The planning process
1. Analysis organizational plan
2. Forecast demand for human resource
3. Forecasting supply of human resources
4. Estimating manpower gap
5. Action planning control and evaluation
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1. Analysis organizational plan
First of all, the objectives and strategic plans of the company are analyzed. Plans concerning technology, production, marketing, finance, expansion and diversification gave an idea about the volume of future work activity. It is also necessary to decide the time horizon for which human resource plans are to be prepared. The future organization structure and job design should be made clear and changes in the organization structure should be examined so as to anticipate its manpower requirements.
2. Forecasting demand for human resource
On the basis of corporate an functional plans and future activity levels, the future need of human resource in the organization are anticipated. The number of people and the skill levels needed in future depend on the production and sales budget in a manufacturing enterprise but the human resource requirements for a given level of operations vary depending upon the production technology, process, make or buy decision’s, job contents behaviour pattern’s and control system.
Techniques employed in man power forecasting are as follows: -
Managerial judgement
Under this method, enterprise managers estimate the man power requirements for their respective departments on the basis of their knowledge of expected future work load and employee efficiency. These departmental estimates are then aggregated and approved by top management.
Work study method
In this method time and motion study are used to analysis and measure the work being done with the help of such studies, standard time required per unit of work is decided. For example
Planned output for next year 50000
Standard hours per unit 2
Planned hours required 500002= 100000
Productive hours per worker in the year 2000
Number of worker required 100000/2000= 50
Span of control is 10, 5 (50/10) supervisor will be required.
Ratio trend analysis
Under this method, ratios are calculated on the basis of past data. Future ratios are calculated on the basis of time series analysis after making allowances for expected changes in organization methods and jobs. On the basis of established ratios, the demand for human resource is estimated. For example
Production level in 2006-07 50000
No of workers in 2006-07 50
Ratio 50:50000
No of supervisor in 2006-07 5
Ratio 5:50
Estimated production in 2008-09 60000 units
No of workers required 2008-09 600001/1000= 60
No of supervisor required in 2008-09 601/10= 6
Forecast supply of human resources
Every organization has two sources of supply of human resource internal and external. Internally, human resources can be obtained for certain posts through promotions and transfers as well as external is recruitment and selection etc.
Estimating manpower gaps
Net human resource requirement or manpower gaps can be identified by comparing demand forecast and supply forecast. Such comparison will reveal deficit or surplus of human resources in future. Deficit suggest the number of people to be recruited from outside whereas surplus implies redundant to redeployed or terminated. Gaps may be occurs in terms of knowledge and skills. It can be removed the training programme.
Action planning or control and evaluation
Once the manpower gaps are identified, plans are prepared to bridge these gaps. Plans to meet the surplus manpower may be redeployed in other departments and retrenchment. Deficit can be met through recruitment, selection, transfer’s and promotions.
1. Analysis organizational plan
2. Forecast demand for human resource
3. Forecasting supply of human resources
4. Estimating manpower gap
5. Action planning control and evaluation
if you like my post then pls click on advertisment and add as you in my follower list.
Its beneficial for you and me both.
1. Analysis organizational plan
First of all, the objectives and strategic plans of the company are analyzed. Plans concerning technology, production, marketing, finance, expansion and diversification gave an idea about the volume of future work activity. It is also necessary to decide the time horizon for which human resource plans are to be prepared. The future organization structure and job design should be made clear and changes in the organization structure should be examined so as to anticipate its manpower requirements.
2. Forecasting demand for human resource
On the basis of corporate an functional plans and future activity levels, the future need of human resource in the organization are anticipated. The number of people and the skill levels needed in future depend on the production and sales budget in a manufacturing enterprise but the human resource requirements for a given level of operations vary depending upon the production technology, process, make or buy decision’s, job contents behaviour pattern’s and control system.
Techniques employed in man power forecasting are as follows: -
Managerial judgement
Under this method, enterprise managers estimate the man power requirements for their respective departments on the basis of their knowledge of expected future work load and employee efficiency. These departmental estimates are then aggregated and approved by top management.
Work study method
In this method time and motion study are used to analysis and measure the work being done with the help of such studies, standard time required per unit of work is decided. For example
Planned output for next year 50000
Standard hours per unit 2
Planned hours required 500002= 100000
Productive hours per worker in the year 2000
Number of worker required 100000/2000= 50
Span of control is 10, 5 (50/10) supervisor will be required.
Ratio trend analysis
Under this method, ratios are calculated on the basis of past data. Future ratios are calculated on the basis of time series analysis after making allowances for expected changes in organization methods and jobs. On the basis of established ratios, the demand for human resource is estimated. For example
Production level in 2006-07 50000
No of workers in 2006-07 50
Ratio 50:50000
No of supervisor in 2006-07 5
Ratio 5:50
Estimated production in 2008-09 60000 units
No of workers required 2008-09 600001/1000= 60
No of supervisor required in 2008-09 601/10= 6
Forecast supply of human resources
Every organization has two sources of supply of human resource internal and external. Internally, human resources can be obtained for certain posts through promotions and transfers as well as external is recruitment and selection etc.
Estimating manpower gaps
Net human resource requirement or manpower gaps can be identified by comparing demand forecast and supply forecast. Such comparison will reveal deficit or surplus of human resources in future. Deficit suggest the number of people to be recruited from outside whereas surplus implies redundant to redeployed or terminated. Gaps may be occurs in terms of knowledge and skills. It can be removed the training programme.
Action planning or control and evaluation
Once the manpower gaps are identified, plans are prepared to bridge these gaps. Plans to meet the surplus manpower may be redeployed in other departments and retrenchment. Deficit can be met through recruitment, selection, transfer’s and promotions.
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