IGNOU MBA Solved Assignments (MS-23) 2010
IGNOU MBA Solved Assignments (MS-23) 2010
Course Code : MS-23
Course Title : Human Resource Planning
Assignment Code : MS-23/SEM-I/2010
Coverage : All Blocks
- Describe the various forecasting techniques and how these techniques are being used in human resource planning Discuss the techniques which have been used in an organization you are familiar with. Briefly describe the organization you are referring to.
Solution: METHODS OF DEMAND FORECAST
1.Methods Based on Judgment
Unaided judgment METHOD.
It is common practice to ask experts what will happen. This is a good procedure to use when
• experts are unbiased
• large changes are unlikely
• relationships are well understood by experts (e.g., demand goes up when prices go down)
• experts possess privileged information
• experts receive accurate and well-summarized feedback about their forecasts.
Prediction markets METHOD.
Prediction markets, also known as betting markets, information markets, and futures markets have a long history. Some commercial organisations provide internet markets and software that to allow participants to predict.Consultants can also set up betting markets within firms to bet on such things as the sales growth of a new product. PREDICTIONS can produce accurate sales forecasts when used within companies. However, there are no empirical studies that compare forecasts from prediction markets and with those from traditional groups or from other methods.
Delphi METHOD.
The Delphi technique helps to capture the knowledge of diverse experts while avoiding the disadvantages of traditional group meetings. The latter include bullying and time-wasting.
To forecast with Delphi the administrator should recruit between five and twenty suitable experts and poll them for their forecasts and reasons. The administrator then provides the experts with anonymous summary statistics on the forecasts, and experts’ reasons for their forecasts. The process is repeated until there is little change in forecasts between rounds – two or three rounds are usually sufficient. The Delphi forecast is the median or mode of the experts’ final forecasts.
The forecasts from Delphi groups are substantially more accurate than forecasts from unaided judgement and traditional groups, and are somewhat more accurate than combined forecasts from unaided judgement.
Structured analogies METHOD.
The outcomes of similar situations from the past (analogies) may help a marketer to forecast the outcome of a new (target) situation. For example, the introduction of new products in the markets can provide analogies for the outcomes of the subsequent release of similar products in other countries.
People often use analogies to make forecasts, but they do not do so in a structured manner. For example, they might search for an analogy that suits their prior beliefs or they might stop searching when they identify one analogy. The structured-analogies method uses a formal process to overcome biased and inefficient use of information from analogous situations.
To use the structured analogies method, an administrator prepares a description of the target situation and selects experts who have knowledge of analogous situations; preferably direct experience. The experts identify and describe analogous situations, rate their similarity to the target situation, and match the outcomes of their analogies with potential outcomes in the target situation. The administrator then derives forecasts from the information the experts provided on their most similar analogies.
Structured analogies are more accurate than unaided judgment in forecasting decisions .
Judgmental Decomposition METHOD.
The basic idea behind judgemental decomposition is to divide the forecasting problem into parts that are easier to forecast than the whole. One then forecasts the parts individually, using methods appropriate to each part. Finally, the parts are combined to obtain a forecast.
One approach is to break the problem down into multiplicative components. For example, to forecast sales for a brand, one can forecast industry sales volume, market share, and selling price per unit. Then reassemble the problem by multiplying the components together. Empirical results indicate that, in general, forecasts from decomposition are more accurate than those from a global approach . In particular, decomposition is more accurate where there is much uncertainty about the aggregate forecast and where large numbers (over one million) are involved.
Expert systems METHOD.
As the name implies, expert systems are structured representations of the rules experts use to make predictions or diagnoses. For example, ‘if local household incomes are in the bottom quartile, then do not supply premium brands’. The forecast is implicit in the foregoing conditional action statement: i.e., premium brands are unlikely to make an acceptable return in the locale. Rules are often created from protocols, whereby forecasters talk about what they are doing while making forecasts. Where empirical estimates of relationships from structured analysis such as econometric studies are available, expert systems should use that information. Expert opinion, conjoint analysis, and bootstrapping can also aid in the development of expert systems.
Expert systems forecasting involves identifying forecasting rules used by experts and rules learned from empirical research. One should aim for simplicity and completeness in the resulting system, and the system should explain forecasts to users.
Developing an expert system is expensive and so the method will only be of interest in situations where many forecasts of a similar kind are required. Expert systems are feasible where problems are sufficiently well-structured for rules to be identified. Expert systems forecasts are more accurate than those from unaided judgement.
Simulated interaction METHOD
Simulated interaction is a form of role playing for predicting decisions by people who are interacting with others. It is especially useful when the situation involves conflict. For example, one might wish to forecast how best to secure an exclusive distribution arrangement with a major supplier. To use simulated interaction, an administrator prepares a description of the target situation, describes the main protagonists’ roles, and provides a list of possible decisions. Role players adopt a role and read about the situation. They then improvise realistic interactions with the other role players until they reach a decision; for example to sign a trial one-year exclusive distribution agreement. The role players’ decisions are used to make the forecast.
Forecasts from simulated interactions were substantially more accurate than can be obtained from unaided judgement. Simulated interaction can also help to maintain secrecy. Information on simulated interaction is available from conflictforecasting.com.
Intentions and expectations surveys METHOD.
With intentions surveys, people are asked how they intend to behave in specified situations. In a similar manner, an expectations survey asks people how they expect to behave. Expectations differ from intentions because people realize that unintended things happen. For example, if you were asked whether you intended to visit the dentist in the next six months you might say no. However, you realize that a problem might arise that would necessitate such a visit, so your expectations would be that the event had a probability greater than zero.
Expectations and intentions can be obtained using probability scales . The scale should have descriptions such as 0 = ‘No chance, or almost no chance (1 in 100)’ to 10 = ‘Certain, or practically certain (99 in 100)’.
