Page 44 - DMGT406_HUMAN_RESOURCE_MANAGEMENT

Unit 2: Human Resource Planning

7. The basis for human resource planning is the supply of employees. Notes
8. The role of demographics in estimating employee supply is easy to predict.
9. The first step in determining supply is placing advertisements in newspapers.
10. Strategic plans become operational through budgets.

11. Only relevant labour markets should be analysed to estimate supply.
12. Planners have little flexibility in dealing with short term shortages of employees.

2.6 Rightsizing the Enterprise

Today's modern organisations have technologically advance infrastructure and IT functions.
It consumes vast resources with complex processes, relationships and agreements. Within most
enterprises, they have the ability to grow in size, complexity and cost as the business expands,
but struggle to transform or resize when conditions change or the business changes.

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Caution Rightsizing is about how to make those changes, to reorder the important and
changing priorities of complex business delivery and get the most from limited resources.
Often there are barriers to change, which come from practices, processes and existing or
embedded culture.
To alleviate some of the anxiety caused by downsizing, the outsourcing/out-tasking industry
moves on from traditional approach and developed a new concept called rightsizing. Many
times, while performing an on-premises evaluation, the outsourcing provider found that the
numbers of support personnel were at the same levels as they were when the total company
population used to be much higher. To make a logical manpower recommendation to a
management committee reviewing outsourcing or out-tasking, outsource providers started to
use 'rightsizing' as the term that best described the proposed reduction in support personnel
numbers. This concept is gaining increasing acceptance among transforming organisation. The
benefit of outsourcing, out-tasking, and rightsizing is allowing an enterprise to do what it does
best or to return to its core competency.
There are three steps in the rightsizing:
Phase 1: to identify potential candidates for change
Phase 2: to assess cost and making plan for Changes
Phase 3: to implement and appraise the Solutions.

Planning and Forecasting
The basic purpose of human resource planning is to have an accurate estimate of the number of
employees required, with matching skill requirements to meet organisational objectives.
It provides information about the manner in which existing personnel are employed, the kind
of skills required for different categories of jobs and human resource requirements over a
period of time in relation to organisational objectives. Requirement of manpower has to be
forecasted. For this purpose there are several forecasting techniques like experts forecast, trend
analysis, some mathematical models, etc.
To proceed systematically, human resource professionals generally follow three steps. Let's
examine these steps as applied in respect of, say a commercial bank.

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