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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@aiou.edu.pk

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human resource management

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

pdaiou@yahoo.com

Website: www.aiou.edu.pk

Telephone/Fax: 051-9250100

Cell: 0333-5729809

some quotes on human resource
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
slide3
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
human resource strategy a people centered approach
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.
slide6
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?

people centered organizations enjoy a competitive advantage
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
human resource planning
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 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.

slide10

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

slide11

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?

slide12

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?

slide13

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

slide14

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 organization’s strategic planning

process

b. all available forecasts (technological,

economic, market, etc.)

four phases to hr planning
Four Phases to HR Planning
  • “What will we need?”
    • Determine future HR requirements
  • “What’s available?”
    • Determine future HR availabilities
      • Internally
      • Externally
  • Reconcile requirements and availabilities
    • Anticipate “gaps”
    • Develop action plans
  • Control and evaluate
hr planning process
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

hr planning strategy
Seven strategic staffing decisions:HR Planning Strategy

Organization

Mission

Goals & Objectives

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

how does hr planning occur
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
the nominal group technique
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.

the delphi technique
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.

how does hr planning occur1
How does HR Planning occur?

1. What does the environment look like?

2. What are our future personnel needs?

(forecast demand)

b. Statistical

  • Regression
statistical techniques used to project staffing demand needs
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.

statistical techniques used to project staffing demand needs cont d
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.

regression analysis
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

how does hr planning occur2
How does HR Planning occur?

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

b. Statistical (cont.)

  • Ratio analysis
how does hr planning occur3
How does HR Planning occur?

3. Are resources available – internally or externally – to fill those needs?

a. Internal

  • Replacement charts
how does hr planning occur4
How does HR Planning occur?

3. Are resources available – internally or externally – to fill those needs?

a. Internal

  • Replacement charts
  • Promotability
how does hr planning occur5
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
a sample transition matrix
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 .30Manager .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 3Manager 30 3 24 3Supervisor 50 6 30 14Senior 100 20 55 25Accountant 20030 130 40

10 30 50 85 130

how does hr planning occur6
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?

how does hr planning occur7
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

staffing alternatives to deal with employee surpluses
Staffing Alternatives to Deal with Employee Surpluses

Source: Compliments of Dan Ward, GTE Corporation

staffing alternatives to deal with employee shortages
Staffing Alternatives to Deal with Employee Shortages

Source: Compliments of Dan Ward, GTE Corporation

how does hr planning occur8
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

alternative scheduling options
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.”

84%40%

23%

18%

13%

how does hr planning occur9
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

how does hr planning occur10
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.