November 11, 2012

MU0010 [Manpower Planning and Resourcing] Set1 Q3

Q.3 What are the inputs provided by HR for Manpower planning.


Inputs Provided by HR for Manpower Planning

Some of the relevant inputs provided by HR for manpower planning are:

(1) Specific business goals of the organization drawn from the vision and mission statement for the period for which manpower planning is to be done.
(2) The controllable variables such as the productivity data, productivity incentives, cost of training and cost of benching (if any). Benching here refers to a state of having excess staff, mostly as a result of preparation for anticipated business requirements and occasionally as a result of business process reengineering or some reduction in planned business.
(3)  Which departments will grow and by what percentage?
(4) Which are the new confirmed clients likely to be added or withdrawing during the course of the year?
(5) Which are the unconfirmed clients likely to be added or withdrawing the business during the course of the year?
(6) The uncontrollable variables modifying the scenario for the year under consideration (PESTLE). PESTLE stands for Political, Economic, Social, Technological, Legal and Environmental Scenario.
(7) The maturity level of the organization in terms of people capability between  1-5  wherein:
- Level 1 is Initial (inconsistent management)
- Level 2 is Managed (people management)
- Level 3 is Defined (competency management)
- Level 4 is Predictable (capability management)
- Level 5 is Optimizing (change management)
(8) The changed organization structure at a high level in terms of the business verticals and the support horizontals if any.

Apart from providing inputs for the orientation program, the HR function provides the requisite inputs in each of the 5 steps of manpower planning.

Therefore it is safe to say that HR plays an important role in the manpower planning process. Human resource management is the strategic and coherent approach to the management of an organization’s most valued assets – the people working there who individually and collectively contribute to the achievement of the objectives of the business according to Michael Armstrong. Human resource management (HRM) means employing people, developing their capacities, utilizing, maintaining and compensating their services in tune with the job and organizational requirements.

Rewards & Recognition
Employee reward systems refer to programs set up by an organization to reward performance and motivate employees at individual or group level. Reward is normally considered separate from salary but could be monetary in nature or in kind. Employee recognition programs are often combined with reward programs but they have a different purpose. Recognition is more of a psychological benefit offered to the deserving employee.

Best practice # 1:
Companies provision for a budget to reward and recognize employees. A member of the HR team ensures they seek from each department the list of nominees for the rewards. The detailed performance report and contribution is studied of the nominees by a selected panel. The panel decides which of the nominees are deserving of the rewards and recognition. This process is conducted monthly, quarterly, half-yearly and annually. The rewards categories are pre-decided and a rewards and recognition event is held. Employees are rewarded and recognized and positive energy is created.

Performance Feedback
Performance feedback enables employees to know how close they are performing to the expected performance levels or how far they are from the expected performance levels. Specific instances of lack of knowledge, skill or behavior are noted. These instances if they are recurring in nature particularly, then they are shared with the employee. This is done from an improvement perspective and not to threaten or victimize employees. This allows employees to understand that they need to work upon improving their knowledge, skill or behavior.

Organizations share performance feedback with employees at a regular frequency. In some organizations it is shared fortnightly, monthly, quarterly, half-yearly.

Employee performance feedback is collected from peers, colleagues, seniors, subordinates, clients and the management.

Best practice # 2:
In some organizations the importance given to performance evaluation and performance feedback is not really high. It is an activity that just needs to be completed somehow. Then there are other organizations which give performance evaluation and performance feedback the highest importance.

Not only is it important to complete the process, the leaders ensure that the process is completed for all employees as per the frequency decided. Leaders also ensure that the performance evaluation and feedback is objective. Leaders review the feedback forms and the feedback comments. Leaders sit in the performance feedback meetings to ensure appropriate feedback is communicated in a positive manner to promote improvements.

Performance Appraisals
According to Edwin B. Flippo, a prominent personality in the field of Human resources, "performance appraisal is the systematic, periodic and an impartial rating of an employees excellence in the matters pertaining to his present job and his potential for a better job." Performance appraisal is a systematic way of reviewing and assessing the performance of an employee during a given period of time and planning for his future.

Performance appraisal is a powerful tool to regulate, improve and reward the performance employees. Performance appraisal helps evaluate individual achievements and contribution to achieve overall organizational goals.

Employee evaluation is done in every organization. It is a good practice that links individual employee performance to their goals and to the objectives of the organization. This system works well when achievements are traced on a quarterly basis. For an honest review of each and every employee, the evaluation should also be done not only by the supervisor but by another employee at a higher level to whom the employees contribution is essential. Ratings can also be taken from other employees. This ensures an honest and precise rating of each and every employee. In the corporate world, it is often said, perception is reality. Therefore ensure the perception that you allow others to create of you and your performance is excellent.

