Meaning Human Resource Planning:

Human resource is the most important asset of an organisation.

Human resources planning are the important managerial function. It
ensures the right type of people, in the right number, at the right
time and place, who are trained and motivated to do the right kind of
work at the right time, there is generally a shortage of suitable
persons.
The enterprise will estimate its manpower requirements and then
find out the sources from which the needs will be met. If required
manpower is not available then the work will suffer. Developing
countries are suffering from the shortage of trained managers. Job
opportunities are available in these countries but properly trained
personnel are not available. These countries try to import trained
skill from other countries.
In order to cope human resource requirements, an enterprise will
have to plan in advance its needs and the sources. The terms
human resource planning and manpower planning are generally
used interchangeably. Human resource planning is not a substitute
for manpower planning. Rather the latter is a part of the former i.e.,
manpower planning is integrated with human resource planning.
Definition Human Resource Planning:
According to E.W. Vetter, human resource planning is “the process
by which a management determines how an organisation should
make from its current manpower position to its desired manpower
position.
Through planning a management strives to have the right number
and the right kind of people at the right places, at the right time to
do things which result in both the organisation and the individual
receiving the maximum long range benefit.”
Dale S. Beach has defined it as “a process of determining and
assuring that the organisation will have an adequate number of
qualified persons available at the proper times, performing jobs
which meet the needs of the enterprise and which provide
satisfaction for the individuals involved.”
In the words of Leon C. Megginson, human resource planning is “an
integration approach to performing the planning aspects of the
personnel function in order to have a sufficient supply of adequately
developed and motivated people to perform the duties and tasks
required to meet organisational objectives and satisfy the
individualʼs needs and goals of organisational members.”
On the analysis of above definitions, human resource planning may
be viewed as foreseeing the human resource requirements of an
organisation and the future supply of human resources and making
necessary adjustments between these two and organisation plans,
and foreseeing the possibility of developing the supply of human
resources in order to match it with requirements by introducing
necessary changes in the functions of human resource
management.

Significance
Manpower planning works against all contingencies and provides a
cushion to managers for the effective utilization of human
resources. It provides a framework for many important decisions
relating to human resources. The significance of the manpower
planning can be stated as follows.
Growth: An appropriate manpower planning provides information to
the management to undertake decisions relating to expansion of the
existing operations or contraction. For example in Retail
Organization, if manpower planning shows surplus people
Organizations can make a planned expansion of its scale of
operation to use the existing manpower.
Talent management: Manpower-planning facilitates an
Organization to develop a reservoir of talent in the Organization.
Organization may take appropriate decisions to develop a list of
available talents within the Organization. Having manpower, a plan
ensures planning programmes of training and development of
employees in a proper way.
Cost control: Manpower planning facilitates preparation of
manpower objectives and budgets. This ensures exercising control
over various manpower costs.
Facilitates planning: Possessing an appropriate manpower plan
provides a background to plan various facilities required to promote
welfare and well-being of employees. Facilities such as canteen,
housing, education, medical etc. can be planned based on the
labour plans.
Succession planning: Manpower planning prepares people for
meeting all future challenges. Organization can have a provisional
list of employees who are ready with qualifications and knowledge
required for undertaking any future assignment. Based on the
requirement organizations can readily replace superiors in the case
of emergencies and eventualities.

Activities required for HRP/Manpower planning

The various activities involved in the process of human resource
planning are now discussed one by one.
1. Analysing organisational plans and objectives:
The process of human resource Planning begins with analysing the
overall plans and objectives of organisation. The reason being the
human resource plans stem from business plans. Analysis of
business plans into sub-sectional and functional plans such as
technology, production, finance, marketing, expansion
diversification provides for assessing the human resource
requirements for each activity in each section and department.
Similarly the analysis of organisational objectives also provides for
human resources required by an organisation. For example, if the
objective of the organisation is rapid growth and expansion it would
require more human resources for its all functional areas. Thus, it is
evident the human resource planning needs to be made in
accordance to the overall organisational plans and objectives.
2. Analysing objectives of Human Resource Planning:
The main purpose of human resource planning is matching
employeesʼ abilities to enterprise requirements, with an emphasis
on future instead of present arrangements. According to Sikula, “the
ultimate mission or purpose of human resource planning is to relate
future human resources to future enterprise need so as to maximise
the future return on investment in human resources”. For this,
managers need to specify the objectives of human resource
planning with regard to the utilization of human resources in the
organisation.
3. Forecasting Demand for Human Resources:
The demand for human resources in an organisation is subject to
vary from time to time, depending upon both external and internal
factors External factors include competition, economic and political
climate, technological changes, government policy, etc.
Among the internal factors include growth and expansion, design
and structural changes, management philosophy, change in
leadership style, employees resignation retirement, termination,
death, etc. Therefore, while forecasting future demand for human
resources in the organisation, these factors need to be taken into
consideration.
Forecasting demand for human resources is good for several
reasons because it can help:
(i) Quantify the number of jobs required at a given time for
producing a given number of goods or offering a given amount of
services,
(ii) Ascertain a staff-mix needed at different points of time in the
future and
(iii) Ensure adequate availability of people with varying
qualifications and skills as and when required in the organisation.
There are various techniques varying from simple to sophisticated
ones employed in human resource forecasting.
These include:
1. Management Judgment
2. Work-Study Method
3. Ratio-Trend Analysis
4. Delphi Technique
5. Flow Models
6. Mathematical Models.
These are described one by one:
a. Management Judgment:
This technique is very simple and time-saving. Under this
technique, either a “bottom-upʼ or a ‘top-downʼ approach is
employed for forecasting future human resource requirement of an
organisation. In case of bottom-up approach, lime managers
prepare departmental requirements for human resource and submit
it to the top managers for their review and consideration.
In the ‘top-downʼ approach, the top managers prepare the
departmental forecasts which are reviewed with the departmental
heads or managers. However, neither of these approaches is
accurate. Forecasts based on these approaches suffer from
subjectivity. This technique is suitable only for small firms or in
those organisations where sufficient data- base is not readily
available.
b. Work-Study Method:
This method can be used when it is possible to measure work and
set standards and where job methods do not change frequently. In
this method as used by Fredrick Winslow Taylor in his ‘Scientific
Managementʼ time and motion study are used to ascertain standard
time for doing a standard work. Based on this, the number of
workers required to do standard work is worked out. The following
example illustrates this method.

