HUMAN RESOURCE

MANAGEMENT

HRM101
Topic
Introduction
Objectives and functions of HRM
External and Internal Forces of environment affecting HRM
Integrating HR Strategy with Business Strategy

Human Resource Planning

HRP process
Barriers and Prerequisites for Successful HRP
Learning Outcome
• Students will be able to appreciate the need and relevance of the
course.
• Students will learn about external and Internal Forces of Environment
affecting HRM and integrating HR Strategy with Business Strategy
• Students will learn and analyze HRP process and Barriers and
Prerequisites for Successful HRP
 Pedagogy
• News
• Article
• Video
• MCQ
• Activity
• Content
News
• JW Marriott Kolkata appoints Vikram Sharma as Human Resource Director
•  His gamut of expertise to administer recruitment, and strategic HRM,
training and development accompanied by other administrative
responsibilities.
• During his corporate journey he was awarded the ‘Young Human Resources
Leader of India’ – 2017 by FHRAI – Federation of Hotels and Resorts
Association of India and was awarded as TOP 100 Minds in Hospitality
Industry for the year 2018. His dynamic and strategic contributions

• http://bwhotelier.businessworld.in/article/JW-Marriott-Kolkata-appoints-Vikr
am-Sharma-as-Human-Resource-Director/20-01-2021-367411/
Article
Objectives of HRM

• https://www.economicsdiscussion.net/human-resource-management
/objectives-of-hrm/32222#:~:text=ADVERTISEMENTS%3A,the%20com
munity%20and%20the%20country
.
 HRM- Human Resource Management

IT is the people who make an organization a success

So- How to attract them, How to retain them, How to motivate
them
HRM- Is a management function that helps managers recruit,
select, train and develop.
HRM
• Management of work force of an organisation ie how to manage the
different people working together in a organisation.

• HRM is a management function that helps managers recruit, train and

develop members for an organisation.
HRM
• HRM is concerned with the people dimension in management. Since
every organisation is made up of people, acquiring their services,
developing their skills, motivating them to higher level of
performance, and ensuring that they continue to maintain their
commitment to the organisation are essential to achieving
organisational objectives. This is true, regardless of the type of
organisation ie government, business, education, health.
 Nature of HRM
• HRM consists of people-related functions as hiring, training and development, performance
review, compensation, safety and health, welfare, industrial relations and the like

• HRM necessitates alignment of HR policies and practices with the organisation’s strategies

• HRM involves the application of management principles and functions

• HRM assumes that it is the people who make the difference

• HR functions are not confined to business establishments only

HRM: Functions and Objectives

Objectives of HRM 11
Objectives

Personal Objectives:-
To assist employees in achieving their personal goals, these goals enhance
the individual’s contribution to the organisation.
Functional Objectives:-
To maintain the department’s contribution at a level appropriate to the
organization's needs
Organizational Objectives:-
To recognize the role of HRM in bringing about organizational
effectiveness.
Societal Objectives:-
To be ethical and socially responsible to the needs and challenges of the
society.
Minimizing the negative impact of such demands on organisation.
 HRM Objectives and Functions

Source: William B. Werther, Jr and Keith Davis, Human

HRM: Functions and Objectives (Contd.)

Resources and Personnel Management, p. 15.

13
Objectives of HRM

HRM Objectives Supporting Functions

1.Societal 1.Legal compliance
2.Benefits 3.Union-Mgmt relation

2.Organisational 1.HR Planning

2.Employee relation
3.Selection
4.Trainnig & Developement
5.Appriasal
6.Placement & 7.Assessment

3.Functional 1.Apprisal 2. Placement

3.Assessment
4.Personal 1.T&D
2.Placement
3.Compemsation 4.Assessment
HRM Functions

15
Functions of HRM
OPERATIVE FUNCTIONS
MANAGERIAL Staffing
FUNCTIONS Development
Planning Compensation
Organizing Motivation
Directing Maintenance
Integration
Controlling/Evaluating
Monitoring
Managing Relationship
 Functions of HRM
• A) Managerial Functions
• 1. Planning- types of plan
• 2. Organizing :Determining what tasks are to be
done, who is to do them, how the tasks are to be
grouped, who reports to whom, and where
decisions are to be made
• 4. Directing – Communication, leadership and motivation
• 5. Controlling : Monitoring activities to ensure they
are being accomplished as planned and correcting
any significant deviations and taking corrective
actions( Standard- actual performance)
• B) Operative Functions
• 1. Procurement
• 2. Development
• 3. Compensation
• 4. Maintenance and Motivation
• 5. Integration
• 6. Industrial Relations
Operative functions of HR
STAFFING Job analysis, HRP, Recruitment,
Selection, Placement, Induction,
Internal Mobility

