Human Resource Management (Code.

203)
Debarati Pandit_ PGPHR

Q3. . Define Human Resource Planning. Bring out the factors

influencing such a plan.
Ans. Dale S. Beach has defined it as “a process of determining and
assuring that the organization 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.”

Factors influencing such a plan:

Followings are-
1. Improvement of Labour Productivity:
Manpower or human resources as a factor of production differs from
other factors of production. As it is subject to its free will, the
productivity of labour can be improved if the workers are kept satisfied.

In other words, just as satisfied workers can be productive, dissatisfied

workers can be destructive.

Therefore, through proper human resource planning we can improve the

morale of the labour and improve labour productivity.

2. Recruitment of Qualified Human Resources:

Talented and skilled labour has become a scarce resource especially in

developing countries. Therefore, for the long run survival of the firm, it
is essential to recruit the best labour force through proper manpower
planning.
3. Adjusting with the Rapid Technological Change:

With the change in technology, the job and job requirements are also
changing. Therefore, it is necessary to forecast and meet the changing
manpower, which can withstand the challenges of the technological
revolution. This can be done only through effective manpower planning.

4. Reducing Labour Turnover:

The labour turnover refers to the mobility of labour out of the

organization due to various factors such as dissatisfaction, retirement,
death etc.

Due to labour turnover, a firm will be losing experienced and skilled

labour force. This loss can be minimized only through efficient
manpower planning.

5. Control over Recruitment and Training Cost:

Highly skilled personnel are in short supply and it is very cos.tly to hire,
train, and maintain them.

A company has to incur heavy costs in processing the applications,

conducting written tests, interviews etc., and in the process of providing
adequate training facilities.

In consideration of these costs, it is essential to plan carefully in relation

to the manpower so as to reduce the recruitment and training cost.

6. Mobility of Labour:

Today, it is very difficult to maintain the qualified personnel in an

organization as they will be moving from one job to another in search of
better prospects.
In a free society, human beings enjoy unrestricted mobility from one
part of the country to the other.

Therefore, in order to reduce the loss of experienced and skilled labour,

every organisation must have a sound system of manpower planning.

7. It cans Facilitate Expansion Programs:

In these days of rapid industrial development, every company goes for

expansion of its activities.

As a result of the increasing company size, the demand for human

resources also increases. This necessitates proper manpower planning so
as to ensure the continued supply of the required manpower for the
firms’ activities.

8. To Treat the Manpower like Real Corporate Assets:

Today it is being increasingly felt by the practicing managers and

psychologists that men in an organization must be treated like the most
significant assets.

The productivity of a company can be improved only through manpower

planning, recognizing the significance of the human factor in business.

Proper manpower planning considers the fact that satisfied workers can
contribute a lot to the overall profitability of the firm through improved
productivity.

Q8. Assess the importance of Human Resource Planning.

Ans. Followings are:
I. Assessing Future Personnel Needs:
Whether it is surplus labour or labour shortage, it gives a picture of
defective planning or absence of planning in an organization. A number
of organizations, especially public sector units (PSUs) in India are facing
the problem of surplus labour.
It is the result of surplus labour that the companies later on offer
schemes like Voluntary Retirement Scheme (VRS) to eliminate surplus
staff. Thus, it is better to plan well about employees in advance. Through
HRP, one can ensure the employment of proper number and type of
personnel.

II. Foundation for Other HRM Functions:

HRP is the first step in all HRM functions. So, HRP provides the
essential information needed for the other HRM functions like
recruitment, selection, training and development, promotion, etc.

III. Coping with Change:

Changes in the business environment like competition, technology,
government guidelines, global market, etc. bring changes in the nature of
the job. This means changes in the demand of personnel, content of job,
qualification and experience needed. HRP helps the organization in
adjusting to new changes.

IV. Investment Perspective:

As a result of change in the mindset of management, investment in
human resources is viewed as a better concept in the long run success of
the enterprise. Human assets can increase in value as opposed to
physical assets. Thus, HRP is considered important for the proper
planning of future employees.