To forecast demand using a survey of potential consumers, the administrator should prepare an accurate and comprehensive description of the product and conditions of sale. He should select a representative sample of the population of interest and develop questions to elicit expectations from respondents. Bias in responses should be assessed if possible and the data adjusted accordingly. The behaviour of the population is forecast by aggregating the survey responses.
2.Methods requiring quantitative data
Extrapolation METHOD
Extrapolation methods use historical data on that which one wishes to forecast. Exponential smoothing is the most popular and cost effective of the statistical extrapolation methods. It implements the principle that recent data should be weighted more heavily and ‘smoothes’ out cyclical fluctuations to forecast the trend. To use exponential smoothing to extrapolate, the administrator should first clean and deseasonalise the data, and select reasonable smoothing factors. The administrator then calculates an average and trend from the data and uses these to derive a forecast
Statistical extrapolations are cost effective when forecasts are needed for each of hundreds of inventory items. They are also useful where forecasters are biased or ignorant of the situation .
Allow for seasonality when using quarterly, monthly, or daily data. Most firms do this . Seasonality adjustments led to substantial gains in accuracy in the large-scale study of time series
Quantitative analogies METHOD.
Experts can identify situations that are analogous to a given situation. These can be used to extrapolate the outcome of a target situation. For example, to assess the loss in sales when the patent protection for a drug is removed, one might examine the historical pattern of sales for analogous drugs.
To forecast using quantitative analogies, ask experts to identify situations that are analogous to the target situation and for which data are available. If the analogous data provides information about the future of the target situation, such as per capita ticket sales for a play that is touring from city to city, forecast by calculating averages. If not, construct one model using target situation data and another using analogous data. Combine the parameters of the models, and forecast with the combined model.
Rule-based forecasting METHODS
Rule-based forecasting (RBF) is a type of expert system that allows one to integrate managers’ knowledge about the domain with time-series data in a structured and inexpensive way. For example, in many cases a useful guideline is that trends should be extrapolated only when they agree with managers’ prior expectations. When the causal forces are contrary to the trend in the historical series, forecast errors tend to be large . Although such problems occur only in a small percentage of cases, their effects are serious.
To apply RBF, one must first identify features of the series using statistical analysis, inspection, and domain knowledge (including causal forces). The rules are then used to adjust data, and to estimate short- and long-range models. RBF forecasts are a blend of the short- and long-range model forecasts.
RBF is most useful when substantive domain knowledge is available, patterns are discernable in the series, trends are strong, and forecasts are needed for long horizons. Under such conditions, errors for rule-based forecasts are substantially less than those for combined forecasts . In cases where the conditions were not met, forecast accuracy is not harmed.
Neural nets METHODS
Neural networks are computer intensive methods that use decision processes analogous to those of the human brain. Like the brain, they have the capability of learning as patterns change and updating their parameter estimates. However, much data is needed in order to estimate neural network models and to reduce the risk of over-fitting the data .There is some evidence that neural network models can produce forecasts that are more accurate than those from other methods . While this is encouraging, our current advice is to avoid neural networks because the method ignores prior knowledge and because the results are difficult to understand.
Data mining METHODS
Data mining uses sophisticated statistical analyses to identify relationships. It is a popular approach. Data mining ignores theory and prior knowledge in a search for patterns. Despite ambitious claims and much research effort, we are not aware of evidence that data mining techniques provide benefits for forecasting.
Causal models METHODS.
Causal models are based on prior knowledge and theory. Time-series regression and cross-sectional regression are commonly used for estimating model parameters or coefficients. These models allow one to examine the effects of marketing activity, such as a change in price, as well as key aspects of the market, thus providing information for contingency planning.
To develop causal models, one needs to select causal variables by using theory and prior knowledge. The key is to identify important variables, the direction of their effects, and any constraints. One should aim for a relatively simple model and use all available data to estimate it . Surprisingly, sophisticated statistical procedures have not led to more accurate forecasts. In fact, crude estimates are often sufficient to provide accurate forecasts when using cross-sectional data .
HR REQUIREMENTS FORECASTING.
The organization, I am familiar with is a
-a large manufacturer/ marketer of safety products
-the products are used as [personal protection safety] [ industrial safety]
-the products are distributed through the distributors as well as sold directly
-the products are sold to various industries like mining/fireservices/defence/
as well as to various manufacturing companies.
-the company employs about 235 people.
-the company has the following functional departments
*marketing
*manufacturing
*sales
*finance/ administration
*human resource
*customer service
*distribution
*warehousing/ transportation
*TQM
WE USE THE FOLLOWING COMBINATIONS.
1.EXPERT
-informal internal surveys.
managers prepare their own estimates based on workload.
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-formal external surveys.
planners survey managers, using questionnaires or
or focused discussion.
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-delphi techniques
solicit estimates from a group of managers, until the
estimates converge.
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2.TREND PROJECTIONS
-extrapolations
extending past rates of change into the future.
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-indexation
matching employment growth with , say, sales.
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-statistical analysis
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3. OTHERS
-planning and budgeting systems
based on strategic and corporate plannings/ budgeting.
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-new venture analysis
making comparisons with similar operations.
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- Explain the various approaches to changing roles. Discuss the factors contributing to role changes in any organization you are familiar with. Briefly describe the organization you are referring to.
Solution: THE VARIOUS APPROACH ARE: Major Roles During Change
The process of organizational change can include a variety of key roles. These roles can be filled by various individuals or groups at various times during the change process. Sometimes, individuals or groups can fill more than one role.
