Human Resource Planning

Human Resource Planning

• Human resource planning is the process

of forecasting the supply and demand for
human resources within an organization
and developing action plans for aligning
the two.
• Human Resource Planning process:

Analyzing the organizational plans

Forecasting the supply of human resources

Forecasting the demand for human resources

Comparing forecasted supply and forecasted demand

Taking appropriate actions

 Forecasting supply of human
resources
• Records/historical data – internal supply of HR -
organizations ability to hire and retain
employees
• HRIS – is an integrated and increasingly
automated system for maintaining a database
regarding the employees in an organization.
• Mathematical trend models
• Executive succession
 Forecasting the demand for human
resources
• Determining the number and type of people the
organization will actually need to employ in the
future.
• Assessing the organizations own strategic plans
regarding growth, stability, diversification or
decline.
• Considering the broader trends in the economy
(scanning external environment)
 Need for HRP
• Shortage of certain categories of employees
• Rapid changes in technology, marketing, management
etc. and the consequent need for new skills and new
category of employees
• Changes in organization design and structure affecting
manpower demand
• Demographic changes like changing profile of the
workforce in terms of age, education
• Govt. policies w.r.t. reservation, child labor, working
conditions
• Pressure from trade unions
 Benefits of HRP
• HRP offsets uncertainties
• Enables the organization to have the right type of people
• Helps anticipate the cost of salary enhancement
• Checks for redundancy of manpower
• To plan for facilities like canteen, conveyance, childcare
centres, quarters,
• Facilitates recruitment, selection, training and
deveopment
 Factors affecting HRP
• External factors
– Govt. policies – lab. Policies, IR policy, reservations
– Level of economic development
– Business environment
– Level of technology
– International factors
– Outsourcing
• Internal factors
– Co. strategy
– HR policy
– Job analysis
– Competitive environment
– Type and quality of information
– Co.’s production policy – make or buy
– Trade unions
 Job Design
• Job design is deciding the content of
the job and relationships
• Content of job in terms of its duties and
responsibilities; methods to be used in
carrying out the job, in terms of
techniques, systems and procedures .
• Relationships that should exist between
the job holder and his superiors,
subordinates and colleagues
• Job rotation: refers to the movement of an
employee from one job to another
• Job enlargement: adding more and
different tasks to a job to provide greater
variety (horizontal job loading)
• Job enrichment: adding duties and
responsibilities that will provide for skill
variety, task identity, task significance,
autonomy.
 Job Analysis
• It is the process of determining the nature
of a specific job.
• Determining the tasks, skills, knowledge,
abilities and responsibilities required for
the successful performance of the job.
• Job description
• Job specification
 Use of Job Analysis
• Employment
• Organization Audit (job audit)
• Training and development programmes
• Performance appraisal
• Preventing dissatisfaction and settling
complaints
• Discipline
• Induction
• Industrial relations
• It is the process of developing a pool of
qualified applicants who are interested in
working for the organization and from
which the organization might reasonably
Recruiting
select the best individual or individuals to
hire for employment.
 Goals of recruiting
• Optimize the size of the pool of qualified
applicants.
• Generating a pool of potential employees
who have a reasonable chance of being
successful on the job.
• To offer an honest and candid assessment
to prospective applicants of what kinds of
jobs and what kinds of opportunities the
organization can make available to them.
 Sources for recruiting
• Internal recruiting
Is the process of looking inside the
organization for existing qualified employees
who might be promoted to higher level
positions.
• External recruiting
Is the process of looking to sources outside
the organization for prospective employees.
 Internal recruiting
• Advantages:
– Increases motivation
– Sustains knowledge and culture

• Disadvantages:
– Stagnation
– Ripple effect
 External recruiting
• Advantages:
– Brings in new ideas

• Disadvantages:
– Costs more
– Hurts motivation
 Methods of recruiting
• Internal
– Job posting
– Supervisory recommendations
• External
– Word-of-mouth recruiting
– Advertisements
– Employment agencies
– Executive recruiters
– Internship programs
– Campus recruitment
 Selection
• Selection is the process of selecting the
most appropriate candidates and offering
them jobs.
• The goal of selection is to sort out or
eliminate those unqualified to meet the job
and organizational requirements.
• Selection ensures competitive advantage.
 Selection procedure
• Selection procedure employs several
methods of collecting information about
the candidate’s qualifications, experience,
physical and mental ability, nature and
behavior, knowledge, aptitude and the like
for judging whether a given applicant is or
is not suitable for the job.
 Steps in selection procedure
• Job analysis
• Recruitment
• Application form/application blank
• Written examination
• Preliminary interview
• Group discussion
• Tests
• Final interview
• Medical examination
• Reference checks
• Line managers decision
• Employment
 Placement and Induction
• Place the selected candidates on the
relevant job.
• Introduce the employee to the job,
organization, policies, colleagues,
superiors, subordinates and practices