BADM 22

• Human Resource Planning


  The critical initial step in getting the right people in the right place at the right time
• HR Planning Process


  1. Situation analysis and environmental scanning/analysis of the current situation/ Forecasting supply of manpower

  2. Forecasting demand for employees

  3. Analyzing the current supply of employees/ inventory of manpower

  4. Forecasting HR supply

  5. Reconciling HR requirements and supply forecasts

  6. Action plan development
• Turnover Rate


  The ratio of the total number of separations to the average monthly employment for the preceding 12-month period, expressed as a percentage
• Basic Information on HR Planning

  • Ripple chart
  • Succession/replacement table
  • Succession/replacement chart
  • Staffing inventory
  • Succession planning
  • Succession management
• Quantitative analysis for HR supply or demand

  Used when trends continue over time, historical and current data is available, and the organization is relatively stable
• Qualitative data for HR supply and demand


  Used when there are no obvious trends or patterns, when little data is available, and when the future is uncertain
• Challenges of Managing Human Resource


  • Changing employee expectations
  • Rapidly changing technology
  • Emphasis on increased productivity
  • New modalities of employment – outsourcing
  • Flatter organization
  • Fall of the command and control manager
• Technology in HR management

  • Allows a company to find new ways of handling paperwork when hiring employees
• Human Resource Management (HRM)

  The organizational function of managing and handling one of the most valuable assets of the organization – its employees
• HRM


  • It tackles various undertakings performed by a business firm to make certain that workers are handled and managed as human beings worthy of respect and compassion throughout their employment life
• Best features of HRM

  • It is prevalent in nature
  • It is dynamic
  • It is individually oriented
  • It is employee oriented
  • It is forward looking
  • It is growth oriented
• Human Resource Management (HRM)

  The management of an organization's workforce, or human resources, to achieve the organization's objectives
• Evolution and Emergence of Human Resource Management

  1. Industrial Revolution

  2. Scientific Management

  3. Classical Organization Theory

  4. Human Relations Movement

  5. Behavioral Science Movement and Systems Theory
• Human resource management


  • May use software to facilitate the recruitment process
• Human resource management system

  • May be used to organize employee payroll data
• Industrial Revolution


  • Characterized by the development of machinery, the linking of power to machines and the establishment of factories employing many workers
  • Labor was considered as commodity to be bought and sold
• Industrial Revolution


  1. Groupings of workers into shops and factories

  2. Relationship between management and labor

  3. Emergence of more systematic attention to job design, choice of workers, provision of pay and benefits and welfare measures

  4. Development of collective bargaining between labor and management
• Scientific Management


  • Frederick Taylor used stopwatch to experiment on different aspects of job in a steel industry
  • Brought the logic of efficiency to management
  • Efficient operation
  • Measurement standardization of performance
  • Substitution of facts and orderly thinking in place of "guesswork" and "hunches" in the decision making process
• Scientific Management


  • Henry Gantt developed graphic methods of depicting plans and superior method of managerial control
  • Greatest emphasis on time and cost and developed the Gantt Chart
  • Gantt Chart was the first technique designed to match how parts of a programme fit together during the passage of time and events
• Scientific Management


  • Frank and Lilian Gilbreth's major contribution was in the field of time and motion study
  • Analyzed the body movements of workers by watching films of tasks performed by the workers
  • Lilian Gilbreth was credited for her pioneering work relating the principles of scientific management to psychology
• Classical Organization Theory


  • Henri Fayol's ideas focused on the problem of top management
  • Developed basic principles that could guide the design, creation, and maintenance of the organization
  • Identified basic functions of managing organizations: Planning, Organizing, Commanding, Coordinating, and Controlling
  • Was the first to discuss management as a process
• Human Relations Movement


  • Chester Barnard marked the start of human relations theories
  • Elton Mayo conducted the Hawthorne experiment which concluded that changes in the physical environment could not completely explain changes in productivity, but the attitudes of the workers themselves and their relationship with their supervisors
• Human Relations Movement


  • Peter F. Drucker emphasized the importance of teamwork, team spirit and team results
  • Developed the concept of Management by Objectives (MBO) which gives rise to systems of joint target setting and performance review
  • Stressed the importance of self control and self discipline
• Human Relations Movement


  • Douglas McGregor's Theory X and Theory Y paved the way to the HRM philosophy that human resources policies and programmes must be built into strategic objectives and plans of the business enterprise and must also aim to get everyone involved in the achievement of these objectives and plans
• Behavioral Science Movement and Systems Theory

  • Abraham Maslow propounded the theory of the Hierarchy of human needs
  • Frederick Herzberg developed the Motivation Hygiene theory which concluded that individuals have two distinctly different categories of needs - "motivators" and "hygiene factors"
• Famous Nomenclatures


  • Human Resource
  • Personnel
  • Talent Management
  • Human Capital
• Importance of studying HRM


  It is important to non -HR personnel such as employees, supervisors and leaders.

