C H A P T E R
Marketing Practices in Nepal
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Learning Objectives After completing this chapter, students will e ale to! Formulation and Implementation of Product Strategies; Formulation and Implementation of Pricing Strategies; Formulation and Implementation of Distribution Strategies; Formulation and Implementation of Promotion Strategies; Focus on Customer Value and Satisfaction;
| Human Resource Planning | $# Formulation and Implementation of Product Strategies
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A product is referred as a set of tangible and intangible physical attrib attribute utes. s. Mostly Mostly physic physical al goods goods are are manufa manufactu cture red d and found found in Nepalese market. Agricultural product dominate the in the market. Services products, advocacy, consultancy, event management etc. intangible product is also emerging. Product strategies in Nepal is taken as folloing! i%
Product &ariet'" #ig $rms has applie applied d variou various s produ product ct lines. lines. A company like %& '%haudhary &roups( has introduced various product lines. )hey have invested in confectionery like noodles, biscuits, *oor etc. +lectricity appliances like television, Ac, etc.
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Product (u ( ualit'" Standa Standardi rdia atio tion n and gradin grading g are are conduc conducted ted by -uality control authority of Nepal government. NS 'Nepal Standard( mark mark certi$ certi$cat cation ion is necess necessary ary to prove prove -ualit -uality y produ product. ct. ate ate of manufacturing, date of e/piry, Ingredients used, method to use etc are compulsion in the product manufactured in Nepal.
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New product )e&elopment" +/ce +/cept pt very very fe fe busin busines ess s $rms $rms,, Nepalese business house prefer imitating or me too product. So, ne product development is very minimal in Nepal. )his is because of less available available research research and development development budget. budget. Most of product product are copied copied from Indian and %hinese %hinese ell marketed marketed product. product. Nepalese Nepalese entrepreneurs follo the concepts and ideas that are being used by others others $rms hich hich are being being succes success s in that that $eld. $eld. )hey )hey are are 0ust 0ust modi$ed products. If one business $rm has successful in construction of apar apartm tmen entt and and hous housin ing, g, a num number ber of $rm $rm appea ppearred to follo such trends.
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*randing It refe refers rs to name name,, mark mark,, sign sign,, symb symbol ol or comb combina inati tion on of all all used used in orde orderr to di1e di1ere rent ntia iate te produc products. ts. In Nepale Nepalese se marke markett di1e di1errent ent sort sorts s of bran brandin ding g is being used. 2ocal brand like 0u0u cur curd of #h #hak akta tapu pur, r, Nati Nation onal al brand like shikar shoes, Nebico biscuits, etc as ell as International brand like Sams Samsun ung, g, appl apple, e, )oshi oshiba ba are are avai availa labl ble e in Nepa Nepal. l. In Nepa Nepale lese se marketing individual branding is popular such as $rm Surya )obacco %ompany has adopted the individual brand name for its product like Surya, Shikhar, 3hukuri etc. Similarly, 452AS gives same brand or use umbre umbrella lla brand brand to all its produc products ts like like 452AS 452AS bis biscui cuit, t, 452AS 452AS basmati rice, 452AS steal etc.
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Packaging!
| Human Resource Planning | $# Formulation and Implementation of Product Strategies
Chapter"#
A product is referred as a set of tangible and intangible physical attrib attribute utes. s. Mostly Mostly physic physical al goods goods are are manufa manufactu cture red d and found found in Nepalese market. Agricultural product dominate the in the market. Services products, advocacy, consultancy, event management etc. intangible product is also emerging. Product strategies in Nepal is taken as folloing! i%
Product &ariet'" #ig $rms has applie applied d variou various s produ product ct lines. lines. A company like %& '%haudhary &roups( has introduced various product lines. )hey have invested in confectionery like noodles, biscuits, *oor etc. +lectricity appliances like television, Ac, etc.
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Product (u ( ualit'" Standa Standardi rdia atio tion n and gradin grading g are are conduc conducted ted by -uality control authority of Nepal government. NS 'Nepal Standard( mark mark certi$ certi$cat cation ion is necess necessary ary to prove prove -ualit -uality y produ product. ct. ate ate of manufacturing, date of e/piry, Ingredients used, method to use etc are compulsion in the product manufactured in Nepal.
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New product )e&elopment" +/ce +/cept pt very very fe fe busin busines ess s $rms $rms,, Nepalese business house prefer imitating or me too product. So, ne product development is very minimal in Nepal. )his is because of less available available research research and development development budget. budget. Most of product product are copied copied from Indian and %hinese %hinese ell marketed marketed product. product. Nepalese Nepalese entrepreneurs follo the concepts and ideas that are being used by others others $rms hich hich are being being succes success s in that that $eld. $eld. )hey )hey are are 0ust 0ust modi$ed products. If one business $rm has successful in construction of apar apartm tmen entt and and hous housin ing, g, a num number ber of $rm $rm appea ppearred to follo such trends.
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*randing It refe refers rs to name name,, mark mark,, sign sign,, symb symbol ol or comb combina inati tion on of all all used used in orde orderr to di1e di1ere rent ntia iate te produc products. ts. In Nepale Nepalese se marke markett di1e di1errent ent sort sorts s of bran brandin ding g is being used. 2ocal brand like 0u0u cur curd of #h #hak akta tapu pur, r, Nati Nation onal al brand like shikar shoes, Nebico biscuits, etc as ell as International brand like Sams Samsun ung, g, appl apple, e, )oshi oshiba ba are are avai availa labl ble e in Nepa Nepal. l. In Nepa Nepale lese se marketing individual branding is popular such as $rm Surya )obacco %ompany has adopted the individual brand name for its product like Surya, Shikhar, 3hukuri etc. Similarly, 452AS gives same brand or use umbre umbrella lla brand brand to all its produc products ts like like 452AS 452AS bis biscui cuit, t, 452AS 452AS basmati rice, 452AS steal etc.
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Packaging!
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Packaging is the one of the most important product decision that Nepalese $rms
considered. Packaging is considered as tools or medium of promotion as ell. It is also termed termed as silent silent sales sales perso person. n. Most Most of the produ product ct of Nepale Nepalese se produc products ts are are designe designed d such such ay that it induce induce the buyers buyers.. It is designed designed very attractively attractively. #right colours, colours, eye catching catching printing, printing, ell6made ell6made material material such as plastics, plastics, tin, aluminium aluminium foil, glass glass etc hich are imported from India and %hina are the some important features features of Nepalese Nepalese packaging packaging.. Metallic Metallic pack is -uite popular popular in noodles industry. &i%
aeling Nepal #ureau of Standards and Metrology has provided a directive to all the Nepale Nepalese se $rms that their produc productt must must have have manufacturing date dates, s, e/pi e/piry ry date date of product, ingredients ingredients,, market market retail price and other necessary information. It -uite mand mandat ator ory y to the the food and confectionery indu indust stri ries es.. %ons %onsid ider ering ing this this fact fact most most of Nepa Nepale lese se prod produc uctt use use inform informati ative ve label label as ell ell as descri descripti ptive ve label. label. #eside #eside these these label, label, brand label and grade label are also applied. %onsumer aareness is also increasing in the conte/t labelling. %onsumer are no read the labels before they buy the products.
