group human resource requirements, and personnel ratios are used to allocated total requirements to various job categories or to estimate for non-key groups. Past staffing levels (instead of work load indicators) are used to project future human resource requirements. Past staffing levels are examined to isolate and cyclical variation, long-tem terms, and random movement. Long- term trends are then extrapolated or projected using a moving average, exponential smoothing, or regression technique.

26. Regression Analysis 1. Statically identify historical predictor of workforce size Example: FTEs = a + b1 sales + b2 new customers 2. Only use equations with predictors found to be statistically significant 3. Predict future HR requirements, using equation Example: (a) FTEs = 7 +.0004 sales +.02 new customers (b) Projected sales = $1,000,000 Projected new customers = 300 (c) HR requirements = 7 + 400 + 6 = 413

28. How does HR Planning occur? b. Statistical (cont.) n Ratio analysis 2. What are our future personnel needs? (demand forecast cont.)

29. How does HR Planning occur? 3. Are resources available – internally or externally – to fill those needs? a. Internal n Replacement charts

30. Employee Replacement Chart for Succession Planning

31. How does HR Planning occur? 3. Are resources available – internally or externally – to fill those needs? a. Internal n Replacement charts n Promotability

33. How does HR Planning occur? 3. Are resources available – internally or externally – to fill those needs? a. Internal n Replacement charts n Promotability n Succession planning n Skills inventory n Transition (Markov) matrix

34. A Sample Transition Matrix Part A: Personnel Supply Estimated Personnel Classification in Year T + 1 (%) Classifications in Year TPMSSrAExit Partner.70.30 Manager.10.80.10 Supervisor.12.60.28 Senior.20.55.25 Accountant.15.65.20 Part B. Staffing Levels Estimated Personnel Availabilities in Year T + 1 (%) Beginning Classifications in Year TLevelsPMSSrAExit Partner1073 Manager303243 Supervisor5063014 Senior100205525 Accountant200 30 130 40 10305085130

35. How does HR Planning occur? 3. Are resources available – internally or externally – to fill those needs? b. External – what do you look at? - try to determine availability of qualified labor; Surplus? Shortage?

36. How does HR Planning occur? 4. What should we do? - create plan of action to reconcile supply and demand - create plan of action to reconcile supply and demand a. Set objectives b. Generate alternatives

37. Staffing Alternatives to Deal with Employee Surpluses Source: Compliments of Dan Ward, GTE Corporation

38. Staffing Alternatives to Deal with Employee Shortages Source: Compliments of Dan Ward, GTE Corporation

39. How does HR Planning occur? 4. What should we do? - create plan of action to reconcile supply and demand - create plan of action to reconcile supply and demand a. Set objectives b. Generate alternatives c. Assess alternatives

40. Alternative Scheduling Options Alternative Percent Using (N = 427 companies) The following definitions were used in this survey for alternative scheduling strategies: Part-time: A regular employee who works fewer than 35 hours per week. Flextime: A system than enables employees to vary their schedules: Usually, the flexibility applies to starting and finishing times. Compressed workweek: A full-week schedule (usually 40 hours) than occurs in fewer than five days, such as four 10-hour days. Job sharing: Two or more employees split a full-time position, diving the responsibilities, and, to some degree, the compensation. Work-at-home: A program that enables employees to complete work at home (or at a remote office closer to home) on a regular basis. It is often referred to as “flexplace” or “telecommuting.” 84% 40% 23% 18% 13%

41. How does HR Planning occur? 4. What should we do? - create plan of action to reconcile supply and demand - create plan of action to reconcile supply and demand a. Set objectives b. Generate alternatives c. Assess alternatives d. Choose alternative – KEEP PHILOSOPHY IN MIND

42. How does HR Planning occur? 5. How did we do? a. Did company avoid surplus/shortage? b. Evaluate usefulness of methods used c. Goals v. Production Levels, etc.