MODULE 1

Introduction to HR planning—meaning and definition, objectives of HRP, benefits of

HRP, problems of HRP, process of HRP, Hr demand forecasting-techniques-HR supply
forecasting-skill inventories-management inventories, wastage analysis. Redundancy
strategies, retention strategy, retention plan, macro level man power planning and
labour market analysis- work flow mapping, recruitment and succession planning.
Macro level manpower planning and labor market analysis; Organizational HR
Planning; Stock taking; Workforce flow mapping; Age and grade distribution mapping.
Recruitment and succession planning.

Introduction to HR planning—meaning and definition

Robbins defines HRP as

“The process by which an organization ensures that it has the right number and kind of
people at the places, at the right time capable of effectively and efficiently completing those
tasks that will help the organization achieve its overall objectives”.
Human Resource (HR) Planning is the process of analysing an organization's current and future
human resource needs and developing strategies to meet those needs. It involves forecasting the
demand for employees, evaluating the current workforce's skills and abilities, identifying gaps
between the demand and supply of employees, and developing plans to address those gaps. HR
planning aims to ensure that an organization has the right number of employees with the right skills
and competencies in the right positions to achieve its goals effectively and efficiently.
FEW EXAMPLES

1. Let's say a company plans to expand its operations in the next year by opening new branches
in different cities. The company will need to undertake HR planning to ensure that it has the
right employees in the right positions to support this expansion.

The HR planning process would involve forecasting the number of employees required to
support the new branches and identifying the necessary skills and competencies needed for
those positions. The company would then assess the current workforce's skills and
competencies to determine if they can be redeployed to the new branches.

If there are gaps in the current workforce's skills and competencies, the company would need
to develop HR strategies such as hiring new employees with the required skills, providing
training and development to current employees, or outsourcing certain functions. The
company would also need to consider factors such as salary, benefits, and working conditions
to attract and retain the required talent.

By undertaking HR planning, the company can ensure that it has the necessary workforce to
support its expansion plans effectively and efficiently. It can also help to minimize the risk of
overstaffing or understaffing and reduce the costs associated with recruitment and training.
 2. In case of Technology Upgrades: When a company introduces new technology,
such as automation or artificial intelligence, HR planning is necessary to ensure that the
workforce has the necessary skills and competencies to work with the new technology.
HR planning may involve identifying the skills gap, providing training and
development to existing employees, and hiring new employees with the required skills
.
3. During Growth and Expansion: As a company grows and expands, HR planning is
essential to ensure that the workforce is adequate to meet the new demands. HR planning
may involve identifying the necessary positions, forecasting the number of employees
required, and developing strategies to recruit and retain the required talent.

Objectives of HRP, Benefits of HRP, Process of HRP & Problems of HRP

Objectives

1. To forecast the future needs of human resources.

2. To ensure fuller and effective utilisation of existing human resources.
3. To ensure that necessary manpower is available as and when required.
4. To relate human resource planning with the organisational planning.
5. To estimate the surplus or shortage of human resource in the organisation at any given
time.
6. To get information about the manner in which the existing personnel are deployed, the
kind of skills needed for various jobs, and manpower requirements over a specified period of
time in relation to the organisational goals.
7. To anticipate the impact of technology on jobs and human resources.
8. To determine the levels of recruitment and training.
9. To estimate the cost of labour force and its housing requirements.
10. To provide a basis for management development programme.
11. To meet the needs of expansion and diversification programmes.
12. To increase the labour productivity and thereby reduce the labour costs.

Benefits
1. Anticipation of future needs: HRP enables organizations to identify their future
workforce requirements, which helps in anticipating future needs and ensuring that the
right talent is available at the right time.
2. Better utilization of resources: HRP ensures that the organization has the right number
of employees with the required skills and competencies, which leads to better utilization
of resources and increased productivity.
3. Cost-effective hiring: With HRP, organizations can plan their recruitment process and
avoid overstaffing or understaffing, which can be costly. HRP also helps in reducing the
cost of recruitment by enabling organizations to plan for recruitment activities well in
advance.
4. Improved employee retention: HRP helps in identifying skill gaps and training needs,
which can lead to improved employee retention. When employees feel that they are
being invested in, they are more likely to stay with the organization.
 5. Alignment with organizational goals: HRP aligns the human resource requirements with
the organizational goals and objectives, which helps in achieving the desired outcomes.

Overall, HRP is an essential process for organizations as it helps in ensuring that they have
the right people with the right skills at the right time, which leads to improved productivity,
reduced costs, and better outcomes.

Process of HRP

1. Determining Organisational Objectives(Internal)/Environmental

scanning(External): This involves conducting an analysis of the external and internal
environment to identify any factors that may impact the organization's workforce
planning. External factors may include economic, political, social, technological, and
legal factors, while internal factors may include the organization's structure,
objectives, culture, and goals.
2. Forecasting demand: The next step is to forecast the organization's future human
resource needs by analyzing past trends, future projections, and anticipated changes in
the external environment. This may involve projecting the demand for labor based on
factors such as sales growth, turnover rates, and technological advancements.
For instance, if the organization plans to introduce a new product line, it needs to
estimate how many employees it will need to produce and market the new products.
3. Analyzing supply: The organization assesses its current workforce to determine its
strengths and weaknesses, as well as its ability to meet future demand. This may
involve analyzing the skills and abilities of current employees, as well as assessing the
availability of external labor markets.
An example of this step is assessing the organization's current workforce to determine
if it has the necessary skills and experience to meet future demand.
4. Gap analysis: This step involves comparing the forecasted demand with the current
supply of human resources to identify any gaps. This helps the organization to
determine whether it has the right number of employees with the necessary skills and
experience to meet its future needs. For instance, if the organization has projected
that it will need to hire more software developers in the future but currently lacks that
skill set, there is a gap that needs to be addressed.
5. Developing action plans: Once the gaps have been identified, the organization
develops action plans to address any shortfalls. This may involve recruiting new
employees, training and development programs, succession planning, or changes in
the organization's structure or culture. An example of this step is creating a plan to
address the identified gaps. This may involve recruiting new employees,
implementing a training and development program, or outsourcing some of the work
to a third-party service provider.
6. Implementation: The action plans are put into action and monitored to ensure that
they are effective in meeting the organization's workforce needs. For instance, the
organization may start recruiting new software developers or implementing a training
program to upskill existing employees.
7. Evaluation: Finally, the results of the HRP process are evaluated to determine their
effectiveness and to identify any areas that may require further improvement. An
example of this step is measuring the effectiveness of the HRP process. The
organization may evaluate the success of its recruitment efforts, the impact of the
 training program, or the overall alignment between its workforce and business
objectives. Based on the evaluation results, the organization may adjust its HRP
process as needed.

Problems/Barriers to HRP
1. Inaccurate forecasting: One of the main challenges of HRP is accurately forecasting
future workforce requirements. Factors such as changes in technology, economic
conditions, and workforce demographics can make it difficult to predict future needs
with certainty.
2. Resistance to change: HRP often involves changes in organizational structure, job
roles, and employee responsibilities, which can lead to resistance from employees
who may not be willing to adapt to these changes.
3. Lack of employee involvement: HRP is often led by HR professionals, which may
result in a lack of involvement and buy-in from employees. This can lead to a lack of
understanding and support for the HRP process.
4. Short-term focus: Many organizations focus on short-term HRP, which can lead to
reactive hiring and inadequate planning for future workforce needs. This can result in
a workforce that is not aligned with the long-term goals of the organization.
5. Data availability: Accurate HRP requires reliable data on workforce demographics,
skills, and capabilities. If this data is not available or is outdated, it can make it
challenging to accurately forecast future workforce needs.

Overall, HRP can be a complex process that requires a deep understanding of the
organization's goals, workforce demographics, and external factors that can impact workforce
requirements. By addressing these potential problems, organizations can develop more
effective HRP strategies that align with their long-term goals and objectives.

