Workload analysis

Steps in workload analysis

Classification of work:
◦ To identify the work or job content by
breaking down the job in different
components.
◦ Time requirements analysis for each such job
or work unit by deciding the standard time,
using work measurement techniques.
◦ Limitations:
 All jobs are not quantifiable.
 Deciding on standard time too difficult, therefore
fatigue allowance needs to be considered.
 Pace of technological changes may also be taken
into consideration
Eg: Maintenance Department of Reliance Energy
Classification of work

JOB CATEGORY HOURS PER

JOB
RELATED TO METERS 0.75

RELATED TO INSTALLATIONS 2.50

RELATED TO MAINTENANCE 1.50

RELATED TO EMERGENCY CALLS 1.10

 Step 2: Forecasting of jobs/day
for diff years.

JOB CATEGORY YEAR

2002 2003 2004 2005

METERS 15 13 11 8

INSTALLATION 85 95 110 125

MAINTENANCE 27 35 41 45

EMERGENCY 10 8 6 4
 Step 3: converting forecast into
man-hours required per day

JOB CATEGORY YEAR

2002 2003 2004 2005
METERS 11.25 9.75 8.25 6
(.75*15 (.75*13) (.75*11 (.75*8)
) )
INSTALLATION 212.5 237.5 275 312.5
MAINTENANCE 40.5 52.5 61.5 67.5
EMERGENCY 11 8.8 6.6 4.4
TOTAL MAN-HOURS 275.25 308.55 351.35 390.4
REQUIERED PER DAY
 Converting man hours into
manpower requirements per day.
Fatigue allowance- 20%
Leave reserve – 20%
Therefore, customer complaints
attendance reduced by 40%, If a
worker works for 8 hrs a day,
then he will effectively work for
4.8 hrs.
NO. OF MAINTAINED YEAR
STAFF REQUIRED
2002 2003 2004 2005

EMPLOYEES (TOTAL 57 64 73 84
MAN HOURS PER
DAY/4.8)
TIME SERIES ANALYSIS
Under this method the manpower forecast
are used over time periods.
Quantitative methods:
◦ Moving average method: average of
combined employment level data for the
recent past is considered as the forecasted
level for next period. YEAR MANPOWER
LEVEL/DATA
1995 500
Manpower for 2001 =
1996 600
500+600+800+1000+1100+1300
1997 800
6
1998 1000
= 883 nos. 1999 1100
2000 1300
Environmental Scanning
Systematic process of studying &
monitoring the external environment of
the organization in order to pinpoint
opportunities & threats

Involves
long range analysis of
employment

Factors include economic factors,

competitive trends, technological
changes, socio-cultural changes, politico-
legal considerations, labour force
composition & supply, & demographic
trends
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 Environmental Scanning
 Attempts to answer 2 questions:

◦ Which jobs need to be filled (or vacated) during

the next 12 months?
◦ How & where will we get people to fill (or vacate)
these jobs?

 Demand & supply of labour in loose & tight labour

market

◦ Major impact of the shortage of skilled workforce

(tight labour market) in India has been on staff
cost

◦ Fast growing sectors like retail, telecom are new

& do not have historical talent to bank on & 9
TIME REQUIREMEN AVAILABILITY POSSIBLE ACTION
FRAME T BASIS PLANS TO MEET THE
REQUIREMENTS

LESS Annual Budget Existing Body

THAN A (operational manpower shoppers/contractors,
YEAR plans) (workload overtime, recruitment
distribution) on contractual terms,
+contractual restructuring and lay-
manpower offs.
1-2 YEAR Forecasted Current Transfer, promotion, new
budget manpower less recruitments,
(business plan) projected attrition restructuring, T&D

2-5 YEAR Long-term Projected Succession Planning,

plans manpower recruitment, T&D,
(incl. those restructuring
trainees who will
be inducted)
MORE Perspective Labor market, Succession Planning,
THAN 5 plans education Management
YEARS system. Development,
Organizational
Analysis of workload
factors
To forecast manpower
requirement, workload analysis is
very important.

Analysis of present and future

workload is possible after
quantifying the work content.
Difficulties in Manpower
forecasting
Always there is no relation
between the productivity rise and
human effort.
Difficult to get same level of
output with different jobs.
Effect of factors to improve the
productivity (technology,
incentive…) may not be
consistent over a time period.
 Qualitative models
 Delphi technique: A group process to achieve a
consensus forecast. Selection of a panel of
experts either from within or outside the
organisation.
 procedures:
 Panel of experts both within and outside the
organisation.
 Co-ordinator then circulated the questions
 Experts write their observations. They are not
allowed to discuss among themselves.
 On the basis of summary the co-ordinators
prepare different set of questionnaire and
circulates among experts.
 The process continues to do so unless they reach
a consensus.
Nominal Group Method
In nominal group method experts
are given the opportunity to
discuss among themselves.
The experts are asked to rank
their ideas according to perceived
priority. Then the group comes to
a consensus.
Analysis of manpower
supply
TavistockInstitute of Human
Resource-wastage curve

