Importance of HRP

Planning is very important to our everyday activities. Several definitions have been given by different writers what planning is all about and its importance to achieving our objectives. It is amazing that this important part of HR is mostly ignored in HR in most organizations because those at the top do not know the value of HR planning. Organizations that do not plan for the future have less opportunity to survive the competition ahead. This article will discuss the importance of HR planning; the six steps of HR planning that is : Forecasting; inventory, audit, HR Resource Plan; Actioning of Plan; Monitoring and Control.

Importance of Planning

Planning is not as easy as one might think because it requires a concerted effort to come out with a programme that would easy your work. Commencing is complicated, but once you start and finish it you have a smile because everything moves smoothly.

Planning is a process that have to be commenced form somewhere and completed for a purpose. It involves gathering information that would enable managers and supervisors make sound decisions. The information obtained is also utilized to make better actions for achieving the objectives of the Organization. There are many factors that you have to look into when deciding for an HR Planning programme.

HR Planning involves gathering of information, making objectives, and making decisions to enable the organization achieve its objectives. Surprisingly, this aspect of HR is one of the most neglected in the HR field. When HR Planning is applied properly in the field of HR Management, it would assist to address the following questions:

1.  How many staff does the Organization have?

2.  What type of employees as far as skills and abilities does the Company have?

3.  How should the Organization best utilize the available resources?

4.  How can the Company keep its employees?

HR planning makes the organization move  and succeed in the 21^st Century that we are in. Human Resources Practitioners who prepare the HR Planning programme would assist the Organization to manage  its staff strategically. The programme assist to direct the actions of HR department.

The programme does not assist the Organization only, but it will also facilitate the career planning of the employees and assist them to achieve the objectives as well. This augment motivation and the Organization would become a good place to work.  HR Planning forms an important part of Management information system.

HR have an enormous task keeping pace with the all the changes and ensuring that the right people are available to the Organization at the right time. It is changes to the composition of the workforce that force managers to pay attention to HR planning. The changes in composition of workforce not only influence the appointment of staff, but also the methods of selection, training, compensation and motivation. It becomes very critical when Organizations merge, plants are relocated, and activities are scaled down due to financial problems.

Inadequacy of HR Planning

Poor HR Planning and lack of it in the Organization may result in huge costs and financial looses. It may result in staff posts taking long to be filled. This augment costs and hampers effective work performance because employees are requested to work unnecessary overtime and may not put more effort due to fatigue. If given more work this may stretch them beyond their limit and may cause unnecessary disruptions to the production of the Organization. Employees are put on a disadvantage because their live programmes are disrupted and they are not given the chance to plan for their career development.

The most important reason why HR Planning should be managed and implemented is the costs involved. Because costs forms an important part of the Organizations budget, workforce Planning enable the Organization to provide HR provision costs. When there is staff shortage, the organization should not just appoint discriminately, because of the costs implications of the other options, such as training and transferring of staff, have to be considered.

HR Forecasting

A strategic human resource planning model

There is no single approach to developing a Human Resources Strategy. The specific approach will vary from one organisation to another. Even so, an excellent approach towards an HR Strategic Management System is evident in the model presented below. This approach identifies six specific steps in developing an HR Strategy:-

1.       Setting the strategic direction

2.       Designing the Human Resource Management System

3.       Planning the total workforce

4.       Generating the required human resources

5.       Investing in human resource development and performance

6.       Assessing and sustaining organisational competence and performance

The six broad interconnected components of this system consist of three planning steps and three execution steps.

The top three components represent the need for planning. Organizations must determine their strategic direction and the outcomes they seek. This is usually accomplished with some form of strategic planning. Classic strategic planning is a formal, top-down, staff-driven process. When done well, it is workable at a time when external change occurs at a more measured pace.

However as the pace and magnitude of change increases, the approach to strategic planning changes substantially:

• First, the planning process is more agile; changes in plans are much more frequent and are often driven by events rather than made on a predetermined time schedule.
• Second, the planning process is more proactive. Successful organizations no longer simply respond to changes in their environment, they proactively shape their environment to maximize their own effectiveness.
• Third, the planning process is no longer exclusively top-down; input into the process comes from many different organizational levels and segments. This creates more employee ownership of the plan and capitalises on the fact that often the most valuable business intelligence can come from employees who are at the bottom of the organizational hierarchy.
• Lastly, the strategic planning process less reactive and more driven by line leadership.

Once strategic planning is under way, a process must be undertaken by the organization to design and align its HRM policies and practices to provide for organizational success. The remaining step in planning is to determine the quality and quantity of human resources the organization needs for its total force.

The rest of the HR strategic system exists for and is guided by these plans, policies, and practices. These execution components contain mechanisms that generate the correct skill sets, invest in staff development and performance, and productively employ them in the organisation. The last component provides a means to assess and sustain the competence and performance of the organization and the people in it with regard to outcomes that the organization seeks.

Analysis

Using the process model discussed earlier, the specific components of the HR Strategic Plan are discussed in greater detail below.

1. Setting the strategic direction

This process focuses on aligning human resource policies to support the accomplishment of the Company’s mission, vision, goals and strategies. The business’ goals sit at the heart of any HR strategy and in order to align business and HR you need to answer one key question, “Can your organisation’s internal capability deliver the organisation’s business goals?”

Many organisations cite their people as their primary source of competitive advantage. Successful companies continuously identify and adopt innovative human resource management policies and practices to sustain that advantage. More importantly, they structure work and design training, performance management, pay, and reward policies to help members of the organization succeed in achieving desired organizational outcomes. In other words, they integrate and align HRM policies and practices to reinforce employee behaviors that can best realize the leaders’ strategic intent. In the most successful companies, the set of policies and practices that collectively make up a company’s HRM system is the critical management tool for communicating and reinforcing the leaders’ strategic intent.

