Human

Resources
Planning (HRP)
First, we will see what
is Planning?
and why is it
needed?
 What is
Planning?
The process of
setting goals
and deciding
how best to
achieve them.
 What is
planning
concerned
with?
It is concerned with
the end (what is to
be done) as well as
with means (how it
is to be done).
Is planning
really
needed?
If… organizations…
never faced changes
in the environment,
there would have
been no need for
planning.
Planning is
one of the
functional
areas of HR
Human Resource
Planning
(HRP)
 The process of
anticipating an
organization’s future
human resource needs
and then developing
action plans for fulfilling
identified needs.
 The systematic
review of human
resource
requirements.
 HRP
The Required
With The Required
Number of
Skills
Employees

Are Available When Needed

getting the right
people
at the right place
at the right time
 Objectives of
Human Resource
Planning
 Enable
organizations
to anticipate
their future HR
needs
 To identify
practices that
will help them
meet those
needs
Benefits of HR
Planning
 Helps in
planning job
assignments
 Helps cope
with
fluctuations in
staffing
Identifies
recruiting
needs
 Provides
other useful
information
Planning Includes
Forecasting
 Human Resource
Planning

Demand Supply
Gap?
HR Needs
 Demand
Forecasting
Statistical approaches
Judgmental methods
Statistical approaches

1. Trend analysis
2. Ratio analysis
3. Regression analysis
Trend Analysis
300

250

200

150 Employees
Sales
100

50

0
2000 2001 2002 2003
Ratio Analysis
# patients = 100

# nurses = 25

patient/nurse ratio = 4/1

 If there are 300
patients,
how many nurses
are needed?
Regression
Analysis
 75

50

# Employees 25

0
50 100 150

# Customers
 Judgmental
methods
Managerial judgment
 Forecasting
Involves Two
Activities
1. Monitoring current HR
programs and
personnel staffing
levels
2. Investigating future
HR needs and
concerns
 Human Resources Audit

Forecast Labor Forecast Labor

Supply Demand
Supply = Demand?

Surplus: Shortage:
Layoffs Recruiting
Transfers Training
Demotions Career Development
The Goal of HR
Planning
The goal of forecasting
and planning is to
keep a stable
workforce that meets
the needs of the
organization.
Steps in HRP
Process
 Determine the
impact of
organizational
objectives on
specific
organizational unit
Define the skills
required to meet
objectives
(demand for
Human Resource)
Determine additional
human resource
requirements in light
of current HR (net
HR requirements)
Develop action
plan to meet the
anticipated HR
needs
HRP has become
more important in
recent years for a
number of
reasons
Globalization of
Business
New Technologies
The changing skill
levels in the Workforce
 The changing
demographics of the
workforce
 Mergers and
Acquisitions
 Legal developments
Requirements
for effective
HR planning
Successful HR planning
requires:
HR personnel
understand the HR
planning process
Top management is
supportive
The communications
between HR staff and line
management are healthy
The HR plan is integrated
with the organization’s
strategic business plan
 Linking HR
planning practices
to competitive
advantage
 Effective Competitive
HR Planning Advantage
Summary
 Human
Resources
Planning (HRP)
 The systematic
review of human
resource
requirements.
 HRP
The Required
With The Required
Number of
Skills
Employees

Are Available When Needed