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Human Resource Planning

- Prof. Hema Kapoor

 Human Resource Planning

 Process of Human Resource Planning

 Techniques of HR Planning
HR Planning
 Process by which the company identifies
the number of jobs vacant, whether
there is excess staff or shortage of staff
& to deal with this excess or shortage

 Process of analyzing & identifying the

need for and availability of human
resources so that the organization can
meet its objectives
HR Planning process
External Supply
External Supply Defined
 Government regulations & pressures
 Economic forecasts for next few years
 Net migration into and out of the area
Geographic &  Individuals entering/ leaving
Competitive workforce- Factors affecting persons
Concerns entering & leaving
 Actions of competing employers

composition &  Working patterns and arrangements
work patterns
Internal Supply
 Ensures that people are available to
meet requirements set during strategic
 Assessing current human resources
 Human resources inventory report
summarizes information on current workers
& their skills
HR Information System (HRIS)
 HRIS are computerized databases that
contain important information about
 PAN number
 Date of birth/ joining
 Information about dependents
 Educational background
 Past experience
Internal Supply: Factors
 Promotions, lateral moves & terminations
 Training & development programs
 HR policies
 Succession Planning
 Replacement charts
 Organizational capabilities inventory data
 Transition matrix or Markov matrix
 Model using probabilities
Internal Supply
HR Planning
Corporate Analysis
• Objective and Strategies
Manpower objectives
• Company organization Plans
& policies • Market forecasts & budgets
• Financial plans
• Production targets

Demand Forecast Manpower Gaps Supply Forecast

• Numbers • Surplus of numbers • Manpower inventory
• Job Categories & skills • Losses & additions
• Skill Requirements • Shortages • External supply

Manpower Plans
• Recruitment & selection
• Training & development
• Retrenchment
• Productivity

Modify organizational
Monitoring & Control plans
Techniques of HR Planning

Approaches to
HR Demand Forecasting

Quantitative Qualitative

Trend analysis Expert forecasts

Mathematical models Delphi technique

Nominal group technique

Techniques of HR Planning
 Quantitative Techniques:

 Trend Analysis – forecasts employment

requirements on the basis of some
organizational index. Example:
compensation, sales)
 Mathematical Models – like statistical
regression analysis, simulation model
Techniques of HR Planning
 Qualitative Techniques:
 Expert forecasts – managers estimate future HR
requirements based on their experiences & judgments
 Delphi technique – uses input from a group of
• The experts opinions are sought using separate
questionnaires on what forecasted situations will be
• These expert opinions are then combined & returned to
the experts for a second anonymous opinion
• The process continues through several rounds until the
experts essentially agree on a judgment
 Nominal group technique – unlike the Delphi
technique, requires experts to meet face to face
• Their ideas are usually generated independently at first,
discussed as a group & then compiled as a report
“Plan Ahead: It wasn’t raining when Noah built the

- Anonymous