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Welcome

to
Human Resource Planning

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Human Resource Planning
• Human Resource Planning systematically
forecasts an organization’s future demand for
and supply of employees and matches supply
with demand. By estimating the number and
types of employees that will be needed, the
personnel department can better plan its
recruitment, selection, training, career
planning, and other activities.

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Human Resource Planning

Assessing Future
Assessing Current
Human Resource
Human Resources
Needs

Developing a
Program to Meet
Needs

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At last we can say that Human resource
planning is a process by which an organization
ensures that
• It has the right number and kinds of people
• at the right place
• at the right time
• Capable of effectively and efficiently completing
those tasks that will help the organization
achieve its overall strategic objectives.

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HR Planning Process
• Interfacing with strategic planning and
scanning the environment
• Taking an inventory of the company’s current
human resources
• Forecasting demand for human resources
• Forecasting the supply of HR from within the
organization and in the external labor market

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Process cont..
• Comparing forecasts of demand and
supply
• Planning the actions needed to deal with
anticipated shortage or overages
• Feeding back such information into the
strategic planning process.

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PROCESS OF HUMAN RESOURCE PLANNING
Interfacing with strategic planning

company’s current human


resources

Forecasting demand

Forecasting the supply

Comparing demand and supply

Actions needed to deal with


anticipated shortage or overages

Flow Chart: Process Feedback for strategic HR planning


of HRP
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So HRP is the process by which management
determines how the organization should move
from its current manpower position to its
desired position. Through planning,
management strives to have the right number
and the right kinds of people, at the right
places, at the right time, doing things which
result in both the organization and the
individual receiving maximum long-run
benefits.

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BENEFITS OF HUMAN RESOURCE PLANNING

• Fulfilling basic needs of the employees:


The work involved in formulating human resource policies
requires that the management give deep thought to the
basic needs of both the organization and the employees. The
management must examine its basic convictions as well as
give full consideration to the prevailing practices in other
organizations.
• Consistent treatment:
• Established human resource policies ensure consistent
treatment of all human resource throughout the
organization. Therefore favoritism and discrimination are
minimized.

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• Continuity of action:
• Continuity of action is assured even though top
management human resource change. The manager
of a company may possess a very sound human
resource management philosophy. The tenure of
office of any manager is finite,. But the organization
continues. Policies promote stability.
• Standard of performance:
• Human resource policies serve as a standard of
performance. Actual results can be compared with
the policy to determine how well the members of
the organization are living up to the professed
intentions.

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Benefits cont..

• Building employee motivation and loyalty:


• Sound human resource policies help in building employee
motivation and loyalty. This is especially true where the
policies reflect established principles of fair play and justice
and where they help people grow within the organization.

• Solve interpersonal conflicts:


• Sound human resource policies help to resolve
interpersonal, intrapersonal and inter group conflicts.

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Benefits cont..
Some other benefits of human resource planning:

1. Improves the utilization of human resources,


2. Matches personnel activities and future organizational
activities efficiently.
3. Helps in achieving economy in hiring new workers,
4. Expands the personnel management information base to
assist other personnel activities and other organizational
units,
5. Makes major demands on local lab our markets successfully.
6. Coordinates different personnel management programs and
hiring needs efficiently.

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Benefits cont..

7. Focuses the activities on organizational and


human resource goals. Assists in the
integration of external environmental
influences, organizational and human
resource conditions.
8. Helps in ensuring that HR activities are
proactive by anticipating and adopting to
changes in the external and internal
environment.

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Why Do Workforce Planning?

• The "why" of workforce planning is grounded


in the benefits to managers? Workforce
planning provides managers with a strategic
basis for making human resource decisions. It
allows managers to anticipate change rather
than being surprised by events, as well as
providing strategic methods for addressing
present and anticipated workforce issues.

