1. atanu.gupta@yahoo.com1 Human Resource Management Course No. MBA 609 Part-2 HR Planning Atanu Gupta Adjunct Faculty MBA program, East Delta University

2. atanu.gupta@yahoo.com 2 Contents The Recruitment and Selection Process Steps in Recruitment and Selection Process Planning and Forecasting The Planning Process Forecasting Personnel Needs Human Resource Information System (HRIS) Importance of HRP Factors affecting HRP Requisites for successful HRP

3. atanu.gupta@yahoo.com 3 After studying this chapter, you should be able to…. Explain the main techniques used in employment planning and forecasting. List and discuss the main outside sources of candidates. Effectively recruit job candidates. Name and describe the main internal sources of candidates. Develop a help wanted ad. Explain how to recruit a more diverse workforce.

4. atanu.gupta@yahoo.com 4 The Recruitment and Selection Process Decide what positions you’ll have to fill through personnel planning and forecasting. Build a pool of candidates for these jobs by recruiting internal or external candidates. Have candidates complete application forms and perhaps undergo an initial screening interview. Use selection techniques like tests, background investigations, and physical exams to identify viable candidates. Decide who to make an offer to, by having the supervisor and perhaps others on the team interview the candidates.

5. atanu.gupta@yahoo.com 5 Steps in Recruitment and Selection Process The recruitment and selection process is a series of hurdles aimed at selecting the best candidate for the job.

6. atanu.gupta@yahoo.com 6 Planning and Forecasting Employment or personnel planning  The process of deciding what positions the firm will have to fill, and how to fill them.  Is the process of fore casting a firms future demand for, and supply of, the right type of people in the right number. Succession planning  The process of deciding how to fill the company’s most important executive jobs.

7. Succession planning atanu.gupta@yahoo.com 7

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9. 9 What to forecast?  Overall personnel needs.  The supply of inside candidates  The supply of outside candidates

10. atanu.gupta@yahoo.com 10 The Planning Process Environment Organizational objectives & Policies HR need Forecast HR supply Forecast Surplus Restricted Hiring, lay off etc HR Programming HRP Implementation Control & Evaluation Shortage Recruitment, selection etc

11. atanu.gupta@yahoo.com 11 Forecasting Personnel Needs Trend analysis  This is the quickest forecasting technique.  The study of a firm’s past employment needs over a period of years to predict future needs.  Studying the variations in your firm’s employment levels over the last few years.  For example you might compute the number of employees in your firm at the end of each of the last five years or perhaps the number of each subgroup like sales, production, administrative etc.

12. Trend analysis Example atanu.gupta@yahoo.com 12

13. atanu.gupta@yahoo.com 13 Forecasting Personnel Needs Ratio analysis  A forecasting technique for determining future staff needs by using ratios between a causal factor(like sales volume) and the number of employees needed(number of sales people).  For example suppose a sales person traditionally generates $500,000 in sales. If the sales revenue to salespeople ratio remains the same,you would require six new sales person next year(each of whom produces an extra $500,000) to produce a hoped for extra $3 million in sales.

14. atanu.gupta@yahoo.com 14 The Scatter Plot Scatter plot  A graphical method used to help identify the relationship between two variables. Size of Hospital Number of (Number of Beds) Registered Nurses 200 240 300 260 400 470 500 600 620 700 660 800 820 900 860

15. atanu.gupta@yahoo.com 15 Determining the Relationship Between Hospital Size and Number of Nurses

16. atanu.gupta@yahoo.com 16 Forecasting the Supply of Inside Candidates Qualifications or Skill inventories  Skill Inventories consolidate information about non-managers in an organization. Because the information from skills inventories is used as input into transfer and promotion decisions. Information Includes: 1. Personal Data: Age, Sex, Marital Status 2. Skills : Education, Training, Job Experience 3. Special Qualifications: Membership in professional bodies.

17. atanu.gupta@yahoo.com 17 Manual Systems and Replacement Charts Personnel replacement charts  Company records showing present performance and promo ability of inside candidates for the most important positions. Position replacement card  A card prepared for each position in a company to show possible replacement candidates and their qualifications.

18. atanu.gupta@yahoo.com 18 Computerized Information Systems Human Resource Information System (HRIS)  Computerized inventory of information that can be accessed to determine employees’ background, experience, and skills that may include: Work experience codes Product or service knowledge Industry experience Formal education

19. atanu.gupta@yahoo.com 19 Forecasting the Supply of Outside Candidates Factors impacting the supply of outside candidates  General economic conditions  Expected unemployment rate Sources of information  Periodic forecasts in business publications  Online economic projections Bureau of Labor Statistics Other agencies

20. atanu.gupta@yahoo.com 20 Importance of HRP Future personnel needs Part of strategic planning Creating highly talented personnel International strategies Foundation of personnel functions Increasing investments in human resources Resistance to change and move Unite the perspectives of line and staff managers

21. atanu.gupta@yahoo.com 21 Factors affecting HRP Type and Strategy of organization Organizational growth cycles and planning Environmental uncertainties Time horizons Type and quality of information Nature of jobs being filled Outsourcing

22. atanu.gupta@yahoo.com 22 Requisites for successful HRP HRP must be recognized as an integral part of corporate planning. The planner of human resources must therefore, be aware of the corporate objectives. Backing of top management for HRP is absolutely essential Personnel records must be complete, up to date and readily available. Data collection, analysis, techniques of planning and the plans themselves need to be constantly revised and improved in the light of experience.