You are on page 1of 12

CH-5 Human Resource Planning

Chapter
Human Resource Planning

Copyright © 2010, VSP Rao

5– 1

Human resource

Management (3rd Edition)

V S P Rao

Excel Books

Copyright © 2010.CH-5 Human Resource Planning Introduction Human Resource Planning (also called employment or personnel planning) is essentially the process of getting the right number of qualified people into the right job at the right time so that an organisation can meet its objectives. VSP Rao 5– 2 Human resource Management (3rd Edition) V S P Rao Excel Books .

abilities etc. VSP Rao 5– 3 Human resource Management (3rd Edition) V S P Rao Excel Books . the division. experience.—in terms of quality?  Where do we need the employees—the location. knowledge. six months etc.CH-5 Human Resource Planning Five Keys Questions in Human Resource Planning   How many employees do we need—in terms of numbers? What are we looking for in terms of skills. in the next three months.?  How long do we need them—for a limited period or for a long period? Copyright © 2010. the department?  When do we need the employees—immediately.

CH-5 Human Resource Planning Features    Forward looking In sync with organisational needs In tune with corporate plan   Proactive Get qualified people at a right time Copyright © 2010. VSP Rao 5– 4 Human resource Management (3rd Edition) V S P Rao Excel Books .

CH-5 Human Resource Planning Objectives HR planning is required to meet the following objectives: (Reilly. VSP Rao 5– 5 Human resource Management (3rd Edition) V S P Rao Excel Books . Overman)    Forecast personnel requirements Cope with changes Use existing manpower productively  Promote employees in a systematic manner Copyright © 2010.

CH-5 Human Resource Planning Importance  Reservoir of talent     Prepare people for future Expand or contract Cut costs Succession planning Copyright © 2010. VSP Rao 5– 6 Human resource Management (3rd Edition) V S P Rao Excel Books .

banking sector. Political. sales and production forecasts. 3. 4. iii. resignation. Judgmental Methods Trend Analysis Mathematical Model Computer model V S P Rao Cont…. 2. External challenges i. termination.CH-5 Human Resource Planning The Process of Human Resource Planning Forecasting the Demand for Human Resources 1. legal. Economic developments(Liberalization. online trading ii. ii. new ventures) Workforce factors (retirement. death) Forecasting techniques i. social and technical changes Competition (thin margin of profit. Copyright © 2010. reduce workforce) Organizational decisions (strategic plans. VSP Rao 5– 7 Human resource Management (3rd Edition) Excel Books .

CH-5 Human Resource Planning Preparing Manpower Inventory (Supply Forecasting) 1. External labour supply 5– 8 Copyright © 2010. abilities. 3. Internal labour supply i.Forecasting Techniques Staffing table (age. 2. iii. VSP Rao Human resource Management (3rd Edition) V S P Rao Excel Books . sex. experience. position. experience.predict future) Skills inventory (knowledge. qualification) Markov analysis on the basis of past probabilities. career aspirations of every employee) iv. Replacement chart (shows a profile of job holders department wise and offers a snapshot of who will replace whom if there is a job opening) Cont…. skills.. ii.

VSP Rao Human resource Management (3rd Edition) V S P Rao Excel Books . layoffs)  Training plan   5– 9 Productivity plan (reasons for increase in productivity. golden handshake.CH-5 Human Resource Planning Formulating HR Plans   jobs Recruitment plan Redeployment plan(transferring or retaining existing employees for new  Redundancy plan(who is redundent when and where. plan for re training. job redesign) Retention plan Copyright © 2010.

VSP Rao 5– 10 Human resource Management (3rd Edition) V S P Rao Excel Books . Copyright © 2010.CH-5 Human Resource Planning Responsibility for HRP  Assist and counsel operating managers to plan and set objectives.  Collect and summarize manpower data keeping long-run objectives and broad organisational interests in mind.  Monitor and measure performance against the plan and keep top management informed about it.  Provide proper research base for effective manpower and organisational planning.

VSP Rao 5– 11 Human resource Management (3rd Edition) V S P Rao Excel Books . 3. Objectives Top management support Employee skills inventory 4. 2. Human Resource information system 5.CH-5 Human Resource Planning Effective Human Resource Planning 1. Coordination Copyright © 2010.

VSP Rao 5– 12 Human resource Management (3rd Edition) V S P Rao Excel Books .CH-5 Human Resource Planning How Companies should Deal with imbalances in labour Supply When faced with a shortage             Recruit new full time employees Offer incentives for postponing retirement Rehire retired employees part time Attempt to reduce turnover Work Present staff overtime Subtract work to another firm Hire temporary hands Re-engineer to reduces needs Out source an entire function Use technology to improve productivity Re-allocate people from elsewhere in the organisation Re-allocate work tasks among current employees        When Faced with a surplus Do not replace employees who leaves Offer incentives for early retirement Transfer or re-assign excess staff Use slack time for employees training or equipment maintenance Reduce work hours Lay off employees Freeze hiring Copyright © 2010.