Supposing, the span of control is ten, then, there will be requirement

for five (50/10) supervisors also to supervise the work of 50
workers as forecast just above.
c. Ratio- Trend Analysis:
This is one of the quickest forecasting techniques. Under this
method, forecasting for future human resource requirements is
made on the basis of time series data. In other words, this technique
involves studying past ratios (e.g., total output/ number volume/
number of sales persons, direct workers is made for indirect
workers) and, based on these forecasting is made for future ratios.
While calculating future retios, allowances can be made for
expected changes in organisation, methods and jobs. The demand
for human resources is calculated on the basis of established ratios
between two variables. Go through the following illustration. It will
help you understand how Ratio-Trend Analysis is used for
forecasting human resources requirement of an organisation.

In case, there is change in the employeesʼ mental and physical

health in 2000-2001, the above estimates need to be revised
accordingly in order to estimate appropriate requirement for human
resources in 2000-2001.
d. Delphi Technique:
Delphi technique is named after the ancient Greek oracle at the city
of Delphi This is one of the judgmental methods of forecasting
human resource needs. It is a more complex and time-consuming
technique which does not allow group members to meet face-to-
face. Therefore, it does not require the physical presence of the
group members.
The following steps characterize the Delphi technique:
1. The members are asked to provide their estimates of human
resource requirements through a series of carefully designed
questionnaires.
2. Each member anonymously and independently completes the
first questionnaire.
3. Results of the first questionnaire are compiled at a central
location, transcribed, and copied.
4. Each member receives the copy of the result.
5. After viewing the results, members are again asked to review their
estimates. The initial results typically trigger ne w estimates or
cause changes in the original position.
6. Steps 4 and 5 are repeated as often as necessary until a
consensus is reached.
The Delphi technique insulates group members from the undue
influence of others. Also, since it does not require the physical
presence of group members, even a global company could use this
technique with members/managers stationed in different countries.
As the technique is extremely time consuming, it is frequently not
appropriate when a speedy decision is necessary Further, the tech-
nique might not develop the rich pool of alternatives that interacting
or nominal groups do. The ideas that might arise from the heat of
face-to-face interaction might never come up.
e. Flow Models:
Among the flow models, the simplest one is called the Markov
model.
This model involves the following:
(i) Determination of time period that will be covered under forecast.
(ii) Establishment of employeeʼs categories also called states. There
should not be overlapping among the various categories.
(iii) Enumeration of annual flows among various categories ox states
for several time periods.
(iv) Estimation of probability of flows or movements from one
category to another based on past trends in this regard.
However, the Markovian model suffers from disadvantages like
heavy reliance on past data, which may not be accurate in abnormal
situations like periods of turbulant change, and individual accuracy
in forecast is sacrificed at the cost of group accuracy
f. Mathematical Models:
Mathematical models express relationship between independent
variables (e.g., production, sales, etc.) and dependent variable (e.g.,
number of workers required). The following is one'” such widely
used mathematical model for forecasting employees need:
Where, En = (Laggn + G) 1/% / Y
En is the estimated number of workers required in n number of
years. Lagg refers to the overall value (in rupee terms) of current
business operations. G denotes the overall growth in business
activity over n years at current value terms i.e. in rupees.
Y implies average improvement in productivity estimated during n
number of years.
Y is level of business activity per worker. Following above formula,
estimates for manpower requirements in future are made. Due
allowance can also be made for expected changes in business
strategy in future.
4. Forecasting Supply of Human Resources:
Having forecast human resource demand, the next task involved in
human resource planning is to forecast human resource supply
Forecast of human resource supply gives the quantity and quality of
people available from internal and external sources of manpower
supply, after making due allowances for absenteeism, transfers
promotions, changes in work hours, and other conditions of works”.
Forecasting of human resources begins with the current human
resource inventory, also called human resource audit. Human
resource audit is separately discussed, in detail, later in chanter 29.
In brief, human resource inventory contains information about
present human resources in the organisation.
It reveals what is available in the stock of manpower and what can
be expected in future. Thus, it can indicate whether the supply of
human resources is less than its demand or more than its demand.
Whatever be the situation, the same will be made good accordingly.
5. Matching Demand and Supply:
Once demand for and supply of human resources of an organisation
is forecast, the two need to be reconciled. Such reconciliation will
reveal either shortage or surplus of human resources in future.
Accordingly, action plans will be prepared to meet the situation, i.e.,
to strike a balance between the two. In the case of shortage of
human resources, this will be met through recruitment, transfer,
promotion, training and development, retention, etc.
On the contrary, in case of surplus human resources, it can be made
good through schemes like redeployment, retrenchment; voluntary
retirement scheme (VRS) through golden handshake etc. will be
recommended and implemented. Yes, downsizing should be done in
consultation with the employees union. This will help avoid
employeesʼ resistance for change in job.
6. Monitoring and Control:
The sixth and final step involved in human resource planning is
monitoring and control. Once the action plans are implemented,
these need to be reviewed, regulated and monitored against the set
standards.
Monitoring of action plans and programmes help reveal
deficiencies, if any Corrective measures help remove deficiency
and, thus, control the implementation of action plans in the right
direction. In case of changes in business environment, the action
plans formulated earlier need to be modified in the light of changing
needs of organisation in the changed environment.

