Advanced Manpower Planning

Schedule

Manpower Planning
sessions
Objectives
Benefits
Advantages
Limitations and Problems

1+1

Schedule 2

Organization as a Matrix of Jobs

Organization Structuring - Traditional

Concepts
Recent trends
Role Clarity/ Job enrichment / Job
enlargement

Schedule 3

HR planning
Linkage with other HR functions
Influencing factors in Manpower Planning

Schedule 4

Manpower Planning
Tools Methods and Techniques
Skill Analysis Skill Inventory
Performance Appraisal
Manpower inventory: Qualitative,
Quantitative, Methodology, MIS

Schedule 5

Statistical and Mathematical Models

Cohort Analysis
Census Analysis
Markov Analysis

Schedule 6

Improving Manpower Utilization and

Control
Number Quality and Cost

Schedule 7

Manpower Planning techniques for

Running enterprise
running enterprise with major expansion
plans
Modernization
Diversification
About to be set up

Schedule 8

Manpower Planning
National
Various Approaches
Progress in India

Books

Human resource Planning

Dipak Kumar Bhattacharyya

Planning and Managing Human resource

Rothwell and Kazanas

Unit 2
Manpower planning
Objectives
Benefits
Advantages/Limitations

SHRF, HRP and Organizational Strategy

What is Manpower Planning

Manpower Planning process is born out

of the economic need to ensure that
there were enough people to satisfy a
rationally derived business or
organizational strategy.

Objectives

Analyze the Organizations manpower

needs as the organization requirements
change and strategize to ensure that the
right numbers and skills are available at
the right time, right place and the right
cost.

History

SHRP finds a place in the 14 points of

Management by Henri Fayol :

Stability of tenure of personnel

Human and material organization is
consistent with the objectives
resources and requirements of the
business concern. Fayol 1930

Eras of Labour Market Practice

Strategy .. Means general in Greek,

in a military sense is linked to the
planning of battles and military
campaigns.
In a business setting strategy deals
with long term large scale plans for
future oriented competitive success.

Advantages

Serious look at existing talent

Audits current workforce in terms of
numbers and skills
Identification of gaps current and future
Development plan
Recruitment Plan
Alternate sourcing plans

Key steps

Demand Forecast
Supply Projection
Assessing Competencies
Gap Analysis
Strategy Development

Limitations

Lack of strategic vision

Shifts in the PEST scenario
Dependency on Global requirements
Leadership change
Lack of HR Alignment

Unit 1
Organization Structures
Organization as a matrix of jobs
Role clarity, Job enlargement, Job
enrichment

Roadmap
22

Organizing and organizations

Structure of organizations
Matrix organizations
Networked organizations
Learning organizations
Challenges in organizations

What Is Organizing?
23

Organizing

Arranging the
activities of the
enterprise in such
a way that they
systematically
contribute to the
enterprises goals.

Depicting the Organization

24

Organization Chart

A chart that shows the

structure of the
organization including
the title of each
managers position
and, by means of
connecting lines, who
is accountable to
whom and who has
authority for each
area.

Organization Design and

Structure
25

Organization design

A process in which managers develop or

change their organizations structure

Work specialization

A component of organization structure that

involves having each discrete step of a job
done by a different individual rather than
having one individual do the whole job

Prentice Hall, 2002

Stages of Organizational
Development
26

Simple structure

Functional structure

An organization that is low in specialization

and formalization but high in centralization
An organization in which similar and related
occupational specialties are grouped
together

Divisional structure

An organization made up of self-contained

units

Stages of Organizational
Development (contd)
27

Matrix structure

Team-based structure

An organization in which specialists from

functional departments are assigned to work
on one or more projects led by a project
manager
An organization that consists entirely of work
groups or teams

Boundaryless organization

An organization that is not defined or limited by

boundaries or categories imposed by
traditional structures

Mechanistic and Organic

Organizations
28

Mechanistic organization

Organic organization

The bureaucracy; a structure that is high in

specialization, formalization, and
centralization
An adhocracy; a structure that is low in
specialization, formalization, and
centralization

Structure follows strategy

Burns and Stalker

29

Structure Variables

Principles

Chain of command
Span of control
Authority
Power
Responsibility

Departmentalizati
on

Functional
Divisional

Product
Customer
Geographic
Process

30

Organizational Structure:
Control

31

Chain of command

Span of control

The rights inherent in a managerial position to give orders

and expect them to be obeyed

Responsibility

The number of subordinates a manager can direct

efficiently and effectively

Authority

The management principle that no person should report to

more than one boss

An obligation to perform assigned activities

Power

An individuals capacity to influence decisions

Chain of Command
32

Tall And Flat Organizations, And The

Span Of Control
33

Span of Control

The number of subordinates reporting

directly to a supervisor.

Wide spans: larger number of direct reports.

Narrow spans: fewer number of direct reports.

Tall vs. Flat Organizations

Tall organizations: more management layers

and more hierarchical controls.
Flat organizations: fewer management layer
and decision making closer to the customer.