Change Initiator It is conventional wisdom among organizational development consultants that successful change is often provoked by a deep “hurt” or crisis in the organization, for example, dramatic reduction in sales, loss of a key leader in the organization, warnings from a major investor, or even actions of a key competitor. It is not uncommon then that someone inside the organization reacts to that deep hurt and suggests the need for a major change effort. Often the person who initiates the change is not the person who becomes the primary change agent.
Change Agent The change agent is the person responsible for organizing and coordinating the overall change effort. The change agent role can be filled by different people at different times during the project. For example, an outside consultant might be the first change agent. After the project plan has been developed and begins implementation, the change agent might be an implementation team comprised of people from the organization. If the change effort stalls out, the change agent might be a top leader in the organization who intercedes to ensure the change process continues in a timely fashion.
Champion for Change
Change efforts often require a person or group who continues to build and sustain strong enthusiasm about the change. This includes reminding everyone of why the change is occurring in the first place, the many benefits that have come and will come from the change process. The champion might be the same person as the change agent at various times in the project.
Sponsor of Change
Usually, there is a one key internal person or department that is officially the “sponsor,” or official role responsible for coordinating the change process. In large organizations, that sponsor often is department, such as Human Resources, Strategic Planning or Information Technology. In smaller organizations, the sponsor might be a team of senior leaders working to ensure that the change effort stays on schedule and is sustained by ongoing provision of resources and training.
Factors contributing to role changes in any organization.
LEADERSHIP, LEARNING, MOTIVATION & PRODUCTIVITY.
Leadership
Senior management must articulate a clear vision of the future “ideal” organization in order to successfully implement CHANGE . Once the vision is established, senior management must establish and create understanding and commitment among organization members to share the
vision of the ideal identity – and the actions that are necessary to achieve it. The actual transformation of a system occurs as a consequence of a “vision” of the corporation’s future and the will to achieve it. It has also been suggested that organization leaders have roles to play in order to implement a clear vision: separate from the past, create a sense of urgency, develop enabling structures, communicate, involve people and be honest, reinforce and institutionalize change .
Leadership dimensions and technology First, transactional leadership sees technological change as needing primarily technical solving skills, with little attention given to people problem solving . Under this leadership dimension, the manager lacks the skills required to influence the perception of organizational members exhibiting resistance to the change. Therefore, technical managers handling projects incorporating organizational change need to take time to hear out the
protests and problems of others caught up in the change and listen to the views of subordinates
who are likely to understand the implications of the new technology .
The second approach, transformational leadership, views technological change as needing a combination of technical and human relations aspects. This dimension contends that managers are given the role in translating top management’s vision through exercising skills of pathfinding problem solving, and implementing to introduce technological change .
Learning
Learningto change, learning the new organizational vision and goals, organizational design
and technology and organizational culture. The initial challenge will be to explore how organizations learn to change. The implementation of a new vision and strategy via the involvement of senior and middle management will depend very much on how the individual players and the organization itself are motivated to learn. When people have the right attitudes and commitment, learning automatically follows. Organizations themselves will also need to be part of the process as they try to learn to reformulate strategy and realign their organizations continuously, if they are to survive in an increasingly turbulent environment .
Learning, organizational design andtechnology The role of the organization at this stage in
the learning process is to create new training and education programs that will be in
line with the new strategic vision. Strategic organizational changes that are not supported
by rigorous training and educational initiatives will become harder if not impossible to implement and will result in failure. Successful training can only take place if we emphasize
the importance of developing behavioral objectives before deploying instruction. Now
the key to performance (becomes) behavioral analysis and task analysis .
The idea for training and education in the corporate world is best exemplified by
Motorola’s commitment in the late 1980s to invest $120 million annually in training and
education by creating “Motorola University”. In the words of Motorola’s corporate vicepresident for training and education at that time:
Motivation, AND productivity
REVIEW vision, performance management systems
and technology and the linkage between
motivation, performance and culture.
To implement a new organizational vision
and CHANGE , it has
been suggested that organizations
undergo transformational change. By transformational
(change) we mean areas in which
alteration is likely caused by interaction with
environmental forces and will require
entirely new behavior sets from organizational
members . For
senior teams of organizations, it will require
the following of decision strategies that will
lead to superior organizational performance.
Such strategies might involve creating value
by introducing new products, penetrating
new markets, introducing flexible manufacturing
capabilities and implementing activity-
based costing within a new management
control system framework.
The basic idea behind strategic CHANGE is to provide a clear focus and
to help establish the gaps in performance and
the areas greatest concern and opportunity
for change management .
The success of strategic organizational
change will in turn be measured by improving
key strategic organizational variables
such as market shares, sales volume, earnings
per share, stock price, cost reduction and
stakeholders (i.e. suppliers, customers, public
at large, etc.) satisfaction.
Performance management system and technology
Performance managementsystems are being introduced in orderto monitor the performance of implemented transformational activities in the organization.In a performance management system, strategic initiatives (are) broken into clearlydefined accountabilities and responsibilities
and then integrated into the performance objective of all employees who are responsible for turning them into actions . For transformational change to occur, every employee in the organization needs to know what his/her responsibilities are, how his/her performance is to be evaluated and how his/her performance will be monitored against a predetermined set of
goals. At the organizational level, performance
improvement will occur when management
provides the entire work force with all the
necessary training and technical infrastructure
to support the transformational change
initiatives . All is needed for (strategic organizational)
change is to determine the right
training program, technology (requirements)
and the appropriate incentives for each situations.
Motivation, performance and organizational culture
The rules and principles governing how people
accomplish their jobs in an organization
can have profound impact on the latter’s
ability to introduce any type of strategic organizational
change. As was stated earlier, the
biggest challenge for management is to have
their change initiatives supported by the
employees of the organization. These change
initiatives are likely to encounter serious
resistance from various levels in the organization,
and especially middle management.
