Human Resource Planning/

Manpower Planning
“If you wish to plan for a year sow seeds
If you wish to plan for ten years plant trees
If you wish to plan for a life time develop men”

HRP is a process of ensuring the right number

and kinds of employees, at right places, at right time,
capable of effectively and efficiently completing those
tasks that help the organization to achieve its goals
 Human Resource Planning/
Manpower Planning

HRP is a systematic effort that comprises

three key elements-
•Workforce forecast
•Manpower assessment
•Staffing programme
 Human Resource Planning/
Manpower Planning
According to Stainer HRP is a strategy for
acquisition , utilization, improvement and
preservation of an enterprise’s human
resources. It is a way of dealing with people
in a dynamic situation.
 Objectives of HRP

• To link HRP with organizational planning

• To ensure the optimum use of human resources
currently employed.
• To access or forecast future skills requirements
• To provide control measures to ensure that
necessary recourses are made available as and
when required.
 Objectives of HRP

• To determine recruitment levels.

• To anticipate redundancies and avoid unnecessary
dismissals.
• To determine optimum training levels.
• To provide a basis for management development
programmes.
• To deploy the manpower in new projects.
• To decide whether certain activities need to be
subcontracted.
 Steps in HRP
1. Preparation of long term plans of the organization
2. Breaking the long-term plans into annual plans
3. Deciding on the manpower requirements every year,
keeping in view the long term plans
4. Conducting manpower audit to find out the
promotability of existing employees to higher levels
whenever vacancies exits.
5. Detailing out manpower requirements (position
wise) for the coming year on the basis of above
steps
6. Initiating recruitment and promotions.
 Benefits of HRP
• Reduce labor costs associated with attrition.
• Reduce recruiting & replacement costs.
• Focus training resources appropriately.
• Increase the ability to take advantage of new
business opportunities.
• Improve employee morale & satisfaction
• Control rapid expansion or reduction in workforce.
• Monitor staffing and retention policies.
(1) Forecasting Future Human Resources Needs:
Organizational goals and objectives serve as a starting
point for forecasting human resources needs.
The demand for labour is derived from the demand for
an organization's goods and services.
HRP should be focused on long –range plans of the
organization rather than short –term replacement needs.
 The Human Resource Planning Process

(2) Projecting Human Resources Supply:

Projections are estimates of the number and kinds of
employees that can be expected to constitute an
organization ‘s workforce at some future point in time.
Projections are based on a careful assessment of an
organization's current supply, plus consideration of
Employee movement into, through, and out of
organizations.
 The Human Resource Planning Process

(3) Comparing Forecast Needs with Projection Supply:

The third step is to compare the forecast needs for
human resources with the projections of internal
supply. By subtracting the projected supply from the
forecast needs, planners can determine an
organization's net employee requirements for a future
point in time.
 The Human Resource Planning Process

(4) Planning Policies and programmes:

After net employee requirements determined, planners
generate and evaluate alternative resources policies and
programmes designed to handle anticipated shortages
and surpluses.
 The Human Resource Planning
Process

(5)Evaluating HRP Effectiveness:

After net employee requirements determined, planners
generate and evaluate alternative resources policies and
programmes designed to handle anticipated shortages
and surpluses. Evaluating in terms of costs and benefits
is difficult. Though planning has definite costs, its
benefits are more intangible and difficult to measure.
An obvious measure of planning effectiveness is how well
human resource needs are anticipated and met.
 Human Resource Forecasting Techniques

Demand Forecast :
It is the process of estimating the future quantity and
quality of people required. The basis of forecast is
annual budget, long –term corporate plans. These
are translated into activity levels for each function
and department . Several factors which affect the
forecasting are categories as -
External Factor- Economic climate, competition,
change in technology etc.
Internal factor- Budget constraints, productivity
levels, new products and services etc.
 Human Resource Forecasting Techniques
Supply Forecast :
HR demand analysis provides the management with
means of estimating the number and kind of employees
that will be required. The next logical step is to
determine whether it will be able to procure the required
no. of personnel and the sources of such procurement.
This information is provided by supply forecasting.
Supply forecasting measures the number of people likely
to be available from within and outside an organization
after making allowance for absenteeism, employee
turnover and changes in working hours, working
conditions etc.
 Human Resource Forecasting Techniques

Judgment & Experience :

This technique is used in smaller companies.
Managers of the various units of the business
,make estimates of future manpower needs by
judgmentally converting information on short
term future business activity into numbers and
types of people needed.
 Human Resource Forecasting Techniques

Raito-trend Analysis :
This is quickest forecasting technique.
This technique involves studying past ratios,
between the number of workers and sales in
organization and forecasting future ratios,
making some allowance for changes in the
organization or its methods.
 Human Resource Forecasting Techniques
Work Standard Data :
Comprehensive sets of data for man-hours or
units to perform various productivity tasks are
being set as work standard by organizations.
For each dept. the projected units of output are
converted into man-hours, man-days and
number of employees by applying the
established time standard.
A Successful HRP requires
a joint effort by the Human
Resource Department and
the operating mangers of
the organization.
 Employee Recruitment
Recruitment is the development and
maintenance of adequate manpower
sources. It involves the creation of a pool
of available human resources from which
the organization can draw when it needs
additional employees. Recruiting is the
process of attracting applicants with
certain skills , abilities and other personal
characteristics to job vacancies in an
organization.
 Employee Recruitment
The function of recruitment is to locate the
sources of manpower to meet job
requirements and specifications.
Recruitment forms the first stage in the
process which continues with selection
and ceases with the placement of
candidates.
 Employee Recruitment
Most organizations use a mixture of
internal and external sources –promoting
from within when qualified employees are
available and recruiting from external
sources when new skills are needed or
growth is rapid.
 Recruitment Process
1. Define the job
2. Establishing the person profile
3. Making the vacancy known
4. Receiving and Documenting Applications
5. Designing and using the Application form
6. Selection
7. Notification and final checks
8. Induction.
 Recruitment Philosophy
The key issues in recruitment philosophy are:
• Whether to promote employees from within
the organization or to hire from outside for
various vacancies at all levels.
• Whether the emphasis will be merely filling
of vacancies or hiring employees for long
term careers.
 Sources of Manpower Supply
Internal Sources relate to the existing
working force of the enterprise.
External Sources relate to the employment
exchanges, colleges, institutes, and
universities.
 Employee selection
Individual differ in their ability to perform the
different types of activities. They differ in
their physical characteristics, intelligence
and intellectual aptitudes etc. Because of
these large differences in human abilities,
proper selection is very important in an
organization.
 Employee selection
Recruitment is selling the idea that a
particular organization is a better place to
work than a competitive organization.
Selection is basically staffing the people at
right places according to their
competence.
 Employee selection Process
1. Initial Screening interview
2. Completion of the application form
3. Employment Tests
4. Comprehensive Interview
5. Background Interview
6. Physical Examination
7. Final Employment Decision