34

Types of Organizational
Authority

Line authority

The position authority (given and defined

by the organization) that entitles a
manager to direct the work of operative
employees

Staff authority

Positions that have some authority (e.g.,

organization policy enforcement) but that
are created to support, assist, and advise
the holders of line authority

Types of Power
Legitimate

Power based on ones position in

the formal hierarchy

Coercive

Power based on fear

Reward

Power based on the ability to

distribute something that others
value

Expert

Power based on ones expertise,

special skill, or knowledge

Referent

Power based on identification

with a person who has resources
or traits
35

Principles of Delegation
36

The manager can delegate authority

but cannot delegate responsibility.
Clarify the assignment.
Delegate, dont abdicate.
Know what to delegate.
Specify the subordinates range of
discretion.
Authority should equal responsibility.
Make the person accountable for
results.
Beware of backward delegation.

Departmentalization:
Creating Departments
37

Departmentalization

The process through which an

organizations activities are grouped
together and assigned to managers; the
organizationwide division of work.

Departmentalization
38

Functional

Product

The grouping of activities by common

customers

Geographic

The grouping of activities by product produced

Customer

The grouping of activities by functions

performed

The grouping of activities by territory

Process

The grouping of activities by work or customer

39

Organizing Departments by
Function

Functional Departmentalization

A form of organization that groups a

companys activities around essential
functions such as
manufacturing,
sales, or finance.

G.Dessler, 2003

Divisional Organizations
Facilitate Coordination
40

FIGURE 65

Functional vs. Divisional Organizations

41

Functional Organization Advantages

1.
2.
3.
4.

It is simple, obvious, and logical.

It fosters efficiency.
It can simplify executive hiring and
training.
It can facilitate the top managers
control.

Functional Organization
Disadvantages
1.

2.
3.

It increases the workload on the

executive to whom the functional
department heads report.
It may reduce the firms sensitivity to
and service to the customer.
It produces fewer general managers.

Functional vs. Divisional Organizations

42

Divisional Organization Advantages

1.

2.
3.
4.

The product or service gets the

single-minded attention of its own
general manager and unit, and its
customers may get better, more
responsive service.
Its easier to judge performance.
It develops general managers.
It reduces the burden for the
companys CEO.

Functional vs. Divisional Organizations

43

Divisional Organization
Disadvantages
1.
2.
3.
4.

It creates duplication of effort.

It may diminish top managements
control.
It requires more managers with
general management abilities.
It can breed compartmentalization.

44

Creating Matrix
Organizations

Matrix Organization

An organization structure in which

employees are permanently attached to
one department but also simultaneously
have ongoing assignments in which they
report to project, customer, product, or
geographic unit heads.

45

Matrix Organization
Departmentalization

FIGURE 66

LIS580- Spring 2006

April 18, 2006

G.Dessler, 2003

Matrix Organizations
Advantages
Access to
expertise.
Stability of
permanent
department
assignments for
employees.
Allows for focus
on specific
projects, products,
or customers.

Disadvantages
Confusion of
command.
Power struggles
and conflicts.
Lost time in
coordinating.
Excess overhead
for managing
matrix functions.
46

47

Departmentalization in Practice: A
Hybrid

Why mix the types of

departmentalization?

Hierarchical considerations

Efficiency

The relationship of top level departments to their

subsidiary departments.
Product, customer, and territorial departments tend
to result in duplicate sales, manufacturing, and
other functional departments.

Common sense

Departmentalizing is still more an art than a

science.

48

Network-based
Organizations

Organizational Network

A system of interconnected or cooperating

individuals.

Informal Networks

Communication pathways and relationships

between individuals in an organization that
do not necessarily conform to the formal
chain of command and communication
networks of an organization.

49

Network-based Organizations
(contd)

Formal Organizational Network

A recognized group of managers or other

employees assembled by the CEO and the
other senior executive team, drawn from
across the companys functions, business
units, geography, and levels.

Electronic Organizational Networks

Networking through technology-supported

devices such as e-mail, video-conferencing,
and collaborative computing software like
Lotus Notes.

Formal vs. Social Structure

50

Rarely do the
communication patterns
match the formal structure

Cross, Rob. A bird's-eye view: Using social network analysis

to improve knowledge creation and sharing. IBM Executive
strategy report 04Jun2002
http://www-1.ibm.com/services/us/index.wss/xs/imc/a10012
62

51

Network-based Organizations
(contd)

Team-Based Organizations

Team

A group of people committed to a common purpose,

set of performance goals, and approach for which they
hold themselves mutually accountable.

Horizontal Corporations

A structure that is organized around customeroriented processes performed by

multidisciplinary cross-functional teams rather
than by formal functional departments.

Horizontal Organizations
52

Make responsibilities overlap. Design

individual jobs as broadly as possible,
and keep the number of job titles to a
minimum.
Base rewards on unit performance to
emphasize the importance of working
together.
Change the physical layout to promote
collective responsibility. Let people
see each others work.
Redesign work procedures, provide
computer terminals, use the e-mail
network, and make sure managers are
available.

Other Organization Types

53

Federal Organization

An organization in which power is distributed

between a central unit and a number of
constituents, but the central units authority is
intentionally limited.