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%haracteristics of 4uman 9esource Planning 4uman resource planning ensures right kind of people at the right time and at the right place. It controls cost of human labour and formulates policies by balancing demand and supply of orkers. orkers. Some of the charac character terist istics ics of human human resou resourc rce e planni planning ng are are e/pla e/plaine ined d belo" Figure 2.1 Characteristics of HR Planning
Characteristics of H%R% Planning
7n6going Process %oordination in emand 8 Supply Action Programming 2ong6term Strategic Planning Future Future 7riented &oal 7riented )ime Period Part of %orporate Plan Productivity 7riented +nvironmental In*uences
[Source: Bhattrai, A. and Aryal, Aryal, L.P. L.P. (2014), Human e!ource "ana#ement$
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On–Goin oing Proc rocess 4uman resource planning is the on6going process of functioning in an organiation. )he organiational plans, policies, procedures and other organiational functions are to be used forever till the e/istence of the organiation rather than being a one shot a1airs. 49P helps an organiation to achieve an organiational ob0ective. 7nce 7nce the ob0ect ob0ective ives s are are achiev achieved, ed, an organ organia iatio tion n plans plans and initiates for further ob0ectives and again it goes on continuously. continuously.
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Co!o Co!ord rdin inat atio ion n in Dema Demand nd " Supp Suppl# l# 4uman resource planning helps to determine demand and supply of human human resou resourc rces es in the organ organia iatio tion. n. )he co6ord co6ordina inatio tion n or match beteen demand and supply is necessary to place a right people at right time and at right number. )he optimum level of manp manpo oer er is esti estima mate ted d by the the coor coordi dina nati tion on of dema demand nd and and supply.
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%ctio ction n Pro Prog gram rammin ming 4uman resource plannings are made to keep the organiational plans and policies into action. )he perfect action planning is necessary to achieve organiational ob0ectives and hich is determined by the human resource planning.
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'ong 'ong!t !ter erm m Str Strat ateg egic ic Pla Plann nnin ing g )he overall organiational strategies, plans and policies are formulated for long6tern. )he long term human resource planning is necessary for determining the strategic plans and achieving
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ob0ectives in an organiation. 4uman 9esource planning focuses on implementing strategic plans for an organiational goal. (.
Future Oriented 4uman resource planning is future oriented that is prepared to assess the future re-uirement of manpoer in the organiation. It forecasts for the estimation of right number and kind of people at the right place and at the right time. )his future oriented planning evaluates the future re-uirement of manpoer so that organiational activities can run e:ciently and e1ectively. )here is no obstacle to achieve the desired organiational ob0ectives. 49P helps to identify and estimate the sie and composition of human resource for future purpose.
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Goal Oriented 4uman resource planning is related ith the organiational goal achievements. It is goal oriented. )he organiations have their on speci$c goals to achieve and human resource planning plays a vital role in achieving the organiational goals. 4uman resource planning aims at ful$lling the ob0ectives of manpoer re-uirements on the basis of organiational ob0ectives.
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+ime Period 4uman resource planning considers time period for every organiational activities. )he organiational ob0ectives and corporate planning of an organiational are based on certain time frame. )he short term and long term plans are made according to the similar ob0ectives. Short term plans are formulated for short term ob0ectives and long term plans are formulated for long6term ob0ectives of an organiation.
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Part of Corporate Plan 4uman resource planning is a part of overall corporate plan of the organiation. )hese corporate plans can be formulated at strategic, tactical and operational levels. )he corporate plans focus on predetermined ob0ectives of the organiation. 4uman resource planning is prepared on the basis of corporate planning of the organiation. So it should have relation ith corporate plan to meet the organiational ob0ectives.
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Productiit# Oriented 4uman resource planning is productivity oriented. It emphasies on ma/imiation of productivity of the organiation. )he best utiliation of human resources available in the organiation increase productivity. )he skilled, e:cient, capable and knoledge human resources are necessary for productivity increment. )he human resource planning helps in proper and
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e1ective utiliation of physical resources i.e. human resources and that increases productivity. 1/. 0nironmental Influences 4uman resource planning is a1ected by the internal and e/ternal environmental forces. Internal environmental forces can be controlled by the organiation hoever, e/ternal environmental forces are not under the control of the organiation. 4uman resource planning is to be updated and formulated as per the changing environmental forces.
7b0ectives of Manpoer Planning 4uman resource planning in an organiation is essential to achieve is necessary to meet organiational goals. Some of the ob0ectives of human resource planning are as follos" Figure 2.2 Objectives of HR planning
12ecti&es of H%R% Planning
Forecasting 4uman 9esource 9e-uirement +1ective Management of %hange 9ealiing 7rganiational &oals Promoting +mployees +1ective 5tiliation of 4uman 9esources 7ther 7b0ectives
[Source: Bhattrai, A. and Aryal, L.P. (2014), Human e!ource "ana#ement
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Forecasting uman 2esource 2e3uirement 4uman resource planning forecasts the future re-uirement of skilled and capable human resources to meet the organiational ob0ective. 49P develop measures for proper utiliation of manpoer and forecasts re-uirements of skilled and capable human resources to meet the organiational ob0ective.
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0ffectie 4anagement of C5ange 4uman resource planning is fully e1ective in management change. 49P helps in balancing the distribution and allocation of human resources according to the changing management policies and re-uirements. )he changing environment should be easily adopted by the organiation easily ith skilled and capable human resources.
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2eali6ing Organi6ational Goals )he ob0ective of human resource planning is to maintain and improve the organiation;s ability to achieve its goal by developing strategies that ill result in optimum contribution of human resources. 49P develop procedures and techni-ues to
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determine the re-uirements of di1erent types of manpoer over a period of time from the stand point of organiational goals. &.
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Promoting 0mplo#ees 4uman resource planning formulates organiational policies to encourage employees for better performance. If employees are encouraged and motivated, it increases productivity and meet the descried goals. 49P promotes employees in re-uired place according to their skills, knoledge ability and capacities. 0ffectie 7tili6ation of uman 2esources 4uman resource planning ensures optimum and e1ective utiliation of human resources available in the organiation. It ensures the organiation for the availability of necessary resources hen re-uired. 49P makes arrangement for procurement, promotion and retention of the e1ective human resources. Ot5er Ob8ecties 4uman resource planning has many other ob0ectives. It controls the cost aspect of human resource. It analye the dynamic process of recruitment, promotion, and loss to the organiation and control these processes ith a vie to ma/imiing individual and group performance ithout involving high cost.
Need and Importance of 4uman 9esource Planning 4uman resource planning determines right number of person at right place and at the right time to achieve organiational ob0ectives. )he human resource planning is important to interrelate business strategies and its operations. It determines the action plan for ac-uisition and development of human resource. )he development of globaliation, competition, and changing business environment increases the needs and importance of human resource planning. Some of the needs and importance of human resource planning are e/plained belo" Figure 2.3 Importance of HR planning
4mportance of Human Resource Planning
Foundation of Personnel Functions Future Personnel Needs 7b0ective 7riented 5tiliation of 4uman 9esources %ontrol of 4uman 9esources Ac-uisition of 4uman 9esources evelopment of 4uman 9esources Minimie Future 5ncertainty emand for Specialist Skills +nvironmental %hanges
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Foundation of Personnel Functions 49 planning mi/ the program for various 49 related activities such as recruitment, selection, training, development, placement, etc. It provides tools and procedures to perform various human resource management functions such as ac-uisition, development, motivation and maintenance.
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Future Personnel 9eeds )he human resource planning estimates the future re-uirement of the employees in an organiation. It ensures the future availability of human resources to carry out organiational activities e:ciently and e1ectively. It determines the future needs of manpoer in terms of number and -uality.
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Ob8ectie Oriented 4uman resource planning itself is ob0ective oriented. It is related ith goal achievements. )he organiation has their on speci$c ob0ective to achieve and human resource planning plays a vital role in achieving those organiational ob0ectives. 4uman resource planning aims at ful$lling the ob0ectives of manpoer re-uirements on the basis of organiational ob0ectives.
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7tili6ation of uman 2esources 4uman resource planning ensures the optimum and e1ective utiliation of human resources available in the organiation. It provides control measures to ensure better performance. 49P determines standard for procurement, promotion and retention of the e:cient human resources. )he optimum utiliation of human resources in the organiation helps in minimiing the overall cost of production.