Recommended actions:-

• Conduct an external environmental scan and evaluate its impact on the organisation
• Identify the organisation’s vision, mission and guiding principles
• Identify the mission’s outcomes and strategic goals
• Consult all relevant stakeholders
• Evaluate the impact of legislation on the organization

2. Designing the Human Resource Management System

This stage focuses on the selection, design and alignment of HRM plans, policies and practices. Various options may be open to the organisation such as drawing on industry best practices.

Emerging HRM policies and practices range from outsourcing certain non-core functions, adopting flexible work practices (telework, work from home) and the increased use of information technology. Not every industry trend may be appropriate for a specific organisation. In addition, it is essential that a cost-benefit analysis of implementing new HRM policies and practices be undertaken. For example, the costs (monetary and in allocation of resources) of implementing a new job grading system may outweigh the benefit of such an undertaking. There may be more cost-effective alternatives available to the organisation at this point in time.

Particular HRM policies and practices may be necessary to support strategic organisational objectives, such as improving the retention of women in the organisation or promoting diversity, especially the representation of designated groups amongst senior management.

A good approach in selecting the appropriate HRM policies, procedures and practices is to identify the appropriate HRM practices which support the organisation’s strategic intent as it relates to recruitment, training, career planning and reward management.

Recommended actions:-

• Identify appropriate human resource plans, policies and practices needed to support organisational objectives
• Identify relevant human resource best practices
• Conduct an employment systems review

3. Planning the total workforce

Determining future business requirements, especially those relating to manpower requirements, represents one of the most challenging tasks facing human resource practitioners.

The development of a workforce plan is a critical component of any human resource strategy and one of the expected outcomes of human resource practitioners activities. Despite this, manpower or workforce planning, as well as succession planning, has only recently enjoyed a resurgence in popularity. To some extent this has been prompted by the need to develop employment equity and workplace skills plans and set numerical employment equity targets. The failure of many organisations to develop and implement workforce planning is rather indicative of the lack of strategic planning itself.

Workforce planning is a systematic process of identifying the workforce competencies required to meet the company’s strategic goals and for developing the strategies to meet these requirements. It is a methodical process that provides managers with a framework for making human resource decisions based on the organization’s mission, strategic plan, budgetary resources, and a set of desired workforce competencies. Workforce planning is a systematic process that is integrated, methodical, and ongoing. It identifies the human capital required to meet organisational goals, which consists of determining the number and skills of the workers required and where and when they will be needed. Finally workforce planning entails developing the strategies to meet these requirements, which involves identifying actions that must be taken to attract (and retain) the number and types of workers the organisation needs.

A workforce plan can be as simple or as complex as the organisational requires. Workforce planning can be conducted for a department, division or for the organisation as a whole. Whatever the level or approach being adopted, it must nevertheless be integrated with broad-based management strategies.

In addition to workforce planning, ensure that organisational structure and jobs ensure the efficient delivery of services and effective management of the organisation as a whole.

Recommended actions:-

• Determine the appropriate organisational structure to support the strategic objectives
• Structure jobs (competencies, tasks and activities) around key activities
• Develop a workforce plan designed to support the organisations strategic objectives
• Compile workforce profiles, identifying designated groups, an inventory of current workforce competencies, competencies required in the future and identified gaps in competencies

4. Generating the required human resources

This process focuses on recruiting, hiring, classifying, training and assigning employees based on the strategic imperatives of the organisation’s workforce plan.

A comprehensive workplace skills plan will identify appropriate training priorities based on the organisations workforce needs now and in the future. New recruitment practices may need to be adopted to increase the representation of designated groups, or securing essential skills in the organisation. A comprehensive “learnership strategy” may assist in developing future workforce needs, identified either in terms of the organisations workforce plan or required in terms of industry black economic empowerment charters.

Recommended actions:-

• Evaluate recruitment and selection practices in light of the organisation’s strategic objectives
• Develop and implement a comprehensive workplace skills plan (with a thorough training needs analysis)
• Implement a learnership strategy
• Adopt or clarify occupational levels and category classifications

5. Investing in human resource development and performance

Traditional approaches to career planning, performance appraisals, reward management and employee development must be re-appraised in light of the vision, characteristics and mission outcomes as reflected in the HRM plans, policies, and practices.

Development responses will aim to increase business skills, the application of business skills (sometimes called competencies) and the behavioural elements – all of which contribute to an organisation’s effective performance. In many ways, the Skills Development legislation have required organisations to re-engineer their developmental methods and practices. New concepts such as lifelong learning and recognising prior learning should form an integral component of the process of investing in employees.

Clearly, where a workforce planning exercise reveals that there is little projected growth in the workforce or that promotional or career development opportunities are limited, strategies aimed at employee retention will be very different from organisations which are experiencing considerable growth and expansion.

Investment initiatives for the individual, team and organisation are all geared to achieve high levels of organisational performance. It is important that at an individual level, particularly for senior staff, that they feel their development needs are agreed and that they are provided with the skills to do their jobs. At a team level, it defines the individuals’ ability to work flexibly with others and align individual and team skills and activities to business goals – all of which ensures that the organisation is equipped to achieve its goals.

Reward strategies aim to align the performance of the organisation with the way it rewards its people, providing the necessary incentives and motivation to staff. Its components can be a combination of base pay, bonuses, profit sharing, share options, and a range of appropriate benefits, usually based on market or competitor norms and the organisation’s ability to pay.

Recommended actions:-

Identify appropriate policies, procedures and practices in respect of

• Career pathing
• Performance appraisals
• Employee development and learning
• Reward Management (compensation and benefits)
• Promotions and job assignments
• Separation

6. Assessing and sustaining organisational competence and performance

Finally, few organizations effectively measure how well their different inputs affect performance. In particular, no measures may be in place for quantifying the contribution people make to organizational outcomes or, more important, for estimating how changes in policies and practices, systems, or processes will affect that contribution. Implementing clear quantifiable measures, identifying milestones in the achievement of specific organisational goals, and using concepts such as a “balanced scorecard” will articulate the results of the HR Strategic Plan in measurable terms. Regular evaluation of the plan will also assist in fine-tuning the HR strategic plan itself.