Virtual Organization

A temporary network of independent

companies that use information technology to
share skills, reduce costs, and provide access
to one anothers markets.
Its success depends on each of the individual
firms responsibility and self-interest to
accomplish the networks purpose.

When Organizing:
Always Keep Your Goals in Mind
54

Business environments are in a constant

state of change.
An organizations strategy must be
adapted to changes in its competitive
environment.
Structure follows strategy.

Strategic change creates the need for

restructuring the organization to acquire new
and different knowledge, skills and abilities.

What Determines Organization Structure

55

Environment. Fast-changing environments

require organic structures; slowly changing
environments favor mechanistic structures.
Technology. Unit and continuous
production processes favor organic
structures. Mass production processes favor
mechanistic structures.
Goals. Ask, What are the main goals we
want to achieve via this organization?
Pros and cons. Each approach to
departmentalization has pros and cons.
Logic and common sense.

56

What Are Learning

Organizations?
1.

2.

3.

4.

Adopt an organic, networked

organizational form.
Encourage their employees to learn and
to confront their assumptions
Have employees who share a common
vision
Have the capacity

to adapt to unforeseen situations

to learn from their own experiences
to shift their shared mindsets
to change more quickly, broadly, and deeply
than ever before.

57

Centralization and
Decentralization

Centralization

A function of how much decision-making

authority is pushed down to lower levels in
an organization; the more centralized an
organization, the higher the level at which
decisions are made

Decentralization

The pushing down of decision-making

authority to the lowest levels of an
organization

Decentralize?
58

Decentralized Organization

Organizational authority for most

departmental decisions is delegated to the
department heads.
Control for major companywide decisions is
maintained at the headquarters office.

Decentralization Rules:

Decentralize decisions that affect only one

division or area and that would take a long
time for upper management to make.
Centralize decisions that could adversely
affect the entire firm and that upper

Simulation
59

Imagine the structure of an organization.

Highlight the different parts.

{ manufacturing, service (hotel), financial

(bank),
retail, IT }

Exercise : Bank of Poona

Bank of Poona is on an expansion phase.

They wish to set up 200 new Branches.
Identify their manpower challenges.

Case: Hotel International

61

Hotel International started as one single

hotel in Calcutta in1990. It now
comprises of 18 hotels Pan India.
As a strategy they wish to keep growing
geographically.
Hotel is known for its impeccable
service.
As they expand what should be their HR
strategy to retain their reputation as well
as grow.

Manpower Planning: Case study

Strategy: Low Cost

Differentiation

Role Clarity

Build a role set.

The role set must include all
the different roles you need
to interact with on a
personal level
interpersonal
level
organizational
level

Provide the relative importance of each role

ranking it.

Estimate the amount of

time you need to spend
on each role.

Role Clarity

Begins with an analysis of task

requirements using job analysis
techniques
Combining tasks to make to form natural
work units
Significance of the role
Influence and autonomy

Job enrichment

Job enrichment aims to add greater autonomy

and responsibility to the job
1) moves towards more and more completeness of
job
2) Provides higher degree of variety instead of
monotony
3) Higher feedback is provided through the work
itself.

Job enlargement

Combining previously fragmented roles

into one job.

Unit : 3
Linkage of Manpower planning to other HR
functions
Manpower Planning
Influencing Factors in Manpower Planning

HR practices that Add

value

70

Flow of People how people move in & through

the organization
Flow of Performance Management System
what links people to work- the standards &
measures, Financial & Non-Financial rewards, and
feedback that reflect stakeholder interest
Flow of Information what keeps people aware
of organizational issues; how does information
flow
Flow of Work The Who, How & Where of
work
..practices are at the
organizational level

The Four Organizational Boundaries That

Matter
71

FIGURE 03

Three dimensions need to be

understood.
72

Who does the work ?

How is work done ?

Human interaction patterns: who does what, when and

with whom ?
Functional or cross functional teams?
Standardised or customised processes?

Structure must help deliver strategy

Rememberit is people & not structures which deliver

Where is the work done ?

Physical settings shape culture & productivity

HR has an important role to play; must provide the connect

Human Resource Planning

73

Human resource Planning in the context

of
Business Plans.

Hard:
Soft:

Numbers
Competencies

Objectives
74

Attract and retain number of people with

requisite skills
Anticipate gaps and design solutions
Develop a competent workforce
Improve utilization

75

Forecast Future Needs

Forecast Availability
Match supply demand to arrive at the
gaps
Environment Analysis
Operational effectiveness analysis

Scenario Planning
76

Broad Assessment
Demand forecasting
Work Study Techniques
Skill and Competence
Supply forecast

77

Exercise : Hotel
International

The hotel plans to expand in three cities,

Trivandrum, Baroda, Chandigarh

Build a scenario and arrive at a

Manpower Plan

78

Exercise : Hotel
International

Hotel Internationals competitive

strategy is superior guest service to
differentiate themselves.
What should be the key factors that
should be built into the job Analysis .
How should they build this in the design
of their Job Description?

Structuring of jobs

Identify the main job clusters in organizations

in the following sectors

Manufacturing
Retail
IT
Finance
Services

Which of these are readily available

Which need to be developed in house
In which job clusters are numbers important
In which job clusters are specialized skills
essential
Which job clusters have skill compatibility
Which job clusters need to grow linearly

Exercise : H R Department

Create a role description for the various roles

in the HR Dept.