At the individual level, it has been argued
that the organization members’ willingness
to buy into a culture of change can be facilitated
by applying the principles of behavior
modification. These principles, derived from
operant conditioning concepts, are not
applicable to all behavior modification
attempts. In designing jobs, organizations
have to assess individuals’ capabilities to
adapt to change. For example, it has been
advanced that the degree to which individuals
will translate organizational change initiatives
into higher performance achievement
(BM) is related to their “locus” of control..
- Describe the selection and placement process of any organization you are familiar with. Discuss the retention policy of the organization. Briefly describe the organization you are referring to.
Solution:dsafsdgf RECRUITMENT AND SELECTION PROCESS
———————————————————————————–
PROCESS ELEMENTS FOR ALL POSITIONS
———————————————!————!———————-
STEP 1
PREPARING JOB ANALYSES
PREPARING JOB DESC
———————————————————————————-
STEP 2
PREPARING JOB SPECS
———————————————————————————–
STEP 3
DECIDING TERMS AND
CONDITIONS OF EMPLOYMENT
[ MEETS ALL GOVERNMENT REGULATION ON EMPLOYMENT CONDITIONS]
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STEP 4
ADVERTISING
[COPY/MEDIA PLAN] except for senior positions [ head hunting]
[ MUST REFLECT TRUTH, NO FALSE INFORMATION,
NO GENDER BIAS, NO DISCRIMINATION,NO AGE BAR, ETC]
—————————————————————————————————————————————
STEP 5
INTERNAL APPLICANT
EXTERNAL APPLICANT except for tech [ outsourcing ]
ONLINE APPLICANT and senior positions [ head hunting]
————————————————————————————————————————————–
STEP 6
SIFTING APPLICATIONS
———————————————————————————————————–
STEP 7
PERSONAL INTERVIEW
-INDIVIDUAL PER TO PER
———————————————————————————————–
STEP 8
-PANEL INTERVIEW
——————————————————————————————————-
STEP 9
-SELECTION BOARD only for senior positions
——————————————————————————————————-
STEP 10
TESTING [ BEHAVIORAL]
-PSYCHOLOGICAL procedural element for all positions except senior position
-PERSONALITY procedural element for all positions except senior position
-ABILITY procedural element for all positions except senior position
-APTITUDE procedural element for all positions except senior position
-PSYCHOMETRIC procedural element for all positions
————————————————————————————————————————————
STEP 11
TESTING [ TECHNICAL ] only for tech. positions
————————————————————————————————————————————
STEP 12
ASSESSMENT CENTRE only for senior positions
-POTENTIAL
———————————————————————————————————————————–
STEP 13
OBTAINING REFERENCE procedural element for all positions
———————————————————————————————————————————-
STEP 14
CHECKING REFERENCE procedural element for all positions
————————————————————————————————-
STEP 15
MAKING DECISION procedural element for all positions
[ NO DISCRIMINATION, NO COLOR BAR, NO SEX DISCRIMINATION,
PURELY ON MERIT ]
————————————————————————————————
STEP 16
OFFERING EMPLOYMENT procedural element for all positions
————————————————————————————————-
STEP 17
PREPARING EMPLOYMENT procedural element for all positions
LETTER
———————————————————————————————————————————–
STEP 18
-HR sends out letters to the unsuccessful candidates.
—————————————————————————————
STEP 19
-HR CHECKS REFERENCES.
[ ABIDE BY LAW ]
—————————————————————————————
STEP 20
-HR SENDS OUT OFFER LETTERS TO SUCCESSFUL CANDIDATES.
—————————————————————————————–
STEP 21
-THE LINE MANAGERS / AGREE TO THE START DATE
AND INDUCTION PROGRAMME.
——————————————————————————–
STEP 22
PERSONAL FILE CREATION
-HR CREATES ''PERSONAL FILE ''.
———————————————————————————
STEP 23
HANDOVER TO HR / ADMINISTRATION
-THE LINE MANAGER HANDS OVER THE RESPONSIBILITY
FOR PAYROLL ADMIN AND INDUCTION TO HR.
———————————————————————————–
STEP 24
-HR PREPARES WELCOME PACK / EMPLOYEE MANUAL.
——————————————————————————————
STEP 25
ARCHIVING OF APPOINTMENT FILES.
-HR ARCHIVES SELECTED CANDIDATES FILE.
-HR DESTROYS UNSUCCESSFUL CANDIDATES FILES
AFTER 6 MONTHS.
[ BY LAW, ALL OLD FILES MUST BE DESTROYED ]
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This procedure is intended to give staff and management of
organisations clear and straightforward guidance on recruiting potential
employees on a fair and equitable basis. It will help you to:
*recruit and select the best candidate for every vacancy;
*ensure that access to employment opportunity is based on fair, objective
and consistent criteria;
*identify discriminatory practices;
*monitor and measure the effectiveness of your recruitment practices, and
*increase your overall professionalism in the recruitment & selection
process.
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RETENTION POLICY
The organization, I am familiar with is a
-a large manufacturer/ marketer of safety products
-the products are used as [personal protection safety] [ industrial safety]
-the products are distributed through the distributors as well as sold directly
-the products are sold to various industries like mining/fireservices/defence/
as well as to various manufacturing companies.
-the company employs about 235 people.
-the company has the following functional departments
*marketing
*manufacturing
*sales
*finance/ administration
*human resource
*customer service
*distribution
*warehousing/ transportation
*TQM
========================
AT THE RECRUITMENT/SELECTION LEVEL
Select the right people in the first place through behavior-based testing and competency screening. The right person, in the right seat, on the right bus is the starting point. Offer an attractive, competitive, benefits package with components such as life insurance, disability insurance and flexible hours. Provide opportunities for people to share their knowledge via training sessions, presentations, mentoring others and team assignments. Demonstrate respect for employees at all times
Offer market oriented /better compensation benefits.