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• Some components of workforce planning, such as
workforce demographics, retirement projections,
and succession planning, are familiar to managers.
Workforce planning provides focus to these
components, providing more refined information on
changes to be anticipated, the competencies that
retirements and other uncontrollable actions will
take from the workforce and key positions that may
need to be filled. This in turn allows managers to
plan replacements and changes in workforce
competencies.

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• Organizational success depends on having the
right employees with the right competencies
at the right time. Workforce planning provides
managers the means of identifying the
competencies needed in the workforce not
only in the present but also in the future and
then selecting and developing that workforce.
• Finally, workforce planning allows
organizations to address systematically issues
that are driving workforce change.

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HR demand and supply forecasting

• HR Demand Forecasting: Demand refers to the


number and characteristics (e.g., skills, abilities, pay
levels, or experience) of people needed for particular
jobs at a given point in time and a particular place.
HR demand forecasting is the process of estimating
the future quantity and quality of people required.
Demand forecasting must consider several factors-
both external as well as internal. The major external
factors include- competition (both national and
international), economic climate, laws and regulatory
bodies changes in technology and social & cultural
factors.

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Demand forecasting must consider several factors-
both
 External as well as
 Internal.
 The major external factors include- competition
(both national and international), economic climate,
laws and regulatory bodies changes in technology
and social & cultural factors.
 The internal factors include budget and budget
constraints production levels, new products and
services, organization structure policies and
strategies employee separation etc.

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HR supply Forecasting
Supply refers to both the number and characteristics of
people available for those particular jobs. HR supply
forecasting measures the number of people likely to be
available from within and outside the organization after
making provisions for absenteeism internal movement
and promotions wastage and changes in hours and
other conditions of work. The supply analysis covers.
• Existing human resources
• Internal source of supply and
• External source of supply

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Factor Influencing the demand and supply for
labor
A) Factor Influencing the demand for labor
1. Organizations strategy and objectives
2. Demand for goods and services
3. Types of technology used
4. Rate of production by each employee

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B) Factor Influencing the supply for labor

1. Organizations policies- selection,


recruitment, staffing levels, retirement.
2. Attractiveness of jobs available in the
organization.
3. Available skills within the labor market
4. Cost of living in the area
5. Demographic profile of potential recruitment
area
6. National legislation-Employment law.

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Techniques of demand forecasting
The following techniques are followed in
forecasting HR demand:

• Trend analysis
• Ratio analysis
• Scatter plot
• Managerial judgment

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• Trend analysis: Trends analysis means
studying variations in firm’s employment
levels over the last few years. In another
way, study of a firm’s past employment
needs over a period of years to predict
future needs.
• Ratio analysis: Ratio analysis means
forecasting techniques for determining
future staff needs by using ratio between
two variables. For example: sales volume
and number of employees needed
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• Scatter plot: A graphical method used to help
identify the relationship between two
variables. For example: Measure of business
activity and firm’s staffing level levels-are
related.
• Managerial Judgment: Whichever forecasting
approach you use, managerial judgment will
play big role. It’s rate that any historical trend,
ratio or relationship will continue unchanged
into the future. Judgment is thus needed to
modify the forecast based on factors you
believe will change in the future.
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Sources of supply of Human Resource

• There are two source of supply of human


resources:
• Internal source and
• External source
• Internal: Promotion, transfer, demotion, replacement,
skills inventories etc.
• External: Society, Education and training institutions,
employment exchanges labor market conditions
community attitude and tradition demography
(population pyramid) etc.

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Human Resource Inventory
• Organizations maintain a Human Resource
Inventory for the purpose of assessing the
current human resource conditions. The HR
inventory system maintains information about
employees. The information includes the
names, education, training, experience, skill,
prior employment, current position,
performance ratings, salary level, languages
spoken, capabilities, references etc. The HR
inventory is also called skill inventory. Generally seven
broad cater gores of information are included in each
skill inventory. They are:
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• Personal data: name, age, gender, marital status
• Skills: education, experience, training.
• Special qualifications: membership in professional
body’s special achievements.
• Salary and job history: present and past salary,
dates of pay raises, various jobs held
• Company data: Plan data, retirement information,
and seniority.
• Capacity of individual: Sores of psychological and
other tests, performance rating, health
information.
• Special preference of individual: geographic
location, type of job.