Competency profiling, Training and

DEVELOPMENT development, Performance &
potential management, Career
management, 360 degree feedback

Job design, Work scheduling, Job

COMPENSATION evaluation, Compensation
& MOTIVATION administration, Incentives and
benefits
Operative functions of HR (contd.)

Health, Safety, Welfare

MAINTENANCE

Employment relations, Grievance,

INTEGRATION Discipline, Trade unions,
Participation
Video Observation

Putting the human back into human resources

• https://www.youtube.com/watch?v=0Mq2TiJmqCI
Activity

Do we need HR managers to manage people

functions? Can't line managers themselves manage
HR functions?

23
MCQ
• Human resource management emphasis

• a. Development of people
• b. Punishment of people
• c. Adoption of people
• d. None of these
Introduction(External and Internal Forces of
environment affecting HRM)
External Forces
• Political- Legal
• Economic
• Technological
• Cultural Factors
Internal Forces
• Strategy
• Task
• Leadership
• Unions
• Organizations Cultures and conflict
• Professional bodies
Introduction(External and Internal Forces of environment
affecting HRM)
External Forces
• Political- Legal- 3 Institution – labor laws
i) Legislature (Parliament- law making body -decides )
ii) Executive(Government-Law Implementing body- Acts)
iii) Judiciary ( Role of Watchdog and above these two, and ensure both
legislature and Executive work within the confines (boundary )of
the constitution and in public interest )
• Economic- Globalization
Suppliers, competitors, Customers, Economic growth, Industrial labor,
Diversity
• Technological- Application of Knowledge for practical purpose (HRIS)-
Human Resource Information System Computerized information
package increased capacity to record ,store information
• Cultural Factors – Type of people- Indians, Japanese (collective
approach) , Americans (individual approach)Cultural background
 Uses of an
HR
Information
System
(HRIS)

2–27
Introduction(External and Internal Forces of
environment affecting HRM)
Internal Forces
• Strategy- Competition in the Environment , Infosys
• Task- Job Characteristics, Job enrichment
• Leadership- provides direction, encouragement and authority, creating
environment to improved performance
• Unions- Trade union association of workers or management to formed to
protect Workers
• Organizations Cultures and conflict- Personal goals vs organizational goals
• Professional bodies (NIPM – National institute of Personnel Management)
periodic training programs , seminars and conferences are organized by NIPM.
Scanning the Environment
• To prevent Information and examine operations
• To provide relevant Information for planning and
decision making
Relevant areas to be scanned- 4 factors
 Labor Market
 Legal Environment
 Constitutional provisions
 Technology
If company has overseas operation
 Globalization
 Live Example: Coca-Cola’s
External Environment

• External environment consists of:

• Economic

• Social/Demographic

• Ecological

• Political
 SWOT analysis of
• Company background
• Name The Coca Cola Company Industries served Beverages Geographic areas served Worldwide Headquarters U.S. Current
CEO Muhtar Kent Revenue $ 48.01 billion
• Strengths
• The best global brand in the world in terms of value ($77,839 billion)
• World’s largest market share in beverage
• Strong marketing and advertising
• Weaknesses
• Significant focus on carbonated drinks
• Undiversified product portfolio
• High debt level due to acquisitions
• Negative publicity
• Brand failures or many brands with insignificant amount of revenues
• Opportunities
• Bottled water consumption growth
• Increasing demand for healthy food and beverage
• Growing beverages consumption in emerging markets (especially BRIC)
• Growth through acquisitions
• Threats
• Changes in consumer preferences
• Water scarcity
• Strong dollar
• Legal requirements to disclose negative information on product labels
• Decreasing gross profit and net profit margins
• Competition from PepsiCo
• Saturated carbonated drinks market
What is strategic human resource management?