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Control of uman 2esources 49 planning $/es standard to evaluate the performance of individuals and determines the tools for e1ective control. )o carry out organiational activities, each organiation needs people ith necessary -uali$cations, skills, knoledge, and ability.
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%c3uisition of uman 2esources 4uman resource ac-uisition involves the employment or placement of the right number and right kind of ork to the right 0ob at the right time and place. 4uman resource planning is the part of ac-uisition function. It helps the human resource manager to estimate human resource re-uirement in the organiation. Deelopment of uman 2esources
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49 planning prepare plans and allocate resources for 49 development. 4uman resource development increase the competency level of employees to perform assigned task e:ciently and e1ectively. )he training and development helps to develop orking e:ciency of the employees. )o increase productivity and functioning in an organiation, employees should be provided ith training, management development programs, career development program, etc. ,.
4inimi6e Future 7ncertaint# )he business activities should have to run ith future uncertain. 4uman resource planning helps to minimie future uncertainly by forecasting the future situation. +nvironmental factors create uncertainty in the business operation of an organiation. &lobaliation, technological changes, organiational restructuring, diversity of 0ob, legal provisions, etc. brings organiational uncertainties. 49 planning helps in organiation to cope ith these environmental factors.
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Demand for Specialist S:ills )he performance and organiational activities increases only hen the organiation has highly skilled and capable human resources. 4uman resource planning ensures in recruiting and selecting skilled and knoledgeable human resources in the organiation. )he employees ith special skill, knoledge and capacity increase the 0ob e:ciency.
1/. 0nironmental C5anges 4uman resource planning is important to cope up ith the uncertain environmental changes. )he e/ternal and internal environmental forces a1ects the organiational activities. )he technological changes, organiational charges, demographic changes, political changes, legal changes, economic changes, etc a1ects the overall organiational performances.
Problems of 49 Planning 4uman resource planning is very essential in the decision making and forecasting employee re-uirement in an organiation 49P is a1ected by many factors, some of them are e/plained belo" Figure 2. Factors !ffecting HR Planning
-actor A6ecting H%R% Planning
2ack of Skilled 9esources Separation of +mployees %hange in 7rganiation 7b0ectives %hange in Policies
[Source: Bhattrai, A. and Aryal, L.P. (2014) Human e!ource "ana#ement$
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'ac: of S:illed 2esources )he main problem an organiation face is lack of skilled, trained and capable human resources.
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Separation of 0mplo#ees +mployees orking in an organiation have to be replaced ho have gron old, or ho retire, die or become incapable because of physical or mental aliments. In such situation, there must be a preplanned human resource planning in the organiation. )hese uncertain separation of employees may impact overall organiational planning and activities.
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C5ange in Organi6ation Ob8ecties
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C5ange in Policies )he organiational policies and procedures are formulated according to the necessity of the organiation to achieve the goals. )he changes in policies are also make according to the re-uirements. )he ne policies and activities in the organiation helps to enable employees motivation and achieve the organiational goals. 4uman resource planning are a1ected by the changing policies and procedures of the organiation.
%oncept of 4uman 9esource Strategy Strategy refers to the long term planning hich helps in achieving the organiational goals. Strategy provides a frameork to an organiation to achieve organiational goals and ob0ectives. 4uman resource strategy helps management to anticipates and manage the rapidly increasing changes hich links ith corporate strategy of the organiation. 4uman resource strategy is concerned ith the long range direction and long term human resource planning hich is prepared by focusing long term ob0ectives and strategies of the organiation. It refers to the broad action plan designed to develop practices, programs, and policies to accomplish the goals and
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HR Strategy Human resource strategy helps management to anticipates and manage the rapidly increasing changes which links with corporate strategy of the organization.
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ob0ectives of 49M function in an organiation by developing competitive advantages. 4uman resource strategy establish relationship beteen long range human resource direction and business strategy to achieve predetermined ob0ectives. It integrates business strategy ith speci$c long term scope of business activities, organiational structure, system and control strategy hich is concerned ith the philosophy of managing and mobiliing human resource in the organiation for long term goal achievement. =4uman resource strategy means to accept the human resource function as a strategic partner in the formulation of the company;s strategies, as ell as in the implementation of those strategies through human resource activities such as recruiting, selecting, training and rearding personnel=> Gary Dessler
%haracteristics of 49 Strategy 4uman resource strategy is an important means to implement strategic plan to achieve predetermined goals and ob0ectives of the organiation. In order to develop human resource strategy, an organiation should develop long term activities and long term strategies. )here are many characteristics of human resource strategy. Fe of the characteristics are e/plained belo" Figure 2." Characteristics of HR #trateg$
Characteristics of HR .trateg'
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7b0ective 7riented 2ong term Strategy %ompetitive Advantage +nvironmental Adaptation
Ob8ectie Oriented )he human resource strategy formulated by an organiation is ob0ective oriented. It focuses on organiational ob0ectives and supports the de$ned ob0ectives of the organiation. 7rganiational ob0ectives provide guideline to human resource strategy. 'ong term ori6on
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)he human resource strategy in an organiation focus an long term arrangement of human resources to achieve long term ob0ectives. )he long term strategy is important to specify long term business activities, organiational structure, and system and control strategy in an e:cient and e1ective manner. $.
Folloer of Corporate Strateg# 4uman resource managers prepare human resource strategy by linking ith corporate strategy through coordination ith line managers. )he proper linkup beteen corporate strategy and human resource strategy helps to achieve the organiational goals. )he interrelation ith corporate strategy is to achieve long term ob0ectives along ith the development of human resource strategy.
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0nironmental %daptation )he human resource strategy is developed for long term planning and strategy. It helps to adopt and cope up ith the changing environment. )he organiational strategies, plans, policies and procedures are implemented on the basis of the changing environment.
9elationship of 49 Planning to Strategic Planning 4uman resource planning is the estimation of demand and supply of human resources for the accomplishment of desired organiational goals and ob0ectives in future. +1ective human resource planning involves long range development and utiliation of talent of employees. Strategic planning is the process of determining the road map to pursue the organiational long term goals and ob0ectives ith the available resources in the organiation. It is a comprehensive master plan focused on long range planning and goals. It is a systematic approach of analying opportunities and threats in the environment, assessing organiational internal strengths and eakness and identifying opportunities of competitive advantages to enhance the e:ciency and organiational productivity.
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Natural resources, technological capacities, products, market share and position are given close consideration in strategic planning hoever human resource planning considers planning of personnel, programs like training, development and recruitment. Strategic planning is the basis of determination of human resource planning. 4uman resource planning and strategic planning has very close relationship and are correlated. It is because human resource planning is an integral part of the overall corporate plan. )herefore, the relationship beteen human resource planning and strategic planning can be discussed under folloing to aspects" Figure 2.% Relationship bet&een HR Planning an' #trategic Planning
-ollower Relationship Relationship etween HR Planning and .trategic Planning
Partner Relationship
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Folloer 2elations5ip 4uman resource planning is the sub6system of organiational strategic planning. It is not a separate activity from corporate strategic plan but is an integral part of the overall corporate plan of the organiation. )he human resource planning follos the guidelines provided by the corporate plan to initiate corporate ob0ectives of the organiation and predetermined long term ob0ectives. Strategic planning is the basis of determination of human resource planning. It is tailored to meet the overall mission, vision and corporate strategic plan of the organiation.
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Partner 2elations5ip Strategic plan is prepared by focusing long term ob0ectives of the organiation hereas human resource plan is a partner in the formulation of the corporate strategic plan.