HR executive : recruitment, training and

development, compensation and benefit,
performance management, employee
engagement

What are the key features of the

business operational plan
What are the implications for new skills
and competencies
What are the implications for the
obsolete skills
What are the implications for the
numbers of people needed

Simply Put

What do we have
What do we need
When will we need
What is the gap
What is the plan

Factors affecting demand and supply

Changes in the working arrangements

Changes in the organization ; structures
functions
Changes in the roles ; flexibility,
amalgamation, enlargement
New activities, services, products
New skills; competencies
Outsourcing Strategies

Linkage with other HR

functions
Recruit
ment

EER

Manpower
Planning

C and
B

PMS

T and
D

Unit 4

Manpower Planning
Flowchart
Demand Forecast: 1) Activity levels
2) Business Operational
Plan
Supply Forecast : 1) Workforce Analysis
2) Employee turnover
Manpower Plan

Recruit Retain

Develo
p

Techno
logy

Redef
ne
roles

Produc
tivity
Planni
ng

Outsou Just in
rcing
time

Scenario Planning

Assessment Of developments that are

likely to affect the organization
Manpower Plan Implications
Environment Analysis : Political,
Economic, Social, Technological, Legal,
Environmental

Forecasting activity levels

Activity
Applicable roles
Current level
Current number in the roles
Ratio : numbers to roles
Forecast for the change . Date1 date 2
date3

Manpower Analysis : Levels

Levels
Senior/ Middle/ Junior managers
Technical staff
Administrative staff
Sales and marketing
Service
Skilled/ semi skilled
Support
Drivers
Outsourced

Numbers

Measuring employee
turnover
Ratios

Employee turnover index

Stability index
Survival rate
Length of service index

Balancing Demand and

Supply
Forecast
Y
Demand

Forecast
Q1
Supply

Demand

Forecast
Q2
Supply

Demand

Supply

Action Plan
Recruitment

Numbers /types/ levels

Likely sources
Proposals for attracting good resource
Designing the recruitment program
Time Frame
Just in time

Retention

Identification of teams
Retention schemes

Learning and Development

New skills; Development plan

Reskilling
Training Programs ; on the job, class
room, mentors

New methods of work

Increased operational efficiency

Introduction of technology
Flexible working ; time / location
Outsourcing ; jobs and people

Redefning Roles

Enhance role flexibility

Multi tasking
Multi skilling

Productivity Plan

Improve procedures, systems

Deploy technology
Reduce duplication and waste
Improve competency

The Strategic Human Resource Forecast The

Process

Assessing the Demand for People

The Interaction between

Interest Groups During the Planning Process

Rationale
Manpower Planning
1)

2)
3)

4)

Provides a basis for a systematic approach to

assessing the numbers and types of skills
required in various time frames
Environmental scanning
Preparation of recruitment, training and
retention plans
Management of succession

Skill Analysis and Inventory

Organization Growth Phases

Growth Phases
Maturing of organizations
Initial (Level 1)
Managed (Level 2)
Strategic(Level 3)
Predictable (Level 4)
Optimizing (Level
5)
( capability maturity model )

Level 1 : Initial
Inconsistent Processes
Displaced responsibilities
Low level of competence
Sporadic Results

Level 2 : Managed
Basic Practices in place
Unclear performance objectives
Inadequate competencies
Work overload/ under load
Environment changes a distraction

Level : 3 Strategic / Defined

Strategic Business Plan
Defined Work Processes
Basic competencies in place ( Tacit)
Adaptive to Change in Business
Environment

Level 4 : Predictable / Repeatable

Predict capability for performance
Quantifiable measures of performance
Competency based workforce
The eco system trusts that results will be
produced

Level 5 : Optimizing
Focus on continuous improvement
Total Alignment
Competency based Work Practices
Incremental Advances and results
Optimum utilization and performance
Leaders in the eco- system
Empowerment

An organizations maturity is improved by

workforce practices routinely performed
inside it.
Higher the competency level, greater is the
opportunity for achieving optimum results and
continuous improvement of the organization.

Journey to excellence and growth

An organizations journey to growth and

excellence is achieved by the
workforce competencies inside it.

COMPETENCY

Competence: A person- related concept

that refers to the dimensions of behavior
lying behind competent performer.
Ability: A work- related concept that
refers to areas of work at which the
person is competent
Competencies: Often referred as the
combination of the above two.

Defnition

Competencies are underlying

characteristics of people and indicate
ways of behavior
or thinking generalizing across
situations and
enduring for a reasonably long period of
time.