Objectives of human resource planning

Employee planning is a process used to establish the goals of
workersʼ roles and to develop appropriate strategies to achieve the
goals of the organization with key objectives of human resource
management.
Human resource planning means that internal and external
employees match the vacancies expected in the organization over a
period of time. This helps the department of staff to provide the
right employees to the organization at the right time to explain the
four main objectives of human resource planning.
That is why it becomes a high priority activity. Different experts then
point out the objectives and aims of human resource planning.
The following is a list of some of the main objectives of human
resource planning that you must keep in mind as a business student
with aims of HR planning.
1. Employee recruitment
When a company hires new employees, it is often the human
resource managers who are responsible for interviewing new
applicants to ensure they meet the companyʼs requirements. One of
the main objectives for human resource managers is to find the right
person with the most well-mannered skills and experience needed
for the organization.
Experienced workers will complete the task for the shortest money
with the goal of maximizing profits. Furthermore, finding the best-fit
staff is part of the organizationʼs future plans and goals and
objectives of human resource management.
2. Union workers
Some workers are governed by unionized laws and regulations.
There are also human resources departments in companies
operating under union rules with human resources goals and
objectives.
One of the main objectives for unionized companies is to follow the
unionʼs rules and plans in terms of wages and salaries. This means
respecting the requirements set by the union, regardless of the
performance and seniority of the employees of the company.
3. Administrative Manual
Human resources staff are responsible for developing manuals and
guides for managers and managers to follow, whether they are
manual training or safety guides for corporate objective and human
resource planning.
One of the main goals of the human resources department is to
create guides and manuals that not only hold true over the years but
also provide a designed approach to getting things done in a given
organization. These administrative guides give the company control
over how employees perform.
4. Equality and validity
Another major purpose of the human resources department in
planning is to create plans, regulations that meet local and
statewide laws in a given industry. For example, a human resources
department of a food service company must comply with local,
state, and federal laws and regulations to preserve food products
and services while preparing administrative manuals for employees
and managers.
5. Systematic human resource plan
Conduct a systematic human resource plan in the sense that it is
organized and managed on the basis of perceived reality with
objectives of strategic human resource planning
Identify future opportunities and dangers, which, combined with
other important information, will provide an organization the basis
for making better decisions at the present time to exploit
opportunities and avoid risks.
6. Design the desired future and identify ways to achieve it
Although small, each company must review the plan regularly to
determine who needs the talent or who may be able to take on new
responsibilities within the organization.
7. Tips for daily planning
Planning is the key to success in professional life. It is about
anticipating, visualizing, and preparing for your challenges that will
affect your day-to-day needs and the development of your work.
Planning and not dying in the pursuit is a daunting task that sounds
simple, but it must be combined with reality enough to be effective.
Follow these tips from Business Study Notes and learn how to
organize.
8. Meet the organizational needs
Human resources are related to the future needs of the organization
in order to recover the greatest investment in human resources
Pair or adjust employee skills to the needs of the organization,
emphasizing the future rather than the present with strategic human
resource management objectives
Forecast the labor demand or how many workers the company will
need in the future
Provide workers with the skills needed to meet labor supply or labor
demand in the organization
Plan on a continuous basis and support appropriate action if
necessary, as the human resources environment is constantly
changing.
9. Recognize the terrain
Walk past the field you are about to move into. Examine what kind of
tasks you plan to do: size, approximate time, manual or mechanical,
creative, analysis, and concentration, with half or with a partner with
objectives of hrm planning.
10. Visualize your big tasks in small pieces
If you are going to do big things, you have to treat them in a special
way, like mini-projects. Follow some practical ideas like breaking
them down and sharing them wisely in two days.
11. Organize and study your agenda
Study your agenda in search of great “time-outs” such as meetings,
visits, layouts, and some work. Do not underestimate the time that
can snatch you away and thus set realistic expectations for the
future with strategic objectives of hrm.
12. Do one thing at a time and donʼt overload yourself:
Schedule a moment for each pending activity; Even if you can and
do change the order, it is best to rank the tasks, especially at the
beginning. Do not leave everything in incomplete hands, but do not
shoot for several hundred activities a day with hrbp goals and
objectives.
13.Get ready to get started:
Like the first song of the concert, the first task marks the rhythm
and success of the day. Make sure you have all the materials and
equipment you need in advance. Keep in mind that the one who
takes the bulk of it gets a bit chewy. Be organized and adjust every
day of the day to become a skilled professional.