)he relationship beteen an 49 Planning and strategic planning can be more clearly e/plained by the folloing diagram" Figure 2.( Impact of )usiness Planning on Human Resource Planning .trategic Planning ;ong
4ssue Anal'sis -orecasting Re:uirements Action Plans #usiness heads Sta:ng levels Human Resource Planning Sta:ng Authoriation +/ternal Factors Sta:ng Mi/ Promotion 8 )ransfer Internal Supply Analysis 7rganiation 8 ?ob esign 7rganiational %hange Management Implication Available@Pro0ected 9esource )rading 8 evelopment Net 9e-uirements %ompensation 8 #ene$ts 2abour 9elations
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[Source : %a!io, 1&&2 Human e!ource "ana#ement$
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#usiness plan includes strategic plan, operational plan and budgetary plan hich are determined to purse organiational goals ith the available resources.
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4uman resource planning includes issue analysis, forecasting and action plans hich are incorporated by strategic planning to achieve the goals and ob0ectives of the organiation.
Approaches to 4uman 9esource Planning 4uman resource planning is the process of forecasting the re-uired human resource in the organiation to perform a speci$c task and to achieve the organiational ob0ectives. It estimates the future demand and supply of human resources in the organiation. 49 planning pre determines the right number of people at right time, and right place. It establishes 0ob speci$cations and 0ob descriptions of employees for future performance. )he approaches of human resource planning are classi$ed in folloing categories" Figure 2.* !pproaches to Human Resource Planning Quantitative Approach/Top-Down Approach %pproac5 to 2P
Qualitative Approach/Bottom-Up Approach Mixed Approach
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levels and estimates ho many employees ould be re-uired in every level in the organiation. )he basic re-uirements of
employees such as numbers, skill and e:ciency, authority, and responsibility are determined by the top level management. )his approach is based on human resource management information system, human resource inventory, succession planning, and 0ob analysis. )he demand for human resource is forecasted using various demand forecasting tools and techni-ues such as trend analysis, mathematical models, econometric models, Markov analysis, statistical models, ork study techni-ues and so on. )his approach focuses on forecasting human resource shortages and surpluses. )he approach can be more clearly e/plained by folloing $gure" Figure 2.+ ,uantitative !pproach of HR Planning
Human Resource Planning
*ased on! %ompany;s &oals 8 7b0ective #usiness Strategies 9e-uired #udget
+stimation of 4uman 9esource emand
+stimation of 4uman 9esource Supply
+stimation of 9ight Number of +mployees in the 9ight Place at the 9ight )ime
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[Source: Adhi'ari, .. (200&), Human e!ource "ana#ement$
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Figure 2.1- ,ualitative !pproach of HR Planning
Human Resource Planning
*ased on! %ompany;s &oals 8 7b0ective #usiness Strategies 9e-uired #udget
Estimation of Human Resource )emand and .uppl'
Emplo'ees Related )i6erent -unctions +mployees Safety 8
Conformation aout Right Emplo'ee at a Right >o
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[Source : Adhi'ari, .. (200&), Human e!ource "ana#ement$
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4i>ed %pproac5 )his is the combination of top6don approach and bottom6up approach of human resource planning. )here is e-ual participation of each level of employees of the organiation, so, this approach is also knon as participative approach. %orporate ob0ectives and strategies of the organiation are determined by top level management and provide suggestion, guidance and information to other employees. )his approach tends to produce the best result that ever produced by either of the methods so, it can be regarded as an management by ob0ective 'M#7( approach of human resource planning. )he e1orts and activities are binded up beteen all levels of manager in this approach.
4uman 9esource Planning Process HR Planning Process HR planning process is a continuous process which attempts to provide sufficient manpower required to perform organizational activities with identification of human resource objectives to the implementation of plans and policies.
)he process of human resource planning is one of the most crucial, comple/ and continuing managerial functions through hich the organiation anticipates future business and environmental forces. ue to the increase in the sie of business enterprises, comple/ production technology, and the adoption of professional management techni-ue, the human resource planning process has been important for the organiation. 49 planning process is a continuous process hich attempts to provide su:cient manpoer re-uired to perform organiational activities ith identi$cation of human resource ob0ectives to the implementation of plans and policies. )his process has many steps as follos" Figure 2.11 Process of Human Resource Planning
?nderstand 1rgani@ational 12ecti&es .trategic Plans
Assessing Current .ituation of Human Resources
-orecasting Human Resource )emand
-orecasting Human Resource .uppl'
Matching )emand and .uppl' -orecast
)e&eloping Action Plans and Policies
4mplementation of Action Plans, Policies Programmes
Control and E&aluation
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1.
7nderstand Organi6ational Ob8ecties " Strategic Plans 4uman resource planning helps to determine ob0ectives and strategies of the organiation to ma/imie the future return on investment in human resources. It ensures in matching employees abilities to enterprise or organiation;s re-uirements ith an emphasis on future instead of present arrangement. )he long term ob0ectives and strategic plans should be planned to run the organiation smoothly and e:ciently. 2ong term planning and strategic planning help to meet the organiational goals and ob0ectives ith the e:cient orkforce in an organiation.
.
%ssessing Current Situation of uman 2esources In this step the planner assesses the present situation of 49 inventory. )he assessment of human resource is done ithin the parameter of e/ternal and internal environment. )his step analyes the availability of present human resources in the organiation. 4uman resource inventory, human resource information system '49IS( and 0ob analysis techni-ues are used to assess current situation of human resource in an organiation.
$.
Forecasting uman 2esource Demand 4uman resource demand forecasting is concerned ith estimation of human resource re-uirement for future in the organiation. emand forecasting deals ith future needs for human resource in terms of -uantity and -uality. Forecasting of human resource demand is done to meet the future personnel re-uirements of the organiation to achieve goals and ob0ectives. It is the time6bound process of determining future needs for human resources. )here are various factors a1ecting human resource demand such as e/ternal environmental forces, organiational ob0ectives, corporate plans, succession plan, and availability of manpoer and so on. Some of the techni-ues used for human resource demand forecasting are managerial 0udgment, elphi techni-ue, statistical
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methods, survey methods, nominal group techni-ues, $nancial statement analysis, etc. &.
Forecasting uman 2esource Suppl# Forecasting human resource supply is concerned ith estimation of supply of manpoer in the organiation. It deals ith the availability of orkforce inside and outside of the organiation. Internal supply source involves promotion, transfer, emphasis skills, 0ob enlargement, 0ob enrichment. )he e/ternal sources involve the recruitment of ne human resources ith proper skill, knoledge and capacity. )hese human resources are from outside sources such as employment e/change, vocational institutions, training institutions, etc. )he internal forces and e/ternal forces e1ect human resource supply forecasting. Some of the techni-ues used in forecasting human resource supply are managerial 0udgement, Markov analysis, replacement chart, succession planning, statistical methods skill i nventories, etc.
(.
4atc5ing Demand and Suppl# Forecast )he demand and supply forecasting are meet together at a e-uilibrium position so that shortages and over sta:ng position ill be solved. )he matching of demand and supply forecast is done to determine future re-uirements of human resources. More employees are hired if there is shortage and if there is over sta:ng, employees are reduced the level of e/isting employment.
).
Deeloping %ction Plans and Policies )his step refers to the development of human resource plans and policies hich consists in $nding out the sources of labour supply ith a vie to make an e1ective use of these sources. )hese action plans and policies are developed e/ecuted through the designation of di1erent human resource activities. )hese action plans include recruitment, development, retention, redeployment, redundancy, promotion, succession, placement, etc.
*.
Implementation of %ction Plans? Policies " Programmes )he plans and policies developed are approved from top level management. After the approval, the action plans, policies and programmes are implemented to achieve the organiational goals and ob0ectives. Action plans such as recruitment, selection and placement, career planning, promotion, transfer, training and development, motivation and compensation, performance evaluation, etc. are implemented in this step. All implemented plans, policies and programmes are to be folloed by the employees to improve performances.