Example: An employee was given feedback at the end of 6 months that his performance was poor for 3 months out of the last 6 months and needs improvement for 3 months out of the last 6 months. Hence the employee was asked to put in his papers and leave the organization. The employee was very young and shocked to realize one fine day the manager asking him to leave the organization. He said to the manager, I wish you had given me my feedback monthly and made me understand, the importance of getting a good performance rating. He said he had been casual about his work, but did not expect this. He said he did not know what to go back and tell his parents, about why he would stop going to work from the next day. He requested the manager to ensure feedback was given at a higher frequency and clearly the repercussions of poor performance were spelled out so that no other employee would have to go through the depressing phase of life that he would be now undergoing, post submitting his resignation. At least, if they did end up being asked to leave, it would not be a surprise, but a natural progression as the individual would have put in very little effort to improve. He or she would have found an alternative job and not suffer a loss of face with parents who had high hopes on him to pull the entire family out of their woeful condition.

Best practice # 3:
Performance appraisals need to be objective. Objectivity comes in primarily from linking the personality of the person to his/her performance. If the personal traits of the employee score better than the performance, then there is a challenge. Usually the personal traits drive performance. Some organizations believe that personal traits should be scored equal to performance. Higher personal traits score and lower performance scores encourages employees to sustain in the organization without demonstrating performance.

Knowledge Sharing
Sharing your knowledge and experiences is a wonderful way of improving the employees and their work. Keeping all the important information in a central database that can be easily accessed by each and every employee is a method of knowledge sharing. For example, if an employee is sent for a particular training, the knowledge that is acquired by that employee can be saved in these databases for future use and others to learn from it. Innovative ideas that management feels is essential for employees, can be saved here for all the employees.

Best practice # 4:
Organizations encourage the culture of sharing and knowledge management. Many organizations have set up processes and dedicated teams in an organization for knowledge management. Higher knowledge leads to higher performance. According to knowledge management research, even after employees put in a huge effort to share their knowledge, they can only share 5% of their total knowledge in their life time. But this 5% of knowledge sharing is instrumental in helping organizations minimize costs, rework, enhance customer satisfaction and innovate.

Publicize Good Performances of Employees
Each and every organization has some employees who perform better than the others. Such performances need to be recognized in meetings or displayed on notice boards and posted on the intranet. This motivates the high performing employee and also motivates other employees to give their best performance. A good system would be to recognize high performers at specific times in a year.

While recognition of talent is highly important, this recognition has to be made public and what better way than holding ceremonies and announcing to the whole world (the employees), the achievements of a fellow employee. There can be nothing better for an employee than the heady feeling from a resounding applause.

Best practice # 5:
Many companies publish the star of the month employees. Such employees are recognized in public. Remember recognize in public and not in private. Reprimand in private and not in public. There is no point recognizing individuals in private, it is as good as not recognizing the performance of the individual. Organizations actually hold a major celebration or event to recognize the stars of the month or quarter.

Discussions with Employees
Successful organizations nurture ideas of employees because the employees are the closest to the business operations and customers. They know the business better than any management would ever know it. Employees can provide the best ideas. The management should seek employee ideas.

Best practice # 6:
Suggestion boxes should be placed to receive ideas. Through this system, the management can find good talented employees and develop them.

The Surprise Factor
Everyone likes surprises? The employees deserve a surprise when they are least expecting it. It could be a gift voucher or a small reward. Surprises don’t have to be limited only to the best performers, but it can be given to other employees as an incentive too. Any employee in the organization can be given this surprise reward.

Such healthy HR practices encourage growth of the organization as it is the employees after all who play a major role in the well-being of an organization. Making an employee feel important proves to be of success to the firm or organization.

Importance of Manpower Planning
1. Key to managerial functions- The four managerial functions, i.e., planning, organizing, directing and controlling are based upon the manpower. Human resources help in the implementation of all these managerial activities. Therefore, staffing becomes a key to all managerial functions.
2. Efficient utilization- Efficient management of personnels becomes an important function in the industrialization world of today. Seting of large scale enterprises require management of large scale manpower. It can be effectively done through staffing function.
3. Motivation- Staffing function not only includes putting right men on right job, but it also comprises of motivational programmes, i.e., incentive plans to be framed for further participation and employment of employees in a concern. Therefore, all types of incentive plans becomes an integral part of staffing function.
4. Better human relations- A concern can stabilize itself if human relations develop and are strong. Human relations become strong trough effective control, clear communication, effective supervision and leadership in a concern. Staffing function also looks after training and development of the work force which leads to co-operation and better human relations.
5. Higher productivity- Productivity level increases when resources are utilized in best possible manner. higher productivity is a result of minimum wastage of time, money, efforts and energies.This is possible through the staffing and it's related activities ( Performance appraisal, training and development, remuneration) 

Need of Manpower Planning
Manpower Planning is a two-phased process because manpower planning not only analyses the current human resources but also makes manpower forecasts and thereby draw employment programmes. Manpower Planning is advantageous to firm in following manner:

1. Shortages and surpluses can be identified so that quick action can be taken wherever required. 
2. All the recruitment and selection programmes are based on manpower planning. 
3. It also helps to reduce the labour cost as excess staff can be identified and thereby overstaffing can be avoided. 
4. It also helps to identify the available talents in a concern and accordingly training programmes can be chalked out to develop those talents. 
5. It helps in growth and diversification of business. Through manpower planning, human resources can be readily available and they can be utilized in best manner. 
6. It helps the organization to realize the importance of manpower management which ultimately helps in the stability of a concern

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