HR DEMAND FORECASTING
Demand forecasting is a quantitative aspect of human resource planning. It is the process of
estimating the future requirement of human resources of all kinds and types of the
organization.
Factors Affecting HR Demand forecasting
1. Business strategy: The business strategy and direction of the organization will
significantly impact HR demand forecasting. If the company is planning to expand,
then it will require more employees. Similarly, if it plans to downsize or outsource,
then there will be a decrease in HR demand.
2. Economic conditions: The state of the economy can have a significant impact on HR
demand forecasting. In a strong economy, there is usually an increased demand for
employees, while in a recession, there is a reduced demand for employees.
3. Technological advancements: The introduction of new technology or automation can
significantly impact the HR demand forecast. For example, if an organization
automates certain processes, it may require fewer employees.
4. Workforce demographics: The age, skills, and experience of the workforce can also
impact HR demand forecasting. For example, if the majority of the workforce is
 approaching retirement age, then there will be a higher demand for new employees to
replace them.
5. Industry-specific factors: The demand for HR can also vary based on the industry.
For example, a manufacturing company may require more employees than a software
development company.
6. Political and legal factors: Changes in labor laws or regulations can impact the HR
demand forecast. For example, if there is an increase in the minimum wage, it can
impact the number of employees a company can hire.
7. Internal factors: The organization's growth plans, employee turnover rates, and
employee productivity can also impact HR demand forecasting. For example, if the
company has a high turnover rate, it may require more employees to maintain
productivity levels.

HR Demand Forecasting Techniques

There are several techniques that organizations can use for HR demand forecasting. These
include:

1. Trend analysis: This technique involves analyzing historical data on workforce

demographics, turnover rates, and other relevant factors to identify trends and predict
future HR demand. An example of trend analysis for HR demand forecasting would
be analyzing historical data on employee turnover rates, skills, experience, and
workforce demographics. By identifying trends, the organization can forecast future
HR demand and develop strategies to address any potential shortages or excesses in
staffing.
2. Managerial judgment: Managers and department heads can provide input on future
workforce needs based on their knowledge of business plans, anticipated growth, and
changes in staffing requirements. An example of using managerial judgment for HR
demand forecasting is when department heads provide input on staffing needs based
on anticipated growth and changes in staffing requirements. This information can be
combined with other forecasting techniques to develop a more accurate prediction of
future HR demand.
3. Delphi method: This technique involves a panel of experts providing their opinions
on future HR demand. The results are then summarized and presented to decision-
makers. An example of using the Delphi method for HR demand forecasting is when
a panel of experts provides their opinions on future workforce needs. For example, a
panel of HR professionals, managers, and industry experts may provide their input on
staffing needs for a new product line or expansion project.
4. Workforce modeling: This technique involves creating a model of the workforce
based on skills, experience, and other factors, and using it to predict future HR
demand. For instance, an organization may use workforce modeling to determine the
optimal number of employees required to meet business objectives.
5. Scenario planning: This technique involves creating different scenarios of future
business conditions and identifying the workforce needs for each scenario. For
example, an organization may develop scenarios for various economic conditions or
changes in the competitive landscape to determine staffing needs for each scenario.
6. Regression analysis: This technique involves analyzing historical data and
identifying the relationships between various factors such as business performance,
workforce demographics, and staffing levels. This information can then be used to
 predict future HR demand. An example of regression analysis for HR demand
forecasting is when an organization analyzes historical data and identifies
relationships between various factors such as business performance, workforce
demographics, and staffing levels. By identifying these relationships, the organization
can predict future HR demand and develop strategies to address any potential
shortages or excesses in staffing.
7. Econometric modeling: This technique involves using economic data and statistical
models to predict future HR demand based on economic conditions. An example of
using econometric modeling for HR demand forecasting is when an organization uses
economic data and statistical models to predict future HR demand based on economic
conditions. For example, an organization may use econometric modeling to forecast
staffing needs in response to changes in interest rates or inflation rates.

Organizations may use one or a combination of these techniques to forecast HR demand

depending on their specific needs and circumstances.

IMPORTANCE OF HR DEMAND FORECASTING

HR demand forecasting is important for several reasons:

1. Effective workforce planning: By forecasting HR demand, organizations can

anticipate future workforce needs and plan accordingly. This allows them to ensure
that they have the right number of employees with the necessary skills and
competencies to achieve their business objectives. This can help to avoid staffing
shortages or surpluses, which can be costly and disruptive.
2. Strategic talent acquisition: HR demand forecasting enables organizations to identify
the skills and competencies they need in their workforce and proactively seek out the
best candidates. This can help to attract top talent and build a strong employer brand.
It also enables organizations to address skills gaps before they become a problem.
3. Budget and resource planning: HR demand forecasting helps organizations to plan
their budget and allocate resources effectively. This ensures that they have the
necessary funds and resources to recruit, train, and retain the best talent.
4. Improved productivity: By having the right people in the right roles, organizations
can increase productivity and efficiency. HR demand forecasting helps to ensure that
organizations have the right number of employees with the necessary skills and
knowledge to achieve their goals.
5. Succession planning: HR demand forecasting can help organizations to identify
critical roles and ensure that they have the right people in place to succeed in those
roles. This helps to minimize disruptions and ensures that the organization is prepared
for the future.

In summary, HR demand forecasting is important for effective workforce planning, strategic

talent acquisition, budget and resource planning, improved productivity, and succession
planning. It enables organizations to optimize their workforce, reduce costs, and achieve their
business objectives more effectively.
HR SUPPLY FORECASTING
HR supply forecasting is the process of estimating the number of employees an organization
will have in the future based on the current workforce and anticipated changes such as
attrition, retirements, promotions, transfers, etc. This involves analyzing the current
workforce demographics, including age, experience, education, and skills, and forecasting
how these factors will change over time.

HR supply forecasting helps organizations to determine whether they have a surplus or a

shortage of employees with the necessary skills and experience to meet their future needs. By
understanding the potential gaps in their workforce, organizations can take proactive
measures to address these gaps, such as developing employee training programs, recruiting
new talent, or retaining current employees.

The goal of HR supply forecasting is to ensure that an organization has the right number of
employees with the right skills and experience to meet its future business needs. This enables
organizations to be more competitive and to adapt to changing market conditions, customer
needs, and technological advancements.

For forecasting supply of human resource, we need to consider internal and external
supply.

• Internal supply of human resource available by way of transfers, promotions, retired

employees & recall of laidoff employees, etc.

• Source of external supply of human resource is availability of Laboure force in the

market and new recruitment.

EXTERNAL FACTORS AFFECTING HR SUPPLY FORECASTING -

External supply of human resource depends on some factors mentioned below.
Supply and demand of jobs.
literacy rate of nation.
rate of population
industry and expected growth rate and levels
technological development.
compensation system based on education, experience, skill and age.
INTERNAL FACTORS AFFECTING HR SUPPLY FORECASTING -
Internal supply of human resource depends on some factors mentioned below.
Organizational features (e.g., staffing capabilities).
 Productivity - rates of productivity, productivity changes.
Rates of promotion, demotion, transfer and Turnover.