• Strategic human resource management is the connection between a

company’s human resources and its strategies, objectives, and goals.
The aim of strategic human resource management is to:

• Advance flexibility, innovation, and competitive advantage.

• Develop a fit for purpose organizational culture.
• Improve business performance.
Benefits of strategic human resource
management
• Discuss
Benefits of strategic human resource
management
• Increased job satisfaction.
• Better work culture.
• Improved rates of customer satisfaction.
• Efficient resource management.
• A proactive approach to managing employees.
• Boost productivity
The strategic planning process begins with four critical questions:

• Discuss
The strategic planning process begins with four critical questions:

• The strategic planning process begins with four critical questions:

Where are we now? (Assess the current situation.)
Where do we want to be? (Envision and articulate a desired future.)
How do we get there? (Formulate and implement a strategy and
strategic objectives.)
How will we know if we are on track toward our intended
destination? (Establish a mechanism to evaluate progress.)
Seven steps to strategic human resource management

1.Develop a thorough understanding of your company’s objectives

2.Evaluate your HR capability
3.Analyze your current HR capacity in light of your goals
4.Estimate your company’s future HR requirements
5.Determine the tools required for employees to complete the job
6.Implement the human resource management strategy
7.Evaluation and corrective action
Strategic Human Resource Examples From Top Companies

• Google
• Cisco
• Hilton Worldwide Holdings

• https://peoplemanagingpeople.com/articles/strategic-human-resou
rce-management/
News
• India has a people problem — its human resources aren’t infinite
• Link
• https://theprint.in/india/india-has-a-people-problem-its-human-resourc
es-arent-infinite/782465/
•  India’s education system is clearly failing. Indian companies are
already reporting a shortage of skilled manpower
• Discuss
Learning Objectives
• Understand the nature of strategic management

• Describe the strategic management process

• Integrate HR functions with the strategic
management process
• Identify typical HR strategies

• Explain the three approaches to HR strategies

40
Revise
• Meaning of SHRM
• Its Nature
Nature of Strategic HRM
• Strategic human resource management (SHRM) refers to the process of
developing practices, programmes and policies that help achieve organisational
objectives.

• Specially, SHRM involves that:

• Human resource management is fully integrated with the strategy and the strategic needs of
the firm
• Human resource policies cohere both across policy areas and across hierarchies
• Human resource architecture of the firm results in its above-average financial performance.
HR architecture is composed of the systems, practices, competencies and employee
performance behaviours that reflect the development and management of the firm’s
human resource
• Human resource practices are adjusted, accepted, and used by line managers and employees
as part of their daily work.
Nature of Strategic HRM (Contd.)

• Four roles of HR executives are relevant:

• HR should define an organisation’s architecture.
• HR needs to be accountable for conducting an organisational audit.
• The role of HR as a strategic partner is to identify methods for renovating the
parts of the organisational architecture that need it.
• HR must take stock of its own work and set clear priorities.
News
News
• SHRM Campaign Empowers HR, Business Professionals to Cause the
Effect They Wish to Have on the World of Work

• https
://www.businesswire.com/news/home/20220118006090/en/SHRM-C
ampaign-Empowers-HR-Business-Professionals-to-Cause-the-Effect-Th
ey-Wish-to-Have-on-the-World-of-Work
News
• The campaign includes a webpage with resources and pathways to
help organizations successfully interpret trends and regulations, apply
new approaches, and succeed in disruptive times.
• “Our profession is at the forefront of changing times, cultural shifts
and societal needs,
Traditional HRM vs. Strategic HRM
Traditional HRM Strategic HRM
Responsibility for
Staff specialists Line managers
HRM
Partnership with internal and
Focus Employee relations
external customers
Transactional, change follower Transformational, change
Role of HR
and respondent leader and initiator

Initiatives Slow, reactive, fragmented Fast, proactive, integrated

Time horizon Short term Short, medium, long

Bureaucratic roles, policies, Organic-flexible, whatever is

Control
procedures necessary to succeed
Tight division of labour, Broad, flexible, cross-training
Job design
independence, specialisation teams

Key investments Capital, products People, knowledge

Accountability Cost centre Investment centre

Strategic Management Process

Phase 1
Scan the
Environment

Phase 2
Phase 5 Identify
Monitor and Sources of
Evaluate HR Competitive
Strategies Advantage

Phase 4 Phase 3
Implement HR Identify HR
Strategies Strategies
 Strategic Management Process (Contd.)
• Scan the Environment
• Identify Sources of Competitive Advantage
• Identify HRM Strategies

Resource Development, Oxford, 2010,

Source: David Mankin, Human

P.90
HRM Strategy Choices
 Strategic Management Process (Contd.)