V. Expansion and Diversification Plans:

During the expansion and diversification drives, more employees at
various levels are needed. Through proper HRP, an organization comes
to know about the exact requirement of personnel in future plans.
VI. Employee Turnover:
Every organization suffers from the small turnover of labour, sometime
or the other. This is high among young graduates in the private sector.
This necessitates again doing manpower planning for further recruiting
and hiring.

VII. Conformity with Government Guidelines:

In order to protect the weaker sections of the society, the Indian
Government has prescribed some norms for organizations to follow. For
example, reservations for SC/ST, BC, physically handicapped, ex-
servicemen, etc. in the jobs. While planning for fresh candidates, HR
manager takes into consideration all the Government guidelines.

VIII. International Expansion Strategies:

International expansion strategies of an organization depend upon HRP.
Under International Human Resource Management (IHRM), HRP
becomes more challenging. An organization may want to fill the foreign
subsidiary’s key positions from its home country employees or from
host-country or from a third country. All this demands very effective
HRP.

IX. Having Highly Talented Manpower Inventory:

Due to changing business environment, jobs have become more
challenging and there is an increasing need for dynamic and ambitious
employees to fill the positions. Efficient HRP is needed for attracting
and retaining well qualified, highly skilled and talented employees.

Q12. Explain the barriers to Human Resource Planning.

Ans. Followings are:

 1. Lack of Support:

People think that the human resource planning is unnecessary and time
consuming. Workforce can be arranged anytime at the time of
requirement, with attractive benefits and incentives so why human
resource planning. They think it is an easy task to manipulate the
workforce in the organization.

2. Wrong Perception about Human Resource Practitioner:

In this competitive business world it is very difficult and challenging to

compete with the rivals without formulating proper strategic plan. Many
have the perception that the people who formulate the human resource
plan are not expert in business, as a result of which they may commit
error while formulating the human resource plan.

3. Incompatibility of Information:

A strategic plan is set for achieving the long term goals or objectives of
the organization. At the time of formulation of strategy the used
information is basically long term oriented. But the human resource
planning is formulated using the short term information. So the
information of human resource does not often match with the
information of strategy formulation.

4. Approach Confliction:

While formulating human resource planning the organization must

consider that how many people and how efficient people are needed for
the smooth functionality of the organization. Many human resource
practitioners give emphasis on number of employee and many other give
emphasis on the quality of the employee.

But both the approaches are equally important for the organization.
5. Absence of Operating Managers’ Co-Ordination:

Human Resource planning is one of the major functions of Human

Resource department of every organization. Successful planning
depends on the co-operation of all other existing departments. Mainly
the operation managers’ coordination and support play very vital role in
the success of human resource planning. But very often things do not go
in right direction.

6. Identity Crisis:

There is generally identity crisis and many managers as well as Human

Resource specialists do not fully understand the total Human resource
planning process. There can be little doubt that unless the Human
resource planning specialists develop a strong sense of purpose; they are
more likely to fail.

7. Lack of Support of Top Management:

Human resource planning requires full and wholehearted support from

the top management. In the absence of this support and commitment, it
would not be possible to ensure the necessary resources, cooperation and
support for the success of the human resource planning.

8. Insufficient Initial Efforts:

Successful human resource planning flourishes slowly and gradually.

Sometimes sophisticated technologies are forcefully introduced just
because competitors have adopted them. These may not be successful
unless matched with the needs and environment of the particular
enterprise.
 9.Coordination with other Managerial Functions:

There is generally a tendency on the part of the human resource planners

to remain aloof from other operating managers and to become totally
absorbed in their own world. To be effective human resource planning
must be integrated with other management functions.

10. Expensive and Time Consuming:

Human resource planning is an expensive and time consuming process.

Employers may resist human resource planning feeling that it increases
the cost of human resource.

11. Uncertainties:

Labour absenteeism, labour turnover, trade cycles, technological

changes and market fluctuations are the uncertainties which serve as
constraints to Human Resources planning. It is risky to depend upon
general estimates of human resource in the face of rapid changes in
environment.