IMPORTANCE OF HR SUPPLY FORECASTING -

Estimating the net human resource requirements.
Prepare the action plan for redeployment, redundancy /retrenchment.
Organizing redeployment programs .
Organizing redundancy /retrenchment programs.
Forecast future from all the sources .
Supply Forecasting Methods/Techniques:
Trend analysis
Competency model
Replacement Charts
Staffing table
Succession Planning
 Flow Modeling/Markov Analysis

1. Trend analysis
Trend analysis involves collecting and evaluating data to identify patterns of information
that might impact the future.
By examining the trends of the past, the HR department can predict the effect of the same
activity on the future of the organization, because it is assumed that these patterns will remain
stable.
A method of forecasting that assumes past trends and ratios in employee movement are
stable and indicative of future trends and ratios in employee movement.
One of the simplest methods of forecasting future HR supply.
For example, an organization reviewing historical data may realize that every year,
approximately five percent of their staff retire, six percent resign, and three percent are
dismissed.
Using a simple trend analysis, future HR supply forecasts can be established by assuming
an average reduction in internal HR supply of 14 percent per year.
2. Competency model
Competencies are behaviors that encompass the knowledge, skills,and attitudes(ksa)
required for successful performance.
Competency modeling is the activity of determining the specific competencies that are
characteristic of high performance and success in a given job..
A future-oriented model that first reviews competencies that are aligned with an
organization’s mission, vision, and strategy, and then aims to identify an ideal workforce in
terms of these competencies .
Skills/competency models focus on matching the right skills or competencies needed for
each job with the skills available within the organization.
3. Replacement chart
A chart used to estimate vacancies in higher level jobs and identify how potential HR
supply can fill these vacancies via internal movements from lower levels jobs.
Replacement charts provide identification of potential replacements for vacancies
within an organization.
A comprehensive replacement chart will include information regarding possible
replacements for vertical or horizontal movement.
Generally, a replacement chart includes information about employees’ performance,
readiness to fill the position, and education.

4. Staffing table
 A clear graphical view of all organizational jobs and the current number of employees
at each job.
 Staffing tables are graphic representations of all organizational jobs, along with the
numbers of employees currentlyoccupying those jobs and future (monthly or yearly)
employment requirements, which can be derived from demandforecasts.
 It presents a simple visual understanding of an organization’s staffing
level within each department and theorganization as a whole, in an effort
to help understand the combination of employees that make up an
organization’s internal workforce.
 This information is useful in evaluating staffing levels by department, branch, or
project; the types of staff at each level; and the combination of staff in all
categories.
5. Succession Planning
 Determining the internal Laboure supply calls for a detailed analysis of how many
people are currently in various jobcategories or have specific skills within the
organization.
 6. Markov analysis
 Analysis that helps to predict internal employee movement from one year to
another by identifying percentages ofemployees who remain in their jobs, get
promoted or demoted, transfer, and exit out of the organization
 To help predict internal employee movement from one year to another by identifying
percentages of employees who
remain in their jobs, get promoted or demoted, transfer, and exit out of the
organization.
 By tracking and predicting employment movement within an organization,
the Markov analysis allows for thedevelopment of a transition matrix to
forecast internal Laboure supply.
 Markov Analysis is the statistical technique used in forecasting the future behavior
of a variable or system whose current state or behavior does not depend on its state or
behavior at any time in the past in other words, it is random.
 The technique is named after Russian mathematician Andrei Andreyevich Markov.
 A transition matrix, or Markov matrix, can be used to model the internal flow of
human resources.
 These matrices simply show as probabilities the average rate of historical movement
from one job to another.
 To determine the probabilities of job incumbents remaining in their jobs for the
forecasting period.

Example -
There is a 20% probability of being gone in 12 months, a 0% probability of promotion to
manager, a 15% probability ofpromotion to supervisor, and a 65% probability of being a line
worker this time next year. Such transition matrices formthe bases for computer simulations of
the internal flow of people through a large organization over time.

SKILL INVENTORY
Skill inventory is a process of assessing the skills and knowledge possessed by an individual
or a group of people in an organization. It involves identifying and documenting the skills,
qualifications, experience, and expertise of employees to determine the available resources
for the organization. The purpose of a skill inventory is to support decision-making
processes, such as staffing, promotions, and training.
Typically, a skills inventory contains information on each individual on the following areas:
 Personal information
 Education, training, skill competencies
 Work history
 Performance ratings
 Career information
 Hobbies and interests

For example, a company may conduct a skill inventory of its employees to identify which
ones have skills in project management, data analysis, or software development. This
information can be used to determine which employees are best suited for specific roles, or to
identify areas where the company needs to invest in training to develop certain skills.

The Importance of a Skills Inventory

With a current skills inventory, the management team can identify any gaps that exist
between the skills, knowledge and experience that the company has in its existing employee
workforce versus what the company needs to meet current and future business needs.
This skills inventory information can then be used by managers for improved decision
making in several areas including the following:

 Hiring staff that better meet the current and future needs of the various business units;
 Assigning the right employees to the right functions;
 Staffing internal project teams with the best talent to ensure organizational success;
 Targeting training and development efforts to alleviate existing skill gaps;
 Identifying key employees to develop for future business needs;
 Developing an internal talent channel to replace key employees and managers that
depart from the organization;
 Developing a workforce plan for the future strategic needs of the business;
MANAGEMENT INVENTORY
Management inventory, on the other hand, is a process of evaluating the management team of
an organization. It involves identifying the strengths and weaknesses of the management
team, their leadership styles, and the effectiveness of their decision-making processes. The
purpose of a management inventory is to improve the overall performance of the organization
by ensuring that the management team has the necessary skills and expertise to lead the
company.
It is considered to be enhanced skills inventories because they contain above information and
the following:
 History of management or professional jobs held
 Record of management or professional training courses and dates
 Key accountabilities for current job
 Assessment centre and appraisal data
 Professional and industry association membership

For example, a company may conduct a management inventory to identify the strengths and
weaknesses of its top executives. This information can be used to develop targeted training
programs to improve leadership skills, or to make changes to the management team if certain
individuals are found to be ineffective.
Importance of Management Inventory
Here are some reasons why management inventory is important:
1. Identifying strengths and weaknesses: Management inventory can help to identify
the strengths and weaknesses of individual managers, as well as the overall
management team. This information can be used to develop targeted training
programs to improve leadership skills, or to make changes to the management team if
certain individuals are found to be ineffective.
2. Enhancing decision-making: Management inventory can help to improve the quality
of decision-making by providing information about the leadership styles of individual
managers and the overall effectiveness of the management team. This information can
be used to make more informed decisions about organizational strategy, resource
allocation, and other key areas.
3. Improving organizational performance: By identifying areas where the management
team could benefit from additional training or support, management inventory can
help to improve the overall performance of the organization. This can lead to
increased productivity, better employee morale, and higher levels of customer
satisfaction.
4. Supporting succession planning: Management inventory can also be useful for
succession planning, as it helps to identify individuals within the organization who
 have the potential to take on leadership roles in the future. This information can be
used to develop training and development programs to help prepare these individuals
for future leadership positions.
WASTAGE ANALYSIS
Wastage analysis is an element of labor turnover.
Wastage analysis in HR planning is the process of analyzing employee turnover and
identifying the reasons why employees leave an organization. The purpose of wastage
analysis in HR planning is to help organizations reduce employee turnover and retain
their top talent.
Wastage analysis in HR planning typically involves the following steps:
1. Data collection: Data is collected on employee turnover rates and the reasons why
employees leave the organization. This may involve conducting exit interviews,
surveys, and analyzing HR data such as turnover rates, length of service, and reasons
for leaving.
2. Identification of trends: The data collected is analyzed to identify any trends or
patterns in employee turnover. This may involve identifying which departments or job
roles have the highest turnover rates, as well as any common reasons for leaving.
3. Root cause analysis: Once the trends have been identified, the root causes of
employee turnover can be analyzed. This may involve looking at factors such as poor
management, lack of career development opportunities, inadequate compensation and
benefits, or poor working conditions.
4. Action planning: Based on the results of the analysis, action plans can be developed
to address the root causes of employee turnover. This may involve implementing
changes such as improving management practices, offering training and development
opportunities, or revising compensation and benefits packages.
By conducting wastage analysis in HR planning, organizations can improve their
retention rates and reduce the costs associated with employee turnover. This can also
help to improve employee morale and productivity, as well as the organization's
overall reputation as an employer of choice.