• Identify HRM Strategies

• Learning as Socialisation
• Devolved Informal Learning
• Engineering
• Empowered Informal Learning

• Implementing HR Strategies
• Policies are critical in implementation of HR strategies
• HR practices should follow HR plans
• Strategy implementation is more challenging than its formulation
Pause and Ponder

When HR activities are closely linked to a key

business strategy, it becomes SHRM. True or
false? Discuss

51
 Strategic Management Process (Contd.)
• Implementing HR
Strategies

Source: Cynthia D. Fisher, et. al., op. cit., p. 60

HR Practice Choices Related to Strategic
Outcomes
Strategic Management Process (Contd.)
• Implementing HR Strategies

Difference between Strategy Formulation and Implementation

 Strategic Management Process (Contd.)

• Monitor and Evaluation

• Basic activities involved in strategy monitoring and evaluation are:
• Establishing performance targets, standards and tolerance limits for the objectives,
strategies and implementation plans
• Measuring the performance in relation to the targets at a given time. If outcomes are
outside the limits, inform managers to take action
• Analyse deviations from acceptable tolerance limits
• Execute modifications where necessary and are feasible
 Strategic Management Process (Contd.)

• Monitor and Evaluation

• From strategic HR perspective, evaluation may demand answers to the
following questions:
• Are HR professionals present at M&A’s planning and implementation?
• Does HR provide an annual report on its ROI?
• Is HR rated by firm’s customers?
• Is there an ROI process to evaluate HR initiatives connected to the business strategy?
• Is HR role leveraged in change initiatives such as systems implementations and re-
organisations?
• Are line managers made responsible for people’s issues?
• Do HR people go beyond and enter such domains as marketing, finance and production?
Benefits of SHRM
• Discuss
 Benefits of SHRM

• The greatest benefit of SHRM is that it elevates the status of HRM in

organisations
• HR leader is now accorded equal status along
• with other functional heads, is a member of the core committee to make
strategic decisions, earns big compensation, and is given all privileges
• Being a strategic partner, HR manager plays key role in making a merger or an
acquisition a success
• Being part of the strategic management process, HR professionals seek to answer
the fundamental question: How to create an organisation to accomplish business
objectives?
 Benefits of SHRM (Contd.)

• Organisations can be categorised into three depending on whether they are first in the
market (prospectors), defending the present market share (defenders), or enter once it is
created, with an improved product moving to become low cost produce themselves
(analysers)
• The most significant benefit from SHRM relates to the creation of organisational
capability by ensuring that the firm has skilled, engaged, committed and motivated
employees who can render competitive advantage to it
• Strategic HRM provides a sense of direction to an organisation in a turbulent
environment so that the business needs of the firm and the collective and individual
needs of its employees can be met by the development and implementation of coherent
and practical HR policies and programmes
Barriers of SHRM
• Discuss
 Barriers to Strategic HRM

• The tendency of most organisations adopt a short-term mentality and focus on

current performance
• The inability of HR leaders to think strategically
• Most senior managers lack appreciation for the value of HR and its ability to
contribute to the organisation from a strategic perspective
• Some functional managers see themselves as HR managers as well and are
concerned more with technical aspects of their areas of responsibility than the
human aspects
 Barriers to Strategic HRM (Contd.)

• Human assets are not owned by organisations and, therefore, are perceived as a
higher risk investment than capital assets
• Strategic HR may be resisted because of the insensitivity towards change that
might arise
• Concern arising from non-availability of HR professionals to staff themselves in
HR departments, consequent to integration of HR function with business strategy
• Failure to understand the strategic needs of the business, inadequate assessment
of the environmental and cultural factors that affect the contents of the strategies
and the development of ill-conceived and irrelevant initiatives
 Barriers to Strategic HRM (Contd.)