Recommended actions:-

• Evaluate organisation culture and climate
• Implement succession planning
• Evaluate HR strategy using quantifiable measures, e.g. balanced scorecard
• Revise and adapt HR strategy

5. Conclusion

While HR strategies must be developed to support the achievement of the organisation’s objectives, it is a two-way process. HR strategies can themselves be critical inputs in determining the strategic initiatives for the organisation. A fatal error, however, is to develop and implement HR strategies without having regard for the goals and objectives which the organisation has explicitly or implicitly identified. A common mistake is the development of workplace skills plans which are not linked to any strategic goals or objectives or which have no affirmative action components.

Similarly, the isolated identification of affirmative action numerical targets without first conducting a workforce and succession planning exercise is in most instances, simply meaningless

Retention

Effective employee retention is a systematic effort by employers to create and foster an environment that encourages current employees to remain employed by having policies and practices in place that address their diverse needs. A strong retention strategy becomes a powerful recruitment tool.

Retention of key employees is critical to the long-term health and success of any organization. It is a known fact that retaining your best employees ensures customer satisfaction, increased product sales, satisfied colleagues and reporting staff, effective succession planning and deeply imbedded organizational knowledge and learning.

Employee retention matters as organizational issues such as training time and investment; lost knowledge; insecure employees and a costly candidate search are involved. Hence failing to retain a key employee is a costly proposition for an organization. Various estimates suggest that losing a middle manager in most organizations costs up to five times of his salary.

Intelligent employers always realise the importance of retaining the best talent. Retaining talent has never been so important in the Indian scenario; however, things have changed in recent years. In prominent Indian metros at least, there is no dearth of opportunities for the best in the business, or even for the second or the third best. Retention of key employees and treating attrition troubles has never been so important to companies.

In an intensely competitive environment, where HR managers are poaching from each other, organisations can either hold on to their employees tight or lose them to competition. For gone are the days, when employees would stick to an employer for years for want of a better choice. Now, opportunities abound.

It is a fact that, retention of key employees is critical to the long-term health and success of any organisation. The performance of employees is often linked directly to quality work, customer satisfaction, and increased product sales and even to the image of a company. Whereas the same is often indirectly linked to, satisfied colleagues and reporting staff, effective succession planning and deeply embedded organisational knowledge and learning.

Employee retention matters, as, organisational issues such as training time and investment, costly candidate search etc., are involved. Hence, failing to retain a key employee is a costly proposition for any organization

The Importance of Retaining Employees

The challenge of keeping employees: Its changing face has stumped managers and business owners alike. How do you manage this challenge? How do you build a workplace that employees want to remain with … and outsiders want to be hired into?

Successful managers and business owners ask themselves these and other questions because—simply put—employee retention matters: ➤ High turnover often leaves customers and employees in the lurch; departing employees take a great deal of knowledge with them. This lack of continuity makes it hard to meet your organization’s goals and serve customers well.

➤ Replacing employees costs money. The cost of replacing an employee is estimated as up to twice the individual’s annual salary (or higher for some positions, such as middle management), and this doesn’t even include the cost of lost knowledge.

➤ Recruiting employees consumes a great deal of time and effort, much of it futile. You’re not the only one out there vying for qualified employees, and job searchers make decisions based on more than the sum of salary and benefits.

➤ Bringing employees up to speed takes even more time. And when you’re short-staffed, you often need to put in extra time to get the work done.

Retention Tool

1.       Offer fair and competitive salaries. Fair compensation alone does not guarantee employee loyalty, but offering below-market wages makes it much more likely that employees will look for work elsewhere. In fact, research shows that if incomes lag behind comparable jobs at a company across town by more than 10 percent, workers are likely to bolt. To retain workers, conduct regular reviews of the salaries you offer for all job titles — entry-level, experienced staff and supervisory-level. Compare your department’s salaries with statistically reliable averages. If there are significant discrepancies, you probably should consider making adjustments to ensure that you are in line with the marketplace.

2.       Remember that benefits are important too. Although benefits are not a key reason why employees stick with a company, the benefits you offer can’t be markedly worse than those offered by your competitors

3.       Train your front-line supervisors, managers and administrators. It can’t be said often enough: People stay or leave because of their bosses, not their companies. A good employee/manager relationship is critical to employee satisfaction and retention. Make sure your managers aren’t driving technologists away. Give them the training they need to develop good supervisory and people-management skills.

4. Clearly define roles and responsibilities. Develop a formal job description for each title or position in your department. Make sure your employees know what is expected of them every day, what types of decisions they are allowed to make on their own, and to whom they are supposed to report.

5.       Provide adequate advancement opportunities. To foster employee loyalty, implement a career ladder and make sure employees know what they must do to earn a promotion. Conduct regular performance reviews to identify employees’ strengths and weaknesses, and help them improve in areas that will lead to job advancement. A clear professional development plan gives employees an incentive to stick around.

6.       Offer retention bonuses instead of sign-on bonuses. Worker longevity typically is rewarded with an annual raise and additional vacation time after three, five or 10 years. But why not offer other seniority-based rewards such as a paid membership in the employee’s professional association after one year, a paid membership to a local gym after two years, and full reimbursement for the cost of the employee’s uniforms after three years? Retention packages also could be designed to raise the salaries of technologists who become credentialed in additional specialty areas, obtain additional education or take on more responsibility. Sign-on bonuses encourage technologists to skip from job to job, while retention packages offer incentives for staying.

7.       Make someone accountable for retention. Measure your turnover rate and hold someone (maybe you!) responsible for reducing it. In too many workplaces, no one is held accountable when employees leave, so nothing is done to encourage retention.

8.       Conduct employee satisfaction surveys. You won’t know what’s wrong … or what’s right … unless you ask. To check the pulse of your workplace, conduct anonymous employee satisfaction surveys on a regular basis. One idea: Ask employees what they want more of and what they want less of.