Importance of Wastage analysis

Wastage analysis in HR planning is important for several reasons:
1. Retaining top talent: By analyzing the reasons for employee turnover, organizations
can identify and address the factors that lead to employees leaving the organization.
This can help to retain top talent, which is important for maintaining a skilled and
experienced workforce.
2. Reducing costs: Employee turnover can be expensive, as it requires organizations to
recruit and train new employees. By reducing employee turnover, organizations can
 reduce recruitment and training costs, as well as other associated costs such as lost
productivity and decreased morale.
3. Improving productivity: When employees leave an organization, there is often a
period of decreased productivity while new employees are trained and integrated into
the organization. By retaining top talent, organizations can maintain a more stable
workforce and avoid the productivity dips that can come with high employee
turnover.
4. Enhancing the employer brand: High employee turnover can be a red flag for job
seekers, and can make it difficult for organizations to attract top talent. By addressing
the factors that lead to employee turnover, organizations can improve their reputation
as an employer of choice and make it more likely that top talent will want to work for
them.

METHODS OF WASTAGE ANALYSIS

• LABOUR TURNOVER INDEX
• STABILITY INDEX
• COHORT ANALYSIS
• CENSUS ANALYSIS
Labour Turnover Index
• This index indicates the number of leavers as percentage to average number
of employees.
• Average number of employees employed in a given time period is decided
by adding the employees at the beginning and end and then dividing the
same by two.
• LTI = No: of employees leaving
average no: of employees employed* 100

EXAMPLE
At the beginning of a year, a firm has 250 employees, while at the end it has 230. Assume no
recruitment has been made in between
a) Compute the labor turnover rate
b) If 5 people have been recruited during the year, determine the new labor turnover rate.
Answer
• a) No of employees leaving = 250-230 = 20
Average no of employees employed = (250+230)/2 = 480/2 = 240
 Labor Turnover = No of employees leaving / Average no of employees
employed = 20/240×100 = 8.32%

• b) No of employees leaving = {(250+5)-230} = 20

Average no of employees employed = (255+230)/2 = 485/2 = 242.5 or 243
Labor Turnover = No of employees leaving / Average no of employees
employed = 25/243×100 = 10%
Stability Index
This index indicates stable workforce percentage for a given period and can be computed as
under:
• Stability Index = Number with more than 1 Year service now * 100
Number engaged at the start

Cohort Analysis
• Cohort means homogenous groups.
• Cohort analysis takes into account the length of service.
• Eliminates the defect of labour turnover index.
• Cohort analysis is more accurate for a small homogenous group.
Survival curve can be obtained using the formula: No: remaining at a given time
(no: engaged at the start) * 100

Census Analysis
◦ Requires three sets of data
 No: of employees at the beginning of the census
 No: of employees at the end of the census
 No: of leavers during the census period
REDUNDANCY & ITS STRATEGIES
Redundancy in business is when a company identifies a job that is no longer required in the
workplace for any number of reasons. Redundancy is when an employee is asked for leave or
laid off if there is no work. Redundancy is one of the reasons for the dismissal of a person's
employment under fixed-term contract. When a work does not exist anymore or has got
diminished, the employee may be removed of his employment which is under a fixed-
contract, called as Redundancy. There are 2 types of Redundancy:
Voluntary Redundancy: It takes places when the company wishing to downsize workforce,
offers it to all employees and those who wish to leave opt for it.
Compulsory Redundancy: Is a situation where company decides on its own which are the
employees it wishes to leave.
For example, a manufacturing company that begins using more machine learning might
realize some of their employees are no longer necessary.

Reason for Redundancy

A redundancy usually happens because of discontinuance of business on or off the
employee's site or a reduction of work or relocation of the business to a new location or
change in the business processes leading to the removal of employment. This usually impacts
the morale, productivity and motivation of other employees as well.

REDUNDANCY STRATEGIES
Redundancy strategies are an important part of HR planning as they help organizations to
manage changes in workforce requirements due to various reasons such as mergers,
acquisitions, downsizing, and restructuring. Here are some redundancy strategies that
organizations can consider as part of their HR planning:
1. Natural attrition: Organizations can use natural attrition to reduce the workforce
without having to resort to layoffs or redundancies. This can be achieved by not
replacing employees who leave voluntarily or retire.
2. Restructuring: Organizations can restructure their operations by consolidating
departments or eliminating redundant roles to reduce the overall headcount.
3. Voluntary redundancy: Organizations can offer voluntary redundancy to employees
who are willing to leave the organization in exchange for a severance package. This
approach can be less disruptive and costly than mandatory redundancies.
4. Early retirement: Organizations can offer early retirement to employees who are
close to retirement age as a way to reduce the workforce. This can be an attractive
 option for employees who are ready to retire but may not have been planning to do so
for a few more years.
5. Redeployment: Organizations can explore redeployment options for employees who
are at risk of redundancy. This approach involves finding alternative roles within the
organization for employees who are affected by the redundancy.
6. Layoffs: As a last resort, organizations may need to resort to layoffs. In this case, it is
important to ensure that the process is fair and transparent, and that affected
employees are provided with adequate support and assistance to find new
employment.
RETENTION, EMPLOYEE RETENTION STRATEGIES
Employee retention refers to the actions taken by an employer to keep their employees
happy and engaged with their work. This can include offering competitive salaries,
providing meaningful work, and creating a positive work environment. Employee retention is
important because it helps to ensure that businesses have a stable workforce and that their
employees are productive.

What causes Employee Turnover?

There are a variety of reasons why employees may leave their jobs. Some of the most
common causes of employee turnover include:

 Lack of career growth opportunities

 Toxic Company Culture
 Weak Leadership and Poor Management Style
 Poor work-life balance
 Unsupportive work environment
 Low wages
 Poor benefits

What are Employee Retention Benefits

The most common benefits of employee retention programs are:

 Providing a clear career path with opportunities for growth

 Protecting know-how
 Offering competitive wages and benefits
 Creating a positive and supportive work environment
 Boosting employee morale
 Encouraging employees to take time off
 Fostering a sense of ownership and involvement among employees

What are the most common employee retention goals by organisation

There are several goals a company can focus on to improve employee retention rate and
provide a useful context for Human Resources:
  Understanding employees and their feelings through employee surveys
 Reduce employee turnover rates
 Improve people’s management practices
 Introduce meaningful HR Statistics and HR Analytics
 Inputs and baseline for employee engagement plan
 Encourage employees to stay with the company for a longer time
 Focus on Work Life Balance in Strategic Planning activities
 Improve communication between management and employees
 Increase job satisfaction among employees and reduce employee dissatisfaction
 Influence and provide employee engagement tools and processes
 Provide inputs to career development
 Positively influence the employee experience
 Provide line management with retention tools
 Introduce special initiatives for the most valuable employees

BENEFITS OF EMPLOYEE RETENTION

EMPLOYEE RETENTION STRATEGIES
Some effective employee retention strategies include:
1. Competitive Compensation and Benefits: Offering competitive compensation and
benefits packages is an important factor in retaining employees. A comprehensive and
fair compensation package that includes salary, bonuses, health insurance, retirement
plans, and other benefits can go a long way in retaining employees.
2. Professional Development and Career Growth: Providing employees with
opportunities for professional development and career growth is essential for retaining
top talent. Offering training programs, mentoring, and leadership development
opportunities can help employees feel valued and invested in their careers.
3. Flexible Work Arrangements: Flexible work arrangements, such as remote work or
flexible schedules, can increase employee satisfaction and reduce turnover. This
approach shows that the organization trusts and respects their employees, giving them
the ability to balance work and personal life.
4. Positive Work Environment: Creating a positive work environment is crucial in
retaining employees. An organization that values teamwork, collaboration, open
communication, and a positive workplace culture can significantly reduce employee
turnover.
5. Recognition and Rewards: Recognizing and rewarding employees for their hard work
and achievements can boost morale, engagement, and loyalty. Regular feedback,
employee appreciation programs, and recognition of accomplishments can show
employees that they are valued and motivate them to continue to perform at a high
level.
6. Work-Life Balance: Promoting a healthy work-life balance can be a significant factor
in retaining employees. This can be achieved by offering vacation time, paid time off,
and flexible work schedules.
7. Employee Engagement: Creating opportunities for employee engagement, such as
company events, team-building activities, and volunteer opportunities, can help
employees feel connected to their colleagues and the organization, leading to higher
retention rates.
EMPLOYEE RETENTION PLANS
However, there are also several other employee retention plans that employers can consider
implementing:
1. Employee engagement surveys: Regularly conducting employee engagement surveys
can help employers identify areas where employees are struggling or dissatisfied,
allowing them to make improvements before employees consider leaving.
2. Career development programs: Providing opportunities for career development, such
as mentorship, coaching, and training, can help employees feel invested in their future
with the company and encourage them to stay long-term.
 3. Employee recognition programs: Offering recognition and rewards for exceptional
performance or tenure can help employees feel valued and appreciated, increasing
their motivation to stay with the company.
4. Flexible work arrangements: Providing flexible work arrangements, such as
telecommuting or flexible scheduling, can help employees maintain a better work-life
balance, reducing stress and increasing job satisfaction.
5. Performance feedback and coaching: Regularly providing feedback and coaching to
employees can help them improve their skills and feel supported in their professional
development, increasing their loyalty to the company.
6. Exit Interviews etc..