,.
Control and 0aluation
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-oundations of Human Resource Management
)he control and evaluation of performance of human resource are done at the $nal step to check hether the human resource planning matches the human resource ob0ectives and policies. 7nce the action plans are implemented, that should be updated time and again according to change in time, conditions and environment. )he control and evaluation can be done by revieing plans, policies, strategies and ob0ectives.
Assessing %urrent 4uman 9esources )he assessment of current human resource position in the organiation is the beginning of human resource planning. It is done through the analysis of current 49 inventory. It is the assessment of skill and ability present available in the organiation. %urrent situation of 49 inventory is available through human resource information system '49IS(. ?ob analysis also provides information about 0obs that are presently done. Strength and eakness of 49 inventory should also be analyed. )he folloing tools are used to assess current human resources in an organiation" Figure 2.12 !ssessing Current Human Resource
4uman 9esource Inventory 4uman 9esource Information System Assessing %urrent 4uman 9esources Succession Planning ?ob Analysis
1.
uman 2esource Inentor# 4uman resource inventory consists overall information about the -uality and -uantity of organiational employees, their -uali$cations, skills, capacity and e/periences. It has a huge inventory of employees data such as name, age, address, education, ork e/perience, training and development, performance, compensation, transfer, language, demotion etc. hile assessing current human resources, 49 inventory provides crucial information for identifying current and future threats and opportunities to the organiational performances. It is the method
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Human Resource Planning
of describing organiation.
competencies
currently
available
in
the
.
uman 2esource Information S#stem @2+SA )he human resource information system '49IS( is one of the computeried and nely developed system that provides human resource information timely and accurately. It collects, stores, maintains, retrieves, analyes and validates data re-uired by the organiation about their employees and their performances. It is a huge data base here relevant information about human resources are stored, analyed, manipulated, interpreted and disseminated. Some of the ma0or area of application of 49IS include training management, risk management, turnover, performance appraisal, etc. 49)S provides data and facts of the organiational employees to facilitate human resource planning 49IS include data of employees such as personal data, skill data position data compensation data, performance data and many more.
$.
Succession Planning Succession planning is a process of understanding and anticipating changes in function and ne technologies that impact on future 0ob re-uirements. It determines the skill, knoledge, ability, aptitude, values, motivation, initiative, self6 control, ork style and attitude that contribute to e/emplary 0ob performance. Succession planning continually monitor skills and needs to determine any gaps and develop plans to meet de$ciencies. It identi$es the 0ob competencies that ill be re-uired for future positions in the organiations by analying the di1erences beteen current employee competencies and future organiational needs. It helps to prepare competent person for higher vacant posts.
&.
Bob %nal#sis ?ob analysis is a procedure of de$ning 0obs ithin the organiation and behaviour and personal -ualities of the employees re-uired to perform assigned 0obs. It is a detailed and systematic study of information relating to the operations and responsibilities of a speci$c 0ob. ?ob analysis is the determination of the tasks hich comprise the 0ob and of the skills, knoledge, abilities and responsibilities re-uired of the orker for a successful performance and hich di1erentiate one 0ob from all other. It is a complete study of 0ob, embodying every knon and determinable factor, including the duties and responsibilities involved in its performance, the conditions under hich the performance is carried on, the nature of the task, the -ualities re-uired in the orker, and such conditions of employment as pay, hour,
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opportunities and privileges. 'Mamoria, and &ankar, 'BCC((. )he purpose of 0ob analysis is to prepare 0ob description, 0ob speci$cation and 0ob design. ?ob description is a ritten record of duties and responsibilities of a particular 0ob hich involves 0ob title, location, post, etc. ?ob speci$cation is a standard of employees attribute and -ualities re-uired to perform a task. ?ob design is a approach in hich the total task is divided or speci$ed into the manageable and e:cient units.
)he 9ole of Inform ation System in 49 Planning Information System in HR Planning Human resource information system plays a vital role in human resource planning.
4uman resource information system assists the overall processing information of human resources planning. )he information re-uired for human resource planning are stored in a database, system called information system. )he information can be retrieved as re-uirement. It is designed to ac-uire, store, retrieve, manipulate, analye, interpret, and disseminate relevant information about human resources. )he human resource planning is based on the available information in 49IS. 4uman resource information system plays a vital role in human resource planning. )he roles of human resource information system in human resource planning are e/plained belo" Figure 2.13 /he Role of Human Resource Information #$stem in HRP
4uman 9esource Inventory Information 9ole
4uman 9esource Forecasting 9ole Roles of Human Resource 4nformation .'stem 4uman 9esource Planning 9ole
4uman 9esource Action 9ole
4uman 9esource Analytical 9ole
[Source: Bhattrai, A. and Aryal, L.P. (2014) Human e!ource "ana#ement$
1.
uman 2esource Inentor# Information 2ole 4uman resource inventory is a database of human resource skills ho are currently employed in the organiation. It keeps important information about employees in central and easily accessible location. 49 inventory stores information of employees such as name, age, -uali$cation, training, e/perience, performance salary, language, specialied skills, 0ob location, etc. )hese personal information, skills and position information compensation and other information of employees makes easier to formulate human resource planning. 4uman resource inventory guides for
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considering opportunities for diversi$cation and e/pansion of operations. .
uman 2esource Forecasting 2ole 4uman resource information system is used for forecasting future re-uirements of human resource demand and supply in the organiation. It forecasts future demand and supply of employees to ensure the right person, at the right place to perform the organiational activities. )he information started in the 49IS help to forecast plans accurately so that it helps to meet the organiational goals and ob0ectives.
$.
uman 2esource Planning 2ole )o have an e1ective and e:cient human resource, planning, an organiation should have many other planning such as succession planning, placement planning, training and development planning, etc. 7n the basis of the information available about the employees performance and the organiational orking environment, various plans are formulated and implemented by te organiation. Information system becomes as one of the important part for human resource planning in an organiation. )he various planning formulate help in improving performances of the employees and organiation.
&.
uman 2esource %ction 2ole 4uman resource data is used for implementing the human resource plans and corporate plans of an organiation into action. 7nce the human resource plans are developed, they are put into action for elfare of employees and for improving organiational performances. 49IS helps human resource planning to implement in action. )he information provided and stored in information system should be matched ith the action plans implemented in the organiation.
(.
uman 2esource %nal#tical 2ole 4uman resource information system is important for conducting 0ob analysis. ?ob analysis determines the 0obs currently being done. It includes 0ob description, 0ob speci$cation and 0ob enlargement. ?ob description includes responsibilities, authority, accountability, productivity, relationship and environment of a 0ob. ?ob speci$cation specialies skills, knoledge and e/perience of an employee re-uired for a 0ob.
)echni-ues of Fo re casting 49 emand and Supply
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4uman resource demand forecasting refers to the process of estimating future need of human resource re-uirement in an organiation. It makes estimation of -uantity and -uality employees re-uirement for future 0obs. )he demand forecasting changes according to the change in business activities is an organiation. +/ternal environment includes political, legal, economical, socio6 cultural, and technological changes here as internal factors include organiational ob0ectives, straits, groth, design, leadership style, etc. )here are many factors a1ecting human resource demand forecasting such as e/ternal environment, organiational ob0ectives, corporate plans, succession plan, availability of human resources etc. 1. +ec5ni3ues of Forecasting uman 2esource Demand Some of the techni-ues used for forecasting human resource demand are e/plained belo" Figure 2.1 /echni0ues of Human Resource eman' Forecasting
Techni:ues of )emand -orecasting
1.