12. Insufficient Information:

In most of the Indian organisations, human resource information system

(HRIS) has not been fully developed. In the absence of reliable data it
may not be possible to develop effective human resource plans.

Q5. How can organizations develop accurate HR plans when

there so many rapidly changing environmental factors over
which managers have little or no control?
 Ans. Followings are:
Shorten Your Planning Interval:

While budget planning is often done on a monthly cadence, this

frequency is insufficient when conditions are changing by the day and
by the hour. When you are trying to react to environments that are
changing significantly, and quickly, you need a shorter target window,
one that enables you to answer the questions: How much staff do I need
this week? How much staff do I need next week? By moving to a shorter
planning interval – daily or weekly – you can better balance supply
(agent availability) and demand (call traffic) in a rapidly changing
environment.

Reverse Problem-Solve for Performance Metrics:

Reverse problem-solving can be a critically important tool when you

have a certain outcome you need to achieve. To reverse problem-solve,
you work backward methodically and fill in the missing information
between staffing requirements and performance metrics.

Balance the Art and Science of Forecasting:

Ongoing developments in artificial intelligence are enabling increasingly

accurate projections, with advanced statistical methods helping users
realize consistent customer service, improve retention and lower costs
across the board. A precise forecast requires not only an understanding
of traffic during normal, day-today operations but also the ability to
account for rapidly changing customer demand.

AI-based forecasting enables contact centers to:

• Automatically evaluate dozens of forecasting algorithms and determine
the model with the greatest accuracy.

• Increase the accuracy of the staffing plan.

• Increase the operational efficiency of the staffing plan.

• Adapt to changing data patterns.

Increase Your “What-Ifs”:

Understanding how different scenarios will impact your contact center

doesn’t need to be guesswork or a time-consuming manual endeavor.
Today’s planning solutions can help you understand how a multitude of
variables will change your business needs and performance outputs. To
enable your organization to respond rapidly when faced with sudden
business changes, you should build multiple plans to account for
different scenarios, such as an increase or decrease in volume, the
closing of a site or large jumps in shrinkage or attrition.

Among the plans to build:

• Multiple long-term forecasts that account for the different potential

volume and average handle time projections. If you are using ESP,
create multiple plans for each long-term forecast. If you’re using
Personnel Planner, create duplicate long-term forecasts to generate what-
if plans with the same base forecast.

• What-if plans for each potential staffing scenario. If you are using ESP,
use “save as” to create multiple plans using the same base plan starting
point. In Personnel Planner, you can do this by creating duplicate
forecasts, then setting a different staffing scenario for each forecast.
• A what-if plan that includes shutting down some contact types to focus
on other contact types (if this is a possibility in your organization). To
do this, create plans with those contact types zeroed out, then reallocate
staffing to other contact types to see the impact.

Scan the organizational environment:

This is also known as SWOT analysis through this process organizations

identify different opportunities available in the market and the threats
that can be faced by the organization, and the weaknesses and strengths
possessed by organizations are also measured and identified through this
process.

Set strategic goals:

To achieve the overall mission or purpose of the organization it is

required to set specific long-term and short term objectives and goals.
The goal can be defined as desired outcomes to accomplish mission.
Following are the characteristics of effective goals. (i) Specific (ii)
Challenging (iii) Measurable

Basic Strategic Trends Globalization:

It refers to the tendency of firms to extend their sales, ownership, and/or

manufacturing to new markets abroad. For businesses everywhere, the
rate of globalization in the past decade has been enormous, and has
several strategic implications for firms. Technological Advances have
been forcing, and enabling, firms to become more competitive. The
Nature of Work is changing due to new technological demands. The
Workforce demographics are changing as well. It’s becoming more
diverse as women, minority-group members, and older workers enter the
workforce.

The Basics of Strategic Planning:

A strategy is the company’s plan for how it will balance its internal
strengths and weaknesses with its external opportunities and threats and
maintain a competitive advantage. Managers engage in three levels of
strategic planning: (i) Corporate-Level Strategy (ii) Business-Level
Competitive Strategy, and (iii) Functional Strategies.