MANPOWER PLANNING - MICRO LEVEL AND MACRO LEVEL

What is manpower planning?
Manpower Planning is the process of systematically forecasting the future demand and
supply for employees and the deployment of their skills within the strategic objectives of the
organization. It is the process by which Management determines how the management should
move from its current manpower to its desired manpower utilization.
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)
Process in Manpower Planning

Types of manpower planning can be distinguished by two criteria:

(1) On the basis of the level at which it is done, and
(2) On the basis of the period for which it is done.
(1) On the Basis of the Level at which it is Done:
i. Manpower Planning at Macro-Level (National Level):
Manpower planning is done on the national level as a part of the planning for overall
economic development. The objective behind this is to provide more and more opportunities
of employment, while utilizing the human resources of the nation most efficiently.
It goes without saying that proper manpower planning is a high necessity in a developing
country like India. In Britain, manpower research section of ‘Employment and Productivity’
department undertakes necessary steps for manpower planning. In India, manpower planning
is a port of overall planning and so its responsibilities lie with the Planning Commission.
Manpower planning by the Planning Commission covers:
(a) Population projections,
(b) Programme of economic development,
(c) Education facilities,
(d) Occupational distribution and growth, and
(e) Industrial and geographical mobility of personnel.
ii. Manpower Planning at Micro-Level:
As manpower planning is important at national level for the maximum use of its manpower
resources. It is also necessary at the level of a business unit. Manpower planning is important
because it decides the various measures to be taken such as recruitment, selection, promotion,
transfer, expansion, etc., by a business unit.
In order to fulfil future manpower demands, this manpower planning is possible at
three levels in a unit:
(i) At the departmental level,
(ii) If there are a number of factories of company the planning can be done at the level of
each individual factory taken apart; and
(iii) At the top level, i.e., by the board of directors in a company.
If the manpower planning is done at departmental level, two advantages can be derived.
Firstly, the advantage of the knowledge of those who are in direct contact with the workers
can be taken; and secondly, if the people who are going to execute the plans take part in the
planning process, the probabilities for success of the plans would be surely higher.
A committee is formed at this level. The committee would make inspection of the manpower
estimates put for the previous year and the actual manpower position of the previous year.
The two records would be compared. Then, on the basis of this comparison, estimates for the
next year’s manpower requirements and the sources available to fulfil these requirements
would be made known.
Then, keeping in view the expected changes within next 3 to 5 years, the committee would sit
with manpower planning experts and prepare a format for future manpower planning. This
format would be presented before the top level and the final draft would be prepared on its
approval.
At the two level, such formats as sent by different departments are considered by an
administration committee. A grand plan is prepared by coordinating manpower plans of
different departments. This grand plan is then coordinated with the overall planning of the
business.
(2) On the Basis of the Period for which it is Done:
Three such divisions can be made, which are discussed in the following paragraphs:
(i) Short-Term Manpower Planning:
Short-term planning is that which is done for the period of one year. Annual plans are made
as a part of Five-Year Plans at national level. These one year plans are short-term plans.
Short-term plans are very useful at company level. For better results, short-term plans should
be integrated with each other and should be considered as ingredients of a medium-term plan.
(ii) Medium-Term Manpower Planning:
Generally, any plan of period from 2 to 5 years is considered to be a medium-term plan. At
national level, medium-term plans are essentially prepared as a part of financial planning,
medium-term plans, at national level, for manpower planning give special attention towards
employment opportunities.
Such plans at micro-level think much of training and development of employees. Thus, it is
possible to visualise the requirements of personnel possessing right type of skills for coming
five years.
(iii) Long-Term Manpower Planning:
The planning for a longer period such as 10 to 15 years is known as long-term planning. This
type of long-term planning is generally done at national level. This is important to estimate
manpower needs of a nation and accordingly to raise educational and training facilities,
keeping in view long-term interests of the nation.
Such long-term planning is not necessary at micro-level except a long-term development
scheme has been visualised by the management of a firm. But, in normal practice, such long-
term planning is not found at company level.
Micro Level Manpower Planning
Micro-level manpower planning is focused on individual departments or teams within an
organization. It involves forecasting the number of employees needed to meet the
department's objectives and planning for recruitment, training, and development activities to
meet those needs. The focus is on meeting the specific needs of the department and ensuring
that it has the right people in the right positions.
Micro level manpower planning refers to the process of identifying and managing the
workforce needs of an organization at the individual employee level. It involves analyzing the
specific skills, knowledge, and abilities required for each job position and ensuring that the
organization has the right people in the right positions to achieve its goals.
The need for micro level manpower planning arises from several factors, including:
1. Cost optimization: Micro level manpower planning helps organizations to optimize
their staffing costs by ensuring that they have the right number of employees with the
necessary skills to perform their job functions efficiently.
2. Talent management: By identifying the skills and competencies required for each
job position, micro level manpower planning can help organizations to develop and
retain their top talent by providing them with opportunities for career development
and advancement.
3. Workforce agility: In today's rapidly changing business environment, organizations
need to be agile and adaptable to stay competitive. Micro level manpower planning
helps organizations to build a flexible and responsive workforce that can quickly
adapt to changing business needs.
4. Improved productivity: By ensuring that employees are matched to the right job
positions based on their skills and abilities, micro level manpower planning can help
organizations to improve their productivity and efficiency.
5. Succession planning: Micro level manpower planning also helps organizations to
identify potential gaps in their workforce and develop plans to address them,
including identifying and training potential successors for key position
There are several models that organizations can use for micro level manpower planning,
including:

Skills inventory model: This model involves creating an inventory of the skills, knowledge,
and abilities of each employee in the organization. By analyzing this information, the
organization can identify gaps in its workforce and develop plans to address them.

Job analysis model: This model involves analyzing each job position in the organization to
identify the specific skills and competencies required for success in that role. This
information can then be used to match employees with the right job positions and develop
training programs to fill any skills gaps.

Succession planning model: This model involves identifying key positions in the
organization and developing plans to ensure that there are qualified employees ready to step
into those positions in the event of a vacancy. This can involve identifying high-potential
employees and providing them with training and development opportunities to prepare them
for future leadership roles.

Workforce analytics model: This model involves analyzing workforce data, such as
employee performance metrics, turnover rates, and workforce demographics, to identify
trends and patterns. This information can be used to develop targeted strategies for
recruitment, retention, and workforce development.

Competency model: This model involves identifying the specific competencies required for
success in each job position and developing training programs and performance metrics to
ensure that employees have the necessary skills to perform their jobs effectively.

MACRO LEVEL MANPOWER PLANNING

Macro level manpower planning refers to the process of analyzing and managing the
workforce needs of an organization at a high level, usually for the entire organization or a
specific business unit. It involves forecasting the overall demand for labor and identifying the
supply of labor available to the organization, including internal and external sources.
Macro level manpower planning typically involves analyzing factors such as the
organization's business strategy, market trends, and economic conditions, as well as
workforce demographics and labor market conditions. It may also involve considering
technological advancements, changes in government policies, and other factors that may
impact the organization's workforce needs.
The main objectives of macro level manpower planning are to ensure that the organization
has the right number of employees with the necessary skills to achieve its strategic goals, to
manage workforce costs, and to optimize the allocation of human resources across the
organization.
The process of macro level manpower planning typically involves several steps, including
forecasting the organization's labor demand, analyzing the supply of labor available,
identifying any gaps between demand and supply, developing strategies to address these
gaps, and monitoring and evaluating the effectiveness of these strategies over time.