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• The inputs of the inventory are generated
from forms completed by employees and then
checked by supervisors and personnel
department. The profile of human resource
inventory can provide crucial information for
identifying current and future threats to the
organization’s ability to perform.

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Strategies to face Surplus and Shortage
situations:
When the internal supply of human resources
exceeds the firm’s demand, human resource surplus
exists. In case of such surplus one of the
following measures are taken by the employers.
• Attrition : Attrition is a process whereby as
incumbents leave their jobs for any reason (voluntary
retirement transfer, resignation, etc), these jobs will
not be filled.

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Usually accompanying the process of attrition
is a hiring freeze. Most employers respond to
the surplus situation with a hiring freeze. This
freeze stops the personnel department from
filling the job openings with external supplies.
The hiring freeze dictates that no recruiting
will take place for jobs that will eventually be
eliminated.

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• Layoffs: Layoffs are temporary loss of
employment to workers: layoffs are used in
case of short-range surplus. Shortage of raw
materials, decrease in demand, machine
breakdown, shortage of power, etc, are the
reasons for layoff.

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• Loaning: Loaning of valuable resources to
other organization is a means of keeping the
loaned employees (normally, managers) on
organization’s payroll and bringing them
back after the crisis is over. The parent
organization pays reduced salary to the
loaned employees, with the difference
usually paid by the new employer.

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• Work sharing: like two people working one-
half time, together constituting one full- time
employee
If the surplus is expected to persist for longer
periods, employers often encourage an early
retirement on a voluntary basis (golden
handshake).

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If the internal supply can not fulfill the organization’s needs, a
human resource shortage exists, In case of shortage;
employers may take a number of measures.
• Recruitment from within (promotion, transfer, etc)
and from outside ( hiring new workers).
• Sub-contracting
• Double shifting
• Assigning additional tasks
• Over timing system
• Eliminating less important jobs etc

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What is Succession Planning?
• Succession Planning is the long-term Human
Relations Strategy of building and holding on
to top talent.
• Important for several reasons:
– The work force as a whole is shrinking
– Many of our top people are retiring
– Skilled talent in our industry is getting more and
more scarce.

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What is Succession Management?
• Succession management is a specific aspect of
human resources management that ensures
that senior or particularly valuable employees
are replaced quickly without loss of
effectiveness
• Succession Management takes succession
planning one step further- that is, it is more
encompassing and active.
– A deliberate and systematic effort by the
organization to encourage individual advancement
and ensure continuity in key positions.

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Business Planning

Human Resource Planning


Succession Management Retention Restructure

Leadership Employment Job/Role


Development Experience Redesign

Diversity Performance Process


Management Management Reengineering

Recruitment & Compensation & Outsource


Resourcing Benefits

Replacement Mapping Rewards &


Recognition
Career
Development Orientation

Friday, September 7, 2018 Training


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A good succession management program
encompasses the following:
•Opportunities for employees to have new
challenges

•Providing employees a chance to have a stake in


the organization and share in the organization’s
success

•Creating a systematic approach to identifying


succession candidates
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A good succession management program encompasses the
following:

• Developing cross-departmental sharing of people and


information

• Working toward a Leadership that rewards managers for promoting


• top employees rather than keeping them for themselves

• Designing career paths that are both vertical and horizontal

• Having a diverse workforce that is representative of the public it serves

• Building a career development plan for all managers and professional


employees

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Philosophy behind a Succession Management
Program
Proactive, strategic human
resources planning for the
future

Commitment to people
Leadership competencies Personal responsibility Development, ensuring
are key to future success and Strategic corporate Internal development and
perspective Promotion whenever
possible

Integration with
performance management
and other key HR systems

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Thanks All

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