Human Resource Management

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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_at_aiou.edu.pk
• pdaiou_at_yahoo.com
• Website www.aiou.edu.pk
• Telephone/Fax [phone]
• Cell 0333-5729809

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Some quotes on Human Resource

• 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
• Our progress as a nation can be no swifter than
  our progress in education. The human mind is our
  fundamental resource. John Fitzgerald Kennedy
• 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
• 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

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• 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
• 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
• 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
• 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
• Teamwork Simply stated, it is less me and more
  we. Anonymous
• It is amazing how much you can accomplish when it
  doesn't matter who gets the credit. Anonymous
• A leader is a dealer in hope. Napoleon Bonaparte
  

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• What is Human Resource Management and its
  functions?

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Human Resource Strategy A People-Centered
Approach

• Human Resource Management (HRM)
• The proactive acquisition, retention,
  development, adjustment and managing changes of
  human resources necessary for organizational
  success.
• HRM has moved from a support staff function
  (personnel) to a more strategic role in
  organizations.

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• Human Capital or Human Resource.
• 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?

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People-Centered Organizations Enjoy a Competitive
Advantage

• People-centered Practices
• Protection of job security
• Rigorous hiring process
• Employee empowerment
• Compensation linked to performance
• Comprehensive training
• Reduction of status differences
• Sharing of key information

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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 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. 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.
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Human Resource Planning

• What is planning?
• To establish the long term and short objectives
  and identify the ways and means to achieve these.
• Planning Types
• Strategic Creating the tomorrows 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.

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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
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III. How do you do it?
A. General Comments
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?
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III. How do you do it?
A. General Comments
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?
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III. How do you do it?
B. Methods Used for Human Resource
Planning
1. Approaches to forecasting
a. Qualitative
i. Expert opinions ii. Delphi technique iii.
Bottom-up approach
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III. How do you do it?
A. General Comments
1. It is a process of comparing human
resource supply with human resource demand.
2. It works best when it is tied to
a. the organizations strategic planning
process b. all available forecasts
(technological, economic, market, etc.)
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Four Phases to HR Planning

• What will we need?
• Determine future HR requirements
• Whats available?
• Determine future HR availabilities
• Internally
• Externally
• Reconcile requirements and availabilities
• Anticipate gaps
• Develop action plans
• Control and evaluate

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HR Planning Process
Losses, Internal Moves, Accessions
Forecasted HR Availabilities
Other HR Activities
Current Workforce
External Internal Scanning
Reconciliation (Gaps)
Action Plans
Organization Plans
Forecasted HR Requirements
Staffing Activities
Business Plans
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HR Planning Strategy
Organization Mission Goals Objectives

• Seven strategic staffing decisions

Organization Strategy
HR 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
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Organizational Life-Cycle Stages and HR Activities
LIFE-CYCLE STAGE STAFFING COMPENSATION TRAINING AND DEVELOPMENT 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.
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Organizational Life-Cycle Stages and HR
Activities (contd)
LIFE-CYCLE STAGE STAFFING COMPENSATION 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
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How does HR Planning occur?

• 1. What does the environment look like?

2. What are our future personnel
needs? (forecast demand)
a. Judgmental

• Estimates

• Rule of Thumb

• Delphi Technique

• NGT

• Brainstorming

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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 others 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 groups judgment.
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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 others ideas and
propose a final judgment.
Leader looks for consensus
Leader accepts consensus judgment as groups
choice.
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How does HR Planning occur?

• 1. What does the environment look like?

2. What are our future personnel
needs? (forecast demand)
b. Statistical

• Regression

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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.
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Statistical Techniques Used to Project Staffing
Demand Needs (contd)
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.
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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
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How does HR Planning occur?
2. What are our future personnel needs? (demand
forecast cont.)
b. Statistical (cont.)

• Ratio analysis

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

• Replacement charts

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Employee Replacement Chart for Succession Planning
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How does HR Planning occur?
3. Are resources available internally or
externally to fill those needs?
a. Internal

• Replacement charts

• Promotability

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

• Replacement charts

• Promotability

• Succession planning

• Skills inventory

• Transition (Markov) matrix

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A Sample Transition Matrix
Part A Personnel Supply Estimated Personnel
Classification in Year T 1 () Classifications
in Year T P M S Sr A Exit Partner .70 .30
Manager .10 .80 .10Supervisor .12 .60
.28Senior .20 .55 .25Accountant .15 .
65 .20 Part B. Staffing Levels Estimated
Personnel Availabilities in Year T 1 ()
Beginning Classifications in Year
T Levels P M S Sr A Exit Partner 10 7 3Mana
ger 30 3 24 3Supervisor 50 6 30 14Senio
r 100 20 55 25Accountant 200
30 130 40 10 30 50 85 130
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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?
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How does HR Planning occur?
4. What should we do? - create plan of action
to reconcile supply and demand
a. Set objectives
b. Generate alternatives
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Staffing Alternatives to Deal with Employee
Surpluses
Source Compliments of Dan Ward, GTE Corporation
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Staffing Alternatives to Deal with Employee
Shortages
Source Compliments of Dan Ward, GTE Corporation
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How does HR Planning occur?
4. What should we do? - create plan of action
to reconcile supply and demand
a. Set objectives
b. Generate alternatives
c. Assess alternatives
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Alternative Scheduling Options
Percent Using(N 427 companies)
Alternative
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.

8440 23 18 13
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How does HR Planning occur?
4. What should we do? - 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
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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.