HRP

Human Resource Planning is a process of forecasting an

organization's future demand for human resource and supply
of right type of people in right numbers.
Employment or personnel planning
• The process of deciding what positions the firm will have to fill, and
how to fill them . Personnel planning covers all the firm ’s future
positions, from low position to Top level. H owever, the term
Succession planning is used to refer to the process of d ecid ing
how to fill the com pany’s m ost im portant executive jobs.
• Staffing Planning:
• Projected turnover (as a result of resignations or
term inations)
• 2. Q uality and skills of your em ployees (in relation to
the changing need s of your organization)
• 3. Strategic d ecisions to upgrad e the quality of prod ucts
or services or enter into new m arkets
• 4. Technological and other changes resulting in
increased prod uctivity
• 5. The financial resources available to your org.
Features of Human Resource Planning

• It is future oriented: –It involves forecasting the

manpower needs for a future period so that adequate
and timely provisions may be made to meet the needs.
• It is a continuous process: – Human Resource Planning
is a continuous process because the demand and
supply of Human Resource keeps fluctuating
throughout the year.
• Optimum utilization of resources: – The basic purpose
of Human Resource Planning is to make optimum
utilization of organization's current and future human
resources.
• Both Qualitative and Quantitative aspect: –
‘Quantitative’ meaning the right number of
people and ‘Qualitative’ implying the right quality
of manpower required in the organization.
• Long term and Short term: –, Human Resource
Planning keeps long-term goals and short-term
goals in view while predicting and forecasting the
demand and supply of Human Resource.
• Involves study of manpower requirement: –
Human Resource Planning involves the study of
manpower availability and the manpower
requirement in the organization.
• Objectives of Human Resource Planning

• Optimum utilization of human resources currently employed in the

organisation.
• To reduce imbalance in distribution and allocation of manpower in
organisation for various activities.
• To ensure that the organisation is well-equipped with the required
Quantity and Quality of manpower on a sustained basis.
• To anticipate the impact of technology on jobs and resources.
• To control cost of Human Resources employed, used and
maintained in the organisation.
• To provide a basis for management development programmes.
• To ensure optimum contribution and satisfaction of the personnel
with reasonable expenditure.
• To recruit and retain human resource of required Quantity and
Quality.
• Need for Human Resource Planning
• Shortage of Skills: –Necessary to plan for skilled people
much in advance than when we actually need them.
Non-availability of skilled people when and where they
are needed is an important factor which prompts
sound Human Resource Planning.
• Frequent Labour Turnover: – Human Resource
Planning is essential because of frequent labour
turnover which is unavoidable by all means. Labour
turnover arises because of discharges, marriages,
promotion, transfer etc.
• Changing needs of technology: – Due to changes in
technology and new techniques of production, existing
employees need to be trained or new blood injected
into an organisation.
• Identify areas of surplus or shortage of
personnel: – Manpower planning is needed in
order to identify areas with a surplus of
personnel or areas in which there is a shortage of
personnel. If there is a surplus, it can be re-
deployed, or if there is a shortage new
employees can be procured.
• Changes in organisation design and structure: –
Due to changes in organisation structure and
design we need to plan the required human
resources right from the beginning.
• Factors affecting Human Resource Plans
• External factor:
• They are the factors which affect the Human Resource
Planning externally. They include:-
• Government policies: – Policies of the government like
labour policy, industrial policy, policy towards
reserving certain jobs for different communities affect
Human Resource Planning.
• Level of economic development: – Level of economic
development determines the level of human resource
development in the country and thereby the supply of
human resources in the future in the country.
• Information Technology: – Information technology
brought amazing shifts in the way business operates.
• Business Environment: – Business
environment means the internal and external
factors influencing the business. Business
environmental factors influences the volume
of mix of production and thereby the supply
of human resources in the future in the
country.
• International factors: – International factors
like the demand and supply of Human
resources in various countries also affects
Human Resource Planning .
• Internal factors:
• Company Strategies: – The organization's policies and
strategies relating to expansion, diversification etc.
determines the human resource demand in terms of
Quantity and Quality
• Human Resource policies: – Human Resource policies
of the company regarding quality of human resources,
compensation level, quality of working conditions etc.
influence Human Resource Planning.
• Job analysis: – Job analysis means detailed study of the
job including the skills needed for a particular job.
Human Resource Planning is based on job analysis
which determines the kind of employees to be
procured.
 Methods to predict.

• Trend analysis Trend Analysis means studying variations in your firm’s

employment levels over the last few years to predict future needs.
• Ratio Analysis Another approach, ratio analysis, means making forecasts
based on the ratio between (1) some causal factor (like sales volume) and
(2) the number of employees required (for instance, number of
salespeople).
• The Scatter Plot A scatter plot shows graphically how two variables.such
as a measure of business activity and your firm’s staffing levels.are related.
If they are, then if you can forecast the level of business activity, you
should also be able to estimate your personnel requirements.
• Managerial Judgment Whichever forecasting
method you use, managerial judgment will
play a big role. It’s rare that any historical
trend, ratio, or relationship will simply
continue unchanged into the future. You’ll
therefore have to modify
• the forecast based on factors. such as projected
turnover or a desire to enter new markets.you
believe will be important.
 Forecasting Inside candidate
• Qualifications inventories
 Manual or computerized records listing employees’ education,
career and development interests, languages, special skills, and
so on, to be used in selecting inside candidates for promotion
 Replacement chart
• Personnel replacement charts
 Company records showing present performance and
promotability of inside candidates for the most important
positions

• Personnel inventory & development record help track

employee qualifications
• Personnel replacement charts are often used for filling a
company’s top positions
• Position replacement card
A card prepared for each position in a company to
show possible replacement candidates and their
qualifications
Skill Inventory : Biography profiling about the job
incumbent.
Management Inventory.Profilling about the
managers of the organisation.
Secession planning.
 Computerized system
• Work experience codes. A list of work experience titles, or cod es d escribing the person’s jobs within
the com pany.
• Product knowledge. The em ployee’s level of fam iliarity with the em ployer’s prod uct lines or
services.
• Industry experience. The person’s ind ustry experiences, since for som e positions work in related
ind ustries is very useful.
• F ormal education. Each postsecond ary ed ucational institution attend ed , field of stud y, d egree
granted , and year granted .
• Training courses. Those taken or cond ucted by the em ployee, includ ing courses taught by outsid e
firm s like the Am erican M anagem ent Association.
• F oreign language skills. Which languages; d egree of proficiency, spoken and written.
• Relocation limitations. The em ployee’s willingness to relocate and the locales he or she would
prefer.
• Career interests. Work experience cod es to ind icate what the em ployee would like to be d oing for
the em ployer in the future.
• Performance appraisals. U pd ated period ically, along with a sum m ary of the em ployee’s strengths
and d eficiencies.
• Skills. Skills such as “d esign graphic interface” (num ber of tim es perform ed , d ate last perform ed ,
tim e spent), as well as skill level, perhaps ranging from level 1 (can lead or instruct others) to level 3
(has som e experience: can assist experienced workers).
Replacement chart
Commitment Manpower Planning:

• 1. Supply of employees and promotability and

placement status of each.
• 2.The organization demands, arising from new
positions and turnover and projected
vacancies for each job title.
• 3.The balance or status of supply versus
demand, including the name, job, location of
all those suitable for promotions.
Ratio analysis: A tool used in human resource
planning to measure the organization's human
resource vitality as indicated by the presence
of promotable personnel and existing backup.