HRP Need at Macro Level:

HRP at macro level are to address the following factors as follows:
Employment-Unemployment Situation: on one hand the number of educated unemployed is
increasing in the economy, on the other hand there are acute shortages for a variety of
required skills. Therefore an intensive macro level manpower planning can help in this
direction in order to bridge the gap between employments & unemployment Scenario.
Technological Changes: The rate of change of technologies in production, marketing
methods and management techniques has been extensive and rapid in outside world. In order
to adopt the change of technology in accordance with gobal trend, necessitate high degree of
extensive Macrolevel Manpower Planning.
Organizational Changes: The turbulent business environment affected by global economic
cycle and discontinuities, the nature and pace of changes in organizational environment both
in terms of its activities and structures affect manpower requirements. For which strategic
considerations at Macro level is required.
Demographic Changes: The changing profile of the work forces in the economy, in terms of
age, sex, literacy level, technical competency and social background have implications on
macro level HRP.
Skill Shortages: There are acute skill shortages in labour market. On one hand there is a
widespread unemployment. On the other hand labour market is not a buyers market in spite
of large scale unemployment. Growing complexity of the organisations require a wide range
of specialist skills that are rare and scarce. These skill gaps can be bridged by proper Macro
level Manpower Planning.
Government legislation: Macro level manpower planning must go hand in hand in a very
systematic way in accordance with Government control and changes in legislation.
Lead Time: The long lead time is the gestation period required to provide education and
training and deployment of the employees to handle new knowledge and skills successfully
can be avoided by Macro level Manpower Planning.
APPROACHES TO MACRO LEVEL MANPOWER PLANNING
The approaches to Macro-level Manpower planning are as follows:
The Manpower Requirements Approach (MRA)
Rate of Return Approach / cost benefit analysis
The Social Demand Approach

1. The Manpower Requirements Approach (MRA)

The manpower-requirements approach (MRA) is a dominant model of manpower planning.

Manpower forecasting by MRA approach is basically comprises of the following three steps:
1. Projection of the demand for educated manpower
2. Projection of the supply of educated manpower
3. Balancing projected supply with that of projected demand.
MRA is a simple technique for macro level manpower planning as well as educational
planning. First it establishes a linear relationship between employment and output and then
extrapolates different categories of manpower requirements for years to come. At the
beginning, manpower co-efficient is calculated on category wise based on past data. Then it
is applied on the hypothesized growth pattern of different industry groups. Thereafter
aggregate manpower requirement of different categories are calculated. These inputs are then
converted to different type of educational requirements.
2. Rate of Return Approach / cost benefit analysis
The Rate of Return (ROR) approach is radically different from the MRA approach. In
this approach the net returns of educational expenditure is calculated . It is measured as
the increase in net income that an individual will be able to command during his
productive life with respect to the income he would have earned, if he had not reached a
given level of education. The present value of the flow of future net income is calculated
for each specific educational programme. The rationality of ROR approach is that those
programmes which show positive returns should be promoted, while those show zero or
negative net present value should not be promoted or possibly abandoned.

3. The Social Demand Approach

Social demand approach relies on assessing societies requirement for education. It is an
aggregate demand for education in respect of all individuals within the society. In practice,
social demand approach relies on projection of past trends in demographic aspects of
population and the enrolment at different levels of education. Therefore, social demand
approach is capable of revealing the number of students with different types of professional
preparation that is expected with a given target data, based on past experiences.
LABOUR MARKET ANALYSIS
Labour market analysis is considered as one of a principal instrument of Human Resources
Planning. It helps in identifying skill shortages and also gets into the reason of market failure
to match labour supply with demand since the demand for human resources crucially depends
on the functioning and flexibility of labour markets. In the context of the state of the art of
manpower planning and the characteristics of economies of developing countries, labour
market analysis serves as an alternative to manpower forecasting. Such countries would be
best served by a manpower planning and analysis programme that puts more emphasis on
analysis of the operation of various aspects of the labour market at all skill levels and less
emphasis on manpower projections. Since, the labour markets in developing economies are
relatively flexible and the need for long term manpower projections of demand and supply is
relatively limited, all purported forecasting techniques to assess manpower requirements are
dubious in nature. For which it needs emphasis on labour market analysis and labour market
signalling. Labour market analysis helps in identifying shortages at more disaggregated levels
of occupations and geographical locations. It also enables to have a diagnosis of market
failure in order to match labour supply with demand.

Labor market analysis is the process of:

 Identifying the appropriate labor market for various types of positions.

 Surveying the market to determine the salaries that are being paid for like
positions.
 Identifying market trends such as: ancillary pay, and merit and pay practices.
 Establishing, adjusting, and/or recommending salary changes and/or structures for
staff positions.
 Consulting with management on their workforce needs.

Demand, supply and institutions interact in labour markets and labour economics studies the
operation of labour market considering all these issues. Analysis of labour markets is carried
out for different occupational segments of markets such as blue collar workers, markets
for white-collar workers, for professionals etc. Investigating markets for knowledgeable
and skilled workers, differentiating supply and demand forces in the market, geographic
and industrial mobilities, wage pattern etc. are the areas of concern of the labour markets.
It is also concerned with the macro changes in wages and unemployment over a given
period of time, both within the country and across countries. Labour market analysis is
facilitated by a comprehensive and regularly updated labour market information system.
Labour market characterstics
Labour markets are more of social matters. Sociological and demographic changes like social
class movements, gender awareness, youth cultures, family size, employment heritage, ethic
and cultural background may influence who enters, leaves, or is restricted from taking up and
keeping particular kinds of employment. However, labour is one important factor of
production. The supply of labour is determined by the number of able people in the
population and their willingness to work with due cognizance of existing labour laws and
regulations, health of economy and firms along with labour price and availability of other
factors of production.
In a perfect market, wages would be determined directly by supply and demand of labour.
But the labour market is often far from perfect. Wages are less flexible than other prices.
Wages rarely fall, when demand for labour declines or supply increases. This wage rigidity
can be considered as the major cause of unemployment.
Here's an example of a labor market analysis in HR planning:
Let's say a company wants to expand its operations to a new location and is looking to hire
employees for various positions. In order to ensure that they are able to attract the best talent
and pay competitive wages, they conduct a labor market analysis.
The first step in this analysis is to define the labor market area. This is the geographic area
from which the company will be recruiting employees. For example, if the company is
looking to expand in a particular city, the labor market area would be that city and its
surrounding areas.
Next, the company would gather data on the labor market in that area. This could include
information on the local economy, industry trends, and job availability. They may also look
at factors such as the unemployment rate, education level of the local population, and the
average wages and benefits offered by competing employers.
Using this data, the company can then determine what the prevailing wage rates are for the
positions they are looking to fill. They can also identify any areas where there may be a
shortage of skilled workers or a surplus of available workers.
Based on this analysis, the company can develop a competitive compensation and benefits
package that will attract the best talent in the local labor market. They can also identify any
areas where they may need to provide additional training or development opportunities to
ensure that their workforce has the necessary skills and knowledge to succeed in their roles.
Overall, a labor market analysis in HR planning is an essential tool for companies looking to
expand or hire new employees. It allows them to make informed decisions about
compensation, benefits, and training programs that will help them attract and retain top talent
in a highly competitive job market.

