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UNIT – I Lesson 1 HRM – AN OVERVIEW Lesson Outline Nature of ...

UNIT – I Lesson 1 HRM – AN OVERVIEW Lesson Outline Nature of ...

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light <strong>of</strong> changing environment. Such views are collected and summarized by HR<br />

department to arrive at a decision about the types <strong>of</strong> personnel needed in future.<br />

Work study technique<br />

Work study technique is based on the volume operation and work efficiency <strong>of</strong><br />

personnel. Volume <strong>of</strong> operation is derived from the organizational plan documents and<br />

increase/decrease in operation can be measured. Work efficiency or productivity is<br />

measured by time and motion study which specifies standard output per unit <strong>of</strong> time, say<br />

per hour. Thus, the number <strong>of</strong> operatives required to complete specified volume <strong>of</strong><br />

operation is<br />

Planned Output<br />

Standard output per hour x Stadnard hours per<br />

.<br />

person<br />

However, standard output per hour is not always a constant factor. Over a period <strong>of</strong><br />

time it may increase due to training and higher technology. In this way required personnel<br />

may worked out.<br />

Ratio <strong>–</strong> Trend Analysis<br />

Under this method, the main emphasis is on the ratios between production/sales<br />

level and direct operatives; ratios between direct operatives and other personnel say<br />

supervisory and managerial personnel. These ratios are worked out for a number <strong>of</strong> years<br />

based on the past records <strong>of</strong> the organization and future trends are projected on these<br />

ratios.<br />

Such ratios can be worked out for various categories <strong>of</strong> personnel such as ratio <strong>of</strong><br />

supervisors and middle management personnel, ratio <strong>of</strong> middle management personnel and<br />

higher level management for a comprehensive forecast <strong>of</strong> human resource needs.<br />

Statistical and Mathematical models<br />

Following are the models that could be used for HR forecast.<br />

1. Burack <strong>–</strong> smiter model<br />

2. Regression analysis<br />

3. econometric analysis<br />

In fact combination <strong>of</strong> different methods could also be used.<br />

Forecasting <strong>of</strong> HR supply<br />

Forecasting <strong>of</strong> human resource supply is another important ingredient <strong>of</strong> HRP.<br />

After forecasting human resource needs, it is only logical to determine how these needs<br />

can be met. For a new organization all personnel that are needed have to be procured from

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