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    Manpower PlanningManpower Planning

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    What is this HRP ?What is this HRP ? It is nothing butto plan strategically and mainly focus

    on reduction of labor costs with limited considerationof other elements related to human resources.

    We have seen after sep.11 2k attack manycompanies have laid offtheir staff orthey went forheavy downsizing e.g. of few ofthe companies are :

    Daimler Chrysler (100,000 workers)

    Kmart (60,000 workers)

    Lucent technologies (40,000 workers)

    IBM (40000 workers)

    General electric (75000 workers)

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    What is this HRP? What is this HRP?

    Why did these companies

    lay off suchhuge staff?

    What is the reason? Whydid they recruit at first

    place at all? On the other

    hand we have company,

    which did extremely well

    even atthe time of crisis.

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    Advantages of manpowerAdvantages of manpower

    planningplanningManpower planning ensures optimum use of

    available human resources.

    It is useful both for organization and nation. It generates facilities to educate people in the

    organization.

    It brings about fast economic developments.

    It boosts the geographical mobility of labor.

    It provides smooth working even after

    expansion ofthe organization.prince dudhatra-9724949948

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    Advantages of manpowerAdvantages of manpower

    planningplanning

    It opens possibility for workers for future

    promotions, thus providing incentive.

    It creates healthy atmosphere ofencouragement and motivation in the

    organization.

    Training becomes effective.

    It provides help for career development

    ofthe employees.

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    Steps in Manpower PlanningSteps in Manpower Planning

    Predict manpower plans

    Design job description and the jobrequirements

    Find adequate sources of recruitment. Give boostto youngsters by appointmentto

    higher posts.

    Best motivation for internal promotion.

    Look afterthe expected losses due toretirement, transfer and other issues.

    See for replacement due to accident, death,dismissals and promotion.

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    Importance of HRPImportance of HRP

    Future Personnel needs

    Part of strategic planning

    Creating highly talented personnel

    International strategies

    Foundation of Personnel functions

    Increasing investments in HR

    Resistance to change and move

    Other benefits.prince dudhatra-9724949948

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    Penalties for incorrect HRPPenalties for incorrect HRP

    Understaffing loses the businesseconomies of scale and specialization,orders, customers and profits.

    Overstaffing is wasteful and expensive, ifsustained, and it is costly to eliminatebecause of modern legislation in respect

    of redundancy payments, consultation,minimum periods of notice, etc. Veryimportantly, overstaffing reduces thecompetitive efficiency ofthe business.

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    Demand should matchSupplyDemand should matchSupply

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    11stst Step towards HRPStep towards HRP

    Satellite picture' ofthe existing workforceprofile (numbers, skills, ages, flexibility,gender, experience, forecast capabilities,character, potential, etc. of existingemployees) and then to adjustthis for 1,3 and 10 years ahead by amendments

    for normalturnover, planned s

    taffmovements, retirements, etc, in line with

    the business plan forthe correspondingtime frames.

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    Future staffing needs will derive from:Future staffing needs will derive from:

    Sales and production forecasts

    The effects oftechnological change on task needs

    Variations in the efficiency, productivity, flexibility of

    labor as a result

    oftraining, work s

    tudy,organizational change, new motivations, etc.

    Changes in employment practices (e.g. use ofsubcontractors or agency staffs, hiving-offtasks,buying in, substitution, etc.)

    Variations, which respond to new legislation, e.g.payroll taxes ortheir abolition, new health and safetyrequirements

    Changes in Government policies (investment

    incent

    ives, regional ort

    rade grant

    s, et

    c.)prince dudhatra-9724949948

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    Forecasting Techniques:Forecasting Techniques:

    Managerial Judgment

    Ratio-trend analysisRegression analysis

    Work study techniquesDelphi technique

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    Forecasting Techniques:Forecasting Techniques:

    Managerial Judgment

    The technique may involve a

    bottom-up or a top-downapproach.

    This technique is used in smaller

    organizations or in thosecompanies where sufficient

    database is not available.prince dudhatra-9724949948

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    Forecasting Techniques:Forecasting Techniques:

    Ratio-trendAnalysis

    It involves studying past ratios and

    forecasting future ratios makingsome allowances for changes in

    the organization or its methods.

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    Ratio-trendAnalysis

    Year No.of

    employees

    Ratio

    Inspector :

    ProductionProdu

    ction

    Inspect

    or

    -3 1500 150 1 : 10

    Actual -2 1800 180 1 : 10

    Last year 2000 180 1 : 11Next year 2200 200 1 : 11

    Forecast +2 2500 210 1 : 12

    +3 2750 230 1 : 12prince dudhatra-9724949948

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    Regression Analysis:Regression Analysis:

    A firm first draws a diagram depicting the

    relationship between sales and workforce

    size.It

    th

    en calculates regression line aline that cuts rightthroughthe center of

    the points on the diagram.

    By observing the regression line, one can

    find out number of employees required at

    each volume of sales.

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    WorkWork--study Techniques:study Techniques:

    This can be used when it is possible to applywork measurementto calculate the length ofoperations and the amount of labor required.

    1. Planned

    o/p for next year 20,000 units2. Standard hours per unit 5

    3. Planned hours for the year 1,00,000

    4. Productive hours per man/year

    (allowing normal overtime,absenteeism and idle time) 2,000

    5. Number ofdirect workers

    required (4/5) 50

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    Delphi Technique:Delphi Technique:

    Named afterthe ancient Greek oracle at

    the city of Delphi, the Delphi technique is

    a meth

    od of forecasting personnel needs.

