Human Resources Planning (HRP)

Human Resources Planning (HRP) can be defined as the task of assessing and anticipating the skill, knowledge and labor time requirements of the organization, and initiating action to fulfill or source those requirements. Thus, if the organization as a whole or one of its subsystem is not performing to the benchmark, in other words, it is declining, it may need to plan a reduction or redeploys its existing labor force. On the other hand, if it is growing or diversifying, it might need to find and tap into a source of suitably skilled labor. Coleman has defined HR/MP planning as The Process of determining manpower requirements and the means for meeting those requirements in order to carry out the integrated plan of the organization. Human Resource Planning (HRP) is a needed for following reasons: y y y y y y y y y y To determine recruitment/induction levels. To forecast future requirements To know the cost of manpower if there is a new project is being taken up To assess accommodation requirements. To assist in productivity bargaining. To determine training levels and works as a foundation for management development programmes. To ensure optimum use of manpower and capitalize on the strength of HR. To face the challenges the business is facing due to turbulent and hostile environmental forces To face Rapid Technological Changes. To face Organizational Changes.

HRP in an organization
The organization chosen is Federal Mogul Goetze (India) Limited. The organization has a formal HRP policy. The policy covers all categories of employees employed within Federal Mogul Goetze (India) Limited: y y y y Permanent Contractual Casual/ Temporary Apprentices/ Trainees

The entire Human Resource Planning process consists of 5 steps to be under taken by the HR & IR Department for the organization. First step towards the HRP is Assessing the manpower requirement/ Forecasting , this involves making the manpower plan and/or the forecast the following based on the following considerations: 1. Requirement arising as a case of replacement arising out of the following: a. Resignation b. Discharge/Dismissal c. Death d. Transferred out 2. In case of any exits due to a Voluntary Retirement Scheme which has been approved by the IT Department. Based on the above, such plans shall be made by each Head of the Department or Functional head, as the case may be and shall forward the same to the Director HR and IR. Second step is of consist defining & creating the Organization structure. It involves Assigning of the appropriate Work Level and the salary range - Based on the Job Description approved and further clarification with the line manager and/or functional head and discussion thereof, the site HR shall evaluate the job based on a point rating system as per the Job Evaluation Format (Form No: HR-III/1). A recommendation of the work level and the salary range shall be sent to the Director HR and IR for his approval along with the Job Description. Once the work levels has been assigned for the new positions, a proposed organizational structure shall be drawn up by the Plant Head / Functional Head as the case may be and the same shall be forwarded, along with the existing Organization Structure, to the Director HR and IR for his agreement. The organogram shall be in the prescribed format ( Form No: HRIII/2) Step 3 involves Preparation of Annual Human Resource Template All Plants and Function shall make a Human Resource Template (Form No: HR-III/3) as a document to get approval.

Step 4 involves getting approval of Vice Chairman, MD and CEO For such approval the proposal shall be send with the following documents: 1. Business plan of the Plant / Function for the year and the next 3 to 5 years as approved by the Business head 2. Present organization structure and the proposed organization structure (Form No: HR-III/1) 3. Manpower Planning template for the Year ( Form No:HR-III/2) 4. Manpower Ratios, present and proposed Direct to Indirect Ratio, Supervisor to subordinate ratio, Sales Value /employee, Cost per employee. The Annual Manpower Budget shall be approved annually by October end of the previous year. Step 5 consist of procedures in case of any addition to the Annual Manpower budget The following steps are to be followed y y y Corporate approval: Seek approval for position from the Corporate. Organizational charts: Preparation of new charts Announcements: Organizational announcements regarding people joining us and those moving on be communicated throughout the organization

HR Due Diligence in Mergers & Acquisitions

Fundamentally, due diligence means assessing price and identifying financial risks. Critical questions to be addressed include: y y y y y y What is the value of the acquisition target? What value will it add to the acquiring company? What are the synergies? What are the risks that need to be managed to gain value while minimizing risk? What are the liabilities and costs being acquired? What are the off-balance-sheet liabilities?

It involves collection and analysis of information from the target, assess leadership team, summarize findings, issues, and risks, and make go/no go decision. HR should conduct high-level analysis of people, organization, & culture fit based on available information, identify people-related issues, plan for due diligence. HR s role in Due Diligence is to collect and analyze HR related information, identify issues, risks, costs, savings, secure key talent from target, collect more information where necessary, create integration team for HR, create HR integration plans (e.g., culture, organization, people, HR processes, HR systems and policies).

Role HRP in Mergers & Acquisitions

As the definition suggest that Human Resource Planning is the process including forecasting, developing and controlling by which a firm ensures that it hasy The right number of people, y The right kind of people, y At the right places, y At the right time, doing work for which they are economically most useful . So during a Merger & Acquisition the HR faces huge challenge in managing excess workforce and diverse talent. It is required that HR does an elaborate Due Diligence so as to ascertain the strength and weakness, talents to be retained. Most importantly forecast the right number of people to be retained of added in the new acquisition. Then comes the part of integrating and developing the workforce. Creating and HR integration team and plan would help in securing talents and creating cultural fit between the two firms. Controlling the excess workforce is a challenge and lay off should be seen as a last option. This might lead to change in roles and the organization structure.