9.       Foster an environment of teamwork. It takes effort to build an effective team, but the result is greater productivity, better use of resources, improved customer service and increased morale. Here are a few ideas to foster a team environment in your department:

• Make sure everyone understands the department’s purpose, mission or goal.
• Encourage discussion, participation and the sharing of ideas.
• Rotate leadership responsibilities depending on your employees’ abilities and the needs of the team.
• Involve employees in decisions; ask them to help make decisions through consensus and collaboration.
• Encourage team members to show appreciation to their colleagues for superior performance or achievement.

10.    Reduce the paperwork burden. If your technologists spend nearly as much time filling out paperwork, it’s time for a change. Paperwork pressures can add to the stress and burnout that employees feel. Eliminate unnecessary paperwork; convert more paperwork to an electronic format; and hire non-tech administrative staff to take over as much of the paperwork burden as is allowed under legal or regulatory restrictions.

11.    Make room for fun. Celebrate successes and recognize when milestones are reached. Potluck lunches, birthday parties, employee picnics and creative contests will help remind people why your company is a great place to work.

12.    Write a mission statement for your department. Everyone wants to feel that they are working toward a meaningful, worthwhile goal. Work with your staff to develop a departmental mission statement, and then publicly post it for everyone to see. Make sure employees understand how their contribution is important.

13.    Provide a variety of assignments. Identify your employees’ talents and then encourage them to stretch their abilities into new areas. Do you have a great “teacher” on staff? Encourage him/ her to lead an in-service or present a poster session on an interesting case. Have someone who likes planning and coordinating events? Ask him to organize a departmental open house. Know a good critical-thinker? Ask him/ her to work with a vendor to customize applications training on a new piece of equipment. A variety of challenging assignments helps keep the workplace stimulating.

14.    Communicate openly. Employees are more loyal to a company when they believe managers keep them informed about key issues. Is a corporate merger in the works? Is a major expansion on the horizon? Your employees would rather hear it from you than from the evening newscast. It is nearly impossible for a manager to “over-communicate.”

15.    Encourage learning. Create opportunities for your technologists to grow and learn. Reimburse them for CE courses, seminars and professional meetings; discuss recent journal articles with them; ask them to research a new scheduling method for the department. Encourage every employee to learn at least one new thing every week, and you’ll create a work force that is excited, motivated and committed.

16.    Be flexible. Today’s employees have many commitments outside their job, often including responsibility for children, aging parents, chronic health conditions and other issues. They will be loyal to workplaces that make their lives more convenient by offering on-site childcare centers, on-site hair styling and dry cleaning, flexible work hours, part-time positions, job-sharing or similar practices. For example, employees of school-age children might appreciate the option to work nine months a year and have the summers off to be with their children.

17.    Develop an effective orientation program. Implement a formal orientation program that’s at least three weeks long and includes a thorough overview of every area of your department and an introduction to other departments. Assign a senior staff member to act as a mentor to the new employee throughout the orientation period. Develop a checklist of topics that need to be covered and check in with the new employee at the end of the orientation period to ensure that all topics were adequately addressed.

18.    Give people the best equipment and supplies possible. No one wants to work with equipment that’s old or constantly breaking down. Ensure that your equipment is properly maintained, and regularly upgrade machinery, computers and software. In addition, provide employees with the highest quality supplies you can afford. Cheap, leaky pens may seem like a small thing, but they can add to employees’ overall stress level.

Show your employees that you value them. Recognize outstanding achievements promptly and publicly, but also take time to comment on the many small contributions your staff makes every day to the organization’s mission. Don’t forget — these are the people who make you look good!

Career Planning

Redeployment and Exit Strategies

Career Management and Career Planning

Effective HRM encompasses career planning, career development and succession planning. An organization without career planning and career development initiatives is likely to encounter the highest rate of attrition, causing much harm to their plans and programmes. Similarly without succession planning managing of vacancies, particularly at higher levels, become difficult. There are examples of many organizations that had to suffer for not being able to find a right successor for their key positions. With the increase scope for job mobility and corporate race for global headhunting of good performers, it is now a well established fact that normal employment span for key performers remains awfully short.

The term career planning and career developments are used interchangeably in most of the organizations. It is also correct that but for their subtle difference in the definitional context, their process remains the same.

Definition of Career

Career is a sequence of attitudes and behaviours associated with the series of job and work related activities over a person’s lifetime.

Yet in another way, it may be defined as a succession of related jobs, arranged in hierarchical order, through which a person moves in an organization. As the literal definition of career focuses on an individually perceived sequence, to be more accurate, career may be either individual-centred or organizational-centred. Therefore, career is often defined separately as external career and internal career. External career refers to the objective categories used by society and organizations to describe the progression of steps through a given occupation, while internal career refers to the set of steps or stages which make up the individual’s own concept of career progression within an occupation. For such two different approaches, in organizational context, career can be identified as an integrated pace of vertical lateral movement in an occupation of an individual over his employment span.

Important Elements of Career

Analysing definitional context, it is clear that career has following important elements-

1. It is a proper sequence of job-related activities. Such job related activities vis-a-vis experience include role experiences at diff hierarchical levels of an individual, which lead to an increasing level of responsibilities, status, power, achievements and rewards.

2. It may be individual-centered or organizational–centered, individual-centered career is an individually perceived sequence of career progression within an occupation.

3. It is better defined as an integrated pace of internal movement in an occupation of an individual over his employment span.

Overview

Career planning generally involves getting to know who you are, what you want, and how to get there.  Keep in mind that career planning is a continuous process that allows you to move from one stage to another stage as your life changes.  You may even find yourself going back to look at who you are again after exploring how to get there.  Learning to negotiate the career planning process now is essential, considering most people will change careers several times in a lifetime.

If a career plan is to be effective, it must begin with an objective. When asked about career objectives, most managers will probably answer by saying that they want to be successful. What is success? Definition of success depends on personal aspirations, values, self-image, age, background and other different factors. Success is personally defined concept. In order to plan your career, you need to have an idea of what constitutes career success.

