Human Resource

Management
By
Dr. Shubhasree Bhadra
 Planning Process
• HRP essentially involves forecasting personnel needs, assessing personnel
supply and matching demand-supply factors through personnel-related
programmes. The planning process is influenced by overall organizational
objectives and environment of business.
 Steps of HRP
• Environment Scanning
• Organizational Objectives and Policies
• HR Demand Forecast
• HR Supply Forecast
• HR Programming and HR Plan implementation
• Control and Evaluation
 Planning Process
Environment

Organisational Objectives and Policies

HR needs forecast HR supply Forecast

HR programming

HRP implementation
Control and evaluation of
programme
 Environment Scanning
• Environmental scanning refers to the systematic monitoring of external forces
influencing the organization. Managers monitor several forces but the following are
pertinent for HRP:
• Economic factors, including general and regional conditions.
• Technological changes, including robotics and automation.
• Demographic changes, including age, composition and literacy.
• Political and legislative issues, including laws and administrative rulings.
• Social concerns, including child care and educational facilities and priorities.
 Organizational Objectives and Policies
• HR plans need to be based on organizational objectives. This implies that the
objectives of HR plan must be derived from organizational objectives. Specific
requirement in terms of number and characteristics of employees should be derived
from organizational objectives.
• Organizational objectives are defined by the top management and the role of HRP
is to subserve the overall objectives by ensuring availability and utilization of
human resources.
• Once the organizational objectives are defined , specified, communicated and
understood by all concerned, the HR department must specify its objectives with
regard to HR utilization in the organization
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• In developing these objectives, specific policies need to be formulated to address
the following matters:
• Are vacancies to be filled by promotions from within or hiring form outside?
• How to the training and development objectives interface with the HRP objectives?
• What union constraints are encountered in HRP and what policies are needed to
handle these constraints?
• How to enrich employee’s job? Etc…..
 HR Demand Forecast
• HR demand forecasting is a critical step in the HRP process. The role of the
HR department here is critical and can steer the organization to profitability
or result in its ultimate death.
• Effective demand forecasting is the process of estimating the future quantity
and quality of people required, and the best way in which to meet this
demand. This basis of the forecast must be the annual budget and long-term
corporate plan, translated into activity levels for each function and
department.
 Continue….
• Demand forecasting must consider several factors – both external as well as
internal. Among the external factors competition(foreign & domestic),
economic climate, laws, regulatory bodies, changes in technology and social
factors. Internal factors includes budget constraints, production levels, new
products and services, organisational structure and employee separations.
 Continue…
• Good reasons to conduct demand forecasting are:
• Quality of jobs necessary for producing a given number of goods or services
• Determine what staff-mix is desirable in the future
• Assess appropriate staffing level in different parts of the organisation so as to avoid
unnecessary costs
• Prevent shortage of people where and when they are needed most
• Monitor compliance with legal requirements with regard to reservation of jobs
 HR Supply Forecast
• Personnel demand analysis provides the manager with the means of
estimating the number and kind of employee that will be required. the next
logical step for the management is to determine whether it will be able to
procure the required number of personnel and the source of such
procurement. This information is provided by supply forecasting, also called
bench forecasting.
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• Reasons for supply forecast are :
• Helps quantify number of people and position expected to be available in future to
help the organization realise its plan and objective
• Helps clarify likely staff mixes that will exist in future
• Assess existing staffing levels in different parts of the organisation
• Prevent shortage of people where and when they are most needed
• Monitors expected future compliance with legal requirement of job reservations
 Continue….
• HR supply analysis covers:
• Present human resources
• Internal sources of supply
• External sources of supply
 HR Programming
• Once the organisation’s personnel demand and supply are forecast, the two
must be reconciled or balanced in order that vacancies can be filled by the
right employees at right time. HR programming, the third step in the
planning process. Key human resource staffing decisions are made and
approved by the senior management of the organization.
 HR programmes
• The essential six HR programmes that arise out of a HRP exercise
Hire Train Re-train/Re-Ski Retrench No action Succession
ll
Hire resources to Train the existing Identify areas of Letting go of No action to be This activity
meet the needs resources or surplus resources resources in taken by HR might take place
of the obtain trained or redundant accordance with team to either independent or
organisation's resources to meet resources to organizational hire or retrench the part of the
plan the business re-skill them with norms and HRP process
needs new skills that industry standard
are required to
meet the
business needs
 HR Plan Implementation
• Implementation requires converting HR plan into action. A series of action
programmes are initiated as a part of HR plan. Such programmes are
recruitment, selection and placement, training and development, retaining
and reployment.
 Control and Evaluation
• control and evaluation represents the final phase in the HRP process. In
recent times this activity has risen in prominence. The senior management is
entrusted with the responsibility to constant review the HRP alongside the
achievement of the business plan.
 Reference
• K Aswathappa – Human Resource Management Text and Cases 8th edition
Chapter 4 , pp 109-124
• Thank you