Human Resource Management

1. Human Resource Management Human Resource Planning By Engr. Attaullah Shah BSc. Civil ( Gold Medal), MSc. ( Str. Engg), MBA, MA ( Eco), MSc ( Envir design) , PGD ( Comp Sc) PhD Scholar ( UET TAXILA) Project Director Allama Iqbal Open University E-mail: pd@aiou.edu.pk pdaiou@yahoo.com Website: www.aiou.edu.pk Telephone/Fax: 051-9250100 Cell: 0333-5729809

2. Some quotes on Human Resource • The most beloved of you by me, and nearest to me in the next world, are those of good dispositions; ...the farthest from me are the ill-tempered. wisdom, 119 • Our progress as a nation can be no swifter than our progress in education. The human mind is our fundamental resource. John Fitzgerald Kennedy • “it is very, very hard to get ahead without being a positive person because, very simply, no one likes to work under or near a dark cloud.  Even if the “cloud” is very smart.” – Jack Welch, Winning • Human beings, who are almost unique in having the ability to learn from the experience of others, are also remarkable for their apparent disinclination to do so. Douglas Adams

3. Human labor cannot be treated merely as a resource necessary for production -- the so-called 'work force.' Man cannot be regarded as a tool of production. Man is the creator of work and its craftsman.”Pope John Paul II quotes • “We need to equip ourselves with specific skills, such as change management, business process consulting and human resources in order to have an edge over competing markets or countries.” Mark Edwards • A boss creates fear, a leader confidence. A boss fixes blame, a leader corrects mistakes. A boss knows all, a leader asks questions. A boss makes work drudgery, a leader makes it interesting. A boss is interested in himself or herself, a leader is interested in the group. Russell H. Ewing • Show me a man who is a good loser and I'll show you a man who is playing golf with his boss. Jim Murray • Teamwork: Simply stated, it is less me and more we. Anonymous • It is amazing how much you can accomplish when it doesn't matter who gets the credit. Anonymous • A leader is a dealer in hope. Napoleon Bonaparte

4. What is Human Resource Management and its functions?

5. Human Resource Strategy: A People-Centered Approach • Human Resource Management (HRM) • The proactive acquisition, retention, development, adjustment and managing changes of human resources necessary for organizational success. • HRM has moved from a support staff function (personnel) to a more strategic role in organizations.

6. Human Capital or Human Resource. • A term that recognizes the greater societal value of developing all present and future work force participants to their fullest potential. Is your HRD playing these functions. If No then Why?

7. People-Centered Organizations Enjoy a Competitive Advantage • People-centered Practices: • Protection of job security • Rigorous hiring process • Employee empowerment • Compensation linked to performance • Comprehensive training • Reduction of status differences • Sharing of key information

8. HRM activities and Responsibilities of Line Manager and the HR Department

9. Human Resource Planning • What is planning? To establish the long term and short objectives and identify the ways and means to achieve these. • Planning Types: • Strategic: Creating the tomorrow’s Org. • Tactical: Dealing with growth of current operations. • Operational: Day to day operations. Human Resource Planning ( HRP) The process of understanding the available competencies in an Org and allow the Org to plan for changes to new jobs required to achieve the Org goals. Human resource planning involves getting the right number of qualified people into the right jobs at the right time.

10. II. Why is it important? A. often long lag times to fill positions B. often influences both turnover and productivity C. the “demographic imperative” demands more such planning

11. III. How do you do it? A. General Comments: 3. When there are variances, action plans must be formulated, e.g., a. for surpluses, will organization use layoffs, retirement incentives, reduced hours, or something else?

12. III. How do you do it? A. General Comments: 3. When there are variances, action plans must be formulated, e.g., a. for surpluses, will organization use layoffs, retirement incentives, reduced hours, or something else? b. for shortages, will organization use overtime, temporary workers, or recruit new permanent workers?

13. III. How do you do it? B. Methods Used for Human Resource Planning: 1. Approaches to forecasting: a. Qualitative: i. Expert opinions ii. Delphi technique iii. “Bottom-up” approach

14. III. How do you do it? A. General Comments: 1. It is a process of comparing human resource supply with human resource demand. 2. It works best when it is tied to: a. the organization’s strategic planning process b. all available forecasts (technological, economic, market, etc.)

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

16. HR Planning Process Losses, Internal Moves, Accessions Forecasted HR Availabilities Other HR Activities Current Workforce External & Internal Scanning Reconciliation (Gaps) Action Plans Organization Plans Forecasted HR Requirements Staffing Activities Business Plans

17. Seven strategic staffing decisions: HR Planning Strategy Organization Mission Goals & Objectives Organization Strategy HR Strategy Staffing Strategy Acquire or Develop Talent Staffing as a Lag or Lead System Specific or General Competencies Exceptional or Acceptable Workforce Quality External or Internal Hiring Active or Passive Pursuit of Diversity Core or Flexible Workforce

18. Organizational Life-Cycle Stages and HR Activities

19. Organizational Life-Cycle Stages and HR Activities (cont’d)

20. How does HR Planning occur? 1. What does the environment look like? 2. What are our future personnel needs? (forecast demand) a. Judgmental • Estimates • Rule of Thumb • Delphi Technique • NGT • Brainstorming

21. The Nominal Group Technique A small group of 4-5 people gathers around a table. Leader identifies judgment issue and gives participants procedural instructions. Participants write down all ideas that occur to them, keeping their lists private at this point. Creativity is encouraged during this phase. Leader asks each participant to present ideas and writes them on a blackboard or flipchart, continuing until all ideas have been recorded. Participants discuss each other’s ideas, clarifying, expanding, and evaluating them as a group. Participants rank ideas privately in their own personal order and preference. The idea that ranks highest among the participants is adopted as the group’s judgment.