Do you want to be president of the company?

Do you want to be the senior executive in your field of expertise?

Would you be happier as a middle manager in your area?

Whatever the choice it must be yours.

Career management is a process by which individuals can guide, direct and influence the course of their careers.

Fig.1.2   General Periods in Careers

In the course of our career we move from one stage to another setting and implementing appropriate goals at each stage. Our goals differ from getting established on job at early career stage to career reappraisal, moving away from technical areas & becoming more of a generalist. Movement form one career stage to another will require individuals to update self & to appropriate change goals. When required danger exist that individuals may too long stay in a job they don’t like or miss career opportunity

A sensible early step in career planning is to diagnose. You might answer questions:

• What types of positions and career experiences do I need to achieve my goals?

• What personal traits characteristics and behaviors require change in order for me to improve my professional effectiveness?

CAREER PLANNING IN AN ORGANIZATION

Career planning is the process by which one selects career goals and the path to these goals. The major focus of career planning is on assisting the employees achieve a better match between personal goals and the opportunities that are realistically available in the organization. Career programmers should not concentrate only on career growth opportunities. Practically speaking, there may not be enough high level positions to make upward mobility a reality for a large number of employees. Hence, career-planning efforts need to pin-point and highlight those areas that offer psychological success instead of vertical growth.

Career planning is not an event or end in itself, but a continuous process of developing

human resources for achieving optimum results. It must, however, be noted that individual and organizational careers are not separate and distinct. A person who is not able to translate his career plan into action within the organization may probably quit the job, if he has a choice. Organizations, therefore, should help employees in career planning so that both can satisfy each other’s needs.

Career Planning vs. Human Resource Planning

Human Resource planning is the process of analyzing and estimating the need for and availability of employees. Through Human Resource planning, the Personnel Department is able to prepare a summary of skills and potentials available within the organization. Career planning assists in finding those employees who could be groomed for higher level positions, on the strength of their performance.

Human Resource planning gives valuable information about the availability of human resources for expansion, growth, etc. (expansion of facilities, construction of a new plant, opening a new branch, launching a new product, etc.). On the other hand, career planning only gives us a picture of who could succeed in case any major developments leading to retirement, death, resignation of existing employees.

Human Resource planning is tied to the overall strategic planning efforts of the organization. There cannot be an effective manpower planning, if career planning is not carried out properly.

Need for Career Planning

Every employee has a desire to grow and scale new heights in his workplace continuously. If there are enough opportunities, he can pursue his career goals and exploit his potential fully. He feels highly motivated when the organization shows him a clear path as to how he can meet his personal ambitions while trying to realize corporate goals.

Unfortunately, as pointed out by John Leach, organizations do not pay adequate attention to this aspect in actual practice for a variety of reasons. The demands of employees are not matched with organizational needs; no effort is made to show how the employees can grow within certain limits, what happens to an employee five years down the line if he does well, whether the organization is trying to offer mere jobs or long-lasting careers, etc. When recognition does not come in time for meritorious performance and a certain amount of confusion prevails in the minds of employees whether they are ‘in’ with a chance to grow or not, they look for greener pastures outside. Key executives leave in frustration and the organization suffers badly when turnover figures rise. Any recruitment effort made in panic to fill the vacancies is not going to be effective. So, the absence of a career plan is going to make a big difference to both the employees and the organization. Employees do not get right breaks at a right time; their morale will be low and they are always on their toes trying to find escape routes.

Organizations are not going to benefit from high employee turnover. New employees

mean additional selection and training costs. Bridging the gaps through short-term replacements is not going to pay in terms of productivity. Organizations, therefore, try to put their career plans in place and educate employees about the opportunities that exist internally for talented people. Without such a progressive outlook, organizations cannot prosper.

Objectives

Career planning seeks to meet the following objectives:

i. Attract and retain talent by offering careers, not jobs.

ii. Use human resources effectively and achieve greater productivity.

iii. Reduce employee turnover.

iv. Improve employee morale and motivation.

v. Meet the immediate and future human resource needs of the organization on a timely basis

Career Planning Process

The career planning process involves the following steps:

i. Identifying individual needs and aspirations:

Most individuals do not have a clear cut idea about their career aspirations, anchors and goals. The human resource professionals must, therefore, help an employee by providing as much information as possible showing what kind of work would suit the employee most, taking his skills, experience, and aptitude into account. Such assistance is extended through workshops/seminars while the employees are subjected to psychological testing, simulation exercises, etc. The basic purpose of such an exercise is to help an employee form a clear view about what he should do to build his career within the company. Workshops and seminars increase employee interest by showing the value of career planning. They help employees set career goals, identify career paths and uncover specific career development activities (discussed later). These individual efforts may be supplemented by printed or taped information. To assist employees in a better way, organizations construct a data bank consisting of information on the career histories, skill evaluations and career preferences of its

employees (known as skill or talent inventory).

ii. Analyzing career opportunities:

Once career needs and aspirations of employees are known, the organization has to provide career paths for each position. Career paths show career progression possibilities clearly. They indicate the various positions that one could hold over a period of time, if one is able to perform well. Career paths change over time, of course, in tune with employee’s needs and organizational requirements. While outlining career paths, the claims of experienced persons lacking professional degrees and that of young recruits with excellent degrees but without experience need to be balanced properly.

iii. Aligning needs and opportunities:

After employees have identified their needs and have realized the existence of career opportunities the remaining problem is one of alignment. This process consists of two steps: first, identify the potential of employees and then undertake career development

programmers (discussed later on elaborately) with a view to align employee needs and organizational opportunities. Through performance appraisal, the potential of employees can be assessed to some extent. Such an appraisal would help reveal employees who need further training, employees who can take up added responsibilities, etc. After identifying the potential of employees certain developmental techniques such as special assignments, planned position rotation, supervisory coaching, job enrichment, understudy programs can be undertaken to update employee knowledge and skills.

iv. Action plans and periodic review:

The matching process would uncover gaps. These need to be bridged through individual career development efforts and organization supported efforts from time to time. After initiating these steps, it is necessary to review the whole thing every now and then. This will help the employee know in which direction he is moving, what changes are likely to take place, what kind of skills are needed to face new and emerging organizational challenges. From an organizational standpoint also, it is necessary to find out how employees are doing, what are their goals and aspirations, whether the career paths are in tune with individual needs and serve the overall corporate objectives, etc.