    It solicits estimates of personnel needs

    from a group of experts, usually

    managers.

    The HRP experts act as intermediaries,

    summaries the various responses and

    reportthe findings back to the experts.prince dudhatra-9724949948

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    RecruitmentRecruitment Points ofDiscussion:

    Opening Case: Problem of Booming B-

    Schools

    Meaning and definition

    Purpose and importance of Recruitment

    Factors governing recruitment

    Recruitment process Philosophies of Recruitment

    Alternatives to Recruitment

    Closing case: Morale gone bustprince dudhatra-9724949948

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    Meaning anddefinition:Meaning anddefinition:

    HRP

    Determine recruitment

    and selection needs

    Job Analysisprince dudhatra-9724949948

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    Meaning anddefinition:Meaning anddefinition:

    Recruitment is the process of searching for and

    obtaining applicants for jobs, from among

    whom the right people can be selected.

    Defn.: Recruitment is the process of findingRecruitment is the process of finding

    and attracting capable applicants forand attracting capable applicants for

    employment. The process begins when newemployment. The process begins when new

    recruits are sought and ends when theirrecruits are sought and ends when their

    applications are submitted. The result is a poolapplications are submitted. The result is a pool

    of applicants from which new employees areof applicants from which new employees are

    selected.selected.

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    Purpose and ImportancePurpose and Importance

    The general purpose of recruitment is toprovide a pool of potentially qualified jobcandidates. Others are:

    1. Determine the present and future

    requirements ofthe organization inconjunction with its HRP and job-analysisactivities.

    2. Increase the pool of job candidates atminimum cost.

    3. Help increase the success rate oftheselection process by reducing the number ofvisibly under qualified or overqualified jobapplicants.

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    Purpose and ImportancePurpose and Importance

    4. Help reduce the probability that job

    applicants, once recruited and selected, will

    leave the orgn only after a short period of

    time.5. Evaluate the effectiveness of various

    recruiting techniques and sources for all

    types of job applicants.

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    Purpose and ImportancePurpose and Importance

    A recruiting programme helps the firm in

    at least4 ways:

    1. Attracthighly qualified and competent

    people.

    2. Ensure thatthe selected candidates stay

    longer withthe company

    3. Make sure thatthere is match between costand benefit.

    4. Help the firm create more culturally diverse

    work-force.prince dudhatra-9724949948

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    Factors governing recruitment:Factors governing recruitment:

    External Forces

    Supply and demand

    Unemployment rate

    Labour market

    Political-social

    Sons of soil

    Image

    Internal forces

    Recruitment policy

    HRP

    Size of the firm

    Cost

    Growth and

    expansion

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    Recruitment ProcessRecruitment Process

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    Sources of RecruitmentSources of Recruitment Internal Sources:

    Present employees

    Employee referrals

    Former employees

    Previous applicants

    External sources:

    Professional ortrade associations

    Adver

    t

    isement

    s Employment exchanges

    Campus recruitment

    Walk-ins and Write-ins

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    Sources of RecruitmentSources of Recruitment

    External sources: Consultants

    Contractors

    Displaced persons Radio and television

    Acquisitions and mergers

    Competitors

    E-Recruiting

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    Evaluation of Recruitment ProcessEvaluation of Recruitment Process

    Keeping the main objective in mind, theevaluation might include:

    Return rate of applications sent out.

    Number of suitable candidates for selection.

    Retention and performance ofthecandidates selected.

    Costof

    the recrui

    tmen

    tprocess.

    Time lapsed data.

    Comments on image projected.

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    SelectionSelection Points to be discussed:

    1. Meaning and definition

    2. Outcomes ofSelection decision3. Selection Process

    4. Barriers to effective selection

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    Outcomes of SelectionOutcomes of Selection

    Decision:Decision:

    SUCCE

    SS

    FAILURE

    Failure

    Expected

    Success

    Expected

    False

    NegativeError

    True Positive

    (Win Win)

    True Negative

    Error(Lose Win)

    False Positive

    Error

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    Selection ProcessSelection Process

    Preliminary Interview

    Selection Tests

    Employment Interview

    Reference and BackgroundAnalysis

    Selection Decision

    Physical Examination

    Job Offer

    Employment Contract

    Evaluation

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    Barriers to SelectionBarriers to Selection

    Perception

    FairnessValidity

    ReliabilityPressure

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    Career Planning:Career Planning:

    Meaning of Career:

    Career means a lifelong sequence of

    professional, educational, anddevelopmental experiences that project an

    individual through the world of work.

    Objecti

    ve career

    Subjective career

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    Career Planning:Career Planning:

    Meaning:

    Career planning is the process

    or activities offered by theorganization to individuals toidentify strengths, weaknesses,

    specific goals and jobs theywould like to occupy.

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    Career Planning:Career Planning:

    Career planning is important for severalreasons:

    1. In orderto build commitment between the

    individual and the organization.2. In orderto develop long-range perspective.

    3. In orderto reduce labourturnover expenses.

    4. In orderto lessen employee obsolescence.

    5. In orderto ensure the effectiveness oftheorganization.

    6. In orderto allow the individual to achievepersonal and work-related goals.prince dudhatra-9724949948

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    Succession Planning:Succession Planning:

    Meaning:

    Succession planning is a

    process or activities connectedwith the succession of personsto fill key positions in the

    organization hierarchy asvacancies arise.

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