12.5 MANPOWER DEMAND FORECASTING

TECHNIQUES
Manpower demand forecasting techniques used at the macro level
are as follows:
• Employees Opinion Method
• Normative Method
• Component Method
• International Comparisons Method
• Mediterranean Regional Project (MRP) Method
Employees Opinion Method
Under this method employees are asked to give their assessment of
future manpower needs in different categories in their respective
establishment. Aggregating over all employees and making
allowance for death, retirement, migration and occupational
mobility. It is then possible to arrive at future manpower demand by
skill category. This method has been widely used in United States,
United Kingdom, Canada, Sweden and France. This method
particularly useful in the case of highly skilled professional
categories of manpower and it has also seen observed that the
method has been very useful in making short term manpower
forecasts than medium term and long term forecasts.
Normative Method
Normative method uses norms for employing manpower to produce
goods and services. The norms are usually expressed as ratios
between manpower employed and the volumes (or value) of goods
and services produced. These ratios are based on either the existing
situation or the desirable situation some examples of ratios are
output ratio, employment-fixed capital ratio, teacher- student ratio
and engineer technician ratio.
Component Method
In the component method requirement of any category of
manpower are further sub-divided into various components and
then a separate norm appropriate to each component is used in
arriving at a forecast of manpower requirements for each
component. Forecasts for all the components are then aggregated
to arrive at an estimate of future manpower requirements for the
manpower category concerned.
The component approach is basically the normative approach. The
difference lies basically in using different norms for different
components.
International Comparison Method
International comparison sometimes facilitate use of stable norms.
There is a considerable subjective evaluation of international
experiences in using the international comparisons method which is
not always easy to justify an objective consideration. This method
has, therefore, been not very popular.
MRP Method
The MRP method is designed to forecast manpower requirement by
educational category so that the forecasts are rendered directly
relevant to educational planning exercise.
Five steps involved in forecasting manpower requirement by
education.
The first step is to arrive at the target year projections of GDP
determined by an economic plan in case of planned economics.
The second step involves the estimation of sectoral contributions of
GDP in the target year by major sector such as agriculture,
manufacturing, transport and communication, trade and commerce
and services.
At the third step, sector specific average employment output ratios
are applies to sectoral composition of GDP in the target year to
arrive at estimates of employment in the target year by sector.
In fourth step, sectoral forecasts of employment, thus obtained for
the target
year are then distributed among a number of mutually exclusive
occupational
categories using either the base year or any desirable sector –
occupation
distribution. At the final step occupational structure of manpower
forecasts
relating to the target year are translated into educational structure
by applying a standard measure of the level of formal education
training required to successfully perform the tasks specified under
each occupational title. This procedure gives the net manpower
needs – not of replacement needs.
Macro and micro hrp
Micro and macro level human resource planning are two different
major aspects of human resource planning. Micro level planning
means the planning, which is done at a smaller level, say at an
organizational level. Whereas, macro-level planning is considered to
be a planning conducted in the view of a whole industry or country.
Therefore, both type of planning are distinctive in nature based on
their scopes only. However, in both cases, planning revolves around
estimation of human requirements in a futuristic situation. Following
are some of the similarities and differences of micro and macro level
planning.
1) Macro-level planning is the process, where requirement of
manpower at the industry, sector or national level are estimated.
Whereas, itʼs mainly an organization, where planning is
concentrated in case of micro-level planning.
2) At the macro-level planning, factors such as future economic
trends, social priorities etc. are taken into consideration and
accordingly skill mapping is done, where futuristic skill needs are
taken care of. Based on such prediction of future trend, the supply
and demand related aspects are considered. Whereas, at micro-
level planning, forecasting is concentrated in an industry. However,
in micro-planning, factors like internal availability, supervisory skills
etc. are taken into consideration.
3) Both macro and micro-level planning needs accuracy in
outcomes. However, the chances of accuracy in forecasting of
manpower at the micro-level planning has always remained high.
4) Macro-level planning is a more decentralized process than
micro-level planning, though an element of central coordination is
required for both type of planning.
Scholars have however explained the relationship between macro
and micro-level human resource planning in the more practical
context. The most popular and common proposition of macro-level
planning has been identified as the alignment between the
administering HR with overall organizational mission and
organizationʼs strategic plan. Moreover, such proposition also
examines the employee-management policies and procedures and
their effect on human resource planning. It is observed and
practiced that macro-level human resource planning drives the
micro-level human resource planning, which develops and
implements the tactics needed to help the organization achieve the
strategic objectives. From the micro- level planning perspectives, it
is also examined or reviewed that the business has the appropriate
number of employees with the appropriate mix of knowledge, skills
and abilities in the proper areas and departments.
How to undertake macro-level and micro-level human resource
planning in the situation of recession: In case of both macro and
micro-level planning, contingencies pose serious challenges as
such developments create the situations more turbulent and
unpredictable for an human resource planner. However, recession is
a global phenomenon now a days. Recession can be defined as
general economic slowdown over a long period of time. Recession
can effect the entire economy, a part of the economy, a specific
industry or sector etc. In case of recession, an organization can also
get severely affected and the immediate impact can be seen in their
HR related practices. . It has been found from recent recessions at
some of the globally competitive economies that consumers starts
losing confidence in the economy of a country and itʼs impact
suddenly became visible in the general spending patterns. Such
tendencies cause large scale fall in demand and subsequently fall in
production targets, lower utilization of company resources, lay-off
of employees, loss of jobs, increased multi-tasking for existing
people in the organizations etc.
From the perspectives of HR in organizations, recessionary
tendencies cause direct impact on nature of job roles. It has been
found that during recession, some of the jobs are eliminated
causing loss of employment for a large number of people. Some of
the employees become overloaded with work as different related
roles are merged and few new jobs are also created, leading to
fresh, though restricted hiring. . In connection with workforce
reduction new work places design is needed. Some jobs will be
cancelled, some added and some will be put together. The
employee has too Obtain new skills, and usually work load is higher.
Putting some jobs together force human resource department to
remake career plans.
It has always been found that an organization badly affected by
recession faced several challenges in maintaining balance between
cost aspects and long term sustainability. One of the most difficult
considerations, an organization normally interacts is the present
need to cut costs and to plan in such a way that its long term
strategic priorities are not compromised. For the same purpose, the
HR managers normally prioritize the investments based on the
fundamental understanding that not all the investments create
equal returns. Unless HR managers, like many other resource
managers, is able to plan in such a way, the organization may
identify an areas where returns are poor and slowly withdraw
investments from there. However, it is always recommended that
the HR manager and the top management talks to each other