Defnition
114

First popularized by Boyatzis (1982) with

Research based results on clusters of
competencies

A capacity that exists in a person - that

leads to behavior - that meets the job
demands within parameters of
organizational environment and that - in
turn brings about desired results

What is a competency

Set of
behaviors that is
instrumental in
the delivery of
desired results

Definition contd
116

Common in all definitions,

Competencies are underlying

characteristics

Clusters of knowledge, attitudes, skills

Career drivers

Set of skills related to a superior

performance

117

Common to all definitions;

Linked to superior performance

Improves an individuals ability to

excel

Contributes to the overall success of

the
organization

Competence
Unconscious incompetence
Conscious incompetence

Conscious competence
Unconscious competence

Competencies
119

How are competencies developed eg

Tata Group

Which business strategies help us to

succeed
What capability does each business unit
need to
ensure success
What competencies does each employee

Career Stages
120

Management of Self
skills
Management of Others people

executive
manage
contribution

Management of Function responsibility

for results

Competency Characteristics
5 Types of Competency Characteristics
Motives
Traits
information
Self Concept
Knowledge
Skill

Wants that cause action

Consistent responses to
situation or
Attitudes, values, self image
Information
Ability to perform

Generic Competencies
Impact and Influence
Achievement Orientation
Leadership
Teamwork and Cooperation
Analytical Thinking
Initiative
Developing
Teams
Self Confidence
Direct/ Assertiveness
Information Seeking
Conceptual Thinking

Types of Competencies

Threshold Competencies

Essential competencies required to do the job,

these do not differentiate between high and
low performance

Differentiating Competencies:

Behavioral characteristics that high performers

display

Dr. Asha Naik

Key Competencies
Leadership
Strategic vision
Value creation
Customer orientation
Technical expertise
Functional expertise
Risk orientation

Types of Competencies
126

Employee Core Competency

Should be possessed by all employees
. Customer care

Executive/Managerial/Leadership Competency
Progress as per level
. People and Task Competencies

Conceptual Competency
Cognitive and Application
. Learning and Unlearning

Functional Competency
Expertise in Body of knowledge
. Use and develop processes, models, products

The Human Resource Plan

Measuring competency

ource: Corporate Leadership Council, )

The Business Framework

Business

Functional

People

Customer

Excellence in Performance

Competencies at Different Levels

Functional Competence

Leadership Competence

Entry / Junior
Top

Middle

Senior

Behavioral Iceberg

Visible

Skill
Knowledge
Capability

Ability to perform a task

Values
Self-Image

Attitudes, values self

image

Trait

Hidden

Motive

Competence in specific
content areas

Consistent responses to
Situations and information
Emotions, Desires, Needs

Competency Framework
COMPETENCY IDENTIFICATION
1.

Identification process

COMPETENCY MAPPING

2.

Consolidation of checklist

1.

COMPETENCY FRAMEWORK

3.

Rank Order and finalization

Strategy-Structure
Congruence

1.

Core competencies
(Organization wide)

4.

Validation and Benchmark

2.

Structure Role
Congruence

2.

Business competencies
(Unit specific)

3.

3.

People Competencies
(Team Specific)

Vertical &
horizontal Role
linkages

Multi Information Approach

4.

4.

Role competencies
(Role Specific)

- Individual Competency Document

Positioning to bring
in competitive
advantage

COMPETENCY ASSESSMENT
- Background information + validation
- Assessment Center

COMPETENCY DEVELOPMENT
1.

Current Role

2.

Maturity framework &

matrix

3.

Areas of improvement

4.

Action Plan

INTEGRATION OF HR
FUNCTION
1.

PMS

2.

T&D

Dr. Asha Naik

Effective Competency
Model

Competencies must speak the language of the

organization
Competencies must be integrated with the values of
the
organization
Competencies must be aligned to the current business
strategy
Competencies must be identified for the current
job assignment
Competencies must be developed for the future
strategic requirements

Competency Model

Market Realities
Business strategy

Vision/Mission
Stakeholder Expectations
Competency
Model

Key Success Factors /Behaviors

Competency requirements
Competency Assessment
Competency Development

139

Competency Frameworks
Clear and Transparent
unambiguous, logical , simple
Relevant
to business, to strategy, to employees,
to job roles
Discreet and Generic elements
generic to the organization, discreet to
the funtion
140

Care
er
Cube

Competency /Skill Inventory

Simulation 1- Generic Role

Identify the role
Job description of the role
KRA/ KPI of the role
Competencies Generic
Key
Level
Assessment Methodology
Selection of Assessors
Identification of Gap

Simulation 2 Specialized
Role
Identify the role
Job description of the role
KRA/ KPI of the role
Competencies Generic
Key
Any special
qualifications
Level
Assessment Methodology Any special work exp.?
Selection of Assessors
Identification of Gap

Competency framework
145

Process

Define the competency requirements

that cover all the key jobs in an
organization

Process contd
Step 1
List the job roles in the organization
Step 2
Segregate the roles into generic and specialist
categories
Step 3
Identify the most critical roles in both the
categories
Step 4
List the KPAs of these roles

Step 5
Identify the key competencies for each
role
Technical/Functional
Business
Behavioral
Any other
Step 6
Identify the level E1,E2,E3,E4

Job Clusters
150

Business Cluster
Administrative Cluster
Control/ Regulatory Cluster

Purpose
Identify the leadership pipeline.
Optimize individual employee potential
Develop Talent communities
Identify talent gaps at organization level
Identify competency gaps at individual
levels
Reduce errors of judgement for critical
positions

Performance Management

PERFORMANCE MANAGEMENT

Performance Management is an ongoing

communication process, undertaken in
partnership between an employee and
his/her supervisor, that involves
establishing clear expectations and
understanding about:

the essential job functions

the employee is expected
to do
how the employees job

continued.

