1. Resourcing Strategy
By dr. desai.

2. Introduction:
 HRM re sourcing strategy is a process to obtain
the right basis material in the form of a workforce
endowed with the appropriate qualities, skills,
knowledge & potential for future training.
 The selection & recruitment of workers best suited
to meet the needs of the organization ought to
form a core activity upon which most HRM policies
geared towards development & motivation could
be built.

3. Contd.
 The concept that the strategic capability of a
firm depends on its resource capability in the
shape of people provides the rationale for re
sourcing strategy.
 The aim of this strategy is to ensure that a firm
achieves competitive advantage by employing
more capable people than its rivals.

4. Contd.
 These people will have a wider & deeper range of
skills, & behave in ways that maximize their
contribution.
 The organization attracts such people by being the
employer of choice.
 It retains them by providing better opportunities &
rewards than others & by developing a positive
psychological contract which increases commitment &
creates mutual trust.

5. Components of Re sourcing
Strategy:
Components/;
1] Re sourcing plans
2] Flexibility plans,
3] Retention plans.
Re sourcing strategy provides the basis for
plans within the framework of business needs.

6. Scenario Planning:
 It is a formal strategic planning technique.
 It is also considered as an informal approach to
thinking about the future in broad terms, based
upon an analysis of likely changes in internal &
external environment.

7. Contd.
 A scenario can be defined as an imagined sequence
of future events.
 Scenario planning is a simple, more or less
formalized process for establishing a view about any
changes that can be foreseen to the scale & type of
activities in the organization & to the structure, & for
identifying any external environment changes that are
likely to affect it.

8. Contd.
The creation of a scenario involves making broad
assessments of likely internal developments in the
direction in which the organization is going & the
implications this has on people requirements.
The assessments may have to be made in the
absence of any articulated business plan, & thus see
the future, & asking them to interpret what this means
in terms of their HR needs.

9. Contd.
 Assessments also have to be made
on likely changes in the external
environment as it may affect the labor
market.

10. Estimating future HR
requirements:
 Scenario planning is in some situations as
far as it is possible to go in estimating future
people requirements, but where it is feasible
& appropriate, attempts can be made to
produce demand & supply forecasts, & to
determine what action needs to be taken if
the forecasts indicate the possibility of a HR
deficit or surplus.

11. Contd.
 Demand Forecasting: is the process of estimating
the future numbers of people required & the likely skills
& competences they will need.
 The ideal basis of the forecast is an annual budget &
longer term business plan, translated into activity
levels for each function & department, or decisions on
downsizing.
 In a manufacturing company the sales budget would
be translated into a manufacturing plan giving the
numbers & types of products to be made in each
period.
 From this information the number of hours to be
worked by each skill category to make the quota for
each period would be computed.

12. Contd.
 The demand forecasting techniques that
can be used to produce quantitative
estimates of future requirements are:
 Managerial/ expert judgment: is the most
typical method of forecasting & may be
linked to some form of scenario planning. It
simply requires managers/specialists to sit
down, think about future workloads, &
decide how many people are needed. This
is reliable only if reliable evidence is
available of forecast increases in activity
levels /new demands for skills.

13. Contd.
 Ratio trend analysis: Here the past ratio
between the number of direct workers &
indirect workers in a manufacturing plant, &
forecasting future ratios, having made some
allowance for changes in organization/
methods are studied.
 Activity level forecasts are then used to
determine direct labor requirements & the
forecasts ratio of indirect to direct is used to
calculate the number of indirect workers
needed.

14. Contd.
 Work study techniques: can be
used when it is possible to apply work
measurement to calculate how long
operations should take & the number
of people required.
 Work study techniques for direct
workers can be combined with ratio
trend analysis to calculate the number
of indirect workers needed.

15. Contd.
 Forecasting skill & competence
requirements: Forecasting skill
requirements is largely a matter of
managerial judgment.
 This judgment is exercised on the basis of a
careful analysis of the impact of projected
product market development & the
introduction of new technology or
computerized manufacturing.

16. Contd.
 Supply forecasting: it measures the
number of people likely to be available
from within & outside the organization
having allowed for attrition[ labor
wastages & retirements],
absenteeism, internal movements &
promotions, & changes in hours &
other conditions of work.

17. Contd.
 The forecasting can be based on:
 an analysis of existing HR in terms of
numbers in each occupation, skills &
potential.
 forecast losses to existing resource thru’
attrition.
 forecasts changing to existing resources
thru’ internal promotions.
 sources of supply from within the
organization & from outside in the national
& local labor markets.

18. Contd.
 Mathematical modeling techniques
aided by computers can help in the
preparation of supply forecasts in
situations where comprehensive &
reliable data on stocks can be
provided. These methods are seldom
used.

19. Analyzing demand & supply
forecasts:
 The demand & supply forecasts can then
be analyzed to determine whether there are
any deicits/ surpluses.
 This provides the basis for recruitment,
retention & downsizing plans when needed.
 Computerized planning models can be
used for this purpose.
 The basic forecasting calculations can be
carried out on a spreadsheet that sets out &
calculates the number required for each
occupation where plans need to be made.