• There is enough disconnect between the HR team and the employees. there is
enough disconnect between the HR team and the employees:
• HR professionals need to develop trust
• HR people use big. We need to refer to dictionaries to understand what these concepts
convey.
• HR has no people connect
• HR is clueless about what we want
• HR first caters to itself, then thinks about us
• HR interventions are purposeless

• Employee mindset works against strategic thinking

HR Strategy Fit
Selecting Strategies to Enhance Performance

Source: Luis R.Gomez-Mejia, etal, Human Resource Management,

PHI, 2010, p.29
 Selecting Strategies to Enhance Performance (Contd.)

• Beyond HR Domain
• Encouragement of Pro-active Rather than Reactive Behaviour
• Explicit Communication of Goals
• Stimulation of Critical Thinking
• Productivity as an HR Based Strategy
• Quality and Service are HR-based Strategies
Selecting Strategies to Enhance Performance (Contd.)

Customer Service Dimensions

Reality Check
Select at least five companies of your choice. Bring out their
corporate, unit and functional level strategies. What significant
differences do you observe among them?
Reality Check
Can you draw SWOT analysis of a firm you know well? Discuss after
completion.
 Nature of Strategic HRM
• Strategy: Future oriented plan for interacting with the
competitive environment to achieve organizational goals.
• Strategy is a framework of managerial decisions
• Involves the development of a consistent, aligned
collection of practices, programs, and policies to facilitate
the achievement of the organization’s strategic objectives.
• Strategic Human Resources Management
• Organizational use of employees to gain or keep a competitive
advantage against competitors.
Strategy Map for Southwest Airlines
What is to be emphasized is that at the core of the strategic
management process
• Team comprising the CEO aided by top executive
• Core team formulates company strategy and ensures their
implementation
• Example: Tata steel consisted
• CEO- Ratan Tata
• M.D.- Muthuraman
• Head- Arun Kumar
• V P Fianance- Koushik Chatterjee
Traditional HR versus Strategic HR
 Benefits of SHRM

• Contributes to enhance performance

• Increased productivity
• Increase survival rate of business
• Reduce Employee turnover
• Enhance customer satisfaction
• Ensures HR department justified it existence
Barriers to Strategic HR
Strategic Management – Role of HRM
Four Important stages
• Environmental scanning- External and Internal
Environment scanned
• Strategy Formulation- Corporate level, Business unit
level and Functional level
• Strategy Implementation- Programs ,budgets and
procedures
• Evaluation and Control- strategic control process and
performance
 HRD Scorecard Developed by TVRLS, India
• http://www.tvrls.com/
• HRD Scorecard was introduced in India by consultant T.V. Rao

• Help Organisations with Performance Management Systems

• Identifying and Establishing talent requirements through Competency Mapping
• Talent Discovery and Development through Assessment and Development Centres
(ADCs)
• Leadership development through 360 degree feedback
• Leadership development through Coaching and Counselling for CEOs
• Self-renewal and Organisation Development
• Managing oneself and Enhancing self-awareness through Psychometric Testing
• Diagnosing and enhancing HRD Maturity through HRD Audit and HRD Score Card
• Talent Engagement and Organisation Climate Survey
• Design, redesign and effective implementation of HR systems, processes and
practices
 Analyzing the environment

SWOT Analysis
The use of a SWOT chart to
compile and organize the process
of identifying company: External-
T and O, Internal- W and T

Strengths,
Weaknesses,
Opportunities, and Threats.
SWOT analysis framework
Environmental Scan

• Internal Analysis External Analysis

Strengths Weaknesses Opportunities Threats

SWOT Matrix
SWOT analysis of Library
SWOT analysis of Amul
Strategic Management Process: Overview of
Strategic Management
 Strategy formulation
• Corporate level strategies : Defining what business the
company is in Setting the overall structure, systems and
processes
example :diversification , merger, liquidation
• Business Level Deciding how to compete
Identifying competitive advantage
example: Increase market share, Focus on export
• Functional strategy
(marketing, finance HR, operations, R&D) Coordination of
company departments or areas to support achievement of
business strategy and objectives.
3) Strategy Formulation : formulated at three
levels
• A)Corporate-level strategy- Organization
• Identifies the portfolio of businesses that, in total, comprise the company and
the ways in which these businesses relate to each other.
• Diversification strategy implies that the firm will expand by adding new product lines.
• Vertical integration strategy means the firm expands by, perhaps, producing its own raw
materials, or selling its products direct.
• Consolidation strategy reduces the company’s size
• Geographic expansion strategy takes the company abroad.
Learning Outcome
 Pedagogy
• News
• Article
• Video
• MCQ
• Activity
• Content
Video
• How a new lens on "HR" can reduce turnover AND the cycle of
poverty 