periodically and finding out the ways to strategic plans for
increasing the return from HR portfolio.
It is no secret that the high talented employees or multi-skilled
employees are most critical to a companyʼs success. Companies
can find one way to decrease recruitment cost is to have multi-
skilled employees. Retention of multi-skilled employees help to
reduce manpower dependence, and the overall sum of all the multi-
skilled employees is greater than the same number of equal number
of specialist. The advanced knowledge, experience, and skills that
such employees have represent the most viable strategic
competitive advantage that a successful organization has. Talented
employees continuously need new challenges and goals
they can achieve, and a continuous supply of information and
resources they can use to solve business problems.
Compensation practices should be revised during a recession so
that they are adjusted with the needs of employees. Where the
incentive based bonuses may be too costly for an organization to
pay they can use other strategies. The companies can implement
flexible work schedules which not only provide a desired benefit to
employees but may also reduce the costs of the company.
Investment in healthcare benefits can allow a company to achieve a
competitive advantage that it can sustain after the recession,
enabling the organization to more easily attract talented employees
when labor demand improves. Stress management may also help an
employer to reduce its long-term employee medical costs. Such
strategies that can both maximize employee return and decrease
employee cost will provide significantly improved returns on HRM
investments.
HRM professionals should give strong consideration to increasing
resources allocated to training and development during a downturn.
The managers should design training and development programs
that are in line with employeesʼ needs and the skills required to
perform job tasks. This can be more easily accomplished if
managers first ensure that workers and their associated job roles
have the appropriate fit as previously recommended. Lack of
motivation in employees will not improve organizationʼs business in
any way. Motivation can be either intrinsic which is self-generated
that will influence the employees or
extrinsic which is all about rewards, promotion and so on. Effective
training and development programs will also consider how each
generation of employees uniquely prioritizes its needs. An employer
should utilize training and development programs that improve the
workplace flexibility of its managers as well.
Communication should definitely be one of the focus points during
the recession metrics. Open communication should be administered
because without this, the informal grapevine would then be the
ultimate source of the company. Communication minimizes
rumours, which if not managed properly, can lead to grave
consequences. The face-to-face communication such as briefings
by managers and small group meetings is a more appropriate
technique for dealing with a subject as traumatic as downsizing.
Employee Relations involves the body of work concerned with
maintaining employer- employee relationships that contribute to
satisfactory productivity, motivation, and morale. Employeeʼs
relations can be encouraged to reduce the overall cost of the
organization by involving employees. It is important that how HR
manages the relation with employees so that employee should feel
proud and gain a sense of ownership. In order to get through the
rough times and keeping the right people actively engaged,
performing well, and keeping them on board requires business
owners of all sizes to use all the tools at their disposal.
During recession, HR manager has to act as a democratic leader. He
should also try to combine the organizational and employees
interest and adopt situational leadership style as well as humanistic
approach for leading the employees to achieve the organization
goals. Following are few recommendations for HR Manager to deal
with employees during
recession:
• The HR managers should focus on the succession and
contingency plans.
• Maintaining employer-employee relationships that contribute to
satisfactory
productivity, motivation and morale.
• Rewards and recognition is one of the best tools to motivate
employees.
• Flow of Communicate should be from top to down that will help in
making conducive atmosphere within the organization
• Identifying the real key employees and focus on the continual
development of employee knowledge to retain them.
• Human Resources have to be ready to provide necessary data to
the Organization, solving the initial problems with the recession.
• Design new efficient HR policies, processes and procedures to
ensure that they are purposeful and contribute directly to the
success of the company with minimum cost.
• Consistent and committed leadership helps employees overcome
organizational change caused by downsizing.
• Increase brainstorming sessions with top management and
contribute in their strategic planning.
• Review the employee performance evaluations to determine the
key people that the company cannot afford to lose.
In other words, human resource planning at the macro-level
attempts to integrate the initiative to the organizational corporate
strategy. Human resource planning at the macro-level is integrated
with strategic planning through the acquisition of employees to
achieve future organizational goals. This includes an analysis of the
current workforce and how it can be improved to best achieve these
goals. Through the objectives of strategic planning, human
resources can prepare the organizationʼs future workforce. Strategic
planning supports the direction a company wants to take. This
relates to the organizationʼs vision, mission and its strategic
objectives. Goals can be loosely or narrowly defined, but more
defined company goals usually lead to better planning and
attainment. Macro-level human resource planning analyzes the
competencies or abilities of the current workforce and compares
them to future requirements. It attempts to meet future demands by
attracting, retaining and training quality employees. Strategic
planning cannot exist without human resource planning. For macro-
level human resource planning to be effective, the organizationʼs
future plans and objectives must be communicated or understood.
The plans and objectives will have a direct impact on future
employment needs. To assist in realizing objectives, the
organization must prepare for a future workforce. Macro-level
human resource planning adds value in the following ways:
• Macro-level planning is the process, which identifies the issues
from broader comprehensive perspectives. Many of such issues
have not been identified before.
• Macro level planning attempts to study such issues of the
organization, which not
only effect individual performance but also the overall organizational
performance framework. These are all underlying issues, those
must be addressed for effective business performance
The areas of interventions in such cases can be classified into two
categories.
The first of these areas can be identified in the existing scenario of
the organization or the factors influencing the organization currently.
Also, the developments around the industry, those can effect the
industry in future also can be identified. The second areas of
intervention can be macro-level plans, policies, strategies and basic
fundamental areas, which are essential to understand in such a
situation of macro-level implementation. Such intervention areas
may include succession planning, workforce planning, Workforce
planning issues, employment equity planning etc. Micro-level
planning is the planning, focusing on a specific unit of business etc.
However, no micro-level planning can be implemented without
referring macro level planning. It can be said that each micro-level
planning element is somehow related to macro-level planning
related issues. The direct implications of micro-level planning on HR
issues, which are related to macro-level planning are fair treatment
of the employees, pay levels and salary structures for hiring and
retaining talented employees, ensuring a practice of alignment
between line and staff departments in all aspects of HR related
matters etc. Consistent performance management practice with
clearly drafted plans and policies and steps taken for competency
development are also some of the major areas of repercussions of
micro-level planning too.
What is Performance Analysis?
Performance Analysis is the process of studying or evaluating the
performance of a particular scenario in comparison of the objective
which was to be achieved. Performance analysis can be do in
finance on the basis of ROI, profits etc. In HR, performance analysis,
can help to review an employees contribution towards a project or
assignment, which he/she was allotted.