Managerial ?udgement Survey Method elphi )echni-ue Nominal &roup )echni-ue Statistical Methods
4anagerial Budgement 5nder this managerial 0udgement techni-ue, the managers having knoledge about organiational structure, activities and performance estimate the demand of human resource in future for the organiation. In this techni-ues top management decides volume of 49 in terms of -uality and -uantity. )his is the most typical method hich is based on the e/perience of managers. )he managerial 0udgements are of folloing types"
a% *ottom
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formulate human resource planning to achieve organiational goals and ob0ectives by linking up 49 activities ith strategic plans. .
Sure# 4et5od
In
this method, human resource e/perts conduct a survey of line managers and collect information about re-uirement of human resource demand in future. )he survey is conducted by using di1erent means such as -uestionnaire, intervie, group discussion and so on. )he information collected are analyed to forecast re-uirements of human resources in the organiation. $.
Delp5i +ec5ni3ue In this techni-ue, a group of 49 e/perts give their 0udgements and opinions about re-uirements of human resource in near future to the organiation. +/perts are not face6to6face. )hey ork separately and opinions are collected by a mail -uestionnaire. )hese opinions and responses are solicited again and again. )he responses and feedbacks are provided to e/ports by an intermediary. )he process is repeated up to three to four rounds to $nalie consensus to a $nal report.
&.
9ominal Group +ec5ni3ue In this techni-ue e/perts are hired to generate creative innovative ideas for forecasting human resource demand. In this e/perts sit face6to6face in a group. In this techni-ues, there are to stages. In the $rst stage member generate ideas in the problem forarded by the coordinator of the group. Similarly, in the second stage, the generated ideas are interacted in the group to comment and clarify the ideas. )he idea ith highest ranking is selected.
(.
Statistical 4et5ods )his is a method of forecast demand of human resource for a short period of time. Among many techni-ues of forecasting human resources, statistical method can be used on the basis of nature of information. 5nder this method various tools involve such as e/trapolation, inde/ation, regression analysis, linear analysis, econometric models, Markov analysis, ork study techni-ues, computer programs, etc. these tools are used depending on the type of information and data of human resource demand.
).
or: Stud# +ec5ni3ue In this techni-ue 49 forecasting is made by analying the ork of the organiation. #y analying the ork, orking hours are
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decided on the basis of 49 re-uirement and that is to be forecasted. . +ec5ni3ues of Forecasting uman 2esource Suppl# 4uman resource supply forecasting refers to the process of estimating future sources of human resources in an organiation. It estimates the availability of human resources in the organiation from inside and outside environment. Internal supply of human resources involves e1ective mobiliation of present 49 inventory. Internal supply is made through promotion, transfer, training and development. In the similar ay, e/ternal supply includes those human resources ho are not currently involved in the organiation and the process of recruiting ne employees to $ll6up vacancies. )hese sources include colleges, universities, training institutions, labour market, outsourcing, etc. )here are various methods and techni-ues available in forecasting human resource supply. )he folloing are the techni-ues used in forecasting human resource supply. Figure 2.1" /echni0ues of Human Resource #uppl$ Forecasting
Managerial ?udgement Succession Planning Markov Analysis Techni:ues of Human Resource .uppl' -orecasting Statistical Methods 9eplacement %hart Skill Inventories
1.
4anagerial Budgement Managerial 0udgement is such techni-ue in hich decision about human resource supply is made by e/perience of manager or management e/perts. )he skills, knoledge, e/periences, and ability of managers make easy to 0udge human resource supply forecasting. )hese managerial 0udgements are based on the data and information collected from business activities and e/perience hich provides easy assess to forecast human resource supply for future re-uirement. )his may not be the accurate means of 0udging since it is the traditional one and based on rule of thumb approach.
.
Succession Planning 5nder this techni-ue a person prepared to hold higher vacant position by providing opportunities to learn and e/posure the candidate is prepared for future re-uirement of higher position.
$.
4ar:o %nal#sis
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Human Resource Planning
| 35
In this method, the human resource supply is forecasted in a *o model hich shos the percentage of employees ho remain in each 0ob from one year to the ne/t and continuous. )his helps to kno the placements or movements of employees from one 0ob to another. Markov analysis determine time horion of human resource planning for estimating the probability of transitions from one category to another based on past trends. It determines overall movement of employees that occur due to promotion, transfer, resignation and termination hich helps to estimate human resource supply forecasting. &.
Statistical 4et5ods )he various kinds of statistical and mathematical tools are used to determine human resource supply forecasting being based on the nature of information available. )he supply of human resource is forecasted by using various tools such as e/trapolation, inde/ation, regression analysis, linear programming, econometric models, Markov analysis, ork study techni-ues, computer programs, etc. )hese tools are used being based on the appropriate data and information to deterring human resource supply forecasting in an organiation.
0% Replacement Chart 9eplacement chart helps to kno the ork pro$le of the employees on the basis of the department they are involved in. it describes the organiational structure along ith various managerial and professional positions. )he process of $lling the vacancies from internal sources can be determined from replacement charts. )he replacement is made on the basis of skill, knoledge and ability of the employees in the re-uired vacant post so that it can estimate future re-uirement of human resource supply in an organiation. 3% .kill 4n&entories )he skills, abilities, e/perience, knoledge and career desire of the employees are assessed in skill inventory. )he skill inventory includes information of employees such as ne skills, additional -uali$cations, changed 0ob duties, etc. )hese data and information should be updated at the end of each $scal year. According to the data and information available in skill inventory, the supply of human resource forecasting are determined so the information should be con$dential. Skill inventory helps to place the right number and kind of people at the right time and at the right 0ob according to the re-uirement.
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4uman 9esource Inventory 4uman resource inventory consists of data and information of employees orking in an organiation. )he human resource management stores the up6to6date information of their employees for the future purpose. )he 49 department keeps the record of employees hich include name, age, se/, education, training and development, e/periences, skills, ability, knoledge, language, performance, special skills, etc. )hese information are of all managerial and technical level employee orking in the same environment of an organiation. )he data and information stored helps to utilie people according to their ability. 4uman resource information system '49IS( helps 49 managers to understand the position of 49 inventory. 49 inventory includes folloing information about the employees. HR Inventory The human resource inventory stores the upto-date information of their employees for the future purpose.
1.
Personal Information It includes personal information of the employees such as name, age, se/, marital status, address family members, date of birth, children, etc.
.
%cademic information It includes information of formal education of employees, schools and colleges.
$.
0>perience information It includes information of 0ob e/periences of the employees.
&.
+raining and Deelopment Information It includes employees training and attended information.
(.
).
development
Compensation Information It includes current salary, salary history, payments, ta/ information of the employees.
programs
bonus, overtime
Ot5er Information It includes other information of employees such as language, hobbies, interest, beliefs, religion, etc.
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)hese all information of the employees help the 49 manager to plan in a better and in an e1ective ay.
#ene$ts of 4uman 9esource Inventory As human resource inventory being a place to store data and information of employees such as personal information, academic e/perience, training and development information etc, it has many bene$ts to an organiation. Some of the bene$ts regarding 49 inventory are listed belo" C. 49 inventory helps to easy assess of current human resource position of the organiation. . 49 inventory facilitates 49 managers to forecast human resource demand re-uirement for future performance for the organiation. D. 49 inventory facilitates 49 managers to estimate and determine human resource supply in the organiation. E. 49 inventory helps in better and e1ective human resource planning. . It helps 49 manage to make appropriate decisions regarding utiliation of available human resources. G. 49 inventory helps to $nd out opportunity and threats from the changing e/ternal environment. H. In overall, 49 inventory facilitates e:cient employees retention in order to support the business sustention and development.
4uman 9esource information System '49IS( HR Information System HR! is designed to provide quick information about the employees working in the organization.