20. Contd.
 Example:
 No. currently employed 70
 Annual wastage rate based
on past records 10 %
Expected losses during the year 7
Balance @the end of the year 63
Number required@ the end of
the year 75
Number to be obtained during
the years [5-4] 12

21. Action Planning
 Action plans are derived from broad re
sourcing strategies & more detailed analysis
of demand & supply factors.
 These are short termed & flexible because
of the difficulty of making firm predictions
about HR requirements in times of rapid
changes.
 Plans need to be prepared in the areas of
re sourcing, flexibility & downsizing.

22. Contd.
 The re sourcing plan: this needs to
consider approaches to obtain people from
within the organization, to recruiting them
externally, & to attract high quality
candidates [ employer of choice].
 Internal re sourcing: the first step is to
analyze the availability of suitable people
from within the organization by reference to
assessments of potential & skills database .
 The latter should contain a regularly
updated list of employees with the sort of
skills needed by organization.

23. Contd.
 Decisions are then made on what
steps should be taken to promote,
redeploy, & as necessary, provide
additional experience & training to
eligible staff.
 Plans can also be made to make
better use of existing employees,
which may include flexibility
arrangement.

24. Contd.
 The recruitment plan: this incorporates
the numbers & types of employees required
to make up any deficits, when they are
needed.
 The likely sources of candidates- schools,
colleges of further education, universities,
advertising, the internet…
 Plans for tapping alternative sources such
as part-timers or widening the recruitment
net to include-more women re-entering the
labor market.

25. Contd.
 Flexibility plan: should provide for
greater operational flexibility, improve
the utilization of employees ‘skills &
capacities, reduce employment costs
& help to achieve downsizing
smoothly & in a way which avoids the
need for compulsory redundacies.

26. Contd.
 Increase Productivity: the plan can be based on a
radical look at traditional employment patterns.
 This means identifying the scope for using
alternatives to full-time permanent staff, which could
include increasing the number of part-timers, job-
sharing the expansion of home-working/ tele-working
or employing more temps.
 Consideration can also be given to make more use of
sub-contractors /outsourcing work, & to the
introduction of more flexible working arrangements.

27. Contd.
 Use of part-time workers: The
advantages of using part-time workers:
more scope for flexible hours worked, better
utilization of plant & equipment by the
introduction of a twilight shift, lower unit
labor costs because overtime levels for full-
time workers are reduced, higher
productivity on repetitive work because part-
time workers can give more attention to
their work during their shorter working day.

28. Contd.
 Disadvantages: part-timers are
generally less willing to undertake
afternoon/ evening work, may find it
more difficult to vary their hours of
work, & may be less mobile, rates of
labor turnover may be higher,
commitment is less.

29. Contd.
 Job sharing: is an arrangement whereby two
employees share the work of one full-time position,
dividing pay & benefits between them according to the
work done by each.
 Job sharing can involve splitting days/weeks or they
may work alternate weeks.
 The advantage is , it reduces employee turnover &
absenteeism because it suits the needs of the
individuals. There is greater continuity in work
schedule. Also, it generates more employment.
 The disadvantages are the administrative costs
involved are high & the risk of the responsibility is
divided.

30. Contd.
 Home- working/ tele-working:
Home based employees can be
employed in jobs like consultants,
analysts, designers, programmers or
various administrative work.
 Advantages :flexibility to respond to
fluctuations in demands, reduced
overheads, lower employment costs if
the home-workers are self- employed.

31. Contd.
 Tele-working involves people working at
home with a terminal which is linked to the
main company or networked with other
outworkers.
 Its aim is to achieve greater flexibility, rapid
access to skills & the retention of skilled
employees who would otherwise be lost to
the company.
 Tele-workers can be used in a number of
functions such as marketing, finance & IT.

32. Contd.
 Sub-contracting: it enables resources to
be concentrated on core business activities,
employment costs are reduced, flexibility &
productivity can be increased, job security
for core employees can be enhanced.
 The disadvantages are the legal status of
the employees, negative reactions from
employees & unions who prefer work to be
kept within the company.

33. Contd.
 The down–sizing plan: If there is decline
in business, if nothing works, then it may be
necessary to deal with unacceptable
employment costs or surplus numbers of
employees,. This is downsizing.
 This plan should be based on the timing of
reductions & forecasts of the extent to
which these can be achieved by natural
wastage or voluntary redundancy.

34. Contd.
 The plan:
 the total no. of people who have to go, &
when & where this needs to take place,
arrangements for informing & consulting
with employees & their trade unions, a
forecast of the number of losses that can be
taken up by natural wastage,any financial or
other inducements to encourage voluntary
redundancy, a forecast of the likely
numbers who will want to leave, a forecast
of the balance of employees, who will have
to be made redundant.

35. Contd.
 The redundancy terms: any
arrangements for retraining
employees & finding them work
elsewhere in the organization.
 This can be done by counseling,
contacting other employers or offering
the services of outplacement
consultants.

36. The contribution of HR to
develop the Resource
Capability:
 HRP, in the broader meaning of the term, is
one of the fundamental strategic roles of the
HR function.
 HR can make a major contribution to
developing the resource capability of the
firm & therefore its strategic capability by
systematically reviewing the firm’s strategic
objectives & by ensuring that plans are
made that will ensure that the HR are
available to meet those objectives.