Performance Management System

elaborates,

What the job means in concrete terms

How employee and supervisor work
together to sustain, improve or build on
existing employee performance
How performance will be measured
Identifying the barriers to performance and
removing them

Process

Define clearly, what needs to be achieved.

Establish Clear Priorities
Setting Results/ Goals
Assign the Goals
Provide Assistance as Needed
Establish a Progress Reporting Process
Monitor and Reviewing Process

continued

Set a New Goal, for next level of

improvement

Ask the team what else they think is possible

Keep the momentum going
Recognize and reward exemplary contribution

Performance Management can

address these concerns

Providing periodic and scheduled forums for discussion of

work progress

Exchange of two way feedback

Understanding of where they are w.r.t. goals and objectives,

and what lies ahead

Any course corrections well in time

How to make improvements

Performance Management as a
System

Performance Planning
On-going performance communication
Data gathering, Observation and
Documentation
Performance Appraisal Meetings
Performance Diagnosis and Coaching
Back to Square One. Planning Again

Payoffs for the Organization

Organizations work more effectively when the

goals and the objectives of the organization,
those of the smaller work units and the job
responsibilities of EACH employee are all linked.

When people in the organization understand how

their work contributes to the success of the
company, morale and productivity usually
improves

PERFORMANCE MANAGEMENT IS THE KEY TO

MAKING THESE LINKS CLEAR TO EVERYONE IN
THE ORGANIZATION

To Summarize.

Performance management is an ongoing

communication between the manager and
each employee to clarify job responsibilities
and to improve performance continuously
All parties in the partnership need to know
why they are partnering and what is in for
them
Appraisal is only one (of the several) element
of performance management system
The system has to be implemented as a
whole.

WHAT EMPLOYEES NEED TO

SUCCEED

what is expected of them, when and

completion criteria
they need regular specific feedback on their
job performance
how their work fits in with the work of others,
the goals of their work unit and the over all
mission and purpose of the company

WHAT EMPLOYEES NEED TO

SUCCEED

they want to play an active role in defining and redefining their jobs

by and large, they know their jobs better than

anyone else, and they also know how to remove
any barriers in their success

WHAT EMPLOYEES NEED TO

SUCCEED

they need to know their level of authority

what decisions they can take on their own and

where they need to involve others
this way, they can operate with much more
confidence

WHAT EMPLOYEES NEED TO

SUCCEED

they need opportunities to develop their

skills and grow

they want to learn new things

they want to see what their career path is in
the organization, and how can they carve it
out in line with their own hopes and
aspirations

WHAT ORGANIZATIONS NEED TO

SUCCEED

need some way to co-ordinate the work of

their divisions/departments/branches, so
they are fully aligned towards achieving
same goals and purpose

CRITERIA FOR PERFORMANCE

MANAGEMENT

most importantly, it must serve the needs

of managers, employees and the
organization

it must create a win-win situation for everyone

involved

Improving Performance

Create a vision for improved

performance
Establish priorities
Set initial goal-low hanging fruits
Assign goal to the team
Provide assistance as needed
Show faith in your team
Celebrate success
Set a new goal

Productivity Improvement

Create a vision for improved performance

Define clearly, what will be achieved when the

improvement efforts succeed. What will
organization accomplish

Establish Priorities

Zero in on area where the need for improvement is

most urgent. Where people involved are likely to
be most receptive/co-operative

Manpower Inventory - 6

Improving Manpower Utilization and

Control
Number Quality and Cost

Manpower Forecast

1- 2 years

Annual forecast
(operational plan)

Recruitment,
Contract manpower

2-5 years

Projected
manpower
(Long term plan)

Succession Plans,
training and
development,
redundancy

5+ years

Perspective Plan
(PEST Analysis)

Mngt devt, Org.

devt,
redeployment, job
restructuring

Analysis of Workload Factors

Classification of work
Forecasting the number of jobs
Converting the number of jobs into man
hours
Converting the man hours into
manpower requirements
Total manpower
requirement

Time Series Analysis

When we record employment over a

period of time we observe the following;
Trend : Fluctuations over a period of time
Cyclical effects : Change in employment
due to some event
Seasonality : seasonal impact on
availability of manpower
Random fluctuations : growth of industry

Shortcoming of Quantitative Techniques

Productivity increase is not always a

product of human effort
Effect of factors to improve productivity
i.e. incentive schemes may not be
consistent over a period of time
Data on past workload factors may not
be available

Accounting for people

Number of employees
Categories
Grades
Total value
Value per employee
. Further

Number of employees acquired

Cost of acquisition
Levels
Levels of productivity
HR separation
Cost of attrition
Productivity analysis

Valuation

Non monetary valuation

Competency inventory
Performance evaluation
Employee potential
Productivity per employee
(subjective

valuation)

Monetary valuation
Capitalization Method : Capitalization of
all costs
Replacement cost method : Cost of
replacement
Economic value method : Value arrived
on the basis
of contribution

