In most companies, HRM is part of senior management.

HRM makes contribution to the development of

-corporate mission statement
-corporate objectives
-corporate strategy.

Normally the senior management team or TOP management would

consists of
-ceo or managing director
-corporate planning manager
-finance manager
-marketing manager
-manufacturing manager
-sales manager
-supply chain manager
-HR manager
etc.

STEP 1[a]
TOP management would
-evaluate the current [ last 12 months] performance against the
objectives / target set previously, which includes return on investment,
profitability , etc and also the performance of various departments
like marketing, sales, HR, manufacturing, etc etc.

STEP 1 [b]
TOP management will also evaluate the current mission,objectives,
strategies and policies.
-----------------------------------------------
STEP 2[a ]
CEO or MD will take the summary of the evaluation of the current
performance to the board for review.

STEP 2 [ b ]
Based on the review plus the external environmental factors,
the board will make decisions on
-new mission statement
-new corporate objectives
-new corporate governance
-------------------------------------------------------------

STEP 3 [ a ]

TOP management will scan and assess the company's

external environment --political/ economic/social/ technology.
to determine the strategic factors that pose as
OPPORTUNITIES / THREATS.

STEP 3 [ b ]

TOP management will scan and assess the company's

internal environment --structure/ culture/resources etc
to determine the strategic factors that pose as
OPPORTUNITIES / THREATS.

STEP 3[ c ]
TOP MANAGEMENT will analyze the the strengths / weaknesses
of the organization and pinpoint the problems areas that needs
attention and the strengths that could be exploited.

STEP 4
Based on the above analyses, TOP management will generate,
evaluate, and select the best strategic factors.

STEP 5
TOP management will review and revise [ if necessary ] the
mission statement and corporate objectives.

STEP 6
TOP management will generate and evaluate strategy alternatives
and objectives.

STEP 7
This final corporate mission statement, objectives and strategies
becomes the foundation information for the various departments
to work out their departmental objectives/strategies/plans.

STEP 8
After working out their respective objectives/strategies/plans
and the budgets , the departmental managers send their
respective information to the TOP management for
approval.

STEP 9
On receiving the approved package from the TOP management,
the departmental managers develop the implementation plan.

STEP 10.

NOW you have mission/objectives/strategies/plans/budget/schedules

FOR EACH DEPARTMENT TO PLAN.

======================================================
IN case of HR, which is a department by itself,

This final corporate mission statement, objectives and strategies

becomes the foundation information for the HR department
to work out your departmental objectives/strategies/plans.

@@@@@@@@@@@@@@@@@@@@@@@@
MANPOWER PLANNING STARTS

FOR THE HR DEPARTMENT

STEP A ----DEVELOP THE MANPOWER PLANNING

Discuss with the various other departments like sales/ production/

distribution/accounting/ IT etc about their requirements
-for manpower
-recruitments
-replacements
-training
etc etc

Manpower Planning includes

1.Assessment / Audit of the current manpower profile

-numbers
-skills
-ages
-flexibility
-sex
-experience
-capabilities
-character
-potential

and also

-normal turnover,
-staff movements planned
-retirements
-succession planning
etc.

*.Corporate Organization Policy/ Budget Guidelines.

*. Corporate HR objective/ strategy
*. Corporate Sales forecasts [ 3 or 5 or 10 years ]
*. Corporate Product Plans [ 3 or 5 or 10 years ]
*. Corporate Production forecasts. [ 3 or 5 or 10 years ]

WITH THE HELP OF THESE FORECASTS, YOU DEVELOP A SERIES OF

CRUDE FORECASTS OF STAFF REQUIRED.

Now review the following

1.The impact of technological change on task needs.

2. Variations in the efficiency, productivity, flexibility of labor as a
result of training, work study organizational change, new motivations, etc.

3. Changes in employment practices [ e.g. subcontractors or

outsourcing etc ]
4.Other variations due to new legislations like new health requirements,
safety requirements etc.

5.Changes in government policies like tax/ tariff etc

6. Labor demand and supply .
7. Skills levels availability

What should emerge from this analysis / reviews is a "thought out"

and logical staffing demand schedule for varying dates in the future
which can then be compared with the crude supply schedule.
The comparison will then indicate what steps must be taken to
achieve a balance.