FIG.The New “Portable” Career Path

 

CAREER PLANNING MODELS

There are many models one may use while career planning. The two main models are

1.3.5.1 Waterloo University Model

FIG.Water University Model

The SODI Career Planning Model

Given the complexity of career development and the fluidity of the world of work, we need to be able to navigate our career paths with purpose and clarity.

Law and Watts (1977) devised a simple model of career education which has stood the test of time. This model has been changed slightly to become a career planning, rather than a career education model and named the SODI model where the last element is ‘implementation’ rather than ‘transition learning’, and ‘decision learning’ becomes ‘decision making and planning’.

The model encapsulates four concepts which are:

Self-awareness – individual having knowledge about and understanding of their own personal development. Self-awareness in a careers context involves an understanding of kind of personal resources (both actual and potential) they bring to world.

Opportunity awareness – an understanding of the general structures of the world of work, including career possibilities and alternative pathways.

Decision making and planning – an understanding of how to make career decisions, and being aware of pressures, influences, styles, consequences and goal setting.

Implementing plans – having the appropriate skill level in a range of areas to be able to translate job and career planning into reality

HRIS

Human Resource Information System

HRIS :- Human Resource Information System

Human Resources Management (HRM) is the attraction, selection, retention, development, and utilization of labor resource in order to achieve both individual and organizational objectives. Human Resources Information Systems (HRIS) is an integration of HRM and Information Systems (IS). HRIS or Human resource Information system helps HR managers perform HR functions in a more effective and systematic way using technology. It is the system used to acquire, store, manipulate, analyze, retrieve, and distribute pertinent information regarding an organization’s human resources. A human resource information system (HRIS) is a system used to acquire, store, manipulate, analyze, retrieve, and distribute pertinent information about an organization’s human resources. The HRIS system is usually a part of the organization’s larger management information system (MIS) which would include accounting, production, and marketing functions, to name just a few. Human resource and line managers require good human resource information to facilitate decision-making.
Application of HRIS

HRIS can be applied in the following areas of HRM:
HRIS  for  various  purposes

*HR STRATEGIC PLANNING
*human resource planning
*manpower  planning
*job analyses
*job description
*job specification
*recruitment
*selection
*performance appraisal
*performance management
*training
*development  programs
*career  planning
*job rostering
*promotions
*career development
*succession  planning
*job rotation
*job enrichment
*job multiskilling
*compensation  planning
*compensation  package development
*staff leave management
*termination  records  management
*international  staff records

STAFF  INFORMATION

department,
job title,
grade,
salary,
salary history,
position history,
supervisor,
training completed,
special qualifications,
ethnicity,
date of birth,
disabilities,
veterans status,
visa status,
benefits selected,

*promotions
*career development
*career  management
*succession  planning
*job rotation
*labor relations
*compensation  planning
*compensation  package development
*staff leave management
*termination  records  management
*employee communication
*international  staff records
*payroll  records
*pension management
*health & safety records

Human Resource Valuation and Accounting

HUMAN RESOURCE AUDIT HR “Early Warning System” that works!
Your tool to assess the present. Your blueprint for the future. Your commitment to excellence.
A human resource audit reviews an organization’s policies, procedures, and practices. Its purpose is to examine the technical and practical dimensions of the HR function and to create a comprehensive system that adds value to the organization.
An audit is a means by which an organization can measure where it currently stands and determine what it has to accomplish to improve its human resources function. It involves systematically reviewing all aspects of human resources, usually in a checklist fashion, ensuring that government regulations and company policies are being adhered to. The key to an audit is to remember it is a learning or discovery tool, not a test. There will always be room for improvement in every organization.
Human Resource Audit is a systematic assessment of the strengths, limitations, and developmental needs of its existing human resources in the context of organizational performance – (Flamholtz, 1987)

NEED FOR H.R. AUDIT:
Top Management saw solutions to their problems, issues and challenges in HRD to face business competition and to achieve organizational goals.

PURPOSE OF H.R. AUDIT:
1. to examine and pinpoint strength and weaknesses related to H.R. areas and Skills and Competencies to enable an organization to achieve its long-term and short-term goals.
2. To increase the effectiveness of the design and implementation of human resource policies, planning and programs.
3. To help human resource planners develop and update employment and program plans.
4. To insure the effective utilization of an organization’s human resources.
5. To review compliance with a myriad of administrative regulations.
6. To instill a sense of confidence in management and the human resources function that it is well managed and prepared to meet potential challenges.
7. To maintain or enhance the organization’s and the department’s reputation in the community.
8. To perform a “due diligence” review for shareholders or potential investors/owners.

SCOPE OF HUMAN RESOURCE AUDIT
Whenever the H.R. Audit it taken up, the scope is decided. Audit need not be exhaustive, but should be focused on particular function of H.R.M. such as Training and Development, Performance Appraisal, Compensation, etc.. However, the objective and approach of H.R. Audit, more or less, remains the same, regardless of scope.
What does a full HR Audit entail”:
1)Legal compliance
2)Compensation/Salary Administration
3)Employment/Recruiting
4)Orientation
5)Terminations
6)Training and Development
7)Employee Relations
8)Communications
9)Files/Record Maintenance/Technology
10)Policies and procedures (including employee handbook)
11)Communications

The following lists the core HR functional areas and summarizes what will be reviewed during an audit; it is not all-inclusive, and it may be subject to change. The scope of work for the audit may include a review of internal policies and processes, a review of filing and tracking systems, and surveys and questionnaires of employees and managers on the effectiveness of the human resources operation in the department. The Audit Schedule outlines who will be audited, when the audits will occur, and the functional area to be audited.