Manpower Planning Approaches for

Running enterprise
Running enterprise with major
expansion plans
Enterprise in Modernization Phase
Enterprise in Diversification Phase
About to be set up

Flow of people
180

Talent comes with people & develops with their

movement within an organization: how they enter,
develop their skills & move through

Six choices to manage Talent

Buyrecruit
Build.develop
Borrow.contract
Bounce.downsize
Bind.retention
Boost.growth/promotion
..talent is the ability to deliver; requires
max attention

History

SHRP finds a place in the 14 points of

Management by Henri Fayol :

Stability of tenure of personnel

Human and material organization is
consistent with the objectives
resources and requirements of the
business concern. Fayol 1930

Eras of Labour Market Practice

Strategy .. Means general in Greek,

in a military sense is linked to the
planning of battles and military
campaigns.
In a business setting strategy deals
with long term large scale plans for
future oriented competitive success.

Advantages

Serious look at existing talent

Audits current workforce in terms of
numbers and skills
Identification of gaps current and future
Development plan
Recruitment Plan
Alternate sourcing plans

Key steps

Demand Forecast
Supply Projection
Assessing Competencies
Gap Analysis
Strategy Development

Limitations

Lack of strategic vision

Shifts in the PEST scenario
Dependency on Global requirements
Leadership change
Lack of HR Alignment

Exercise : Bank of Poona

Bank of Poona is on an expansion phase.

They wish to set up 200 new Branches.
Identify their manpower challenges.

Organization as a matrix of
jobs

Simulation
189

Imagine the structure of an organization.

Highlight the different parts.

{ manufacturing, service (hotel), financial

(bank),
retail, IT }

Case: Hotel International

190

Hotel International started as one single

hotel in Calcutta in1990. It now
comprises of 18 hotels Pan India.
As a strategy they wish to keep growing
geographically.
Hotel is known for its impeccable
service.
As they expand what should be their HR
strategy to retain their reputation as well
as grow.

HR practices that Add

value

191

Flow of People how people move in & through

the organization
Flow of Performance Management System
what links people to work- the standards &
measures, Financial & Non-Financial rewards, and
feedback that reflect stakeholder interest
Flow of Information what keeps people aware
of organizational issues; how does information
flow
Flow of Work The Who, How & Where of
work
..practices are at the
organizational level

Flow of people
192

Talent comes with people & develops with their

movement within an organization: how they enter,
develop their skills & move through

Six choices to manage Talent

Buyrecruit
Build.develop
Borrow.contract
Bounce.downsize
Bind.retention
Boost.growth/promotion
..talent is the ability to deliver; requires
max attention

Three dimensions need to be

understood.
193

Who does the work ?

How is work done ?

Human interaction patterns: who does what, when and

with whom ?
Functional or cross functional teams?
Standardised or customised processes?

Structure must help deliver strategy

Rememberit is people & not structures which deliver

Where is the work done ?

Physical settings shape culture & productivity

HR has an important role to play; must provide the connect

Human Resource Planning

194

Human resource Planning in the context

of
Business Plans.

Hard:
Soft:

Numbers
Competencies

Objectives
195

Attract and retain number of people with

requisite skills
Anticipate gaps and design solutions
Develop a competent workforce
Improve utilization

196

Forecast Future Needs

Forecast Availability
Match supply demand to arrive at the
gaps
Environment Analysis
Operational effectiveness analysis

Scenario Planning
197

Broad Assessment
Demand forecasting
Work Study Techniques
Skill and Competence
Supply forecast

198

Exercise : Hotel
International

The hotel plans to expand in three cities,

Trivandrum, Baroda, Chandigarh

Build a scenario and arrive at a

Manpower Plan

199

Exercise : Hotel
International

Hotel Internationals competitive

strategy is superior guest service to
differentiate themselves.
What should be the key factors that
should be built into the job Analysis .
How should they build this in the design
of their Job Description?

Structuring of jobs

Identify the main job clusters in organizations

in the following sectors

Manufacturing
Retail
IT
Finance
Services

Which of these are readily available

Which need to be developed in house
In which job clusters are numbers important
In which job clusters are specialized skills
essential
Which job clusters have skill compatibility
Which job clusters need to grow linearly

BUILDING THE ROLE

SET
Module 2

Role Clarity

Build a role set.

The role set must include all
the different roles you need
to interact with on a
personal level
interpersonal
level
organizational
level

Provide the relative importance of each role

ranking it.

Estimate the amount of

time you need to spend
on each role.

Role Clarity

Begins with an analysis of task

requirements using job analysis
techniques
Combining tasks to make to form natural
work units
Significance of the role
Influence and autonomy

Job enrichment

Job enrichment aims to add greater autonomy

and responsibility to the job
1) moves towards more and more completeness of
job
2) Provides higher degree of variety instead of
monotony
3) Higher feedback is provided through the work
itself.

Job enlargement

Combining previously fragmented roles

into one job.

Exercise : H R Department

Create a role description for the various roles

in the HR Dept.

