Being a Human Resources Manager how will you formulate an effective HRP process ?
The most important and valuable asset of an organization is manpower or human resource. Development of human resource is needed by any organization if it wants to succeed in the fast growing and fast changing business environment. An organizations performs and resulting productively and directly proportional to the quality and quantity of the human resource.
The process of human resource planning is one of the most crucial, complex and containing managerial functions. Organizations can proper and progress only through the creative efforts and competencies of their human resources.
So I have to plan a multi step process including various issues, such as
A. Deciding objectives and goals.
B. Estimating future organizational structure and manpower requirements.
C. Auditing human resources.
D. Planning job requirements and job descriptions.
E. Developing a human resource plan.
Human resources are utilized the optimum possible extent in order to achieve individual and organizational goals. Human Resource Management is based on the personal administration, Employee welfare and Functional areas.
These main areas can be broadly classified into following categories.
Personal Administration.
a. Recruitment Selection
b. Induction
c. Compensation
d. Discipline
e. Transfer and promotion
f. Merit rating and evaluation of employees
g. Administration
h. Personnel Training and Development Training
i. Personnel records and statistics.
j. Retirement
k. Statutory compliance
B. Employee welfare
a. Conditions of work environment
b. Employee’s health service
C. Functional Areas of Human Resource Management.
a. Organizational Planning and Development
b. Staffing and employment
c. Trading and Development
d. Wage and Salary Administration
e. Motivation and incentives.
f. Employee Service and benefits
g. Employee records
h. Labor and industrial Relations.
i. Personnel Research and Personnel Audit.
To formulate the effective HR Planning, It is important to have mixture and perfective use of the human resource functions. Manpower planning involves identifying staffing needs, analyzing the available personnel and determining what additions and / or replacements are required to maintain a staff of the desired size and quality. It can be defined as “a strategy for the acquisition, utilization, improvement and preservation of an organization’s human resources”. HRP is a process of identifying human resource requirements in terms of quality and quantity.
Today the organizations are more dependent upon people. They are increasingly involved in more complex technologies and are functioning in more complex economic, social and political environments. As a result, the organizations face shortage of the right kind of human resources. HRP enables to get the right type of personnel in the organization.
Human resources are utilized to the optimum possible extent in order to achieve individual and organizational goals. The objective of human resource planning is to maintain and improve the organizations ability to achieve its goal by developing strategies that will result in optimum contribution of human resources.
I have to give importance to the following areas while preparing or formulating an effective HRP Process.
1. Personnel Requirements:
HRP involves forecasting of personnel requirements in organizations. After deciding the objectives and goals the management must estimate the structure of the organization at a given point in time. Several points are to be taken into mind that; while estimating it. The eventualities, and contingencies of general economic business cycles; expansion following enlargement and growth in business, changes in management philosophies and leadership styles, the use of new mechanical technology etc. are such areas. To carry on its work, each organization needs personnel with the necessary qualifications, skills, knowledge, work experience and aptitude for work. These are provided through effective manpower planning. HRP helps management to anticipate personnel shortages and surpluses and develop ways to avoid or correct problems before they become serious.
2. Recruitment and selection
A proper forecasting of personnel requirements enables the organization to determine proper sources of recruitment. The required personnel can be selected either from internal or external sources.
The organization can also adopt a proper selection procedure depending upon the needs of the jobs. Proper tests can be designed to select the right candidate for the right job.
3. Placement of Personnel:
HRP facilitates proper placement of the employees in the organization. Placement refers to fitting the right person at the right place of work. Proper placement brings job satisfaction to the employees and enhances employees’ efficiency. The selected personnel are placed at the right place of work. Persons are placed in those departments or in those areas where there is shortage of personnel. If there is a surplus, then that personnel can be shifted to some other areas or departments as the case may be.
4. Performance Appraisal:
HRP assists in performance appraisal of the employees in the organization. It refers to find out the quality of performance of different employees in relation to the requirements of each job. When related to the employees if there are weaknesses then additional training or some other measures can be undertaken.
5. Promotions:
HRP ensures right promotion of the employees in the organization. Promotion involves higher position, higher powers and higher pay. The organization would be in a position to promote the right person depending upon the performance appraisal reports.
6. Training:
It involves imparting knowledge and skills, developing attitudes, skills and social behavior of the employee.
HRP identifies the training needs of personnel Training & Development trainings includes the training for
1. Apprentices.
2. Workers
3. Foreman and Supervisors
4. Junior executives and
5. Management Staff.
7.Transfer:
HRP facilitates proper transfer of the employees in the organization. HRP has its own way to transfer i.e. side-ways movement of the employees in the organization. There may be a situation where there is surplus personnel in one department and shortage in another department. This situation can be corrected by effecting transfers at the right time.