The performance analysis step consists of 3 basic steps:

1. Data Collection: It is a process by which data related to
performance of a program is collected. They are generally collected
in a file, it may be presented to a real user in a real time. The basic
data collection techniques are:
a. Profiles: It records the time spent in different parts of the program.
This process in very important for highlighting performance
problems. They are gathered automatically.
b. Counters: It records frequencies or cumulative number of events.
It may require programmer intervention.
c. Event: It records each occurrence of various specified events. It
thus produces a large number of data. It can be produced
automatically or with programmer intervention.

2. Data Transformation: It is applied often to reduce the volume of

data. For example, a profile recording the minutes spent in each sub
routine job on each processor might be transformed to determine
minutes spent in each subroutine on each processor and the
standard deviation from this mean.
3. Data Visualization: Although data reduction techniques can
recue the volume of data, it is often necessary to explore raw data.
This process can benefit much more from the use of data
visualization techniques.
When a particular tool is selected for a particular task, the following
issues are considered:
a. Accuracy: Performance data that we get using the sampling
technique are less accurate than data we get using counters or
timers.
b. Simplicity: The best tools are that collect data automatically
without much programmer intervention.
c. Flexibility: A flexible tool can be extended to collect additional
information or to provide multiple views of the same data.
d. Intrusiveness: We need to take into account the overheads when
analyzing data.
e. Abstraction: A good performance tool allows that data to be
judged at a level of abstraction which is suitable for the
programming model of parallel programs.
Analysis of productivity
Productivity Analysis is conducted to identify areas for potential
productivity improvement projects based on statistical data
collected during the analysis. The analysis also pinpoints areas of
delays and interruptions that cause loss of productivity.
The first step in any productivity improvement initiative is to
understand the current state of the operation. Productivity analysis
provides baseline indicators that will also yield data which will be
used to determine possible productivity improvement objectives
and potential cost savings.
Reliable data obtained from the productivity analysis also makes the
following outcomes feasible:
● Determination of productivity improvement goals;

● Immediate elimination of non-value added activities;

● Ability to estimate potential savings based on the analysis

results.
Examples of Productivity Analysis
Development of a valid assessment of the present work content,
work interruptions and delays, as well as the number of minutes,
hours, and percentage of time spent on each task.
From the productivity analysis study results:
● Determine value added vs. non-value added work as well as any

potential productivity improvements and/or cost reduction

opportunities.
● Provide recommendations for the most efficient way to perform

the tasks.
● Develop a valid assessment of the current operations.

