HUMAN RESOURCE PLANNING

 HRP is the process of forecasting a firm’s future

demand for, and supply of, the right type of people
in the right number.
 Importance of HRP:
 Future Personnel Needs
 Part of Strategic Planning
 Creating Highly Talented Personnel
 International Strategies
 Foundations for Personnel Functions
 Increasing Investments in Human Resources
 Resistance to Change & Move
 Unite the Perspectives of Line and Staff Managers
 Other Benefits
 Factors Affecting HRP:

 Type & Strategy of the Organization

 Organizational Growth Cycles & Planning
 Environmental Uncertainties
 Time Horizons
 Type & Quality of Information
 Nature of Jobs being Filled
 Outsourcing
 Environment

Organizational Objectives &

Policies

HR Needs Forecasts HR Supply Forecasts

HR Programming

HRP Implementation

Control & Evaluation of

Programme

Surplus Shortage
 Demand Forecasting Techniques:
 Managerial Judgement
 Ratio- Trend Analysis
 Regression Analysis
 Work Study Techniques
 Delphi Technique
 Flow Models
 Others
 Supply Forecasts:
 Determines whether the HR department will be able to
procure the required number of personnel. And it
specifically measures the number of people likely to be
available from within and outside the organization.
 Present Employees
 Skills Inventories
 Internal Supply
 Inflows & Outflows
 Turnover Rate
 Conditions of Work & Absenteeism
 Productivity Level
 Movement of Jobs
 External Supply
 Estimation of Internal Supply:
Current Personnel Level = 250
Sources of No. of People Sources of No. of People
Inflow Outflow
Transfers In 12 Resignations 13
Promotions In 10 Discharges 02
Demotions 04
Retirements 10
Promotions 13
Total Inflows 22 Total Outflows 42

Current Personnel Levels – Outflows + Inflows = Internal Supply

250- 42 + 22 = 230