Management Consulting/HUMAN RESOURCE MANAGEMENT

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Question
The present state of recession in the IT Industry - as a Human Resource Manager how are you going to undertake Human Resource Planning at Macro Level to tide over this crisis?

Answer
1.    IT Organisational Structure:
1.   Board of Directors :
These are elected by the shareholders, the board of directors are made up of two types of representatives .The first type includes individuals chosen from within the company , this could be the COE , CFO , manager  who works for the company for daily basis . The other type of representative is chosen externally and is considered to be independent from the company. The role of the board is to monitor the managers of a corporation, acting as an advocate for stockholders. In essence, the board of directors tries to make sure that shareholders' interests are well served.Further more the board members can be divided into three specialized categories .
   Chairman -  He is technically the leader of the corporation, the chairman person or chairman of the board is responsible for running the board smoothly . His or her duties typically include maintaining strong communication with the chief executive officer and high-level executives, formulating the company's business strategy, representing management and the board to the general public and shareholders, and maintaining corporate integrity. A chairman is elected from the board of directors.

   Inside Directors – These directors are responsible for approving high-level budgets prepared by upper management, implementing and monitoring business strategy, and approving core corporate initiatives and projects. Inside directors are either shareholders or high-level management from within the company. Inside directors help provide internal perspectives for other board members. These individuals are also referred to as executive directors if they are part of company's management team.

   Outside Directors – While having the same responsibilities as the inside directors in determining strategic direction and corporate policy, outside directors are different in that they are not directly part of the management team. The purpose of having outside directors is to provide unbiased and impartial perspectives on issues brought to the board.


2.    Management Team:
The management team is directly responsible for the daily transactions and profitability of the company.
These managers are essentially the main asset for the corporation from technical aspect to managerial aspect tends to the security aspect .
   Chief Executive Officer (CEO) –Is typically responsible for the entire operations of the corporation and reports directly to the chairman and board of directors of the organization for the daily transactions and profitability of the organization .It is CEO’s responsibility and decision to implement initiatives and to maintain a smooth operation of the firm the CEO will also be designated as the company's president and therefore also be one of the inside directors on the board (if not the chairman).
   Chief Finance Officer (CFO) – Also reporting directly to the CEO, the CFO is responsible for analyzing and reviewing financial data, reporting financial performance, preparing budgets and monitoring expenditures and costs. The CFO is required to present this information to the board of directors at regular intervals and provide this information to shareholders and regulatory bodies such as the Securities and Exchange Commission (SEC). Also usually referred to as a senior vice president, the CFO routinely checks the corporation's financial health and integrity.

   Chief Operations Officer (COO) –He is responsible for the corporation's operations, the COO looks after issues related to marketing, sales, production and personnel. More hands-on than the CEO, the COO looks after day-to-day activities while providing feedback to the CEO. The COO is often referred to as a senior vice president.

3.   Departments :
When we come to the point of the departmental over view of the IT based organization it tends to the hierarchy of these different departs which holds the structure of the company are
   IT Department
   Production Department
   Finance Department
   Purchasing Department
   Marketing Department
   Sales Department
   HR Department
   PR Department
   R&D Department
=============================================================

HR  PLANNING

IS  A  process by which an organisation ensures that it has the right number & kind of people at the right place and at the right time, capable of effectively and efficiently completing those tasks that help the organisation achieve its overall objectives..


ADVANTAGES   OF  HR  PLANNING

Importance  of  HR  PLANNING

•    1)   Each Organisation needs personnel with necessary qualifications, skills, knowledge, experience & aptitude .
•    2)   Need for Replacement of Personnel -  Replacing old, retired or disabled personnel.
•    3)   Meet manpower shortages due to labour turnover
•    4)   Meet needs of expansion / downsizing programmes
•    5)   Cater to Future Personnel Needs
•    6)   Nature of present workforce in relation with Changing Environment - helps to cope with changes in competitive forces, markets, technology, products and government regulations.
     Shift in demand from ERP to internet programming has increased internet programmers .