8.Career Development:
Career development refers to developing careers of the employees in the organization. HRP is conducted taking into consideration the long range plans of the organization. The plans are made known to members of the organization. The employees can plan for their careers with in the organization once they come to know the qualification and qualities that would be required to implement the long range plans.
9. Organizational Development:
It takes place when there are better results in the form of higher productivity or efficiency. It also ensures the development of the organization. It avoids surplus or shortage of personnel in the organization. The organization with qualified and able personnel can easily solve the problems of low productivity absenteeism, inter departmental conflicts, resistance to change etc.
10. Motivation of Personnel:
HRP is concerned not only with the identification of the personnel in terms of quality and quantity but it is also concerned with the improvement and motivation of the human resources. The organization would make every possible effort to have dedicated and committed personnel at all levels in the organization.
PROCESS OF HRP
The process of HRP begins with a review of organizational strategies and objectives. Such review enables an organization to forecast personnel requirements and the internal supply of personnel. It can be formulate with the following steps.
HUMAN RESOURCES PLANNING PROCESS
COMPANY OBJECTIVES AND STRATEGIC PLANS (Market, forecast, production objectives/process, capital/Fin plants)
Personnel requirements Make Personnel Supply
Forecast comparison Forecast
Estimating HR requirements Based on objectives and top Management Approval
Personnel Surplus Personnel shortage
Take action take action
a) Lay off a) Recruitment
b) Terminate b) Productivity
c) Voluntary Retirement etc c) Retraining
The long range could be 5 years, while 10 to 15 years span could be used for a perspective plan. Long-range plans must be made on the basis of various trends in the economy and in the labor market, and on long-term trends in the production. Long-range plans are general rather than specific, flexible rather than rigid.
Nevertheless, a plan can be extremely useful in identifying factors and trends that need to be reckoned with the early warning on possible problems. While formulating the HRP process its important to know the period for which the plan will apply, then the specific corporate objectives and strategies should be clear.
1. Review of Organizational Objectives:
The first step in HRP is to review the objectives of the organization. Proper review of the objectives will enable the organization to make a proper list of the various activities that would be required to achieve the objectives. To undertake the activities, the organization can be determining the required work force in terms of quality and quantity. A proper job analysis needed to be conducted at this stage.
2. Personnel requirements forecast:
Their needs to fine out the requirements of human resources undertake the various activities. The human requirements forecast must be both in terms of quality ands quantity.
3. Personnel supply forecast:
It is important to forecast availability of manpower. The required manpower may be available with in the company, or they may be required from the labor market.
4.Make comparison:
Its necessary to make a comparison between personnel requirement and personnel supply to find out whether the required personnel is available or not.
5. Personnel shortage/surplus
The comparison between personnel requirement and supply would indicate whether there are any differences. It human resource requirements are equal to human resource supply, then there are no differences and no action need to be taken.
If a shortage is there efforts are made to meet it either by new recruitment or promotion from within, or by developing the existing staff. If there is a surplus it is to be decided how it will be dealt with. Management can be ensuring control of labor costs by avoiding both shortage and surpluses of manpower through proper manpower planning.
The comparison may reveal differences between the human resource requirements and supply. The action will be taken as
1. If personnel Surplus:
1. Lay off
2. Voluntary requirements
3. Termination etc
2. If personnel shortage:
1. Hire
2. Promotion
3. Overtime
4. Training to improve quality
6. Motivating the man power:
Every organization should motivate their employees in such manner, which will be help in the increase in productivity and quality of the organization. An important aspect of human resource planning is to motivate the personnel by providing monetary and non-monetary incentives.
I have to give importance to the following areas while preparing or formulating an effective HRP Process.
1. Personnel Requirements:
HRP involves forecasting of personnel requirements in organizations. After deciding the objectives and goals the management must estimate the structure of the organization at a given point in time. Several points are to be taken into mind that; while estimating it. The eventualities, and contingencies of general economic business cycles; expansion following enlargement and growth in business, changes in management philosophies and leadership styles, the use of new mechanical technology etc. are such areas. To carry on its work, each organization needs personnel with the necessary qualifications, skills, knowledge, work experience and aptitude for work. These are provided through effective manpower planning. HRP helps management to anticipate personnel shortages and surpluses and develop ways to avoid or correct problems before they become serious.
2. Recruitment and selection
A proper forecasting of personnel requirements enables the organization to determine proper sources of recruitment. The required personnel can be selected either from internal or external sources.
The organization can also adopt a proper selection procedure depending upon the needs of the jobs. Proper tests can be designed to select the right candidate for the right job.
3. Placement of Personnel:
HRP facilitates proper placement of the employees in the organization. Placement refers to fitting the right person at the right place of work. Proper placement brings job satisfaction to the employees and enhances employees’ efficiency. The selected personnel are placed at the right place of work. Persons are placed in those departments or in those areas where there is shortage of personnel. If there is a surplus, then that personnel can be shifted to some other areas or departments as the case may be.
