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MU 0001
MANPOWER PLANNING AND RE-SOURCING
Set I
In practice, it has been found that short-term (less than 2 years and medium-
range plans (2 to 5 years) are easier to formulate with greater degree of
certainty.
The following table summarizes the factors related to two major forms of
human resource planning.
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judgmental. Labour
saving equipment,
efficiencies, productivity,
etc.
Two general kinds of forecasting techniques are used: indirect and direct
methods. Indirect methods involve the forecasting of general rules-
production figures, for example – that must be translated into specific
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requirements or measures. Direct techniques involve the use of methods of
estimate (directly) labour hours, number of supervisors or particular
occupational needs.
Aggregate models are based on several key variables that are known to
directly affect the organization’s overall human resources needs. Every
organization has special characteristics or problems, and a planner can use
an aggregate model to get the big picture. These models may apply to a
geographic region or to the overall system. Estimates techniques models are
used for situations where circumstances make it difficult to use
mathematical or statistical approaches. Here expert opinion and experience
are used. The volume of future activity of business conditions, including
legislation, change, innovation, or competition-situations that are almost
impossible to qualify- can provide workable answers to problems.
At the end, it may be noted that all organizations-those that have a high
labour turnover – must systematically plan their short-term, medium-term
and long-term manpower needs. These requirements need periodical reviews
and adjustments to meet changing conditions.
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be determined by obtaining the present value of future earnings. Some of the
important valuation models discussed below:
Flamholtz Model(1971)
According to this model an individuals value to an organization is
determined by a services he is expected to render to the organization during
the period he is likely to remain with the organization in various position or
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service states. The present value of human resources may be derived by
discounting the realizable value of expected future service at a specified rate.
This model involves the following steps:
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Hermanson’s Unpurchased Goodwill and Adjusted Discounted Future
Wage Model:
According to unpurchased goodwill model, the value of human resources of
an organization may be calculated by capitalizing earnings in excess of
normal earnings for the industry or the group of ompanies of which the firm
is a part.
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According to this model, the value of human capital is determined on the
basis of the present value of net benefits derived by the organization from
the expected future services of its employees. It involves the following
steps.
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deletions, sorting combinations and categorization. This effort results on the
creation of new or improved knowledge.
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Building an Arch type: The tested concepts are converted into tangible or
concrete (arch type) or prototype operating mechanism.
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ASSIGNMENTS
MU 0001
MANPOWER PLANNING AND RE-SOURCING
Set II
Demand Forecasting:
Demand forecasting is the process of estimating the future numbers of
people required and the likely skills and competences they will need. The
ideal basis of the forecast is an annual budget and longer term business plan,
translated into activity levels for each function and department, or decisions
on downsizing’. In a manufacturing company the sales budget would be
translated into a manufacturing plan giving the numbers and types of
products to be made in each period. From this information the number of
hours to be worked by each skill category to make the quota for each period
would be computed.
Details are required of any plans or projects that would result in demands for
additional employees or different skills. As for as possible, plans should
also be reviewed that could result in rationalization, and possibly
downsizing, as a result of a cost reduction drive, a business process re-
engineering exercise, new technology leading to increased productivity, or
merger or acquisition. The demand forecasting techniques that can be used
to produce quantitative estimates of future requirements are described
below.
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Managerial or expert judgment:
This is the most typical method of forecasting and may be linked to some
form of scenario planning. It simply requires managers or specialists to sit
down, think about future workloads, and decide how many people are
needed. This can be no more than guesswork unless there is reliable
evidence available of forecast increases in activity levels or new demands
for skills.
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analysis of the impact of projected product market development and the
introduction of new technology either information technology or
computerized manufacturing.
Overall strategy should be to become ‘an employer of choice. The aims are
to establish the brand image of the organization how others perceive it
(employee branding), to become an employer of choice and to target
recruitment and selection to obtain the sort of people the organization needs.
Employer branding:
Employer branding is the creation of a brand image of the organization for
prospective employees. It will be influenced by the reputation of the
organization as a business or provider of services as well as its reputation as
an employer. As described by Alan Reed, Founder and Chief Executive plc,
in 2001: ‘Employer branding is the concept of applying to the recruitment
process the same marketing coherence used in the management of
customers. ‘He suggests that the approaches required to develop an
employer brand are;
Analyses what ideal candidates need and want and take this into account in
deciding what should be offered and how it should be offered; Establish
how far the core values of the organization support the creation of an
attractive brand and ensure that these are incorporated in the presentation of
the brand as long as they are ‘values in use’ (lived by members of the
organization) rather than simply espoused;
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Define the features of the brand on the basis of an examination and review
of each of the areas that affect the perceptions of people about the
organization as a ‘great place to work’- the way people are treated, the
provision of a fair deal, opportunities for growth, life balance, leadership the
quality of management, involvement with colleagues and how and why the
organization is successful;
Employer of choice:
The aim is to become an ‘employer of choice’, a place where people prefer
to work. This means developing what Sears (2003) calls a value
proposition’, which communicates what the organization can offer its
employees as a great place to work’. The factors that contribute to being an
employer of choice are the provision of: Interesting and rewarding work;
Opportunities for learning, development and career progression; A
reasonable degree of security; Enhance future employability because of
reputation of the organization as one that employs and develops high quality
people, as well as the learning opportunities it provides.
Better facilities and scope for knowledge workers e.g. research and
development scientists or engineers and IT specialists; Employment
conditions that satisfy work-life balance needs; A reward system that
recognizes and values contribution and provides competitive pay and
benefits.
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be looking for strong values and expecting to be well managed, to have
freedom and autonomy, high job challenge and career opportunities. A
powerful method of retention is simply to ensure that people feel they are
valued.
Content validity: The extent to which the test is clearly related to the
characteristics of the job or role for which it is being used as a measuring
instrument.
Face validity: The extent to which it is felt that test ‘looks’ right, ie., is
measuring what it is supposed to measure.
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Construct validity: The extent to which the test measures a particular
construct or characteristic. As Edenborough (1994) suggests, construct
validity is, in effect, concerned with looking at the test itself. If it is meant
to measure numerical reasoning, is that what it measures?
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