Offer potential career development opportunities.
Offer job enrichment – job enlargement – job rotation opportunities for new experience.
Provide tuition reimbursement.
Offer competitive vacation and holiday benefits.
Listen to them deeply; use their ideas; never ridicule or shame them.
Offer performance feedback and praise good efforts and results.
People want to enjoy their work. Make work fun. Engage and employ the special talents of each individual.
Enable employees to balance work and life. Allow flexible starting times, core business hours and flexible ending times. (Yes, his son's soccer game is important.)
Involve employees in decisions that affect their jobs and the overall direction of the company whenever possible.
Recognize excellent performance, and especially, link pay to performance.
Base the upside of bonus potential on the success of both the employee and the company and make it limitless within company parameters. (As an example, pay ten percent of corporate profits to employees.)
Recognize and celebrate success. Mark their passage as important goals are achieved.
Staff adequately so overtime is minimized for those who don't want it and people don't wear themselves out.
Nurture and celebrate ORGANIZATIONAL TRADITIONS.. Have a costume party every Halloween. Run a food collection drive every November. Pick a monthly charity to help. Have an annual company dinner at a fancy hotel.
Provide opportunities within the company for cross-training and career progression. People like to know that they have room for career movement.
Provide the opportunity for career and personal growth through training and education, challengine assignments and more.
Communicate goals, roles and responsibilities so people know what is expected and feel like part of the in-crowd.
According to research by the Gallup organization, encourage employees to have good, even best, friends, at work.
Now that you have the list, why not work to make your organization one of the few, the best, that truly honor and appreciate employees. If you treat your employees wonderfully, you will never lose them.
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Retention Practices of the COMPANY , I AM ASSOCIATED.
Be a company people want to work for- BRANDING THE COMPANY.
1. Adopt a "give and get back' philosophy.
2. Measure what counts and pay for it.
3. inspire commitment to a clear vision and definite objectives.
Select the right people in the first place.
4. Understand why some leave and why others stay.
5. Redesign the job itself to
make it more rewarding.
6. Define the results you expect and the talent you need.
7. Ask the questions that require proof of talent.
8. Use multiple interviewers and
reference checking.
9. Give a realistic job preview.
10. Reward employee referrals of successful new hires.
11. Hire and promote managers who have the talent to manage people.
12, Hire from within when possible.
13. Creatively expand your talent pool.
Get them off to a great start.
14. Give new hires the "red carpet treatment."
15. Communicate how their work is vital to the organization's success.
16. Get commitment to a Performance agreement.
17, Challenge early and often.
18. Train for autonomy and initiative.
Coach and reward to Sustain commitment.
19. Proactively manage the Performance agreement.
20. Recognize results.
21. Train managers in career coaching and expect them to do it.
22, Give employees the tools to take charge of their careers.
23. Know when to keep and when to let go.
24, Have more fun!
THE PAY FOR PERFORMANCE COMES IN THE SHAPE
OF
-base pay increase
-merit increase
-bonus for performance
-management scope performance awards.
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- Explain the concept of HR Audit. Describe the Auditing process of your organization or any organization you are familiar with. Distinguish between HR Audit and Financial Audit. Briefly describe the organization you are referring to.
Solution:vdsvshdf WHAT IS HR AUDIT ?
The Human Resources (HR) Audit is a process of examining policies, procedures, documentation,
systems, and practices with respect to an organization’s HR functions.
Its limitations. explain the ways and mean of making this process more effective and efficient for development of the organization
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PURPOSE
The purpose of the audit is to
reveal the strengths and weaknesses in the human resources system, and any issues needing
resolution.
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LIMITATIONS
The audit works best when the focus is on analyzing and improving the HR function in the
organization – IF NOT IT IS A TOOTHLESS DOCUMENT.
The audit itself is a diagnostic tool, not a prescriptive instrument. It will help you identify what you are
missing or need to improve, but it can’t tell you what you need to do to address these issues. It is most
useful when an organization is ready to act on the findings, and to evolve its HR function to a level where
its full potential to support the organization’s mission and objectives can be realized.
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FOR EFFECTIVENESS/ EFFICIENCY
Like any other function, the performance and contribution of HR should be audited
regularly. The questions to which answers should be obtained are:
1. What strategic contribution is being made by HR to the achievement of business/corporate objectives?
2. To what extent are there well articulated and agreed HR strategies which are aligned to the business strategy and which are integrated with one another?
3. What role does HR currently play? Is this role appropriate in the context of the organization?
4. To what extent has the responsibility for HR issues been devolved to the management?
5. How well does HR reconcile the need for devolution with the need to ensure that organizational, ethical and legal obligations and requirements are being mf consistently?
6. What evidence exists that HR is being innovative in a practical and business way, based on an analysis of the business and people needs of the organizational and benchmarking?
7. How well is HR performing by reference to quantitative measures such as added value per employee, absenteeism and attrition?
8. How well is HR performing in terms of service delivery in fields such as recruitment, training, reward management, health and safety, the management of equal opportunity and diversity, advice on employment law and legal obligations, the provision of employee assistance programmes and the maintenance and use of personnel information systems?
9. To what extent does HR express proper concern for ethical considerations, the interests of all stakeholders (employees as well as management), enhancing the quality of working life and achieving a satisfactory work/life balance?
10. What ' contribution has HR made to the improvement of the employee relations climate?
11. How well is HR regarded by its customers management, line managers, employees generally, employee representatives, as measured by formal assessments or opinion surveys?
12. Is the HR function well organized and properly staffed with qualified professionals who are actively concerned with continuous professional development?
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Who should conduct the audit?