Induction
crisis

Differential
transit
Settled connection

weeks time Month/year

 Methods of wastage
analysis
Labor turnover index :
◦ Beginning of the year – 250 ees, end 230,
compute labour turnover index?
◦ Number of ees leaving =250-230=20
◦ Average =250+230/2=240
◦ LTI=20/240*100=8.33%

Stability
index:
number with more than 1 yr service
noX100
total employed one year ago
Cohort analysis
Cohort means homogeneous
groups.
Cohort analysis takes into
account the length of service, is
more accurate for a small
homogeneous group.
 Example-Assuming number of people engaged
in the beginning of year as 500 and no. of
leavers
LENGHT NO. CUMULATI REMAININ SURVIVAL
OF LEAVING VE G AS % OF
SERVICE LEAVERS LEAVING
(IN
YEARS)
1 2 3 4 5
0 0 0 400 100
1 50 50 450 90
2 45 95 405 81
3 40 135 365 73
4 35 170 330 66
5 30 200 300 60

THE SURVIVAL CURVE SHOWS THE PERCENTAGES

GIVEN IN COLUMN NO. 5
Methods of Demand Estimation
MARKOV ANALYSIS
• Shows the percentage (& actual no.) of employee who
remain in each job from one yr. to the next, as also the
proportion of those who are promoted or transferred or who
exit the organization
• Internal mobility among different job classifications can be
forecast based upon past movement patterns – past
patterns of employee movements (transitions) used to
project future patterns
• Pattern is used to establish transitional probabilities & to
develop a transition matrix
• Transitional probabilities:
• Indicate what will happen to the initial staffing levels in
each job category / probability that employee from one
job category will move into another job category
• Determine the forecasted employee levels at the end of
the yr

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Marcov analysis for a hypothetical
retail company
2003-2004 S t o re A s s t. S to re S e c tio n D e p t. S a le s Exit
M a n a g e rs M anagers H eads H eds E xecutives

Store Managers 80% 20%

(n = 15)
12 3

A sst. S tore 11% 83% 6%

M anagers
4 30 2
(n = 36)
Section 15%
11% 66% 8%
Heads
(n = 94) 11 63 8 14

Departmental
10% 72% 2% 16%
Heads
(n = 288) 29 207 6 46

S ales
E xecutives 6% 74% 20%
(n = 1440) 86 1066 288

Forecas ted
S upply 16 41 92 301 1072 353

Fig ure s in circles show th e tra nsition percentag es

Qualitative Methods of Demand Forecasting
Method Advantages Disadvantages

Estimatio People in position estimate Incorporates May be subjective

n the number of people the knowledge of corporate
firm will require in the next plans in making
yr. estimates
Expert Panel of experts forecast HR requirements for particular future business
opinion scenarios. For this method, there may be a single expert, or estimates of
several experts may be pooled together

Delphi Experts go through several Incorporates future Subjective, time

rounds of estimates with no plans & knowledge of consuming & may
face-to-face meeting experts related to mkt., ignore data
industry & technical
development
Group Face-to-face discussion Generates lot of ideas Does not lead to
brainstor based on multiple conclusion
ming assumptions about future
business direction
Nominal Face-to-face discussion Group exchanges Subjective which
group facilitate plans may ignore data
techniqu
e
Simple Simple averaging of Diverse view points Extremes views are
averagin viewpoints taken masked when
g averaged
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Quantitative Methods of Demand Forecasting

Method Advantages Disadvantage

s
Trend Based on past relationship between a business factor related to
analysis employment & employment level itself
&
projectio
n
Simple Extrapolates past Recognizes linkage Assumes that
long-run relationship between between volume of
trend volume of business employment & business activity
analysis activity & employment business activity of firm for
levels into the future forecast period
will continue at
same rate as
previous yrs
Ignores
multiplicity of
factors
influencing
employment
levels

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Quantitative Methods of Demand Forecasting
Method Advantages Disadvantage
s
Simulati Uses probabilities of Makes several Costly &
on future events to assumptions about complicated
models estimate future the future regarding
employment levels external & internal
environment
Simultaneously
examines several
factors
Workloa Based on actual content HR requirements Job analysis may
d of work based on expected not be accurate
analysis output of the firm Difficult to apply
Productivity changes
taken into account

Markov Probabilistic Data driven Assumes that

analysis Based on past nature of jobs has
relationship between not changed over
business factor related time
to employment & Applicable to
employment level itself stable
environment
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