HUMAN RESOURCES ORGANIZATION/ADMINISTRATION. Organization of HR office, including appropriate class of professional positions; delegation of authority to and within the department; quality control to ensure consistency in authorities delegated within the department; documentation of processes, operating standards, and internal controls; administration of retention rights, including notices, matrix, use of separation incentives, and outplacement practices; how staff remain current and up to date with the HR field and the state personnel system; and techniques for communicating with employees and appointing authorities in department.

SELECTION. Recruitment methods, methods used in workforce and succession planning, and use of turnover data; access to and quality of job announcements; quality of job analyses; exam development, administration, and scoring; length of eligible lists, including merged lists and notice of appeal rights; and referrals and interviewing practices.

JOB EVALUATION . Standards, processes, and internal and quality control methods for reviewing and updating PDQs including essential functions, FLSA notification, turnaround times, and repeat requests; internships for new evaluators; allocation process including quality of reports and employee notification; process to address concerns with non-appealable decisions; communication process for official system maintenance studies; and standards, internal controls, and processes for reviewing and exempting positions from the state personnel system.

TOTAL COMPENSATION. Standards, and processes used to develop and communicate internal compensation policy and plans; internal controls to ensure accuracy and consistency of pay and leave; policies on pay adjustments; pay differentials and incentive awards; overtime pay; premium pay awards including hazardous duty pay, housing premium pay, documentation on approval of requests to pay shift and on-call premiums to individuals in classes not designated by the state personnel director. Leave management standards, internal controls, and practices; confidentiality policies and agreements with those handling health-related information; leave tracking systems; FLMA compliance including designation and notification; leave sharing plans; and maintenance of annual SES performance contracts, including filing with state personnel director. Standards and processes for enrollment for new employees in benefit plans; communication methods for open enrollment; worker’s compensation reporting; process for reporting employment claims; and compliance with COBRA and STD benefits requirements.

PERFORMANCE MANAGEMENT. Most current Performance Pay Program is approved and on file with the state personnel director, including methods of communication to new and current staff and plan for mandatory supervisory training; completion rate of plans and ratings including quality control and review for consistency of ratings; methods used to determine distribution of awards; efficiency and communication of the internal dispute resolution process; and compliance with requirements for sanctions.

WORKFORCE DEVELOPMENT. Orientation program for new employees and supervisors; training programs and delivery methods including courses, training staff, and cost; workforce development policies including drug-free workplace, workforce violence and sexual harassment prevention, diversity, FMLA and FLSA responsibilities.

EMPLOYEE RELATIONS. Number, type, and outcome of appeals, grievances, and director’s reviews; internal grievance processes; other forms of alternative dispute resolution used; communication methods and forms; number, type, and outcome of corrective and disciplinary actions; any methods used to address work environment issues.

[b]RECORDS MANAGEMENT. Content of employee, payroll, medical, and position files; internal controls to ensure accuracy and control access; compliance with IRCA (I-9); process for purging records; FLSA designations; a review of employee timesheets; posting of required notices; and methods to ensure timely and accurate reporting of information to the state personnel director.

HR AUDIT FORM

EMPLOYEE RELATIONS
• Are the “Employer/Employee Guidelines for Wrongful Termination” followed?
• Is there a formal Performance Improvement Program policy?
• Are terminations handled in a manner that complies with applicable laws and association policy?
• Is written performance documentation maintained?
• Are performance reviews done on a regular basis?
• Do employees clearly know upon what their appraisals will be based?
• Do you have an open door policy for employee complaints?
• Is the sexual harassment policy clearly communicated to all employees?
• Are employees provided with a comfortable work environment?
• Are personnel files retained in compliance with applicable laws?
• Are I-9 forms complete for all employees?
• Have all employees received a copy of the employee handbook? Have they signed a statement that they have received, read and understand its contents?
• Does the handbook have the appropriate “Employment At Will” disclaimer?

RECRUITING
• Is a standard application form used?
• Do job descriptions exist for open positions?
• Does the job description drive the writing of the employment ad?
• Does the job description drive the selection of behavioral interview questions?
• Are all qualified candidates interviewed?
• Is the selection decision made in compliance with the applicable employment laws?
• Have candidates given written permission to contact references?
• Are references checked before offers are made?

LEGAL
• Are all employee decisions based on Bona Fide Occupational Qualifications?
• Are required employment law posters displayed in an appropriate place?
• Are you making employment decisions based on applicable employment laws and compliance thresholds?

TRAINING
• Is an orientation conducted for all new hires?
• Do all new hires receive job-specific training?
• Are current employees allowed to take skills-based training as needed?

COMPENSATION
• Are employees appropriately classified (exempt vs. nonexempt, employee vs. independent contractor)?
• Is there compliance with the Fair Labor Standards Act in terms of minimum wage, overtime pay and record keeping?
• Is there compliance with other applicable employment laws?
• Are employees paid a competitive rate?
• Is there internal equity among current employees?
• Is compensation tied to performance?

BENEFITS
• Are the benefits offered sufficient to attract the desired level of talent?
• Are the benefits offered in compliance with the appropriate laws?

Job Analysis and Job Description

Job Analysis:

In simple terms, job analysis may be understood as a process of collecting information about a job. The process of job analysis results in two sets of data:

i) Job description and

ii) Job specification.

These data are recorded separately for references.

Let us summarise the concept of Job Analysis:

A few definitions on job analysis are quoted below

1. Job analysis is the process of studying and collecting information relating to the operations and responsibilities of a specific job. The immediate products of this analysis are job descriptions and job specifications.

2. Job analysis is a systematic exploration of the activities within a job. It is a basic technical procedure, one that is used to define the duties, responsibilities and accountabilities of a job.