49IS is designed to provide -uick information about the employees orking in the organiation. It includes information on all employees 'locally and across the national( currently in the organiation and provides computeried information about the positions and skill available. 49IS has been implemented to assist 49 inventory of looks" ?obs currently being done" ?ob re-uirement > People doing those 0ob" people re-uirement 49IS is designed to collect, analye, state, retrieve and disseminate information about 0obs and employees. Contents of 2 information S#stem
9% Personal )ata! Name, address, date of birth, marital status, children, ne/t of kin etc. #% .kills )ata! +ducational -uali$cations, training language spoken, capabilities, special skills etc.
receives,
+% Position )ata! %urrent position, occupational history, various 0obs held in other organiation, ork location etc. $% Compensation )ata! %urrent salary, salary history, bonus overtime payments, deductions from salary, ta/ information, aard received etc. 0% Performance )ata! %urrent 8 past performance appraisal data.
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7ses of 2 Information S#stem
9% Human resource in&entor' de&elopment 49IS saves as data6base for developing 49 inventory. )his inventory provides data about the skill of 49 employed by the organiation. #% HR -orecast 49IS data can be useful for forecast of future 49 demand and supply of provides data for di1erent statistical and mathematical looks. )hey are trend analysis, e/trapolation, econometric etc. +% HR )e&elopment 49IS data can be used for identifying persons for training, development, promotion and transfer. It can also be used for succession planning. $% >o Anal'sis 49IS is the basis for conducting 0ob analysis. ?ob analysis consist of de$ning" > 3noledge, skill and abilities needed to accomplish the 0ob speci$cation.
Succession Planning Succession Planning !uccession planning is the process of forecasting future demand of managerial HR.
Succession planning is the process of forecasting future demand of managerial 49. it ensures that the organiation has individuals ready to move into position of higher responsibility. )his is a special type of planning used to force6 cast potential managerial for future promotion in the higher management level. )o ful$ll managerial vacancies in the organiation potential middle and upper level managers are selected for future promotion. )his type of planning generally done for middle and top level managers. >
Anticipating managerial sta:ng needs in future for key position.
>
Making plans for the development of managerial to meet those needs internally.
>
acant ill be made in *uency due folloing reasons"
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Human Resource Planning
>
9etirement, resignation, promotion, transfer, death succession planning identi$es high potential employees as a success to key 0obs. It is a proactive 'controlling a situation by making things happen rather than aiting for things to happen( process. it builds on employee bank.
Management succession plan shorts probability vacancies in future. So it helps to develop the people to meet that vacancy. )o develop the people folloing programme can be conducted. > )raining 8 management development > Special assignment > ?ob rotation > 5nder study manage > 7thers means"
#ene$ts of Succession Planning C. It encourage hiring from ithin the organiation for management parts that are likely to be account. . %areer planning is done for employees. +mployees have careers, not mealy 0obs. D. Managerial shortages and skill de$ciencies are predetermined plans can be prepared for developing managers. E. Juali$ed people are systematically placed in the right 0obs. Management .uccession Plan 1rgani@ation!BBBBBBB )ate!BBBBBBBBBBBB Proailit' of acanc' Dithin 9 'ear A Dithin 9<+ 'ears * Dithin + 'ears C Position incument ;Name of Manager=
A
*
C
Contingenc ' Plan
Source: rench *endel! (1&&+) Human e!ource "ana#ement
4uman 9esource Planning in Nepalese 7rganiation )he practice of human resource planning is not in e1ective in most of the Nepalese organiations. )he use and e1ectiveness of human resource planning has not been prioritied. )he huge industrial and investment sectors have not been able to be ell opened and settled. Many organiations have been established in cooperation ith either government fund or international donations, due to lack of proper human resource planning they have been facing many problems such
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-oundations of Human Resource Management
as oversta:ng. Nepalese organiations are su1ering from over appointment of unskilled manpoer through political parties and higher level authorities. Nepalese organiations are formulating the 49 plan in temporarily basis. )here is a practice of recommending for 0obs form poerful promoters, members of management committee, higher level authorities and other favoritism. Many government o:ces and public enterprises are su1ering due to oversta:ng. Such referred over6appointment of unskilled employees has su1ered and badly a1ected the Nepalese organiation. #ut still some Nepalese organiations have been better in human resource planning. 7rganiations such as banks, $nance companies, hospitals, hotels, telecommunications, etc. have system of human resource planning. )he common human resource planning practices in Nepalese organiations can be e/plained in folloing" Figure 2.1% /echni0ues of Human Resource #uppl$ Forecasting
Poor 4uman 9esource Planning 2ack of Assessment of %urrent 4uman 9esource 2ack of emand Forecasts
Assessing Current Human Resources
2ack of Supply Forecasts Mismatch of emand and Supply 7ver Sta:ng Political Interferences Neglected by Private 7rganiation
1.
Poor uman 2esource Planning )he human resource planning system is poor in most of the Nepalese organiations. )hey are not formulating human resource planning properly. )here is no connection beteen strategic planning and human resource planning for decision making in the
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Human Resource Planning
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Nepalese organiation. Most of the private organiations of Nepal are managed by family member of the oner. )hey are not paying any interest on 49 planning. Most of the public enterprises are su1ering from over sta:ng they are neglecting 49 planning. )he public enterprises of Nepal are pressuried by over supplied by unskilled manpoer. .
'ac: of %ssessment of Current uman 2esource Assessment the current 49 inventory is essential for e1ective 49 planning but there is no proper system to asses present 49 inventory in Nepalese organiation. It identi$es the current availability of skilled and knoledge human resources. )he Nepalese organiation lack human information system for storing, retrieving and collecting, re-uired information about the employees. An organiation need up6to6date information of their employees but Nepalese organiation lack e1ective human resource information system for assessing the current availability of human resources. +1ective 0ob analysis, 0ob descriptions, speci$cations and 0ob enrichment lacks in Nepalese organiation.
$.
'ac: of Demand Forecasts )he Nepalese organiations lacks forecasting -uality and -uantity demand of employees. It is di:cult to predict the human resource re-uirement in terms of number and skills of people re-uired. Forecasting of human resource demand is done to meet the future personnel re-uirements of the organiation to achieve goals and ob0ectives. Nepalese organiations lack determination of future needs for human resources. )his e1ects in developing strategic plans and human resource plans in the organiation.
&.
'ac: of Suppl# Forecasts In Nepalese organiations there is lack of proper forecasting of human resources supply. It estimates the supply of manpoer or deals ith the availability of orkforce inside and outside of the organiation. )here is lack of proper system of promotion, transfer and addition of 0ob responsibility among the e/isting employees on the basis of their skill and e:ciency.
(.
4ismatc5 of Demand and Suppl# It is necessary to match both demand and supply so that shortages and over sta:ng position ill be solved. Most of the Nepalese organiation su1er from over sta:ng so it is necessary to match demand and supply. Most of the Nepalese organiations do not have proper human resource planning so that there occur mismatch beteen demand and supply of human resources.
).
Oer Staffing
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Most of the government o:ces and public enterprises of Nepal are su1ering from over sta:ng. )he reason of over sta:ng is to appoint manpoer from political parties hen the government changes the orker of political parties are entered in the organiation. *.
Political Interferences )he political situation of Nepal is unstable it keeps on changing time and again. In most of the Nepalese organiations, the appointment of ne employees is done under the in*uence of those e/ecutives ho are appointed through the government recommendation. )his recommended employees ith less skills and less knoledge makes the human resource planning passive. )here has been a tendency of recruiting employees through recommendation of political leaders or any political particles. )his type of government and political intervention hampers in human resource planning of the organiation.
,.
9eglected b# Priate Organi6ation Most of the private organiations of Nepal think that human resource planning is time consuming and costly, so they ignore it. )hey recommend their close relatives as their company employees hich lessens the recruitment from outside of the organiation. ue to the neglected implementation of human resource planning by the private organiations in Nepal, it has a1ected the overall productivity and performances of the organiation.
