HR Planning-II

BY DR. KETKI BHATTI

HRIS
a systematic procedure for collecting, storing,

maintaining and retrieving data needed by an organisation about its human resources and various activities that are relevant for their management. Input, storage and output. Objective- provide accurate, relevant and timely information about HR in the most cost effective manner. Eg. Employee records, pay roll processing, performance management, salary planning, job evaluation, succession planning and so on.

HRP-Turnover Analysis, Absenteeism, Job description tracking

Health, Safety and Security-Safety Training, Accident Records, Material Data Records

HRIS

Staffing- Recruitment, Applicant tracking, Job offer-refusal analysis

Employee and Labour- Auditing records, Attitude survey results, exit interview analysis

Compensation & BenefitsPay structures, Wage/salary costing

HR DepartmentEmployee training profiles, training needs, succession planning, experience

Benefits
It develops ability to process with accuracy and

high speed. Huge data on different aspects of HRM are arranged and stored systematically. Information users get quick access to required information. It is economical. Quick communication with employees is possible. Considerable reduction in the expenses on maintaining manual records of staff employed.

Downsizing and VRS

measures. In order to overcome the problem of surplus staff, downsizing strategy is used extensively. Objective: Rightsizing Excess manpower or over-staffing in an organisation may be due to-

 Faulty HRP Change in man-machine ratio Outsourcing of certain business functions

It indicates Who is to be made redundant and where and when; Plans for re-training where this has not been covered

in the re-development plan;

 Steps to be taken to help redundant employees find

new jobs; Policy for declaring redundancies and making redundancy payments and Programme for consulting unions or staff associations and informing those likely to be affected.

How to reduce surplus employees?

work hour for reduction in the total salary payment. To transfer or reassign employees in other units of the organisation where there is need of additional employees. To offer incentives for early retirement in the form of VRS. Eg. SAIL, Motorola. To declare lay-off for dealing with surplus staff.

VRS
Voluntary separation of old and unproductive

employees from the organisation. Golden Hand Shake Plan. Mutual agreement. Banks, state government, public sector and private sector have started in recent period. VRS- Pvt. Companies in 1990s: ACC, Blue Star, M&M etc.

 It is different from dismissal, removal and

retrenchment of employees. Fair monetary compensation, so no injustice to employees. Cos. may opt for it: Due to excess manpower in the organisation. Due to recession in business operations. Adverse business situation because of market competition etc. Due to takeover or merger. Due to reduction in export orders, lowering of market demand, availability of substitutes and so on.

 The incentive could be in the form of: Pension and lump sum gratuity Loyalty bonus

Employee Stock Option Plans (ESOPs)

organisation

 So, it reduces financial burden on the organisation.

manpower in an organisation. To introduce new technology in manufacturing process and also in corporate office management. Introduce extensive use of computers and new techniques in information technology (IT)

Demerits of VRS
Inadequate employment opportunities in India. Employees are expected to plan their life carefully

before they opt for VRS. Financial difficulties in due course. If it is inadequately attractive.

Outsourcing
1980s- Vertical integration in USA. Reliance on external sources for manufacturing

components and other value-adding activities. Buy rather than make strategy or vertical disintegration. Another firms employees carrying out tasks previously performed by ones own employees.

 Overseas market- Employees not employed full

time. Off-shore outsourcing, Off-shoring are closely related and are used frequently. Relocation of an organisational function in a foreign country. Confidentiality and criticality are two factors which needs careful consideration before going for outsourcing.

Benefits of Outsourcing
Can concentrate on critical HRM functions. Cost reduction is possible through outsourcing. BPO- HR with infrastructure and requisite skills

can provide efficient services. Higher return on investment. Org. to focus on core business activities. To exploit more advance technologies. Undermine the power of trade unions and Simplifies organisation structures.

Limitations of Outsourcing
Loss Of Managerial Control. Hidden Costs. Threat to Security and Confidentiality.

Quality Problems.
Tied to the Financial Well-Being of Another

Company. Bad Publicity and Ill-Will.

Demotion
No dismissisal Punishment At a lower level

E.g. Manager- Now at Supervisor level

Separation
Step ahead of demotion. Relationship ends-Contractual e.g. at the age of 60. Initiative of the employer.

In case of retirement, it is the initiative of the

employee.

Lay-Off
Definite period and on the expiry of the period. Reasons- Shortage of raw materials, accumulations

of stocks, breakdown of machinery and so on. Another reason is recession. So, temporary denial of employment. It reduces financial burden on the organisation. Employees and family suffer at the hands of such employers. It is governed under the Industrial Disputes Act of 1947. Pay compensation- 50% of wages + DA.

Retrenchment
Termination by the employer of the services of

workmen for any reason.- IDA 1947. Punishment, retirement age, disciplinary action, voluntarily, reaching age of superannuation, continued ill-health, closure or winding up of the business- NOT RETRENCHMENT. Fear and insecurity among employees. IDA- Give one months notice period in writing the reasons or wages in lieu of such notice.

Termination
Discharge. Permanent separation. E.g. Dishonesty, carelessness, drunkenness, fraud,

embezzlement etc. No case of victimisation.

Pink Slip
American term. FIRED from ones job. Official notice- dismissal or dismission.

Distributed along with pay cheques, informing the

employees that their services are no longer required.

Contracting and Sub-Contracting

Sub-Contractor. An independent contractor- Freelance basis, Ltd. Company that they own or through an umbrella co. A sub-contractor- Perform part or all of the obligations of another contract. A general contractor- Construction, renovation, demolition of building, road etc. Eg. IT cos. Outsource to another IT- Contractor.

Promotions
The advancement of an employee to a better job. Advancement within an organisation. Acts as an incentive for self-development.

Benefits of Promotion-Employees
Higher salary. Higher status. Change in the nature of work.

Non-monetary benefits.
Incentives to work efficiently. Psychological satisfaction.

Benefits of Promotion-Management
Raises the morale of the employees-So motivated. Second line of leadership in management. Ensures orderly functioning of the organisation.

Reduces the rate of labour turnover.

development. Attracts efficient, capable and talented persons from other companies. Raises job satisfaction of workers. Creates a sense of loyalty.

Transfers
Temporary or Permanent. A change in job where the new job is substantially

equal to the old in terms of pay, status and responsibility. It is no promotion or demotion. Merely, horizontal or lateral movement of an employee. PromotionResponsibility, status and income. Infrequent. Accepted happily.

Benefits of Sound Transfer Policy

on the part of employees in relation to transfer. Avoids possible grievances among employees and major labour management dispute. Makes transfers easily and readily acceptable. Ensures smooth and orderly working of the enterprise. Raises motivation and productivity through avoidance of monotony.

 Rectifies faulty placements. Improves skill of existing employees. Develop faith and confidence on the transfer policy.

Smooth and regular working of the whole

organisation as it is convenient.