MANPOWER MAPPING

is the process of identifying the gap between

-WHAT IS THE CURRENT BUSINESS SITUATION/ CURRENT MANPOWER

AND

-WHAT IS THE FUTURE BUSINESS SITUATION / MANPOWER NEEDS

AND

-DEVELOPING A PLAN TO FILL THE GAP WITH

*numbers of additional workers/staff / managers etc

*skills of different levels
*flexibility in job handling
*achieving equal employment opportunities
*experience- lifting the experience levels
*capabilities-- improving capabilities for performance
* increase potential of people
*training
etc etc

MANPOWER PLANNING ENDS

@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@

Once you get their departmental MANPOWER requirements,

HR PLANNING RE-STARTS

HRM DEPARTMENT develops

HUMAN RESOURCE PLANNING
which includes

-recruitment /selection plans / programs/ procedures/ priorities

-training plans / programs/ procedures/ priorities

-rewards plans / programs/ procedures/ priorities

-development plans / programs/ procedures/ priorities

-payroll plans / programs/ procedures/ priorities

- performance management plans / programs/ procedures/ priorities

-staff/organization communication plans / programs/ procedures/ priorities

etc etc
-HR POLICIES
-HR PROCEDURES
-HR PRACTICES.
ETC.
===================================================

These plans will help to bring supply and demand into equilibrium,
not just as a one-off but as a continual workforce planning
exercise the inputs to which will need constant varying to reflect
the actual as against predicted experience on the supply side
and changes in production actually achieved as against forecast
on the demand side.
==========================================================
##################################################################
SOME ADDITIONAL USEFUL RESOURCES.

MAN POWER PLANNING Activities:

Demand Forecasting.
Supply Forecasting.
Determining human recourse. requirements.
Action Planning.
Monitoring & Control.

Demand Forecasting.
Process of estimating the future needs of human resource in context of corporate & functional
plans & fore cast of future activity.
Its based on Annual Budget & Corporate plans.

Manufacturing Unit Demand Forecasting is Based On:

Sales forecast & Targets
Based on theses Production Plans are made.
No.of people ,Skills ,Levels etc are accomplished the sales & production Targets.
With in the same org.needs demand varies on the basis of production technology,processes &
other factors.

JOB ANALYSIS
Before carrying out H.R.P,Mgt should know what is to be performed and how?
The whole task to be divided into & allocated into manageable work units called jobs.
Assigning task to job is JOB Design.
The H.R requirement for given volume of operation depends on content of jobs .

WORK STUDY.
Its appropriate for those jobs where it is possible to measure the work,set standards norms &
calculate the No.of persons required.

Methods Of Demand forecasting.

Managerial Judgment
Simple Statistical Models.
Mathematical Models.
Probabilistic Models.

Managerial Method.
Experienced Mgrs prepare guidelines for Deptt. Mgrs.
It involves future activity levels that will affect their deptt.
Targets are set & desirable changes in flow of work & job design are also indicated.

Simple Statistical Models.

Its Ratio Trend Analysis.
Ratios between No.of workers & supervisors.
Future ratios are forecast based on time series.
No.of employees required for different groups/skills are calculated.

Mathematical Model

Its through use of probabilities & correlations.

Probabilistic Models

Employees are classified according to Org.Units,Job Categories,locations,levels,grades.

Probability of employees moving from one classification is also considered.
Past trend like promotions,transfers,separations are also useful in forecasting.

Supply Forecasting
Internal sources.
External sources.

Determining Human resource Planning

Demand.
a) No.Needed at the beginning of the Yr.
b)Changes to requirements forecast during the yr.
C) Total requirement at the end of the yr.

Supply
No.available at the beginning of the yr.
Transfers & Promotions
Separations through retirements,wastage,promotions

Deficit Or Surplus.
Losses of those recruited during the yr.
Additional No required during the yr.

Action Planning / Monitoring & Control

Zero Budgeting: An approach in which one forces unit/division managers to justify their total
operation from zero budgeting.
Ideal Approach:off loading functions like M&U,production technology,what may be considered
ideal by Mgt,at times force ethical dimensions.
Realistic Approach:Using the existing information.for Eg:A company that operates on 3yrs
planning cycle may record man power levels in subunits that is easy to monitor and control.

=================================================
Stages Of Man Power Planning:
Conception,Feasibility,Construction,commissioning operations.
Phases Of Man Power Planning:
Survey,source identification,recruitments,placement,induction,maintenance ,separation