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CHAPTER .?MMA R/ %oncept of 4uman 9esource Planning 4uman resource planning is also knon as manpoer planning. 4uman resource planning is the process by hich a management determines ho an organiation should move from its current manpoer position to its desired manpoer position. It is concerned ith predetermination of the number and kind of human resources re-uired in an organiation, for a speci$c time period in the future. 4uman resources are utilied to the ma/imum possible e/tent in order to achieve individual and organiational goals. An organiation;s performance and resulting productivity are directly proportional to the -uantity and -uality of its human resources. 4uman resource planning forecasts future demand of an organiation and supply the right type and right number of employees, at the right time, at the right place to perform the organiational functions e1ectively and e:ciently.
%haracteristics of 4uman 9esource Planning 4uman resource planning ensures right kind of people at the right time and at the right place. It controls cost of human labour and formulates policies by balancing demand and supply of orkers. Some of the characteristics of human resource planning are e/plained belo" 7n>&oing Process %o6ordination in emand 8 Supply Action Programming 2ong6term Strategic Planning Future 7riented &oal 7riented )ime Period Part of %orporate Plan Productivity 7riented +nvironmental In*uences • • • • • • • • • •
7b0ectives of Manpoer Planning 4uman resource planning in an organiation is essential to achieve is necessary to meet organiational goals. Some of the ob0ectives of human resource planning are as follos" • • • • • •
Forecasting 4uman 9esource 9e-uirement +1ective Management of %hange 9ealiing 7rganiational &oals Promoting +mployees +1ective 5tiliation of 4uman 9esources 7ther 7b0ectives
Need and Importance of 4uman 9esource Planning It determines the action plan for ac-uisition and development of human resource. )he development of globaliation, competition, and changing business environment increases the needs and importance of human resource planning. Some of the needs and importance of human resource planning are e/plained belo" Foundation of Personnel Functions Future Personnel Needs 7b0ective 7riented 5tiliation of 4uman 9esources
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%ontrol of 4uman 9esources Ac-uisition of 4uman 9esources evelopment of 4uman 9esources Minimie Future 5ncertainty emand for Specialist Skills +nvironmental %hanges
Problems of 49 Planning 4uman resource planning is very essential in the decision making and forecasting employee re-uirement in an organiation 49P is a1ected by many factors, some of them are e/plained belo" 2ack of Skilled 9esources Separation of +mployees %hange in 7rganiation 7b0ectives %hange in Policies
• • • •
%oncept of 4uman 9esource Strategy 4uman resource strategy establish relationship beteen long range human resource direction and business strategy to achieve predetermined ob0ectives. It integrates business strategy ith speci$c long term scope of business activities, organiational structure, system and control strategy hich is concerned ith the philosophy of managing and mobiliing human resource in the organiation for long term goal achievement.
%haracteristics of 49 Strategy Fe of the characteristics are e/plained belo" 7b0ective 7riented 2ong term 4orion Folloer of %orporate Strategy +nvironmental Adaptation
• • • •
9elationship of 49 Planning to Strategic Planning )he relationship beteen human resource planning and strategic planning can be discussed under folloing to aspects" Folloer 9elationship Partner 9elationship • •
Approaches to 4uman 9esource Planning It establishes 0ob speci$cations and 0ob descriptions of employees for future performance. )he approaches of human resource planning are classi$ed in folloing categories" Juantitative or )op6on Approach Jualitative or #ottom6up Approach
• •
4uman 9esource Planning Process 49 planning process is a continuous process hich attempts to provide su:cient manpoer re-uired to perform organiational activities ith identi$cation of human resource ob0ectives to the implementation of plans and policies. )his process has many steps as follos" C. 5nderstand 7rganiational 7b0ectives 8 Strategic Plans . Assessing %urrent Situation of 4uman 9esources D. Forecasting 4uman 9esource emand E. Forecasting 4uman 9esource Supply . Matching emand and Supply Forecast
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eveloping Action Plans and Policies Implementation of Action Plans, Policies 8 Programmes %ontrol and +valuation
Assessing %urrent 4uman 9esources Strength and eakness of 49 inventory should also be analyed. )he folloing tools are used to assess current human resources in an organiation" 4uman 9esource Inventory 4uman 9esource Information System '49)S( Succession Planning ?ob Analysis
• • • •
)he 9ole of Information System in 49 Planning )he roles of human resource information system in human resource planning are e/plained belo" 4uman 9esource Inventory Information 9ole 4uman 9esource Forecasting 9ole 4uman 9esource Planning 9ole 4uman 9esource Action 9ole 4uman 9esource Analytical 9ole • • • • •
)echni-ues of Forecasting 49 emand and Supply )here are many factors a1ecting human resource demand forecasting such as e/ternal environment, organiational ob0ectives, corporate plans, succession plan, availability of human resources etc. 9% Techni:ues of -orecasting Human Resource )emand Managerial ?udgement Survey Method elphi )echni-ue Nominal &roup )echni-ue Statistical Methods
• • • • • •
4uman 9esource Inventory 4uman resource information system '49IS( helps 49 managers to understand the position of 49 inventory. 49 inventory includes folloing information about the employees. Personal Information Academic information +/perience information )raining and evelopment Information %ompensation Information
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7ther Information
#ene$ts of 4uman 9esource Inventory Some of the bene$ts regarding 49 inventory are listed belo" C. 49 inventory facilitates 49 managers to forecast human resource demand re-uirement for future performance for the organiation. . 49 inventory helps in better and e1ective human resource planning. D. It helps 49 manage to make appropriate decisions regarding utiliation of available human resources.
4uman 9esource information System '49IS( 49IS has been implemented to assist 49 inventory of looks" ?obs currently being done" ?ob re-uirement > People doing those 0ob" people re-uirement 49IS is designed to collect, analye, state, retrieve an disseminate information about 0obs and employees. Contents of HR information .'stem Personal ata Skills ata Position ata %ompensation ata Performance ata
• • • • •
Succession Planning Succession planning is the process of forecasting future demand of managerial 49. it ensures that the organiation has individuals ready to move into position of higher responsibility. )his is a special type of planning used to force6cast potential managerial for future promotion in the higher management level. )o ful$ll managerial vacancies in the organiation potential middle and upper level managers are selected for future promotion. )his type of planning generally done for middle and top level managers.
4uman 9esource Planning in Nepalese 7rganiation )he common human resource planning practices in Nepalese organiations can be e/plained in folloing" Poor 4uman 9esource Planning 2ack of Assessment of %urrent 4uman 9esource 2ack of emand Forecasts 2ack of Supply Forecasts Mismatch of emand and Supply 7ver Sta:ng Political Interferences Neglected by Private 7rganiation • • • • • • • •
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+/plain human resource planning.
.
D.
+/plain brie*y about human resource inventory.
E.
.
G.
H.
+/plain any $ve importance of human resource planning.
K.
+/plain factors a1ecting human resource planning.
.
2ist the techni-ues for forecasting human resource demand and supply.
CB. 2ist the human resource planning process. .hort Answer (uestions CC. C. CD. CE. C. 16.
17. 18.
19. 20.
C.
+/plain human resource planning. State the importance of 49P. escribe the di1erent approaches to human resource planning. +/plain the role of information system in human resource planning. +/plain the process of human resource planning. escribe the approaches to human resource planning and identify the relationship of 49P to [T.U. 2056] strategic planning. 4uman resource planning is deciding in advance the future re-uirements of human resource in organiation. iscuss the method and techni-ues adopted by organiations in forecasting [T.U. 2057] and determining the future need of human resource.
22. e$ne 4uman 9esource Planning. iscuss the techni-ues of determining human resource
re-uirements for an organiation. [T.U. 2067] 23.
E.