22. The Delphi Technique Leader identifies judgment issues and develops questionnaire. Prospective participants are identified and asked to cooperate. Leaders send questionnaire to willing participants, who record their judgments and recommendations and return the questionnaire. Leaders compiles summaries and reproduces participants’ responses. Leader sends the compiled list of judgment to all participants. Participants comment on each other’s ideas and propose a final judgment. Leader looks for consensus Leader accepts consensus judgment as group’s choice.

23. How does HR Planning occur? 1. What does the environment look like? 2. What are our future personnel needs? (forecast demand) b. Statistical • Regression

24. Statistical Techniques Used to Project Staffing Demand Needs Name Regression analysis Productivity ratios Description Past levels of various work load indicators, such as sales, production levels, and value added, are examined for statistical relationships with staffing levels. Where sufficiently strong relationships are found, a regression (or multiple regression) model is derived. Forecasted levels of the retained indicator(s) are entered into the resulting model and used to calculate the associated level of human resource requirements. Historical data are used to examine past levels of a productivity index (P): P = Work load / Number of People Where constant, or systematic, relationships are found, human resource requirements can be computed by diving predicted work loads by P.

25. Statistical Techniques Used to Project Staffing Demand Needs (cont’d) Name Personnel ratios Time series analysis Description Past personnel data are examined to determine historical relationships among the employees in various jobs or job categories. Regression analysis or productivity ratios are then used to project either total or key-group human resource requirements, and personnel ratios are used to allocated total requirements to various job categories or to estimate for non-key groups.Past staffing levels (instead of work load indicators) are used to project future human resource requirements. Past staffing levels are examined to isolate and cyclical variation, long-tem terms, and random movement. Long-term trends are then extrapolated or projected using a moving average, exponential smoothing, or regression technique.

26. Regression Analysis 1. Statically identify historical predictor of workforce size Example: FTEs = a + b1 sales + b2 new customers 2. Only use equations with predictors found to be statistically significant 3. Predict future HR requirements, using equation Example: (a) FTEs = 7 + .0004 sales + .02 new customers (b) Projected sales = $1,000,000 Projected new customers = 300 (c) HR requirements = 7 + 400 + 6 = 413

28. How does HR Planning occur? 2. What are our future personnel needs? (demand forecast cont.) b. Statistical (cont.) • Ratio analysis

29. How does HR Planning occur? 3. Are resources available – internally or externally – to fill those needs? a. Internal • Replacement charts

30. Employee Replacement Chart for Succession Planning

31. How does HR Planning occur? 3. Are resources available – internally or externally – to fill those needs? a. Internal • Replacement charts • Promotability

33. How does HR Planning occur? 3. Are resources available – internally or externally – to fill those needs? a. Internal • Replacement charts • Promotability • Succession planning • Skills inventory • Transition (Markov) matrix

34. A Sample Transition Matrix Part A: Personnel Supply Estimated Personnel Classification in Year T + 1 (%) Classifications in Year T P M S Sr A Exit Partner .70 .30Manager .10 .80 .10Supervisor .12 .60 .28Senior .20 .55 .25Accountant .15 .65 .20 Part B. Staffing Levels Estimated Personnel Availabilities in Year T + 1 (%) Beginning Classifications in Year T Levels P M S Sr A Exit Partner 10 7 3Manager 30 3 24 3Supervisor 50 6 30 14Senior 100 20 55 25Accountant 20030 130 40 10 30 50 85 130

35. How does HR Planning occur? 3. Are resources available – internally or externally – to fill those needs? b. External – what do you look at? - try to determine availability of qualified labor; Surplus? Shortage?

36. How does HR Planning occur? 4. What should we do? - create plan of action to reconcile supply and demand a. Set objectives b. Generate alternatives

37. Staffing Alternatives to Deal with Employee Surpluses Source: Compliments of Dan Ward, GTE Corporation

38. Staffing Alternatives to Deal with Employee Shortages Source: Compliments of Dan Ward, GTE Corporation

39. How does HR Planning occur? 4. What should we do? - create plan of action to reconcile supply and demand a. Set objectives b. Generate alternatives c. Assess alternatives

40. Alternative Scheduling Options Percent Using(N = 427 companies) Alternative The following definitions were used in this survey for alternative scheduling strategies: • Part-time: A regular employee who works fewer than 35 hours per week. • Flextime: A system than enables employees to vary their schedules: Usually, the flexibility applies to starting and finishing times. • Compressed workweek: A full-week schedule (usually 40 hours) than occurs in fewer than five days, such as four 10-hour days. • Job sharing: Two or more employees split a full-time position, diving the responsibilities, and, to some degree, the compensation. • Work-at-home: A program that enables employees to complete work at home (or at a remote office closer to home) on a regular basis. It is often referred to as “flexplace” or “telecommuting.” 84%40% 23% 18% 13%

41. How does HR Planning occur? 4. What should we do? - create plan of action to reconcile supply and demand a. Set objectives b. Generate alternatives c. Assess alternatives d. Choose alternative – KEEP PHILOSOPHY IN MIND

42. How does HR Planning occur? 5. How did we do? a. Did company avoid surplus/shortage? b. Evaluate usefulness of methods used c. Goals v. Production Levels, etc.