The team that is responsible for the audit should represent a cross-section of the organization’s staff,
including line staff, middle and upper management, and those responsible for HR functions.
or you may use an external consultant to assist.
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How should it be conducted?
The audit process consists of a series of questions covering the eight primary components of the HR
function:
-Roles, head count, and HR information systems (HRIS)
. Recruitment
. Documentation
. Training, development, and career management
. Compensation and benefits
. Performance measurement and evaluation
. Termination and transition
. Legal issues and personnel policies
9. Health / Welfare systems
10.Employee Relations
11. Safety
12. Resourcing
PLUS ANY OTHER ITEMS PERTAINING TO YOUR ORGANIZATION
The team works to collect information to answer the HR audit questions in each of these categories. The
focus is on how these activities and tasks are actually performed in the organization. The first step is to
collect all the pertinent information. The process of getting information, in and of itself, can be quite
informative.
————————————————————————————
How are needed improvements identified?
Once information is gathered, the audit team reviews each major section and notes disparities between
paper (what we think or say we do) and practice (what we actually do, as revealed by the answers to the
audit questions). This can then be compared to best practice (what we should do to best support our
organization’s mission).
———————————————————————-
How is follow-up and correction done?
ACTION PLAN WITH TIME FRAME.
Improving the HR system takes some time. A workplan — with a timeline, accountability, and
deliverables — should be created after the team reviews the completed audit and identifies areas where
improvement is needed. Follow-up and review should be a regular management function, performed on
an ongoing basis.
=============================================================
THE ORGANIZATION, I AM ASSOCIATED WITH,
USES THE HR AUDIT ANNUALLY BEFORE THE HR PLANNING.
The organization, I am familiar with is a
-a large manufacturer/ marketer of safety products
-the products are used as [personal protection safety] [ industrial safety]
-the products are distributed through the distributors as well as sold directly
-the products are sold to various industries like mining/fireservices/defence/
as well as to various manufacturing companies.
-the company employs about 235 people.
-the company has the following functional departments
*marketing
*manufacturing
*sales
*finance/ administration
*human resource
*customer service
*distribution
*warehousing/ transportation
*TQM
=======================================================
1.0 Recruitment and Selection
- Are new staff provided with a comprehensive induction?
————————————————————————-
2.0 Staff Development
2.1 Do you have a way to identify the staff development needs of your staff?
(eg surveys, reviews, performance management)
2.2 Do you have adequate resources in your budget to provide needed
development opportunities for staff?
2.3 Do you believe you allocate adequate resources to staff development?
2.4 Do the staff in your work area get the development they need to
do their jobs effectively?
2.5 Do you monitor the results of staff development activities in order to
assess their effectiveness?
2.6 Are new staff offered mentoring support?
2.7 Do staff at all levels in your work area access training and development?
———————————————————————————–
3.0 Performance Management
3.1 Are probationary staff appraised regularly?
3.2 Have all staff been provided with realistic objectives that are linked to the
company's objectives?
3.3 Are staff clear about what is expected of them in their work roles?
3.4 Do all staff participate in performance reviews at least annually?
3.5 Does the review process evaluate their performance against expectations?
3.6 Are the comments recorded with a copy to the staff member?
3.7 Does the review process identify future objectives and training needs?
3.8 Do staff have access to support and assistance for improvement if their
performance is less than expected?
3.9 Are departing staff given an exit Interview prior to their departure?
—————————————————————————————
4.0 Employee Relations
4.1 Do you have a clear understanding of the company’s industrial framework
so that you can carry out your human resource management role effectively?
4.2 Do you believe that the company’s industrial framework (enterprise
agreements, awards, policies and procedures) provides you with the flexibility
you need to manage?
4.3 Is there a positive climate in your work area where staff are motivated in
their work?
4.4 Are the communication channels between management and employees in
your work area sufficiently consultative so that disputes are avoided and
ffective problem solving is fostered?
4.5 Are you comfortable working with the company’s disciplinary measures
and grievance procedures?
4.6 When operational changes are introduced into your work area or do
you take into consideration the impact on staff?
—————————————————————————————–
5.0 Safety and Health
-Do staff participate in regular safety and health training programs?
———————————————————-
6.0 Human Resource Information Systems
6.1 Do you regularly consult the Concept system to obtain information to
obtain information to help you deal with personnel issues?
6.2 Have you, or an appropriate member of your staff, taken the opportunity
to participate in a training program for Concept?
6.3 Do you and your staff use the Human Resource web site to access (and
update) human resources information that will help you deal with HR issues?
————————————————————-
General Questions
What do you think your work area does best in terms of its human resources DEVELOPMENT?
What do you see as the major human resource DEVELOPMENT problem areas in your work area and what is being done to address them?
-CAREER PLANNING
-PROMOTIONS
-COACHING
-MENTORING
==================================================================
ONCE THE AUDIT IS CONDUCTED
-WE REVIEW THE FEEDBACK.
-THE FEEDBACK IS DISCUSSED WITH THE SENIOR MANAGEMENT/
DEPARTMENTAL HEADS.
-WE DEVELOP AN ACTION PLAN FOR THE NEXT 12 MONTHS.
-HUMAN RESOURCE PLANNING
-MANPOWER PLANNING
-THIS ACTION PLAN IS DISCUSSED WITH THE SENIOR MANAGEMENT/
DEPARTMENTAL HEADS/ FINALISED.
THIS FINALISED ACTION PLAN IS INCORPORATED INTO THE HR PLANNING.
=================================================
Financial auditing is an accounting process used in business. It uses an independent body to examine a business' financial transactions and statements. The ultimate purpose of financial auditing is to present an accurate account of a company's financial business transactions. The practice is used to make sure that the company is trading financially fairly, and also that the accounts they are presenting to the public or shareholders are accurate and justified.