• https://www.youtube.com/watch?v=NxJZs7a3DWo
MCQ
Human resource management is combination of
a. Job analysis, recruitment and selection
b. Social behaviour and business ethics
c. Organisational behaviour, , personal management and industrial
relation
d. Employer and employees

Ans:
MCQ
Human resource management is combination /amalgam of
a. Job analysis, recruitment and selection
b. Social behaviour and business ethics
c. Organisational behaviour, , personal management and industrial
relation
d. Employer and employees

Ans: c
 Human Resources Planning
• HRP: is the process of determining future human
resource needs relative to an organization strategic plan
and devising the steps necessary to meet those needs
• Parts of HRM
• Forecasting Manpower Demand,
• Forecasting Manpower supply
• Human Resource actions- link given
http://www2.gnb.ca/content/gnb/en/departments/
human_resources/career_development/content/
human_resource_plan.html
 What is Human Resource Planning (HRP)?

• Involves activities to
• Forecast an organization’s
• Labor demand -- Requirements
• Internal labor supply -- Availabilities

• Compare projections to determine employment gaps

• Develop action plans to addressing the gaps
• Staffing planning
Nature of HRP
• HRP: Human Resource Planning is the process of forecasting a firm’s
future demand for, and supply of, the right type of people in the right
number
 Human Resource Planning

Assessing Future
Assessing Current
Human Resource
Human Resources
Needs

Developing a
Program to Meet
Needs
Importance of HRP
• Future Personnel Needs
• Part of Strategic planning
• Creating Highly Talented Personnel
• International Strategies
• Foundations of personnel functions
• Increasing Investments in Human Resources
• Resistance to change or move
• Unite the Perspective of Line and staff Mangers
• Other benefits
Forecasting Supply and Demand
• Determine the number, type, & qualifications of individuals who will
be needed to perform specific duties at a certain time.
• Internal supply of labor – number and type of employees who will be
in the operation at some future date.
• External supply of labor – number and type of people who will be
available for hiring in the labor market.
Meeting Future Human Resource Needs
Supply of Employees Demand for Employees

Factors Affecting Staffing

Strategic Goals
Forecast demand for products and services
Availability of knowledge, skills, and abilities
INFORMATION REQUIRED FOR DEMAND
FORECAST:
QUANTITATIVE:
• Employee numbers and head count
• Geography
• Demographics
• Functions
• Ratios
QUALITATIVE
• Skills and competencies
• Knowledge
• Training needs
• attitude
 The Human Resource Planning Process

• Environmental Scanning
• Organizational Objectives and Polices
• HR Demand Forecast- Forecasting Techniques
• HR Supply Forecast
• HR Programming
• HR Plan Implementation
• Personnel Planning : Deciding What positions need to
be filled and how they should be filled
• Succession Planning : How Organizations can best
replace top management positions by using HRIS,
who will be the next head
• Personnel Replacement Charts: Reflects the present
performance and promotability of potential
replacements for position by HRIS
• Forecasting : Estimating the size of staff needed to
meet the goals of the organization
HR demand Forecasting techniques
• Managerial Judgment
• Ratio-trend Analysis- Studying past ratios, forecasting future
ratios ,
Trend analysis Predicts future needs based on previous
employment figures,
Ratio analysis – Ratio of a causal factor(sales volume) to the
number of employees required to achieve the goals
• Regression Analysis – Relationship between sales volume and
Employee Size
• Work Study Techniques- Work measurement , length of
operation and amount of labour required
• Delphi Technique – Group of experts estimates personnel needs
• Flow Models –Markov model shorter length of time are more
accurate than longer ones
 Techniques

• Managerial Judgement:

