HUMAN RESOURCE

PLANNING
Jiwan Jyoti Maini
Faculty, Management Studies
Deptt.
Malout Institute of Management &
Information Technology
Thought for the Day
 Tell me and I’ll forget; show me and I
may remember; involve me and I’ll
understand. Chinese proverb

Word for the Day
 Melancholy n. A deep, pensive, and
long-lasting sadness. adj. Sad, gloomy,
or depressed. “She was in a melancholy
mood.”


Jiwan Jyoti Maini, Faculty, MIMIT
Malout
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Jiwan Jyoti Maini, Faculty, MIMIT
Malout
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CONTENTS
 Opening Case
 MEANING
 OBJECTIVES
 NEED
 IMPORTANCE
 HRP AT DIFFERENT LEVELS
 HRP DOUBLE EDGED WEAPON
 HRP RESPONSIBILITIES
 HRP PROCESS
 LIMITATIONS OF HRP

Opening Case
 Subhiksha Pharma Limited was established in 1985.
 It started experiencing abnormal increase in HR cost by 2004,
consequent upon its revised retention policy.
 Revised retention policy aimed at increase in salaries of
Pharmasists & top level managers more than those of market
leaders.
 Mr. George, has taken over the charge as new CEO in 2005.
 Upon his take over, he began to look for ways to make the
organisation more profitable.
 Through his investigation, he found that company’s HR cost
was too high & was a major cause for dwindling financial
position of the company.
 Mr. George instructed HR manager of the company to
downsize no. of employees by 30% creating a saving of Rs. 3
billion.
 HR Manager, offered a counter proposal that it would be
wise to expand production & marketing operations of the
company by revising the corporate strategy as the market is
providing opportunities for pharmaceutical industry.
 Question: What is your assessment of the situation?
Opening Case
 CEO just paid deaf ear to the counter proposal
of HR manager & consequently the HR
manager initiated the downsizing process.
 HR Manager officially informed the employees
the details of the downsizing programme
 The booming pharmaceutical industry enabled
the employees of Subhishka Pharma to find
jobs in other companies without much difficulty.
 However, most of the displaced employees
were upset about being terminated &
complained as the positions were lower than
their current ones.
 However, most were successfully outplaced by
June, 2006.
 Question: What do you think are the implications of
such an approach?
Opening Case
 The Company’s financial position improved
marginally in 2007 & the CEO told the HR
Manager that we achieved the goal.
 But the HR Manager replied, “we achieved the
goal but we lost an appropriate strategy & our
competitors gained a lot by employing our
trained & expert staff.”
 Questions
1. Who is right: HR Manager or CEO?
2. Would it be appropriate to modify the
strategy based on availability of staff and
also when market is favourable

Jiwan Jyoti Maini, Faculty, MIMIT
Malout
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MEANING OF HRP
 Human Resource Planning is the process by
which a management determines how an
organisation should move from its current
manpower position to its desired manpower
position.
 HRP is the process of getting the right no.
of qualified people into the right job at the
right time.

HRP Defined

 “Human Resource Planning is the process of
determining manpower requirements and means
for meeting those requirements in order to carry
out the integrated plan of the organisation”
Coleman

 “Human resource planning is the strategy for
acquisition, utilization, improvement and
preservation of an enterprise’s human resources.
It relates to establishing job specifications or
quantitative requirements of jobs determining the
number of personnel required and developing
sources of manpower” Stainer
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Malout
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Jiwan Jyoti Maini, Faculty, MIMIT
Malout
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Human Resource Planning

Assessing Future
Human Resource
Needs
Assessing Current
Human Resources
Developing a
Program to Meet
Needs
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Malout
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Human Resource Planning
 We have found the gap, how do we fill
this void?
 How much time should we spend on
identifying the right person?
 Lets follow the trail of what it takes to
hire a new team member in an
organization.
Jiwan Jyoti Maini, Faculty, MIMIT
Malout
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OBJECTIVES OF HRP
 Forecast personnel requirements
 Cope with Changes
 Use existing manpower productively
 Promote employees in a systematic
manner
Need for HRP
 Need assessed from following :
Replacement of Persons
Labour Turnover
 Expansion/Diversification Plans
 Technological Changes

Need for HRP
 Assessing Needs:
 HRP also required to determine shortages/
surpluses of persons.
 If shortage, work will be adversely affected
 Any surplus will increase labour costs etc.
 HRP ensures deployment of proper
workforce.
Jiwan Jyoti Maini, Faculty, MIMIT
Malout
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IMPORTANCE OF HRP
 Reservoir of Talent
 Prepare people for Future
 Expand or Contract
 Cut Costs
 Succession Planning
 Better development of managerial talent

Jiwan Jyoti Maini, Faculty, MIMIT
Malout
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HRP AT DIFFERENT LEVELS
 NATIONAL LEVEL
 SECTORAL LEVEL
 INDUSTRY LEVEL
 UNIT LEVEL
 DEPARTMENTAL LEVEL
 JOB LEVEL
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Malout
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HRP DOUBLE EDGED WEAPON
 Max. utilization of
resources
 Reduces labour
turnover
 Reduces
Absenteeism
 Improves Productivity
 Aids in Achievements
of Org. Goals
 Disruption in flow of
work
 Lower production
 Less Job Satisfaction
 High Cost of
Production
 Lower Morale
Jiwan Jyoti Maini, Faculty, MIMIT
Malout
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HR Planning Responsibilities
 Top HR executive and subordinates
gather information from other managers
for use in the development of HR
projections for top management to use
in strategic planning and setting
organizational goals

Jiwan Jyoti Maini, Faculty, MIMIT
Malout
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 HR Strategies
– The means used to anticipate and manage the
supply of and demand for human resources.
• Provide overall direction for the way in which
HR activities will be developed and managed.
Overall
Strategic Plan
Human Resources
Strategic Plan
HR Activities
HRP PROCESS
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Malout
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HRP PROCESS
DEMAND
FORECASTING
OF HRs
SUPPLY
FORECASTING
OF HRs
DETERMINING GAPS
FORMULATING MANPOWER PLANS
Shortages
Recruitment &
Selection
Surplus
Redundancy,Retirement,
Retrenchment,Redployment,
VRS, Training,
Transfers,Outplacement
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Malout
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DEMAND FORECASTING OF
HRs
 EXTERNAL CHALLENGES
-Economic developments
-Political, Legal, Social & Technical changes
-Competition
 Organisational Decisions
 Workforce factors –Retirements,
Terminations, Deaths, Resignation

Jiwan Jyoti Maini, Faculty, MIMIT
Malout
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DEMAND FORECASTING OF
HRs (Contd.)
 Forecasting Techniques
 Expert forecasts
 Trend Analysis
 Other Methods – regression,optimisation
models etc.
 Workforce Analysis
 Workload Analysis
 Job Analysis
Jiwan Jyoti Maini, Faculty, MIMIT
Malout
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SUPPLY FORECASTING/ PREPARING
MANPOWER INVENTORY
 INTERNAL SUPPLY
FORECAST
 Manning Table
 Replacement Chart
 Skill Inventory
 EXTERNAL
SUPPLY
FORECAST
 Labour Mkt
Conditions
 Macro level factors-
cultural factors,
social norms &
customs
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Malout
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Determining Manpower Gaps
 Demand Forecasting
 Supply Forecasting
 Reconciling of the gap
b/w Demand & Supply
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Malout
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LIMITATIONS OF HRP
 ACCURACY
 SUPPORT
 NUMBER’S GAME
A light heart lives long.
-William Shakespeare
Jiwan Jyoti Maini, Faculty, MIMIT
Malout
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