HOW   HR  PLANNING   COULD BE  USED
i)  quantify job for producing product / service    
ii) quantify people & positions required
ii) determine future staff-mix
iii) assess staffing levels to avoid unnecessary costs
iv) reduce delays in procuring staff
v) prevent shortage / excess of staff
vi) comply with legal requirements

-------------------------------------------------------------
Human resource planning is the process of anticipating and
carrying out the movement of people into, within, and out of
the organization. Human resources planning is done to achieve
the optimum use of human resources and to have the correct
number and types of employees needed to meet organizational
goals.
Thus, it is a double-edged weapon. If used properly, it leads
not only to proper utilization, but also reduces excessive labor
turnover and high absenteeism, and improves productivity.
It can also be defined as the task of assessing and anticipating
the skill, knowledge and labor time requirements of the
organization, and initiating action to fulfill or ‘source” those
requirements. Thus, if the organization as a whole or one of its
subsystem is not performing to the benchmark, in other words,
it is declining, it may need to plan a reduction or redeploys its
existing labor force.

On the other hand, if it is growing or diversifying, it might
need to find and tap into a source of suitably skilled labor .
That is why; we need to plan in advance even for procuring
human resources, which in contrast to a general myth are not
abundant!! Thus, in the same line, we propose that organization
can achieve its goals effective through effective contingencies
of all the HR functions; for example, the structure of an
organization and the design of the job within it affect an
organization’s ability to achieve only through the efforts of
people. It is essential therefore, those jobs within the organization
be staffed with the personnel who are qualified to perform
them. Meeting these staffing needs requires effective planning
for human resources

HENCE  “HR  planning is the process –
including forecasting, developing and controlling by which a
firm ensures that it has-
•The right number of people,
•The right kind of people,
•At the right places,
•At the right time, doing work for which they are
economically most useful”.
=====================================================
Why has HR planning increased in importance.

BECAUSE  OF  

-globalization

-economic  growth

-demand  for  skilled  workers

-mobility  of  workers

-need  for  productivity  improvements

-need  for   efficient  growth

-diversity  in  workforce

-forward  planning  of  resorces

-provides   a  planned  hr resources

-controls   wastage.

etc etc

WHY  HRP  IS  SO  IMPORTANT  TO  BUSINESS/ ORGANIZATIONS

Forecasting future manpower requirements, where we
use mathematical projections  to project trends in the
economic environment and development of the industry.

Making an inventory of present manpower resources
and assessing the extent to which these resources are
employed optimally.

** Procuring competent personnel
requires positive recruitment efforts and the development
of a variety of recruitment sources. These sources must
consider not only the nature and conditions of the external
labor market, but also the presence of qualified personnel
who are available to fill vacancies through internal
promotions or transfers.
Keep in mind the recruitment activities is integrated with
diversity and equal employment opportunity initiatives.
Staffing needs must be anticipated sufficiently in advance to
permit the recruitment and development of fully qualified
personnel.

Anticipating manpower problems by projecting
present resources into the future and comparing them
with the forecast of requirements to determine their
adequacy, both quantitatively and qualitatively;

Planning the necessary programmes of requirement,
selection, training, development, utilization, transfer,
promotion, motivation and compensation to ensure that
future manpower requirements are properly met.


**It’s a systematic approach. because it ensures a
continuous and proper staffing. It avoids or checks on
occupational imbalances (shortage or surplus) occurring in
any of the department of the organization.

**There is a visible continuity in the process.

**There is a certain degree of flexibility. That is, it is subject
to modifications according to needs of the organization or
the changing circumstances. Manpower plans can be done
at micro or the macro levels depending upon various
environmental factors.


“ HRP is a kind of risk management. It involves realistically
appraising the present and anticipating the future (as far as
possible) in order to get the right people into right jobs at the
right time”.


**Ensures optimum use of man (woman, too nowadays?)
power and capitalize on the strength of HR. The
organization can have a reservoir of talent at any point of
time. People skills are readily available to carry out the
assigned tasks, if the information is collected and arranged
beforehand.

Forecast future requirements (this is done by keeping track
of the employee turnover.) and provides control measures
about availability of HR labor time. If, for example the
organization wants to expand its scale of operations, it can
go ahead easily. Advance planning ensures a continuous
supply of people with requisite skills who can handle
challenging jobs easily.

Help determine recruitment/induction levels.

To anticipate redundancies/surpluses/obsolescence.