4. Performance Appraisal:
HRP assists in performance appraisal of the employees in the organization. It refers to find out the quality of performance of different employees in relation to the requirements of each job. When related to the employees if there are weaknesses then additional training or some other measures can be undertaken.
5. Promotions:
HRP ensures right promotion of the employees in the organization. Promotion involves higher position, higher powers and higher pay. The organization would be in a position to promote the right person depending upon the performance appraisal reports.
6. Training:
It involves imparting knowledge and skills, developing attitudes, skills and social behavior of the employee.
HRP identifies the training needs of personnel Training & Development trainings includes the training for
1. Apprentices.
2. Workers
3. Foreman and Supervisors
4. Junior executives and
5. Management Staff.
7.Transfer:
HRP facilitates proper transfer of the employees in the organization. HRP has its own way to transfer i.e. side-ways movement of the employees in the organization. There may be a situation where there is surplus personnel in one department and shortage in another department. This situation can be corrected by effecting transfers at the right time.
8.Career Development:
Career development refers to developing careers of the employees in the organization. HRP is conducted taking into consideration the long range plans of the organization. The plans are made known to members of the organization. The employees can plan for their careers with in the organization once they come to know the qualification and qualities that would be required to implement the long range plans.
9. Organizational Development:
It takes place when there are better results in the form of higher productivity or efficiency. It also ensures the development of the organization. It avoids surplus or shortage of personnel in the organization. The organization with qualified and able personnel can easily solve the problems of low productivity absenteeism, inter departmental conflicts, resistance to change etc.
10. Motivation of Personnel:
HRP is concerned not only with the identification of the personnel in terms of quality and quantity but it is also concerned with the improvement and motivation of the human resources. The organization would make every possible effort to have dedicated and committed personnel at all levels in the organization.
PROCESS OF HRP
The process of HRP begins with a review of organizational strategies and objectives. Such review enables an organization to forecast personnel requirements and the internal supply of personnel. It can be formulate with the following steps.
HUMAN RESOURCES PLANNING PROCESS
COMPANY OBJECTIVES AND STRATEGIC PLANS (Market, forecast, production objectives/process, capital/Fin plants)
Personnel requirements Make Personnel Supply
Forecast comparison Forecast
Estimating HR requirements Based on objectives and top Management Approval
Personnel Surplus Personnel shortage
Take action take action
a) Lay off a) Recruitment
b) Terminate b) Productivity
c) Voluntary Retirement etc c) Retraining
The long range could be 5 years, while 10 to 15 years span could be used for a perspective plan. Long-range plans must be made on the basis of various trends in the economy and in the labor market, and on long-term trends in the production. Long-range plans are general rather than specific, flexible rather than rigid.
Nevertheless, a plan can be extremely useful in identifying factors and trends that need to be reckoned with the early warning on possible problems. While formulating the HRP process its important to know the period for which the plan will apply, then the specific corporate objectives and strategies should be clear.
1. Review of Organizational Objectives:
The first step in HRP is to review the objectives of the organization. Proper review of the objectives will enable the organization to make a proper list of the various activities that would be required to achieve the objectives. To undertake the activities, the organization can be determining the required work force in terms of quality and quantity. A proper job analysis needed to be conducted at this stage.
2. Personnel requirements forecast:
Their needs to fine out the requirements of human resources undertake the various activities. The human requirements forecast must be both in terms of quality ands quantity.
3. Personnel supply forecast:
It is important to forecast availability of manpower. The required manpower may be available with in the company, or they may be required from the labor market.
4.Make comparison:
Its necessary to make a comparison between personnel requirement and personnel supply to find out whether the required personnel is available or not.
5. Personnel shortage/surplus
The comparison between personnel requirement and supply would indicate whether there are any differences. It human resource requirements are equal to human resource supply, then there are no differences and no action need to be taken.
If a shortage is there efforts are made to meet it either by new recruitment or promotion from within, or by developing the existing staff. If there is a surplus it is to be decided how it will be dealt with. Management can be ensuring control of labor costs by avoiding both shortage and surpluses of manpower through proper manpower planning.
The comparison may reveal differences between the human resource requirements and supply. The action will be taken as
1. If personnel Surplus:
1. Lay off
2. Voluntary requirements
3. Termination etc
2. If personnel shortage:
1. Hire
2. Promotion
3. Overtime
4. Training to improve quality
6. Motivating the man power:
Every organization should motivate their employees in such manner, which will be help in the increase in productivity and quality of the organization. An important aspect of human resource planning is to motivate the personnel by providing monetary and non-monetary incentives.
7Monitoring Personnel Requirements
The organization needs to monitor the requirements of personnel. This is because there is constant need for additional personnel, as some of the existing personnel do leave the organization due to registration, retirement and so on.
After the review of organizational strategies and objectives in the above manner based on the problems and need I'll easily formulate effective HRP process.
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