Labour Market Information Systems (LMIS)

The seeming failure of above approaches has led some authors to concentrate on the
preparation and organisation of labour which is known as Labour Market Information
Systems (LMIS). This serves as an alternative to forecasting. As noted by Richter (1989)
"labour market information means nothing more or less than information about labour
markets". LMIS promote collection of data sets without prescribing any analytical framework
within which to collect and analyze data for planning or policy formulation. For which this
model is of very little use. Hence suffer from the following criticism.
MACBETH Model
MACBETH is a recursive simulation model of the labour market. It is outcome of
evolution of occupational mismatches. The MACBETH (MACro Compter Based
Employment Heuristic) model is a flexible tool to examine the alternative future scenarios
of the manpower planning problem. The main use of MACBETH is learning-by-doing as a
heuristic. Heuristic is the core of MACBETH. Heuristic is a system of education under which
the pupil is trained to find out things for himself. It is a tool with the help of which
complexities of the labour market and its underlying factors are understood and the
alternative scenarios are examined.
The purpose of the model in the context of labour market analysis and human resource policy
analysis is to project and examine different scenarios of:
 population by age and gender
 number of school going students and school leavers
 cost of the schooling system
 labour supply by occupation and education level
 value addition and growth by economic sector
 employment demand by occupation and education wise
 employment mismatches by occupation and education wise
 impact of occupational mobility of labour on employment of mobility
 training implications
 costs of occupational mobility of labour
The model is robust and straightforward enough to be applied in the context of developing
country like INDIA. The model serves as tool to ensure data consistency for the purpose of
projections. Therefore is most useful for perspective planning purposes.

Work Flow Mapping

A workflow is a series of tasks that involve processing data inputs resulting in data
transformation, decisions or follow-up actions. Some processes are simple and easily
predictable, and others can vary significantly depending on the inputs and decisions.
Workflow mapping is a method of tracing the steps and branching points in a workflow and
representing the steps and actions using symbols. It is a major element of documenting
workflows and is essential to effectively managing and improving them.
Example:
There are many different workflows that can exist in a given business. For those that have
capital equipment that requires maintenance, inspections are a common occurrence. A simple
example of an inspection workflow may be as follows:
 Technician opens checklist and begins inspection.
 Technician completes and submits an inspection report.
 Report is forwarded to the maintenance manager.
 Maintenance manager reviews the report.
  If the report is completed properly, the maintenance manager approved the
report.
 If there are issues with the report, the maintenance manager sends it back to be
corrected.
 If the report indicates no issues with the equipment, it is filed, and the
workflow is complete.
 If the report indicates an issue with the equipment, a work order is created.
 The work order is scheduled with a technician
 The technician completes the work order and marks it done.
 The workflow is complete, and both the report and work order are filed.

 Easier To Follow and Analyze: Trying to optimize your workflows is impossible if

you don’t understand them fully. Even if you have a good sense of a workflow, it can
be difficult to analyze unless you have a map to follow along with. You can quickly
find better paths and opportunities for optimization.
 Useful for Identifying Redundancies: A lot of workflows include redundancies and
unnecessary steps. This is a common symptom of workflows that emerged
organically. However, it can be a problem even for managed workflows. Mapping
them out will help you to find where steps are being functionally repeated or
achieving nothing.
 Improved Transparency and Accountability: Documented workflows can greatly
increase transparency in an organization. If data is passing around between team
members without a clear understanding of how or why, it is easy for things to get lost
or misunderstood. Simply spending the time to document your workflows will ensure
that everyone is on the same page and accountable.
 Better for Knowledge Management: Knowledge management is a major challenge
for many organizations. When someone new comes on board, they likely won’t
understand the workflows well, especially if they remain unmapped and
undocumented. Mapping business processes and workflows will improve your
knowledge management and retention.

Importance of workflow process mapping

There are many advantages of correct workflow process mapping in a company, here are
some of them:
 A broad view of your start to finish process.
 A complete and correct perception of goals, people and technological resources used
in the mapped process.
  The possibility of a comprehensive and consistent understanding of the business.
 A diagram on paper makes it easy to understand how processes currently occur in the
company.
 The preservation of the knowledge gained from the development of this newly
mapped process.
 A clear vision of the value chain and its components.
 A better perception of bottlenecks and other flaws in the process.
Additional information can also be clarified, without necessarily forming part of the flow
chart of the design itself, such as the company’s departments that operate or benefit from that
process, who owns the process, KPIs, technologies involved, risks inherent in the process and
others.
Furthermore, it is important to point out what the objectives of the mapping process are,
either with a flowchart or other notations:
Objectives of workflow process mapping
 To make it clear who executes the process.
 To discriminate the events that occur in the process.
 To deal with the rules employed.
 To have the science of the results being obtained.
 To analyze the possibility of improving the process.
 To detail this process and its flow precisely.
 To obtain a process illustration at different levels of understanding, from the
management to the operational.
 The process map will be the base document to communicate about the process.
 The ability to create performance indicators to measure the process.
Workforce Flow Mapping

Workforce flow mapping is a process used in human resource planning to map out the entire
lifecycle of an employee within an organization. It involves identifying the key stages of the
employee lifecycle, such as recruitment, onboarding, performance management, career
development, and separation, and mapping out the processes involved in each stage.
 Workforce flow mapping refers to a graphical representation which describes the
structure of the total workforce in an organization
 This process of mapping represents how the employees in the organization are
categorized according to their roles and responsibilities
  It is also a process of identifying
 the gap between what is the current business situation/ current manpower
 the gap between what is the future business situation / manpower needs
 developing a plan to fill the gap with by individual positions
 numbers of additional workers/staff / managers etc
 skills of different levels
 flexibility in job handling
 achieving equal employment opportunities
 experience- lifting the experience levels
 capabilities-- improving capabilities for performance
 increasing potential of people
 Training need etc.
The purpose of workforce flow mapping is to gain a comprehensive understanding of the
processes involved in managing employees, to identify potential areas for improvement, and
to ensure that the organization has the right people in the right positions to achieve its goals.
By creating a visual representation or flowchart of the entire process, HR can develop
strategies and processes to optimize employee performance, engagement, and retention, and
to ensure that the organization has the right talent to meet its current and future needs.
Here's an example of workforce flow mapping in HR for the employee lifecycle:
1. Recruitment and Onboarding
 Identify the need for a new position and create a job description.
 Develop a recruitment strategy and advertise the position.
 Screen resumes and applications and conduct interviews.
 Make an offer and onboard the new employee.
2. Performance Management
 Set goals and objectives for the employee.
 Provide regular feedback on performance and conduct performance reviews.
 Develop a performance improvement plan if necessary.
3. Career Development and Training
 Identify opportunities for career development and training.
 Develop a career plan and provide training and development opportunities to enhance
skills and knowledge.
 4. Employee Relations and Engagement
 Address employee concerns and resolve conflicts.
 Foster a positive and inclusive work environment.
 Develop programs and initiatives to promote employee engagement and well-being.
5. Compensation and Benefits
 Develop and manage compensation and benefits programs.
 Conduct salary and benefits benchmarking and make adjustments as necessary.
6. Separation and Exit
 Manage voluntary and involuntary separations.
 Conduct exit interviews and collect feedback from departing employees.
 Ensure compliance with legal requirements for separation and exit processes.
By mapping out the workforce flow, HR can ensure that they have the right people in the
right positions, and that they are providing the support and resources necessary for employees
to succeed and thrive within the organization.

Succession Planning

What is succession planning?