Q10. As organizations become more global, HRP becomes more

important and complex. Elucidate.

Ans.
HRP becomes more important and Complex. See the Human Resource
Planning and the complexities of this system are the two sides of a coin
and you need to understand the concept of Human Resource Planning
first. What is this Human Resource Planning and how this function
works bcz from the all function of HR, planning is one of the important
tool. This is the 1st step and the people are the most important resource
which is required to run any business or organization. Now this also very
important to understand the need of human resources on time so that
neither my organisation falls short of resources nor faces surplus. If
organisation falls short of resources then will not be able to deliver on
time to client on the other hand if it has surplus resource then company
has to bear that cost which will affect organization’s profitability. There
is another aspect also in this company also need to plan resources based
on the skill required to run the business. Otherwise they will have
surplus in one area shortfall in other area which will result to poor
management. Hence until & unless you do correct resource planning you
will be able to manage human resources properly

Challenges at global level:

Creating a global mind-set within the HR group, creating practices that

will be consistently applied in different locations/offices while also
maintaining the various local cultures and practices, and communicating
a consistent corporate culture across the entire organization which are
also becomes a tuff job for the HR Managers and a big challenge for this
function.

Considering the HR function not as just an administrative service but as

a strategic business partner. Companies are involving the human
resources department in developing and implementing both business and
people strategies. Creating a consistent corporate culture like
communicate to all locations about a common corporate culture, allow
local cultures to maintain their identity in the context of the corporate
culture like

1.Establish common systems (e.g., accounting, marketing, MIS).

2. Provide management with education outlining how the company does

business.

3. Create an organizational mission with input from all locations.

4.Create a written strategy outlining the corporate culture.

As the globalization settles, the HR emphasis would be on ideas and

practices that might be considered more widely include:

-initiatives connecting company and industry policies so that training

implications are considered as a matter of course

-initiatives which consider the implications for the company of the

innovations they are supporting , e.g. industry clusters

-initiatives incorporating collaboration across COUNTRY borders

-efficient use of the worldwide web to disseminate information and

collect data

-initiatives which demonstrate learning from previous experience

-attention to resourcing issues

-initiatives which enable company staff to increase their expertise in new
areas -initiatives which build on established expertise in the company,
and

-initiatives which seek to develop new specialisations in the company.

2. Technology-related skills

-Skills in identifying new applications of technologies

-Skills in developing new technologies, or advancing existing

technologies

-Skills in identifying technological solutions to problems

3. Management skills

-Skills in identifying which innovation outcomes are appropriate for

commercialisation

-Skills in knowing when and how to market a new product, tool or

process (or other innovation outcome) successfully

-Skills in securing intellectual property rights over innovation outcomes

-Skills in setting up efficient manufacturing processes for new products

-Skills in negotiating appropriate training provision with education and

training providers.

Q9.Why is it important to use computers and quantitative

techniques in Human Resource Planning.
Ans. Followings are:

Basis for scientific analysis: 

With the increase in complexities of modern business it is not

possible to rely on the unscientific decisions based on the intuitions.
This provides the scientific methods for tackling various problems for
modern business.

Tools for scientific analysis:

Quantitative techniques provide the managers with a variety of tools

from mathematics, statistics, economics and operational research.
These tools help the manager to provide a more precise description
and solution of the problem. The solutions obtained by using
quantitative techniques are often free from the bias of the manager or
the owner of the business.

Solution for various business problems:

 Quantitative techniques provide solutions to almost every area of a

business. These can be used in production, marketing, inventory,
finance and other areas to find answers to various question
like (a) how the resources should be used in production so that profits
are maximized. (b) How should the production be matched to demand
so as to minimize the cost of inventory?

Optimum allocation of resources: 

An allocation of resources is said to be optional if either a given level

of output is being produced at minimum cost or maximum output is
being produced at a given cost. A quantitative technique enables a
manager to optimally allocate the resources of a business or industry.
 Selection of an optimal strategy: 

Using quantitative techniques it is possible to determine the optimal

strategy of a business or firm that is facing competition from its
rivals. The techniques for determining the optimal strategy is
dependent upon game theory.