● Develop a valid assessment of the present workflow process.

● Provide recommendations to improve utilization and

productivity.

Productivity – Techniques for Improving Productivity

In appraising an organizationʼs potential for improving productivity,
its current operations and management practices should be
examined to decide how they should function in the future. A large
number of techniques have been developed for improving
productivity.
Some of these techniques are described below:
Technique # 1. Work Study:
Scientific analysis and improvement of work in all its aspects is a
very useful technique of increasing productivity. Work study results
in improvements in plant layout, material handling system, process
design and standardization, working conditions, etc. These in turn
help to minimize defective works and waste.
Technique # 2. Research and Development:
Continuing research and development (R & D) leads to the
discovery of better techniques of production and improvements in
existing machinery, equipment, etc. The rate of technological
progress is a direct determinant of productivity. That is why
companies and countries spend huge sums of money on research
and development activities.
Technique # 3. Incentive Schemes:
Wage incentive schemes seek to motivate employees by paying
extra remuneration. Profit sharing or bonus, labour welfare measures
and good working conditions also help in this objective. All these
schemes foster sense of belonging and closer human relationships.
As a result, there is reduction in idle time caused by absenteeism,
labour turnover, accidents and disputes.
Technique # 4. Production Planning and Control:
Scientific task planning ensures timely supply of inputs, proper
maintenance of plant, efficient work scheduling and regulation of
day-to-day ‘ activities in the plant. It facilitates full utilization of plant
capacity and achievement of production targets.
Technique # 5. Workersʼ Participation in Management:
Labour participation in management is considered an effective tool
for improving productivity. It helps in developing mutual
understanding and cooperation between management and labour.
Joint consultation, suggestion schemes, two-way communication,
grievance procedure are the main forms of workersʼ participation in
management.
Technique # 6. Automation:
Mechanization, automation and rationalization are major
breakthroughs for increasing productivity. These schemes are
effective provided the productivity gains are equitably shared with
workers. Such measures increase the speed and accuracy of work.
Technique # 7. Management by Objectives (MBO):
MBO is a process whereby the superior and subordinates jointly
identify the specific measurable goals, define results expected of
each individual and jointly assess the contribution of every
individual. It is an approach for integrating the individuals with the
organization. The focus of MBO is on participative goal setting, joint
evaluation of performance and results to be achieved.
It is also known as Management by Results. A link is created
between the organizational goals and individualʼs targets so that an
employee can see how his work contributes to the goals of the
organization. Subordinateʼs participation in setting goals and action
plans and in reviewing performance provides a good measure of
self-control. As a result there is improvement in the understanding,
motivation and morale of the individual. However, MBO requires
education and training of subordinates and a democratic leadership
style on the part of managers.
Technique # 8. Job Enrichment:
Job enrichment is the process of redesigning a job in order to
enlarge its scope and to give the worker more to do. Its purpose is to
improve job satisfaction, motivation and morale of workers. When
the job is engineered to workers the dehumanization element is
reduced so as to improve productivity and to reduce cost. It
provides an opportunity for the satisfaction of higher level needs.
The following methods can be adopted for job enrichment:
(a) Give workers new and more varied tasks to perform.
(b) Provide greater freedom and self-control in performing jobs.
(c) Give opportunity to do the whole task rather than an element of
it.
(d) Give employees greater responsibility for their own work.
(e) Provide an opportunity to the worker to become an expert on a
particular task.
(f) Supply production reports (feedback) directly to workers.
More diverse tasks and responsibilities imply greater flexibility in
work assignments. Job enrichment provides an experience that
widens the skill, knowledge and confidence of employees. It
contributes towards the development of positive attitudes and work
environment so as to reduce employeeʼs absenteeism and turnover.
Technique # 9. Flexitime—an Alternative Work Pattern:
Flexitime is a relatively new work pattern which is a major departure
from tradition. It allows the workers to set their own work hours
subject to a minimum number of hours per week. During a particular
period all workers are required to be present. Such a period is called
‘core hours.ʼ Subject to these limitations workers are given the
freedom to decide when they will work.
Flexitime helps to reduce worker alienation and to raise productivity.
It reduces the tyranny of supervisors and provides job opportunity
to working mothers, aged persons and students. It has greater
motivational value than five daysʼ work-week. By permitting workers
the right of self-determination, flexitime reduces tardiness, overtime
and short-term absenteeism.
Technique # 10. Quality of Work Life (QWL):
QWL is a new technique for improving productivity and quality of
work.
Technique # 11. Quality Circles (QC):
A quality circle is a small group of workers which regularly meets to
discuss problems, investigate causes, recommend solutions and if
authorized, to take corrective action. It usually consists of five to
fifteen members who collectively identify, analyze and resolve work-
related problems and may even implement solutions.
A leader is appointed to direct and guide the circle. A Facilitator
makes integration of programme easier at all levels. The Coordinator
supervises the facilitators and directs administration of the
programme. There is a Steering Committee which oversees and
directs the efforts of all quality circles in the organization.
The purpose of a quality circle programme is to improve motivation,
productivity and product quality. It is designed to optimize the
manpower by capturing the creative and innovative power of the
workforce. It provides workers an opportunity to participate in
decisions about their work. As a result, they take greater interest in
their jobs. It develops a sense of participation and contribution
among workers.
DIFFERENT METHODS OF WASTAGE ANALYSIS
• LABOUR TURNOVER INDEX
• STABILITY INDEX
• COHORT ANALYSIS
• CENSUS ANALYSIS