3. A job is a collection of tasks that can be performed by a single employee to contribute to the production of some products or service provided by the organization. Each job has certain ability recruitments (as well as certain rewards) associated with it. Job analysis is the process used to identity these requirements.

Specifically, job analysis involves the following steps:

1. Collecting and recording job information

2. Checking the job information for accuracy.

3. Writing job description based on the information

4. Using the information to determine the skills, abilities and knowledge that are required on the job.

5. Updating the information from time to time.

Job Analysis, A process of obtaining all pertaining job facts is classified into two i.e. Job Description and Job specification 

Job Description is an important document, which is basically descriptive in nature and contains a statement of job Analysis. It provides both organizational information’s (like location in structure, authority etc) and functional information (what the work is).

It gives information about the scope of job activities, major responsibilities and positioning of the job in the organization. This information gives the worker, analyst, and supervisor with a clear idea of what the worker must do to meet the demand of the job.

Who can better describe the characteristics of good job description?

Earnest Dale has developed the following hints for writing a good job description: -

1) The job description should indicate the scope and nature of the work including all-important relationships.

2) The job description should be clear regarding the work of the position, duties etc.

3) More specific words should be selected to show:-

a) The kind of work

b) The degree of complexity

c) The degree of skill required

d) The extent to which problems are standardized

e) The extent of worker’s responsibility for each phase of the work

So we can conclude by saying that Job description provide the information about the type of job and not jobholders.

USES OF JOB DESCRIPTION: -

Now we will see why job description is necessary in an organization,

There are several uses of job description, like

• Preliminary drafts can be used as a basis for productive group discussion, particularly if the process starts at the executive level.

• It helps in the development of job specification.

• It acts as a too during the orientation of new employees, to learn duties & responsibilities. It can act as a basic document used in developing performance standards.

Contents of Job Description :

Following are the main content of a job description it usually consist of following details or data.,

Job Description: A statement containing items such as

• Job title / Job identification / organization position

• Location

• Job summary

• Duties

• Machines, tools and equipment

• Materials and forms used

• Supervision given or received

• Working conditions

• Hazards

Job identification or Organization Position: – This includes the job title, alternative title, department, division and plant and code number of the job. The job title identifies and designates the job properly. The department, division etc., indicate the name of the department where it is situated and the location give the name of the place.

Job Summary: – This serves two important purposes. First is it gives additional identification information when a job title is not adequate; and secondly it gives a summary about that particular job.

Job duties and responsibilities: – This gives a total listing of duties together with some indication of the frequency of occurrence or percentage of time devoted to each major duty. These two are regarded as the “Hear of the Job”.

Relation to other jobs: – This gives the particular person to locate job in the organization by indicating the job immediately below or above in the job hierarchy.

Supervision: – This will give an idea the number of person to be supervised along with their job titles and the extent of supervision.

Machine: – These will also gives information about the tool, machines and equipment to be used.

Working Conditions: – It gives us information about the environment in which a jobholder must work.

Hazards: – It gives us the nature of risks of life and limb, their possibilities of occurrence etc.

Job Specification:

Job Specification translates the job description into terms of the human qualifications, which are required for performance of a job. They are intended to serve as a guide in hiring and job evaluation.

Job specification is a written statement of qualifications, traits, physical and mental characteristics that an individual must possess to perform the job duties and discharge responsibilities effectively.

In this, job specification usually developed with the co-operation of personnel department and various supervisors in the whole organization.

Job Specification Information: -

The first step in the programme of job specification is to prepare a list of all jobs in the company and where they are located. The second step is to secure and write up information about each of the jobs in a company. Usually, this information about each of the jobs in a company. Usually this information includes:

1. Physical specifications: – Physical specifications include the physical qualifications or physical capacities that vary from job to job. Physical qualifications or capacities

2. Include physical features like height, weight, chest, vision, hearing, ability to lift weight, ability to carry weight, health, age, capacity to use or operate machines, tools, equipment etc.

3. Mental specifications: – Mental specifications include ability to perform, arithmetical calculations, to interpret data, information blue prints, to read electrical circuits, ability to plan, reading abilities, scientific abilities, judgment, ability to concentrate, ability to handle variable factors, general intelligence, memory etc.

4. Emotional and social specifications: – Emotional and social specifications are more important for the post of managers, supervisors, foremen etc. These include emotional stability, flexibility, social adaptability in human relationships, personal appearance including dress, posture etc.

5. Behavioral Specifications: – Behavioral specifications play an important role in selecting the candidates for higher-level jobs in the organizational hierarchy. This specification seeks to describe the acts of managers rather than the traits that cause the acts. These specifications include judgments, research, creativity, teaching ability, maturity trial of conciliation, self-reliance, dominance etc.

Employee Specification: –

Job specifications information must be converted into employee specification information in order to know what kind of person is needed to fill a job. Employee specification is a like a brand name which spells that the candidate with a particular employee specification generally possess the qualities specified under job specification.

Employee specification is useful to find out the suitability of particular class of candidates to a particular job. Thus, employee specification is useful to find out prospective employees (target group) whereas job specification is useful to select the right candidate for a job.

Uses of job specification: -

Uses of this job specification;

• Physical characteristics, which include health, strength, age range, body size, weight, vision, poise etc.

• Psychological characteristics or special aptitudes:- This include such qualities as manual dexterity, mechanical aptitude, ingenuity, judgment etc.

• Personal characteristics or fruits of temperament – such as personal appearance, good and pleasing manners, emotional stability, aggressiveness or submissiveness.

• Responsibilities: – Which include supervision of others, responsibility for production, process and equipment, responsibility for the safety of others and responsibility for preventing monetary loss.

• Other features of a demographic nature: Which are age, sex, education, experience and language ability.

• Job specifications are mostly based on the educated gneisses of supervisors and personnel managers. They give their opinion as to who do they think should be considered for a job in terms of education, intelligence, training etc.

• Job specifications may also be based on statistical analysis. This is done to determine the relationship between

1. Some characteristics or traits.

2. Some performance as rated by the supervisor