Optimal deployment of resources:  

Using quantitative technique It is possible to find out the earliest and

latest time for successful completion of project and this is called
program evaluation and review technique.

Facilitate the process of decision making: 

quantitative techniques provide a method of decision making in the

face of uncertainty. These techniques are based upon decision theory.

Q7.What can an organization do when shortage of labour is

anticipated? When internal supply exceeds demand?
Ans. Ways to Deal with the Labor Shortage. Followings are-
1. Get Creative with Recruitment

Recruitment and retention are two of the restaurant industry’s biggest

challenges, even on a good day.
In light of the labor shortage, they’ve now become even more critical.
Maybe there was a time when people were lining up to work at your
restaurant. If they’re no longer coming to you, don’t be shy to go to
them. Promote job ads online, work with staffing agencies in your area,
and advertise through local schools and community centers.
Job descriptions tend to be really dry and boring, so make yours stand
out. Play to your strengths.
Is your restaurant a really fun place to work? Make your job ad playful
and fun to reflect that.
Do you offer something most other restaurants don’t? Make sure to
include that in your ad.
Also consider offering an employee referral bonus. If a staff member
refers a friend, and that friend gets hired and stays for more than three
months, then the referring employee gets a cash bonus on their paycheck
or another type of incentive.

2. Partner Up
Beyond just ads, see if you can partner with local organizations, high
schools, college job fairs, after-school programs, and other grassroots
initiatives that have budding talent. Offer free training or skill-building
workshops to people entering the labor force, in exchange for a term of
employment.
They get full-time employment. You get full-time employees.

3. Trim the Fat of Admin Tasks

Restaurant staff are already working long hours for low wages, so make
sure you aren’t piling non-essential responsibilities onto the plates of
your skilled workers.
Invest in technology that can automate some of the more time-
consuming administrative tasks your staff are currently responsible for.
Things like inventory and reservations can be automated without a huge
investment, but will save your skilled staff a ton of time.
Freeing your skilled staff of these more menial tasks will let them focus
on the work they’re really passionate about and trained for – plus, they’ll
be happier for it, which leads to more productivity and higher retention.

4.  Be Flexible with Schedules

Your staff aren’t robots (yet). They’re people and they respond well to
being scheduled as such. 
When building your employee schedule, factor in staff preferences
(number of shifts per week, time of day, etc.) and their outside lives
before putting them into the spreadsheet.
If someone says they work best in the evenings, scheduling them for five
early morning shifts a week (even though they’re technically available)
won’t be great for staff morale or productivity. Make it easier to hang on
to skilled workers by taking their shift preferences into account as much
as possible.
Also, have protocol for accepting and processing employee time off
requests, as well as for emergency and non-emergency scheduling
conflicts. Knowing you’re sensitive to their work-life balance will go a
long way toward employees putting down roots at your restaurant.
Job flexibility is a key value for a lot of workers in our current
environment, so be proactive about getting their input for your staff
schedule.

5.  Perk Up Employee Benefits

Maybe you’re in a position to offer competitive wages – if so, that’s
great!
What you can’t offer in wages, however, you can likely offer in other
types of perks.
This is a good opportunity to get a little creative and come up with some
original incentives you can offer your staff, like professional training
and development opportunities, company events, overtime opportunities,
and more.
If you’re able to convert some of your part-timers into full-timers and
offer them salaried positions or benefits packages, that’s even better.
People work harder when they feel valued, so come up with some new
ways to show your appreciation for their hard work.

6.  Change Your Management Style

Traditional management styles keep employees in the dark about high-
level decisions, even when those decisions impact all staff.
Trusting your employees and involving them in those decisions is
proven to empower staff to work harder by showing them how their
work impacts the restaurant’s overall success.
Open communication and transparency will also strengthen the
relationship between you and your staff. It fosters a culture of shared
ownership which is empowering to everyone involved.