HR executive : recruitment, training and

development, compensation and benefit,
performance management, employee
engagement

Schedule 3

HR planning
Linkage with other HR functions
Influencing factors in Manpower Planning

Factors Contributing to the

Need for Strategic Human Capital Management

Manpower Planning
Flowchart
Demand Forecast: 1) Activity levels
2) Business Operational
Plan
Supply Forecast : 1) Workforce Analysis
2) Employee turnover
Manpower Plan

Recruit Retain

Develo
p

Techno
logy

Redef
ne
roles

Produc
tivity
Planni
ng

Outsou Just in
rcing
time

What are the key features of the

business operational plan
What are the implications for new skills
and competencies
What are the implications for the
obsolete skills
What are the implications for the
numbers of people needed

Simply Put

What do we have
What do we need
When will we need
What is the gap
What is the plan

Factors affecting demand and supply

Changes in the working arrangements

Changes in the organization ; structures
functions
Changes in the roles ; flexibility,
amalgamation, enlargement
New activities, services, products
New skills; competencies
Outsourcing Strategies

Scenario Planning

Assessment Of developments that are

likely to affect the organization
Manpower Plan Implications
Environment Analysis : Political,
Economic, Social, Technological, Legal,
Environmental

Forecasting activity levels

Activity
Applicable roles
Current level
Current number in the roles
Ratio : numbers to roles
Forecast for the change . Date1 date 2
date3

Manpower Analysis : Levels

Levels
Senior/ Middle/ Junior managers
Technical staff
Administrative staff
Sales and marketing
Service
Skilled/ semi skilled
Support
Drivers
Outsourced

Numbers

Measuring employee
turnover
Ratios

Employee turnover index

Stability index
Survival rate
Length of service index

Balancing Demand and

Supply
Forecast
Demand

Forecast
Supply

Demand

Forecast
Supply

Demand

Supply

Action Plan
Recruitment

Numbers /types/ levels

Likely sources
Proposals for attracting good resource
Designing the recruitment program
Time Frame
Just in time

Retention

Identification of teams
Retention schemes

Learning and Development

New skills; Development plan

Reskilling
Training Programs ; on the job, class
room, mentors

New methods of work

Increased operational efficiency

Introduction of technology
Flexible working ; time / location
Outsourcing ; jobs and people

Redefning Roles

Enhance role flexibility

Multi tasking
Multi skilling

Productivity Plan

Improve procedures, systems

Deploy technology
Reduce duplication and waste
Improve competency

The Strategic Human Resource Forecast The

Process

Assessing the Demand for People

The Interaction between

Interest Groups During the Planning Process

Rationale
Manpower Planning
1)

2)
3)

4)

Provides a basis for a systematic approach to

assessing the numbers and types of skills
required in various time frames
Environmental scanning
Preparation of recruitment, training and
retention plans
Management of succession

Manpower Planning Models

Cohort Analysis

It is a method to analyze wastage through

turnover.
Cohort means homogenous groups.
Cohort analysis takes into account length
of service which is an important variable in
wastage analysis.

Cohort Analysis .

Number remaining at a given time

------------------------------------------- x 100
Number engaged at any time

It is more accurate for small

homogenous groups

Census analysis

Is a method to analyze wastage.

Can be used for large groups

Very simple to use

Census Analysis ..

The number of employees at the

beginning of the census
The number of employees at the end of
the census
The number of employees leaving during
the census perion

Markov Model

Assumption

In hierarchical systems routes for employees are

well defined
Every employee elevates himself through a well
defined career path
All employees start at the bottom and then work
their way upwards
Any wastage that occurs is from falling off the
ladder

The basic assumption of this model is

that an employee in any grade has a
fixed chance of promotion in a given
year, independent of vacancy.
The future numbers in each level is
forecasted.
Markov Model is based on the steady
state distribution.
It is also known as the push model.

Case study Mcdonalds

Like all businesses Mcdonalds require staff

to carry out the daily activities related to the
nature of the organization.
Once inside the staff performs various duties
according to their roles
Time line and cost effective are 2 critical
aspects
Training is provided for these aspects.
Manpower planning is concerned with
providing the right resource .

Use this situation to plan for manpower

so that the aims of McDonalds are met.
Keep in mind the following
Productivity levels
Good customer service
Absenteeism
Customer complaints
Replacement

What is manpower Planning

What is the link between Business planning
and manpower planning
What is the rationale for manpower planning
What are the main approaches to manpower
planning
Explain manpower planning, importance,
objectives
What is the role of Human resource planning
in human resource management

What are the overall benefits of Human

resource planning
Detail the factors affecting manpower planning
Which are the various tools used in manpower
planning
Why do human resource professionals fail to
prove that they contribute
Why does an organization need an effective
manpower plan
Explain any one model for manpower planning
highlighting its usefulness and limitations.

Explain any one model of manpower planning

( Cohort, Census or Markov) to bring out its
limitations
B) Contribution of the Manpower Plan to the
Recruitment Plan
C) Strategic inputs for an effective Manpower
Plan
D) Manpower Plan for a McDonalds outlet at
Hinjewadi ( 2 shifts )
E) Job description of a H.R. Executive
( Training and development )

The Human Resource Plan