To determine training levels and works as a foundation for
management development programmes

**Planning facilitates preparation of an appropriate manpower
budget for each department or division. This, in turn, helps in
controlling manpower costs by avoiding shortages/excesses in
manpower supply.

DISADVANTAGES  OF HR  PLANNING
-it  takes  enormous  time.
-it  takes   resources.
-it  costs.
=======================================
REGULAR  HR  PLANNING

HR PLANNING     TAKES   INTO  CONSIDERATION

1.Corporate  VISION

2. Corporate  Mission

3. Corporate  Objective

4. Corporate  Strategy

5.Corporate  Organization  Policy/ Budget  Guidelines.

6. Corporate  HR  objective/ strategy

7. Corporate  Industrial  Relations   Policy

8. Corporate  Sales  forecasts  

9. Corporate  Product  Plans
  
10. Corporate  Production forecasts.
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

5.HR  OBJECTIVES

6.HR  STRATEGY

WHICH  LEADS   TO

7. 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
==================================================
####################################################
=====================================================
HR  PLANNING  PROCESS


STEP  ONE  ---IDENTIFYING

***FIRST   STAGE
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.
==================================
***SECOND   STAGE
HR PLANNING   SHOULD  TAKE  INTO  CONSIDERATION
INTERNAL  COMPANY  FACTORS  LIKE
******************************************************************
1.Corporate  VISION

2. Corporate  Mission

3. Corporate  Objective

4. Corporate  Strategy

5.Corporate  Organization  Policy/ Budget  Guidelines.

6. Corporate  HR  objective/ strategy

7. Corporate  Industrial  Relations   Policy

8. Corporate  Sales  forecasts  [  3 or 5  ]

9. Corporate  Product   Plans [ 3 or 5   ]
  
10. Corporate  Production forecasts. [ 3 or 5  ]

=============================================
***THIRD   STAGE  
AS  PART  OF   HR  PLANNING ,   review the  following
CHANGING  FACTORS  WHICH  AFFECTS  HUMAN RESOURCES
************************************************************************
1.The  impact  of  technological  change on task needs.
2. Variations in the  efficiency, productivity, flexibility  of  labor  as  a
result  of  training, work study  organizational change, new motivations, etc.

3. Changes  in  employment practices [ e.g. subcontractors  or  
    outsourcing  etc ]
4.Other  variations due to  new legislations like new health requirements,
   safety  requirements etc.

5.Changes  in  government policies   like  tax/ tariff etc
6. Labor  demand  and  supply .

7. Skills   levels   availability

What should  emerge from  this  analysis / reviews  is a   "thought out"   
and  logical  staffing  demand  schedule for  varying dates  in the future
which  can then  be  compared  with  the  crude  supply   schedule.
The  comparison will then  indicate  what steps must be taken to
achieve a balance.

===========================================
*** FOURTH   STAGE
 HR  SUPPLY  FORECASTING  --  CONSIDER  THE  FOLLOWING
DEMAND  AND  SUPPLY  IN  THE  JOB  MARKET
**********************************************************************************
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.
=================================================
***FIFTH   STAGE  
HR  DEPARTMENT  IS   A  SUPPORT  FUNCTION.
HENCE  HR PLANNING  RELIES  HEAVILY  ON THE   ANNUAL  CORPORATE
PLANNING,  OBJECTIVES, STRATEGIES  AND  PLANS.
***************************************************************************************************************
In  THIS   company,  HRM  is part  of  senior management.
HRM  makes  contribution  to the  development  of
-corporate  mission  statement
-corporate  objectives
-corporate  strategy.

The senior management  team  or TOP management would
consists  of
-ceo  or  managing director
-corporate planning  manager
-finance manager
-marketing manager
-manufacturing manager
-sales manager
-supply chain manager
-HR  manager
etc.

STEP 1[a]
TOP  management  would
-evaluate  the  current  [ last 12 months] performance  against  the
objectives / target set previously, which includes  return on investment,
profitability , etc  and  also  the  performance of various  departments
like  marketing, sales, HR, manufacturing, etc etc.

STEP 1 [b]
TOP  management will  also  evaluate the current  mission,objectives,
strategies and  policies.
-----------------------------------------------
STEP   2[a  ]
MD  will take  the summary  of  the evaluation of the current
performance  to  the  board  for  review.