  • Entrepreneurs
  • Employees
  • Supervisors and Leaders
• Classical Organization Theory


  Henri Fayol

  • His ideas focused on the problem of top management unlike the “work focus” of scientific management
  • The two major underpinnings of his theory were:
  • The development of basic principles that could guide the design, creation, and maintenance of the organization
  • The identification of basic functions of managing organizations.
  • He was the first to discuss management as a process
  • He identified 5 specific functions which all managers must perform: Planning; Organizing; Commanding; Coordinating; and Controlling
• Human Relations Movement


  Chester Barnard

  • Marked the start of human relations theories

  Elton Mayo

  • Conducted the Hawthorne experiment (this sought to determine the impact of physical factors such as increased or decreased lighting on worker productivity). Further studies concluded that changes in the physical environment could not completely explain changes in productivity. Or the productivity was less affected by the physical working conditions but by the attitudes of the workers themselves and their relationship with their supervisors.
• Human Relations Movement


  Drucker and McGregor (1950-1960)

  1. Peter F. Drucker

  • Objectives must be set in all areas where performance affects the health of the enterprise
  • Famous in his concept of MBO or management by objective
  • He emphasized that right from the start, importance should be laid on teamwork, team spirit and team results.
  • MBO gives rise to systems of joint target setting and performance review
  • Drucker stressed the importance of MBO which are directly related to HRM namely: self control and self discipline
• Human Relations Movement


  Drucker and McGregor (1950-1960)

  2. Douglas McGregor

  • Famous for his Theory X and Theory Y

  Drucker and McGregor paved the way to the HRM philosophy that human resources policies and programmes must be built into strategic objectives and plans of the business enterprise and must also aim to get everyone involved in the achievement of these objectives and plans.
• Abraham Maslow


  Propounded the theory of the Hierarchy of human needs
• Frederick Herzberg

  Developed the Motivation Hygiene theory
• Motivation Hygiene theory


  • Based on the results of numerous studies in many diverse organizational settings
  • Closely interrelated to Maslow's Hierarchy of Needs model
  • Individuals have two distinctly different categories of needs - "motivators" and "hygiene factors"
• What are famous Nomenclatures?

  HUMAN RESOURCE = Personnel, Talent Management, Human Capital

  Carla Joinson

  • People services
  • Human ecology
  • Performance Solutions
  • Organization effectiveness
• HR Planning Answer Questions:

  • How many ?
  • What jobs?
  • What knowledge, skills, and abilities required?
  • What new skills will be required ?
  • Can the new workers be transferred or promoted from within the firm or do they need to be hired from outside?
  • What type of training?
  • What type of compensation?
  • How will the process alter the career plans of existing employees or potential candidates?
• WHY CONDUCT HR PLANNING?

  • For more effective and efficient use of human resource
  • For more satisfied and better developed employees
  • To assist the company in attaining its goals and objectives (through a systematic planning of HR)
  • It can be an effective means of planning the development & growth of its employees
• WHY CONDUCT HR PLANNING?

  • Technological change
  • Growth expectation of organization
  • Size
  • Irregular age structure
  • Labor costs
  • Human resources decision making process
  • Development in planning methods
  • Attrition
  • Lead time
• OBJECTIVES OF HUMAN RESOURCE PLANNING

  1. Planning and control
  2. Realization of organizational goals
  3. Review of existing deployment
  4. Creating and maintaining inventory
• HR PLANNING PROCESS (6 Phases/Stages)

  1. Situation analysis and environmental scanning/analysis of the current situation/ Forecasting supply of manpower
  2. Forecasting demand for employees
  3. Analyzing the current supply of employees/ inventory of manpower
  4. Forecasting HR supply
  5. Reconciling HR requirements and supply forecasts
  6. Action plan development