The results of the financial auditing procedure can be presented to shareholders, banks and anyone else with an interest in the company. One of the main reasons for a financial AUDIT is to ensure that the trading company is not practicing any deception. This is the reason that the financial auditing body is an independent third party.
The financial auditing process usually takes places once a year, most commonly at the end of the financial year. All financial aspects of the company are inspected, and a follow-up audit may also be undertaken after the year end in order to compare results. The financial auditing company has the difficult task of maintaining objectivity while being paid by the company they are auditing.
Financial auditing is usually a thorough process, but in some cases, failures occur. The recent Enron scandal was a case in point, in which a company hid important facts and figures from both stakeholders and the banks.
Financial audits are typically performed by firms of practicing accountants due to the specialist financial reporting knowledge they require. The financial audit is one of many assurance or attestation functions provided by accounting and auditing firms, whereby the firm provides an independent opinion on published information. Many organisations separately employ or hire internal auditors , who do not attest to financial reports but focus mainly on the internal controls of the organization.External auditors may choose to place limited reliance on the work of internal auditors.
====================================================================
- Discuss the forecasting demand for employees, Describe the factors that influence demand forecasting process in any organization you are familiar with. Briefly describe the organization you are referring to.
Solution: HUMAN RESOURCE PLANNING
Right number of people with right skills at right place at right time to implement organizational strategies in order to achieve organizational objectives
In light of the organization’s objectives, corporate and business level strategies, HRP is the process of analyzing an organization’s human resource needs and developing plans, policies, and systems to satisfy those needs
Setting human resource objectives and deciding how to meet them
Ensuring HR resource supply meets human resource demands.
HRP Process
Interfacing with strategic planning and scanning the environment
Taking an inventory of the company’s current human resources
Forecasting demand for human resources
Forecasting the supply of HR from within the organization and in the external labor market
Comparing forecasts of demand and supply
Planning the actions needed to deal with anticipated shortage or overages
Feeding back such information into the strategic planning process.
1.Basic Human Resources Planning Model
2.Organizational Objectives
3.Human Resource Requirements
4.Human Resource Programs
5.Feasibility Analysis
Strategic Human Resource Planning
-Links 1 & 5: HR objectives are linked to organizational objectives and planning
-Designed to insure consistency between organization's strategic planning process and HRP.
-So objectives of strategic plan are feasible and
-HR programs are designed around what organizational objectives and strategies require in terms of human resource goals
Operational Human Resource Operation Planning model.
-Steps 2,3, & 4
-Ensure HRP programs are coordinated and allows the organization to meet its human resource requirements.
HR PLANNING
Link 1: Determine Demand
(labor requirements)
How many people need to be working and in what jobs to implement organizational strategies and attain organizational objectives.
Involves forecasting HR needs based on organizational objectives
Involves consideration of alternative ways of organizing jobs (job design, organizational design or staffing jobs)
Example – Peak production could be handled by temporary workers or assigning overtime. Machine breakdowns assigned to maintenance department or handled by machine operators.
Link 2: Determine HR Supply (availability)
Choose HRM programs (supply)
Involves forecasting or predicting effect of various HR programs on employee flowing into, through and out various job classifications.
First determine how well existing programs are doing then forecast what additional programs or combination of programs will do
Need to know capabilities of various programs and program combinations.
Determine Feasibility
Links 3 & 4
Capable of being done
Requires knowledge of programs, how programs fit together and external environmental constraints (e.g., labor force, labor unions, technology created skill shortages) and internal environmental constraints (skill shortages within the organization, financial resources, managerial attitudes, culture)
Do the benefits outweigh the costs
Difficulty in quantifying costs and benefits.
Revise Organizational Objectives and Strategies Link 5
If no feasible HR program can be devised, the organization must revise strategic plans.
HRP should be:
Done to guide and coordinate all HR activities so they work together to support the overall strategy
Responsive to internal and external environment
Planning – done in advance
Strategic – linked with higher level planning.
Human Resource Forecasting
Process of projecting the organization’s future HR needs (demand) and how it will meet those needs (supply) under a given set of assumptions about the organization’s policies and the environmental conditions in which it operates.
Without forecasting cannot assess the disparity between supply and demand nor how effective an HR program is in reducing the disparity.
Forecasting as a Part of Human Resource Planning
DEMAND FORECASTING / SUPPLY FORECASTING
-Determine organizational objectives
-Demand forecast for each objective
-Aggregate demand forecast
-Does aggregate
-supply meet
-aggregate
-demand?
-Go to feasibility analysis steps
Choose human resource programs
External programs
Recruiting
External selection
Executive exchange
Internal programs
Promotion
Transfer
Career planning
Training
Turnover control
Internal supply forecast
External supply forecast
Aggregate supply forecast
Internal Supply Forecasting Information
Organizational features (e.g., staffing capabilities)
Productivity – rates of productivity, productivity changes
Rates of promotion, demotion, transfer and turnover.
External Supply Forecasting
Information
External labor market factors (retirements, mobility, education, unemployment)
Controllable company factors on external factors (entry-level openings, recruiting, compensation]
Demand Forecasting
Information
Organizational and unit strategic plans
Size of organization
Staff and Managerial Support
Organizational design
Considerations in Establishing a Forecasting System
How sophisticated
Appropriate time frame
Subjective versus objective forecasting methods.
System Sophistication
Organizational size
large organizations require more complex forecasting systems and likely to have the required skilled staff
Organizational complexity
complex career paths and diverse skill requirements lead to more complex forecasting systems
Organizational objectives
the greater the gap between current HR situation and desired HR situation the more sophisticated the system
Organizational plans and strategies
the complex the plans are the more complex the forecasting system.
