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HUMAN RESOURCE

PLANNING
Human Resource Planning
 Meaning – Assessment of Human Resource
Requirements & also the time & stages of
requirement.

 Right person ---At Right place ---At Right


time.

 Definition – HRP is defined as the process


by which management determines how an
org should move from its current manpower
position to its desired manpower position.
Meaning & Definitions:
 HRP is understood as the process of forecasting
an organization’s future demand for, and supply
of , the right type of people in the right number.
 HRP is a subsystem in the total organizational
planning.
 Organizational planning includes managerial
activities that set the company’s objectives for
the future and determine the appropriate means
fort achieving those objectives (Terry & Crino,
1990).
 HRP facilitates the realization of the company’s
objectives by providing the right type and the
right number of personnel.
 The other names of HRP are manpower
planning, personnel or employment planning.
Human resources planning is the process by which an
organization ensures that it has the right number and
kind of people, at the right place, at the right time,
capable of effectively and efficiently completing those
tasks that will help the organization achieve its overall
objectives.

HRP translates the organization’s objectives and plans


into the number of workers needed to meet those
objectives. Without a clear –cut planning, estimation of
an organization’s human resource need is reduced t
mere guesswork.
Objectives of HRP
 To ensure optimum use of existing HR.
 To forecast future requirement for HR.
 To provide control measures to ensure
that necessary HR are available as and
when required.
 To asses the surplus and shortage of
HR. (Downsizing).
 To anticipate the impact of technology
on jobs and HR.
Objectives of HRP – Contd.
 To determine the level of Recruitment
and Training.
 To estimate the cost of HR and
Housing needs of employees. (Or
HRA).
 To provide the basis of MDP.
 To meet the needs of expansion and
diversification programs.
Importance of HRP
 Future Personnel needs
 Part of strategic planning
 Creating highly talented personnel
 International Strategies
 Foundation of personnel function
 Increasing investments in Human
Resources
 Resistance to change and move.
Other Benefits:
 Upper management has a better view of the HR
dimensions of a business decision.
 Personnel costs may be less because the
management can anticipate imbalances before
they become unmanageable and expensive.
 More time is provided to locate talent.
 Better opportunities exist to include women and
minority groups in future growth plans .
 Better planning of assignments to develop
managers can be done.
 Major and successful demands on local labor
markets can be done.
Factors Affecting HRP
Organizational
Type & growth cycle
& planning Environmental
Strategy of
Uncertainties
Organization

Time Horizons Outsourcing


HRP
Type &
Quality of Nature of
Forecasting Jobs being
Info. Filled
Type and Strategy of Organization:
Growth through Mergers
Internal Growth
and Acquisitions

Narrow Broad

Informal Formal

Reactive Proactive

Inflexible Flexible
HRP Process (contd.)
 HR Programming-:
 Once the Organization’s HR Demand and
Supply are forecast, the two must be
reconciled or balanced in order that
vacancies can be filled by the right
employee at the right time.

 HR Plan Implementation-:
 Implementation requires converting an
HR plans into action. (Recruitment,
Training, Succession plan etc.)
HRP Process
Environment

Org objectives & policies

HR Need Forecast HR Supply Forecast

HR Programming

HRP Implementation

Control & Evaluation

Surplus Shortage
HRP Process (Contd.)
 Environmental Scanning - :

1) Economic factors
2) Technological Changes
3) Demographic changes
4) Political and legislative issues
5) Social concerns
HRP Process (Contd.)
Org objectives and policies-:

 HR plans need to be based on org


objectives, this implies that the
objectives of the HR plan must be
derived from Org objectives.
HRP Process (Contd.)
HR Demand forecast-:
 The process of estimating the future quantity
and quality of people required.
 The basis of forecast will be annual budget and
long term corporate plans.
 Demand forecasting must consider several
factors like internal (Budget constraints,
employee separations, production level) and
external (Competition, laws, change in
technology).
HRP Process (Contd.)
 Demand forecasting techniques are-:
 Managerial judgment
 Ratio trend analysis
 Delphi technique
 Regression analysis

 HR Supply forecasting-:

 Supply forecasting measures the number of


people likely to be available from within and
outside an org.
HRIS

 HRIS is a database system that keeps


important information about employees
in a central and accessible location.

 The information provided by HRIS can


help the organization to gain competitive
advantage. (SWOT of org.)
Information categories of HRIS
 Basic non confidential information-:

Employee name, Org name, Work location

 General non confidential information -:

Social security number, Position related


information (codes, tittles, effective date)
Info categories of HRIS (contd.)

 Extended information with salary -:

Information of previous category,


Bonus information, Projected salary
increase information, Performance
evaluation information.