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Chapter 4

Human Resource Planning

Learning Objectives

• Understand the nature and importance of

• Identify and describe factors affecting
• Describe the stages in HRP process
• List pre-requisites for effective HRP

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Factors Affecting HRP

• Type and strategy of organization

• Organisational growth cycles and
• Environmental uncertainties
• Time horizon
• Type and quality of information
• Nature of jobs filled
• Outsourcing

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Factors Affecting HRP

Growth Cycle
and Planning

Type and
Strategy of Environmental
Organisation Uncertainties

Time Horizons Outsourcing

Type and
Quality of Nature of Jobs
Forecasting being Filled

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HRP Process

Organisational Activities
and Policies

HR Needs Forecast HR Supply Forecast

HR Programming

HRP Implementation

Control and Evaluation

of Programme

Restricted Hiring
Reduced Hours
Selection, etc
VRS, Layoff, etc

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• In earlier times all the human resources

were recorded manually or in paper but
now a days all the information are
gathered or recorded through the usage
of information technology.

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Human Resource Information System

• The human resource information system

(HRIS) is a systematic procedure for
collecting, storing, maintaining retrieving
and validation of the data needed by an
organization about its human resources.

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Sub system

Job Analysis
Maintenance Personnel
Sub-system Sub-system

Training &
sub-system Selection
HRIS Sub-system

Performance Manpower
appraisal planning
Sub-system Sub-system

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Purpose and Significance of Human Resource Information system

1. Integrated view of the HR Functions.

2. Availability of timely and accurate information about
human resource.
3. Development of performance standards of human
4. Development of Individuals through linkage between
performance, rewards and job-training.
5. Capability for quickly and effectively create cross
functional teams for problem solving.
6. Design and implementation of training program based
on knowledge of organizational needs.
7. Economy in management of human resource data.

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Requirements of sound HRIS

1. It should supply complete, accurate and timely data so that it can

be used for effective planning and decision making.
2. It should identify the inter-related operational and performance
variables and developed a relationship of these variables which
can be projected to forecast the future trends.
3. It should identify the separate needs of all units of a
decentralized organization so that these needs can be attended
to without duplication and waste of efforts.
4. It should ensure the data is presented in a summarized form so
that action can be initiated without further interpretation and
5. It should provide flexibility so that the system can be adopted to
the change whenever and wherever necessary.

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Application of HRIS

1. Applicant tracking
2. Job person matching
3. Job posting
4. Job requirement analysis
5. Career planning
6. Job evaluation
7. Compensation
8. Performance appraisal
9. Research and audit
10. Development need analysis

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Advantages of HRIS

• Reduction in the cost of stored data

• Higher speed of retrieval and processing of data
• Reduction in duplication of efforts leading to reduction
in cost
• Availability of accurate and timely data about human
• Better analysis leading to more effective decision
• More meaningful career planning and counselling at all
• Improved quality of reports
• Better ability to respond to environmental changes.
• More transparency in the system

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process of HRIS

• Determination of information needs

• Designing the system
• Implementation
• Monitoring and Evaluation

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Limitations of HRIS

• Effective application needs large-scale

computer literacy.
• Absence of continuous up-dating makes
the information stale.

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Uses of a Human Resource Information
Systems (HRIS)
HR Planning and Analysis
• Organisation Charts
• Staffing Projections
• Skills Inventories
• Turnover Analysis
Employee and Labour Relations
• Absenteeism Analysis
• Union Negotiation Costing
• Restructuring Costing
• Auditing Records Equal Employment
• Internal Job Matching
• Attitude Survey Results • Affirmative Action Plan
• Job Description Tracking
• Exit Interview Analysis • Applicant Tracking
• Employee Work History • Workforce Utilisation
• Availability Analysis

Health, Safety and Security Staffing

• Safety Training HRIS • Recruitment Sources
• Accident Records • Applicant Tracking
• Material Data Records • Job Offer Refusal

Compensation and Benefits HR Development

• Pay Structures • Employee Training Profiles
• Wage/Salary Costing • Training Needs Assessments
• Flexible Benefit Administration • Succession Planning
• Vacation Usage • Career Interests and Experience
• Benefits Usage Analysis

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Strategic HR Initiatives
Strategy HR Initiative

Strategies for Managing Strategies for Managing

Shortages Surplus

• Recruit new permanent • Hiring freeze

employees • Do not replace those who leave
• Offer incentives to postpone • Offer VRS schemes
retirement • Reduce work hours
• Re-hire retirees part-time • Leave of absence
• Attempt to reduce turn-over • Across the board pay-cuts
• Work current staff overtime • Layoffs
• Subcontract work to another • Reduce outsourced work
company • Employee training
• Hire temporary employees • Switch to variable pay plan
• Redesign job process so that • Expand operators
fewer employees are needed

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• Can you take inventory of who succeeded

whom in the Indian corporate sector? For
example, Mukesh and Anil succeeded the
late Dhirubhai Ambani, so also Nandan
Nilekani stepped into the shoes of
Narayana Murthy. Proceed on these lines.

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