StrATEGY and

WORKFORCE
planning
By : Neha gupta

Definition
According to Geisler, Human resource
planning is the process-including
forecasting,developing and controlling
by which a firm ensures that it hasThe 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.

HR Planning at different levels

HRP

at national level helps to plan

fo educational facilities, agricultural
& industrial development &
employment plans.government of
the country plans for human
resources at national level
HRP at sectoral level helps to plan
for a particlar sector like
agriculture, industry, etc.

Continue..
HRP

at industry level takes into

account the operational level of the
particular industry when manpower
needs are considered.
HRP at unit level based on the
business plan of the company.
HRP at departmental level looks at
the manpower needs of a particular
department in the organization

Link between HR Planning and

Strategic planning
Cost economics
Capacity to operate

Capacity to
achieve
effectively
strategic
objectives

Capacity to undertake

Integrated strategic planning

and HR
Integrated strategic planning involves four
steps1. Development and knowledge of
organizations overall purpose or mission or
goals and objectives
2. Providing inputs by HR manager regarding
key HR areas, capabilities and constraints of
HR and environment to corporate strategists
3. The corporate strategists in turn
communicate their needs and constraints to
the HR manager
4. Integration of HR and other functional plans

HR Plans at four levels

Corporate-level

plan :-based on
corporate philosophy, policy, vision
and mission
Intermediate-level plans
operations plan
Short-term activities plan :- day-today business plans relating to
handling employee benefits,
grievances, disciplinary cases,
accident reports ,etc

Need for Human Resource

Planning
Replacement

of persons
Labour turnover
Expansion plans
Tecnological changes
Assessing needs

OBJECTIVES OF HUMAN
RESOURCE PLANNING

Assessing

manpower needs for future and

making plans for recruitment and
selection.
Assessing skill requirements in future for
the organization.
Determining training and development
needs of the organization.
Controlling wage and salary costs.
Ensuring optimum use of human resource
in the organization.

Helping

the organization to cope up

with the technological development
and modernization
Ensuring higher labor productivity.
Ensuring career planning of every
employee of the organization.

DETERMINANTS OF HRP

EXTERNAL
Government

FACTORS:

policies
Level of economic development
Business environment
Level of technology
International factors

INTERNAL
Companies

FACTORS:

policies and strategies

Human resource policies
Job analysis
Time horizons
Type and quality of information
Trade unions
Companies production operation policy

PROCESS OF HRP

1.
2.
3.

4.
5.
6.

Analyzing organizational plans and deciding

objectives.
Analyzing factors for manpower requirements
on demand size
Analyzing factors for requirements on supply
side and obtaining information about human
resource.
Estimating the net human resource requirement
Developing employment plans
Developing human resource plans

Strategies for human

resource planners

Collect,

maintain and interpret relevant

information regarding human resources.
Periodically report manpower
objectives, requirements and existing
employment and allied features of
manpower.
Develop procedures & techniques to
determine the requirements of different
types of manpower over a period of
time from the standpoint of
organizations goals.

Develop

measures of manpower utilization as

component of forecasts of manpower
recruitment along with independent
validation.
Employee suitable techniques leading to
effective allocation of work with a view to
improving manpower utilization.
Conduct research to determine factors
hampering the contribution of individuals and
groups to the organization with a view to
modify or removing these handicaps.

Develop

and employee methods of

economic assessment of human
resources.
Evaluate the procurement,
promotion and retention of the
effective human resource.

Benefits of hr planning
Determining

Future Personnel Needs.

Reduced Labor Cost.
Optimum Utilization Of Manpower Force.
Part Of Strategic planning.
Creating highly Talented Personnel.
Identification of Gaps In Existing Manpower.
Career Succession planning.
Improvement In Overall Business planning.
Growth Of The Organization.
Creates Awareness In The Organization
Beneficial To The Country.

Limitations of hr planning
Accuracy

Of Forecasts.
Identity Crisis.
Support Of Top Management.
Resistance From Employees.
Insufficient Initial Efforts.
Management Information System.
Uncertainties.
Expensive And Time Consuming.
Coordination With Other Managerial
Functions.
Unbalanced Approach.

Guidelines for making hrp

effective
Integration

With Organizational

Plan.
Period Of HR Planning.
Proper Organization.
Support Of Top Management.
Involvement Of Operating
Executives.
Efficient And Reliable Information
System.
Balanced Approach.

TACTICS FIRMS USE TO

BALANCE THEIR SUPPLY
AND DEMAND FOR LABOUR

LABOUR SHORTAGE TACTICS

EMPLOYEE

OVERTIME
OUTSOURCING AND CONTIGENT
LABOUR
EMPLOYEE RETENTION

LABOUR SURPLUS TACTICS

LAYOFFS
ATTRITION

AND HIRING FREEZES

EARLY RETIREMENT

WORKFORCE PLANNING IN
PRACTICE:
ORGANIZATIONAL
DEMANDS

Different companies are likely to use

different
workforce planning
tactics which vary according to:
Organizational

demands
Environmental demands
Regulations guide

LABOUR TURNOVER

Measuring Labor Turnover

The

separation rate / Crude

wastage rate
= Number of leavers
100
Average no employed
Stability Index
= No. of emp with one or more years
service
100
No. employed one year ago

Causes of Labor Turnover

Inadequate

wage levels leading

to employees moving to
competitors
Poor morale and low levels of
motivation within the workforce
Recruiting and selecting the
wrong employees in the first
place

Costs of Labor Turnover

Additional

recruitment costs
Lost production costs
Increased cost of training
Potential loss of sales

Benefits of labor turnover

How to calculate staff turnover
1. Decide whether you are going to calculate
monthly, quarterly or annual turnover
2. Determine the total no of ppl,on
average,who were employed during the
time frame
3. Determine the total no voluntary and
involuntary separations over the course of
time period
4. Divide the no of separations by average
no of employees and multiply by 100

Computing Absenteeism Rate

No of worker-days lost through job absence
100
Average no of employees X no of workdays