Preparing HR/Manpower Budget Analysis

HR/Manpower budget are important in the organization. This budget can affect the all of employees in the organization whether upper level or lower level. There three important factors that we need to take into considering while preparing HR/Manpower budget.

The first factor is compensation of employees. There have two types of compensations which are the direct financial and indirect financial. Direct financial is the pay of employee’s salary, bonuses, wages and commissions. This pay is the value of they attach to certain of duties, responsibilities and job related factors such as skills, working condition, mental requirements and physical requirements. Meanwhile for the indirect financial is the all financial rewards are not paid directly

Demography is the science of human population. This is the replacement of certain groups by other factors. First factor is natural movement of population where through the birth and dead. The second is migration where the population do immigration or emigration. Last factor is the mobility of population through changes in level of education, profession or social. The changes in the population and its parts are viewed qualitatively as well as quantitatively. For example, demography examines not only increase in the number of specialists and the associated change in the professional of the population, but also the rise in level of their training. The age also change and their physical development also change. They have their own limit when they do the work with their age. The HR must always watchful eyes on the population sizes. The large population can give a better result on task but sometimes they are slow to finish the task compare the small population. The HR must be ready for any assumption like accident and death. It also can reduce the turnover of employees. (HIRSCHMAN,

The employees are needed to improve their skills and knowledge with the training. HR must prepare the budget for orientation and any kind of training. There have two types of training which general and specific training. For general only focus on communication skills, computer systems application and programming, customer services, executive development, management skills and development, personal growth, sales, supervisory skills and technology skills and knowledge. For specific training focus on the basic life-work skills, creativity, customer education, diversity/cultural awareness, remedial writing, managing change, leadership and others. There are several method of training can be used in organizing. First method is job rotation where the employee works at different jobs in a particular area to exposure to a variety of tasks. Second method is videoconferencing where the employee can participate for demonstrated. Next method is e-learning where the employees participate in the multimedia simulation. There are also mentoring and coaching of training. There will have a young manager career that can be a mentor and coach the employee. So, the employee can improved their skill and also knowledge. (Coulter,