Forecasting Time Frame
Depends on degree of environmental uncertainty
Factors creating uncertainty (shortening time frame)
many new competitors, changes in technology, changes in social, political and economic climate, unstable product demand
Factors promoting stability (longer time frame)
strong competitive position, slowly developing technology, stable product demand.
Subjective VS. Objective Forecasting
Objective is inappropriate when:
Lack expertise to use objective methods
Lack the historical data or HR data base is inadequate
Forecasting horizon is too long for the available objective method.
Demand Forecasting Methods
Delphi Method
Staffing Table Approach
Regression Analysis
Time Series Analysis
Linear Programming.
Supply Forecasting Methods
Skills Inventory
Replacement Charts
Succession Planning
Flow Modeling/Markov Analysis
Computer Simulations
THE DIFFICULT factors, YOU MUST KEEP IN MIND WHILE ''HR PLANNING''.
FACTORS COULD INCLUDE — GOVERNMENT/ ECONOMIC/LEGAL/SOCIAL
-as the economy grows/declines, the demand for HR resources
changes not only in quantity but also in quality/ types.
-social pressure to provide the right environment for employees.
-political pressure to employ local population, irrespective
of skills/ knowledge.
-legal challenges to recruitment / compensation on
discrimination .
-technology changes means getting right type of people
or provide the right type of training.
-competitive pressure to get the right talent at the right
compensation.
-CORPORATE strategic planning seeks strategic HR planning.
-BUDGET constraint put pressure on HR to get the
best resources for the least.
-sales / production increases in business, puts pressure
on HR to recruit more.
-sales / production decreases in business, puts pressure
on HR to rationalise recruitment.
-new venture means demand for new type of skills/ knowledge.
-acquisitions / mergers means rationalization of HR.
-Organization development means HR implementing new
structure, new culture, new systems etc.
-Job redesign means HR implementing new
methods, new process, new systems etc.
-Globalization means managing HR diversity, new culture
change, new training etc.
-HR challenges / difficulties include
*managing retirement
*managing voluntary retirement schemes
*managing terminations
*managing leave of absence.
*managing part time workers/ causals.
*managing layoffs
-Balancing the INTERNAL SUPPLY ESTIMATES AND
EXTERNAL SUPPLY ESTIMATES.
*INTERNAL SUPPLY ESTIMATES
-staff skills inventories
-management inventories
-replacements requirements
-transition requirements
*EXTERNAL SUPPLY ESTIMATES
-labor market supply
-community attitude
-demographic trends
*MANAGING WORK OPTIONS
-shorter weeks
-flexitime
-telecommuting
-virtual organizations.
The organization, I am familiar with is a
-a large manufacturer/ marketer of safety products
-the products are used as [personal protection safety] [ industrial safety]
-the products are distributed through the distributors as well as sold directly
-the products are sold to various industries like mining/fireservices/defence/
as well as to various manufacturing companies.
-the company employs about 235 people.
-the company has the following functional departments
*marketing
*manufacturing
*sales
*finance/ administration
*human resource
*customer service
*distribution
*warehousing/ transportation
*TQM
DEMAND / SUPPLY OF HUMAN RESOURCES
1.EXPERT
-informal internal surveys.
managers prepare their own estimates based on workload.
-formal external surveys.
planners survey managers, using questionnaires or
or focused discussion.
-delphi techniques
solicit estimates from a group of managers, until the
estimates converge.
\
2.TREND PROJECTIONS
-extrapolations
extending past rates of change into the future.
-indexation
matching employment growth with , say, sales.
-statistical analysis
3. OTHERS
-planning and budgeting systems
based on strategic and corporate plannings/ budgeting.
-new venture analysis
making comparisons with similar operations.
-computer models
using multiple variables.
INTERNAL DISCUSSIONS
Discuss with the various other departments like sales/ production/
distribution/accounting/ IT etc about their requirements
-for manpower
-recruitments
-replacements
-training
etc etc
Once you get their departmental requirements, HRM develops
*INTERNAL SUPPLY ESTIMATES FOR EACH DEPARTMENT/TOTAL
-staff skills inventories
-management inventories
-replacements requirements
-transition requirements
*MANAGING WORK OPTIONS FOR EACH DEPARTMENT / TOTAL
-shorter weeks
-flexitime
-telecommuting
-virtual organizations.
HR Planning includes
CURRENT SITUATION/ ANALYSIS OF COMPANY HR
1.Assessment / Audit of the current manpower profile
-numbers
-skills
-ages
-flexibility
-sex
-experience
-capabilities
-character
-potential
and also
-normal turnover,
-staff movements planned
-retirements
-succession planning
etc.
2. KEY SUCCESS FACTORS OF HR
3. HR [ SWOT ] ANALYSIS
-STRENGTHS
-WEAKNESSES
-THREATS
-WEAKNESSES
4. HR MARKET [ DEMAND/SUPPLY]
-SKILL AVAILABILITY
1.HR OBJECTIVES
2.HR STRATEGY
3. HR PLANNING
These include
-Recruitment/ Selection PLAN
-Induction / Orientation PLAN
-Training / Developement PLAN
-Compensation PLAN
-Salary administration PLAN
-Payroll Administration PLAN
-Performance Appraisal PLAN
-Performance Management PLAN
-Industrial Relations PLAN
-Promotions PLAN [ IF ANY ]
-Terminations PLAN
-Transfers PLAN
-Staff amenities. PLAN
-retraining plan
-early retirement plan
-redundancy plan
-changes in workforce utilization plan
-career path plan
-succession plan.
-personnel and career plans
LASTLY BASED ON THE ABOVE PLANS, YOU DEVELOP HR BUDGET.
The elements in HR department budget would vary with
-company policy
-budget process
-company accounting system
-nature of the business operation
-HR PLANNING
etc