7.  Open Up to Different People

We tend to hire people who match our existing team. It’s human nature
to look for candidates you can see yourself in.
BUT, when you create a more diverse, equitable work environment, it
not only widens the pool of people from which you can hire, it also adds
a wealth of new perspectives that can strengthen your business. Wider
pool, more candidates, better hires.
Consider things like what message an all-male staff might send to
potential female applicants, or how a highly-skilled worker living with a
disability might feel about applying to a restaurant that isn’t accessible.
Adding a little bit more diversity to your hiring practices will open up
the pool of people you can pull from and improve your business overall.
Win-win.

Surplus value, Marxian economic concept that professed to explain the

instability of the capitalist system. Adhering to David
Ricardo’s labour theory of value, Karl Marx held that human labour was
the source of economic value. The capitalist pays his workers less than
the value their labour has added to the goods, usually only enough to
maintain the worker at a subsistence level. Of the total worth of the
worker’s labour, however, this compensation, in Marxian theory,
accounts for only a mere portion, equivalent to the worker’s means of
subsistence. The remainder is “surplus labour,” and the value it produces
is “surplus value.” To make a profit, Marx argued, the capitalist
appropriates this surplus value, thereby exploiting the labourer.
Q6.How are personnel needs and personnel supplies estimated?
Ans.

Personnel Needs:
Trend analysis is used to review the past employment needs to predict
future needs. There are two ways used most frequently in trend analysis.
The first is computing the number of employees at the end of a certain
number of years. The second way is the number of employees in a
certain function (i.e. sales, marketing, human resources, finance and
administrative). Sometimes, it is best to use both methods to cover all
bases.

Present Supply of Internal Candidates:

Qualification inventories are one way of forecasting inside candidates. A
list of employees, their education, any internal training, special skills,
and succession planning for promotion is beneficial to the future
planning. A second method is referred to as personnel replacement. This
is defined as the employee's present performance and the desire for
promotion to additional positions based on performance, skills and
experience.

Future Supply of External Candidates:

There are numerous factors to consider for external candidates. They
include the geographic area of the company, potential candidates
graduating from high school or college, individuals entering or leaving
the workforce, the level of skills and experience required to perform the
internal jobs and the competing employers for the same skill set. This
information is beneficial in determining competitive benefits and salary
offerings.
Researching Internal and External Staffing Resources:
Obtaining candidates to meet future needs is an important part of the
forecasting process. Internal postings can build morale as employees
appreciate the opportunity to move up in the organization. Employee-
referral programs can be beneficial in bringing qualified people into the
organization. Top performers tend to know other top performers, and a
cash award is motivation to present employees to recommend these
qualified candidates. Other external-staffing resources include temporary
agencies, colleges, job boards and social-networking sites.

personnel supplies estimated

The most important techniques for forecasting of human resource supply
are Succession analysis and Markov analysis.

Succession analysis:
Once a company has forecast the demand for labour, it needs an
indication of the firm's labour supply. Determining the internal labour
supply calls for a detailed analysis of how many people are currently in
various job categories or have specific skills within the organization.
The planner then modifies this analysis to reflect changes expected in
the near future as a result of retirements, promotions, transfers, voluntary
turnover, and terminations.
Demand forecasting helps in determining the number and type of
personnel/human resources required in future. The next step in human
resource planning is forecasting supply of human resources. The purpose
of supply forecasting is to determine the size and quality of present and
potential human resources available from within and outside the
organisation to meet the future demand of human resources. Supply
forecast is the estimate of the number and kind of potential personnel
that could be available to the organisation.

Markov Analysis:
transition probability matrix is developed to determine the probabilities
of job incumbents remaining in their jobs for the forecasting period.
The technique is named after Russian mathematician Andrei
Andreyevich Markov,
A transition matrix, or Markov matrix, can be used to model the internal
flow of human resources. These matrices simply show as probabilities
the average rate of historical movement from one job to another. Figure
2-12 presents a very simple transition matrix. For a line worker, for
example, there is a 20% probability of being gone in 12 months, a 0%
probability of promotion to manager, a 15% probability of promotion to
supervisor, and a 65% probability of being a line worker this time next
year. Such transition matrices form the bases for computer simulations
of the internal flow of people through a large organization over time.