LABOUR TURNOVER INDEX

• This index indicates the number of leavers as percentage to
average number of employees. • Average number of employees
employed in a given time period is decided by adding the
employees at the beginning and end and then dividing the same by
two.
Stability Index
• This index indicates stable workforce percentage for a given
period and can be computed as under:
• Stability Index = (Number with more than 1 Year service now/
Number engaged at the start) * 100
COHORT ANALYSIS
• Cohort means homogenous groups.
• Cohort analysis takes into account the length of service.
• Eliminates the defect of labour turnover index.
• Cohort analysis is more accurate for a small homogenous group.

• Cohort Analysis = (Number remaining at a given time Number /

engaged at the start)*100
MANPOWER PLANNING MODEL
Manpower planning is a process of assessing the need for
manpower keeping in view the overall Organizational objectives and
policies, forecasting the supply of manpower and matching the
demand and supply with the help of various manpower
programmes. It also consists of overseeing implementation and
evaluation of the plan and final integration with the other human
resource plans. Look at Figure 3.1 which shows the steps required in
manpower planning.
1. Examining organizational objectives and policies
2. Assessing manpower demand
3. Forecasting supply of manpower
4. Gap analysis
5. Designing manpower programmes
6. Manpower plan implementation
7. Evaluation and feedback

1. Examining organizational objectives and policies: Manpower

planning starts with examining the overall objectives of the
organization. In fact, manpower plan should be integrated into the
overall objectives. The number of employees required to perform
various operations will be derived from the objectives of the
Organization. Overall objectives of the Organization have to be
understood in order to draw a good manpower plan.
2. Assessing manpower demand: Manpower demand is the
number of people required to handle the present jobs. Forecasting
the demand for manpower is the process of estimating the future
quantity and quality of employees required. For instance in a Retail
Organization the manpower demand is forecasted based on the
work to be performed in every Retail Stores. Obviously the long term
corporate plans, budgets and annual plans would become basis for
forecasting the demand for labor. This is a common activity in most
Organizations. The existing job design and job analysis provide
useful information in this regard. The demand forecasting should
consider several internal and external factors. External factors are
political, economical, technological, legal, ecological, governmental,
social, and ethical factors. These factors influence the number and
quality of manpower required.
3. Forecasting supply of manpower: Supply forecast is also known
as manpower inventory. The objective of preparing manpower
inventory is to find out the number and quality of manpower
available within the Organization to employee in various jobs
identified in the Organisation. Development of supply of manpower
data relating to present human resources in terms of components,
number, designations, and department wise should be developed.
Here potential losses in the existing manpower should be
considered. The loss of manpower arises out of voluntary
retirements, deaths, retirements, dismissals, layoffs, disablement
due to ill health, accidents and other losses occurring due to poor
attitude and low commitment to the Organisation. Transfers,
promotions and demotions, transfers and conditions of work also
effect supply of manpower.
4. Gap analysis: Gap analysis is the process of identifying the
difference in the estimated number of employees and actual
number of employees available in the Organization. This enables to
determine the quantity and quality of manpower needed. This gap
reveals the number of personnel to be recruited to fill the gaps.
5. Designing manpower programems: The next step in manpower
planning is designing various programmes relating to manpower. In
this regard, changes in the product or services in the Organization,
competition and internal union pressures should be taken into
consideration. Manpower plan details the number of employees
required. Based on this, the organization should make a program of
recruitment. Selection program should be designed based on the
source of recruitment and requirement to the job. In a retail stores
the shelf sorters have been given training on billing mechanism and
technology of billing, they can be now redeployed by promoting
them as billing assistants. This enables motivation and satisfaction
that they are promoted to next higher-level jobs. Training and
development of existing personnel is needed in order to ensure their
productivity and satisfaction. Manpower plan enables to decide
number of trainees, type of training, methods of training, quality of
trainers, frequency of training programs and the needed budget
required. Manpower plan should enable to plan a program of
retention. In the globalization scenario, retention has become a
major challenge to all Organizations. Retail sector is no exception to
this phenomenon. In Retail Sector employees leave Organization
due to poor compensation, attractive pay packages offered by the
competitors, frequent conflicts with boss, colleagues and
customers, and unstable manpower policies like promotion,
recognitions, rewards, financial help etc. Thus, manpower plan
should help to design a comprehensive plan of retention of
employees.
6. Manpower plan implementation: Implementation is the process
of converting plan into action. Implementation of manpower plan is
done with the help of various programmes designed. In the process
of implementation, it should be noted that a close coordination is
required with the other section of the human resource management
department.
7. Evaluation and feedback: After implementation of various plans
and programmes, it is necessary to evaluate the effectiveness of
these programmes. In the process, evaluation takes into account the
objectives of manpower plan. The extent of attainment of objectives
within the given time is evaluated with the help of certain
parameters. Some times manpower plans may be drawn on too
conservative manner or otherwise. So a critical feedback is required
to see that any lapses identified do not reoccur in the subsequent
plans. This ensured improvement in the manpower planning during
the course of time.