Managerial judgment technique is very common technique of demand

forecasting.
This approach is applied by small as well as large scale organizations.
This technique involves two types of approaches i.e. 'bottom-up approach'
and 'top-down approach'.
Under the 'bottom-up approach', line mangers send their departmental
requirement of human resources to top management. Top management
ultimately forecasts the human resource requirement for the overall
organization on the basis of proposals of departmental heads.
Under the Top-down approach', top management forecasts the human
resource requirement for the entire organization and various departments.
This information is supplied to various departmental heads for their review
and approval.
However, a combination of both the approaches i.e. 'Participative
Approach' should be applied for demand forecasting.
• Ratio-Trend Analysis: On the basis of ratio of production
level and number of workers available. The following
example will help in clearly understanding this technique.
Estimated production for next year = 1,40,000 units
Estimated no. of workers needed
(on the basis of ratio-trend of 1: 200) will be = 700
• Delphi Technique: This technique takes into consideration
human resources requirements given by a group of experts
i.e. mangers, experts collect the manpower needs,
summarizes the various responses and prepare a report.
This process is continued until all experts agree on
estimated human resources requirement.
Work-Study Technique: This technique is also known as 'work-load analysis'.
technique suitable where the estimated work-load is easily measureable.
Under this method, estimated total production and activities for a specific future
period are predicted.

Let us assume that the estimated production of an organisation is 3.00.000 units.

The standard man-hours required to produce each unit are 2 hours.
The past experiences show that the work ability of each employee in man-hours
is 1500 hours per annum. The work-load and demand of human resources can
be calculated as under:

Estimated total annual production = 300000 units

Standard man-hours needed to produce each unit = 2 hrs

Estimated man-hours needed to meet estimated annual production = 600000 hrs

Work ability/contribution per employee in terms of man-hour = 1500 units

 Estimated no. of workers needed = 600000/1500 = 400 units

The above example clearly shows that 400 workers are needed
 HR Supply Forecast
• HR Supply Forecast: Determines whether the HR
department will be able to procure the required number of
personnel. Specifically , Supply forecast measures the
number of People likely to be available from within and
outside an organization
It covers
• Existing Human Resources
• Internal sources of Supply
• External sources of Supply
• Qualification Inventories Paper or electronic records of
employees education, interests, languages, special skills etc.
 Present Employees
• Skill Inventories
• Personnel Data
• Skills- Education, Job experience , training
• Special Qualification
• Salary and Job history
• Company data
• Capacity of Individual
• Special preferences of individual
• Management Inventories
• Work history
• Strengths
• Weakness
• Promotion Potential
• Career goals
• Personal data
• Number and types of employees Supervised
• Total budget managed
• Previous management duties
• Educational background
• Current job performance
Requisites for successful HRP
• Integral part of corporate Planning
• HRP responsibilities should be centralized
• Personnel records must be complete
• Time horizon must be long to permit remedial action
• Techniques of planning leads to data accuracy
• Plans should be prepared by skill levels
• Data collection, analysis, techniques of planning need to
be consistently revised
• Impact of external forces like technologies changes ,
changes in labour market composition to be considered
while developing Human Resource Plan
• HRIS should be used as decision support system
 Barriers to HRP
• Inability to plan or inadequate planning..
• Lack of commitment to the planning process.
• Inferior information. Facts that are out-of-date, of poor quality, or of insufficient
quantity can be major barriers to planning. No matter how well managers plan, if
they are basing their planning on inferior information, their plans will probably
fail.
• Focusing on the present at the expense of the future. Failure to consider the
long-term effects of a plan because of emphasis on short-term problems
• Too much reliance on the organization's planning department. Many companies
have a planning department or a planning and development team. These
departments conduct studies, do research, build models, and project probable
results, but they do not implement plans. Planning department results are aids in
planning and should be used only as such. Formulating the plan is still the
manager's responsibility.
• Concentrating on controllable variables. Managers can find themselves
concentrating on the things and events that they can control, such as new product
development, but then fail to consider outside factors, such as a poor economy.
• Non- involvement of operating mangers renders HRP in effective
Factors effecting HRP
• Types and strategies of organization
• Organizational Growth Cycles and Planning
• Environmental Uncertainties
• Time Horizons
• Type and Quality of information
• Labour Market
• Outsourcing
 Recruitment Via Internet: Timesjobs.com

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HR APPs4 U-Posting and Accessing Job
openings
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