STEP  2 [ b  ]
Based  on  the  review  plus  the  external environmental  factors,
the  board  will  make decisions  on  
-new  mission  statement
-new corporate  objectives
-new corporate  governance
-------------------------------------------------------------

STEP   3 [ a   ]

TOP  management  will  scan  and  assess the  company's
external  environment  --political/ economic/social/ technology.
to  determine  the  strategic  factors  that  pose   as  
OPPORTUNITIES /  THREATS.

STEP   3 [   b  ]

TOP  management  will  scan  and  assess  the  company's
internal  environment  --structure/ culture/resources  etc     
to  determine  the  strategic  factors  that  pose   as  
OPPORTUNITIES /  THREATS.

STEP  3[ c ]
TOP MANAGEMENT  will  analyze  the  the  strengths / weaknesses
of  the  organization  and  pinpoint  the problems  areas that needs
attention  and  the  strengths  that  could  be exploited.

STEP  4
Based  on  the  above analyses, TOP management  will generate,
evaluate, and  select  the  best  strategic  factors.

STEP   5
TOP  management  will  review  and  revise [ if  necessary ] the
mission statement and  corporate objectives.

STEP  6
TOP  management  will  generate and  evaluate strategy alternatives
and  objectives.

STEP  7
This  final  corporate  mission statement, objectives and  strategies
becomes  the  foundation information  for  the  various  departments
to  work  out  their  departmental  objectives/strategies/plans.


STEP  8
After  working  out  their  respective  objectives/strategies/plans
and  the  budgets ,  the  departmental  managers send  their
respective  information  to  the  TOP  management  for
approval.


STEP  9
On  receiving   the  approved  package  from  the  TOP  management,
the  departmental  managers  develop  the  implementation plan.

STEP 10.

NOW  you  have  mission/objectives/strategies/plans/budget/schedules.

======================================================

STEP   TWO --- DEFINING


*** SIX   STAGE
IN  case  of   HR,  which  is  a  department  by  itself,
MUST  discuss with  other  departments  of  their
expectations/ intentions  on  HUMAN  RESOURCES.
****************************************************************************

This  final  corporate  mission statement, objectives and  strategies
becomes  the  foundation information  for  the  HR  department
to  work  out  your  departmental  objectives/strategies/plans.

STEP  A
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.
==================================
*** SEVENTH   STAGE

-HR   PLANNING

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
============================================
STEP   THREE ---  DEVELOPING

***  EIGHTH   STAGE

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

HERE  is  a  broad  set  of   guidelines.

-recruitment/ selection [ internal/ outsourcing ]
-PLACEMENT contractors [external ]
-salary/ wages
-training/ development [ includes  induction/ orientation]
-staff benefits
-staff  amenities
-workplace  facilities
-workplace safety [ OHS]
-salary  contingency
-workers  compensation
-staff  communication [ includes newsletter/ intranet ]
-labor relations [ legal/ investigations]
-HR administration
-HR travels
etc etc.
======================================================
These   plans  will  help  to  bring  supply  and  demand  into  equilibrium,
not  just  as  a  one-off   but  as a  continual workforce  planning
exercise  the  inputs  to  which  will need  constant  varying  to reflect
the  actual  as  against  predicted  experience  on the  supply  side
and  changes in  production actually  achieved as  against  forecast
on the  demand  side.

THE  ABOVE  APPROACH / CONTENTS  IS THE  SAME  WHETHER
IT  IS   PLANNING  FOR  1 YEAR  OR   3  YEARS  OR  5  YEARS.  

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Leo Lingham

Expertise

management consulting process, management consulting career, management development, human resource planning and development, strategic planning in human resources, marketing, careers in management, product management etc

Experience

18 years working managerial experience covering business planning, strategic planning, corporate planning, management service, organization development, marketing, sales management etc

PLUS

24 years in management consulting which includes business planning, strategic planning, marketing , product management,
human resource management, management training, business coaching,
counseling etc

Organizations
PRINCIPAL -- BESTBUSICON Pty Ltd

Education/Credentials
MASTERS IN SCIENCE

MASTERS IN BUSINESS ADMINSTRATION

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