Succession planning is a process of developing talent to replace executive, leadership or
other key employees when they transition to another role, leave the company, are fired, retire
or die. It is relevant to all companies, from the largest to the smallest, in both the for-profit
and not-for-profit sectors.
The planning process is meant to create a talent pipeline of successors that will keep the
organization running with little to no interruption when inevitable staff changes occur.
Effective succession planning works by assessing staffing needs that may arise as well as
creating long-term goals and strategies to manage those gaps, including through leadership
development. Succession planning ensures that a business can continue running smoothly
after an important role becomes vacant. An organization may want a succession plan to retain
internal company knowledge, identify skill gap needs for training and to invest in employees.
The process helps identify employees with the right skill sets and talent that can fill the
vacant position.
Succession Planning Process
Step 1 – Identifying Key Positions or Key Groups
A key position can be defined in many different ways, but two important criteria that should
be considered are criticality and retention risk. A critical position is one that, if it were
vacant, would have a significant impact on the organization’s ability to conduct normal
business. The significance of the impact could be considered in terms of safety, operation of
equipment, financial operation, efficiency, public opinion, and so on. Retention risk refers to
positions where the departure of an employee is expected (e.g. retirement) or likely (e.g.
history of turnover). By examining these criteria on a low-to-high scale, an organization can
determine what positions require short- or long-term planning.
Step 2 – Identifying Competencies
All positions demand set of knowledge, skills and abilities that are expected of employees
who are filling that function. Thus, knowing the competencies of a job is a mandatory
component of recruitment. However, succession planning provides an opportunity to review
the competencies traditionally associated with jobs, particularly with respect to current goals
and objectives. Several ways to determine and develop required competencies include:
1. Reviewing job descriptions, advertisements, and relevant merit criteria
2. Interviewing current and former job incumbents
3. Interviewing supervisors, clients, and other stakeholders
4. Conducting focus groups or surveys
5. Reviewing any existing development programs (i.e. leadership competencies)
6. Reviewing organizational values
Step 3 – Identifying and Assessing Potential Candidates
The objective of identifying and assessing employees against core job competencies is to help
focus their learning and development opportunities in order to prepare them for future roles in
the organization. Given the potential sensitivity around the decision-making process in these
situations, an employee might be advised about their prospective opportunity for
advancement in private. This process is not transparent and can negatively impact the morale
of other employees and their relationship with the organization. Modern approaches to
succession planning suggest that transparency and accountability are the best practices for an
organization. Recruitment in the public service is based on merit, fairness and respect, and
these concepts are maintained and supported by the succession planning process. . Therefore,
succession planning must be:
1. Objective and independent of personal bias;
2. Merit-based;
3. Communicated to and understood by all employees; and
4. Transparent at all stages of the process
Step 4 – Learning and Development Plans
Once the relevant candidates have been identified, the organization must ensure that these
employees have access to focused learning and development opportunities. Some key points
to remember when developing learning and development plans are:
1.Plans should focus on decreasing or removing the gap between expected competencies and
the current knowledge, skills and abilities of candidates.
2. modern succession planning is based on learning and development to fulfill employee
potential, rather than merely filling a vacancy.
3. There are a wide range of learning and development opportunities to consider, which can
include:
1. Job assignments that develop candidate’s competencies;
2. Job rotations; and
3. Formal training.
4. Ensure appropriate strategies are in place to support the transfer of corporate knowledge to
candidates for key jobs, which can include:
a. Mentoring, coaching or job-shadowing;
b. Documenting critical knowledge;
Step 5 – Implementation and Evaluation
Evaluating succession planning efforts will help to ensure the effectiveness of the process by
providing information regarding:
1. How the process operates – the relationship between inputs, activities, outputs, and
outcomes
2. Impact of the process relative to stated goals and objectives
3. Functional strengths and weaknesses
4. Potential gaps in planning and assumptions
5. Cost-effectiveness and cost-benefit

What are the benefits of succession planning?

The need for succession planning relates closely to its benefits. Some benefits include the
following:
 Succession planning helps save time and cost. The time needed to find an employee's
replacement will cost lost productivity, time and money.
 With more baby boomers retiring, succession planning helps ensure there are more
employees available with the skill set to replace senior executives.
 When a candidate-driven market exists, companies compete for a scarcity of talent,
which typically makes hiring desired candidates more difficult. Choosing internal
employees to fill vacant critical roles helps avoid this challenge.
  It boosts employee engagement through career development and makes workers feel
valued.
 Succession planning helps an organization create a better reputation as a talent
destination.
 It provides for smoother business operations and delivery of uninterrupted excellence,
as skilled employees can immediately fill needed high-level roles.
 It helps to align HR and the vision for an organization, and supports HR and managers
in creating and supporting proactive programs.
 Supervisors mentor employees, transferring their expertise.
 Management keeps better track of potential valuable employees.
How does the succession planning process work?
Depending on the size of the organization and its goals, the strategic planning for the
succession planning process can vary wildly. However, fundamentals include the following:
 gaining the support of key stakeholders, including the CEO or executive director;
 assessing key positions (and individuals) and deciding which ones to focus on;
 identifying high-potential employees for key leadership positions and creating
learning and development plans tailored to a wider range of employees for more
expansive succession plans;
 assessing the extent to which internal candidates can fill roles (likely with
development), who will be more familiar with company culture and processes, and
which roles HR should look externally for the right talent pool;
 creating effective learning and professional development processes that support the
succession strategy, especially experiential development, such as job shadowing and
cross-functional moves; and
 determining which HR software will be used in support of the succession planning
strategy and process.
Real-world succession planning example
As an example, for several years before Steve Jobs stepped down as CEO of Apple in
2011, he had groomed successor Tim Cook to take the top leadership role. This
included Cook working a wide range of operational roles and directly with Jobs for
CEO-specific experience. Cook also stepped in to lead day-to-day operations twice
when Jobs was on sick leave.
In addition to a succession plan for the top leadership role, Jobs also founded Apple
University in 2008 as a way to provide a leadership curriculum based on Jobs' experiences
and business savvy.
Age &Grade Distribution Mapping
Mapping means linkage between two sets of Data. It can be “One to One”, one to many or
many too many.
Age Group Preference:-
In many organizations, a particular age group is preferred to other age groups for staffing
vacancies. The idea of preference for a particular age group is based on following
considerations:-
(i) Expected number of year of services.
(ii) Professional source of supply of required manpower in future.
(iii) Personally, dynamism, initiative, challenging attitude etc.
Age is used as an index of stamina and flexibility and for determining the possible length of
service before retirement. Although no empirical support, as such is available to relate
promotion to preference for age group, many organizations as a matter of policy, follow some
norms regarding age group vis-à-vis staffing of certain vacancies from within. In some cases
where the existing employees also contest with the outsiders for a particular vacancy, some
relaxation in age is given to them. Thus for the reasons stated earlier, preference for age
group also influence for age group also influence promotional decisions.

Age mapping is simply breaking down your organization's age-bracket for presentation
purposes. The usual brackets are 18-25, 25-30, 30-35, 35-40 etc. all the way up to "over 60."
Some of the benefits of age distribution mapping include:
1. Identifying potential skill gaps or shortages that may arise due to an aging workforce
or a lack of younger employees.
2. Assessing the effectiveness of succession planning programs and strategies for
developing employees at different stages of their careers.
3. Developing strategies for recruiting and retaining employees in different age groups.
4. Understanding the changing demographics of the workforce and adapting HR policies
and practices accordingly.
5. Ensuring compliance with age discrimination laws and regulations.

Grade distribution mapping is simply getting the mean/average of an organization with

respect to their income bracket i.e. 10k-15k, 15k-20k etc. Grade distribution mapping is a
process of analyzing the distribution of employees across different grades or levels in an organization
as part of human resource planning. This mapping helps organizations to better understand their
current workforce and identify potential gaps or imbalances that may need to be addressed.

In most organizations, employees are grouped into different grades or levels based on their
job responsibilities, skills, experience, and other factors. For example, an organization may
have different grades for entry-level positions, mid-level positions, and senior-level positions.
Mapping the grade distribution involves looking at the number of employees in each grade or
level and the percentage of the total workforce that each grade represents.
Some of the benefits of grade distribution mapping include:
1. Identifying areas where the organization may be over- or under-staffed in certain
grades or levels.
2. Understanding the career paths and opportunities for employees within the
organization.
3. Developing strategies for recruiting and retaining employees in different grades or
levels.
4. Assessing the effectiveness of training and development programs for employees at
different levels.
5. Ensuring that the organization has the right mix of skills and experience across
different grades or levels to achieve its goals and objectives.
Overall, grade distribution mapping is an important tool for human resource planning that
helps organizations to make informed decisions about their workforce and ensure that they
have the right people in the right positions to achieve their goals.

END