Human Resource Planning

HR Planning
HRP is determining the future HR
requirements and how the present HR can
be utilized for the same Conditions that
necessitate HRP
 Organizational
Productivity/Plans/Strategies
 Expansion/Growth/Diversification
 Economic Development
 Promotions of employees
 Organizational change
HRP - Process
 Objective is to have the appropriate no. and
kind at the right place
 System of matching the supply of existing
people with opportunities in the organization
 Focuses on organizational objectives,
production schedules, demand fluctuations
 Making an inventory of existing human
resources
 Anticipating HR problems and projecting
quantitatively and qualitatively
 Planning and placing employees at right
places to meet organizational requirements
Steps for HR Planning (Starting)
 Manipulating the database
 Develop measures to indicate effective
utilization of HR
 Develop methods of economic assessment
of HR to reflect its income generators
 Evaluate the procurement, promotions and
retention of effective HR
 Maximizing human potential in a cost-
effective manner
 Monitor and measure the plans and keep
top management informed about it
 Factors affecting HR planning

• Lack of skilled resources/obsolescence

• Separation of employees
• Change in organizational objectives
• Technological changes – policies
• Changes within the organization like
promotions – succession planning
• Government policies/regulations
Factors Affecting HRP
Organisatio
nal Growth
Cycle and
Planning
Type and
Strategy of Environmental
Organisation Uncertainties

HRP
Time
Outsourcing
Horizons

Type and
Quality of Nature of
Forecasting Jobs being
Information Filled

6
 Steps in the HRP
process
•Linking organizational strategy to
employment planning
• Forecast labor requirements for a future
time period
• Develop a talent inventory
• Conduct a gap analysis to reconcile
demand supply
• Action plans to engage the pool of qualified
people
• Reviewing and monitoring HR activities in
so far as reaching objectives
HRP Process
Environment

Organisational
Activities and Policies

HR Needs Forecast HR Supply

Forecast

HR Programming

HRP
Implementation

Control and Evaluation

of Programme

Surplus
Shortage
Restricted Hiring
Recruitment
Reduced Hours
Selection, etc
VRS, Layoff, etc
8
5-21

Manpower Gap Analysis

This is used to reconcile the forecasts of labour demand and
supply. This process identifies potential skill shortages or
surpluses of employees, skills and jobs

Estimating manpower requirements

Ye a r
1 2 3

1. N u m b e r r e q u i r e d a t t h e b e g i n n in g o f t h e y e a r
2. C h a n g e s t o r e q u ir e m e n t s f o r e c a s t d u r i n g t h e y e a r DEM AND
3. T o t a l r e q u ir e m e n t s a t t h e e n d o f t h e y e a r ( 1 + 2 ) ------- ------
4. N u m b e r a v a ila b le a t t h e b e g in n i n g o f t h e y e a r
5. A d d i t io n s ( t r a n s f e r s , p r o m o t io n s ) S U P P LY
6. S e p a r a t io n s ( r e t ir e m e n t , w a s t a g e , p r o m o t io n s o u t a n d o t h e r lo s s e s )
7. T o t a l a v a il a b le a t t h e e n d o f y e a r ( 4 + 5 + 6 ) --------------------
8. D e f ic it o r s u r p l u s ( 3 - 7 ) R E C O N C IL I A T IO N
9. L o s s e s o f t h o s e r e c r u it e d d u r in g t h e y e a r OF THE ABO VE
10. A d d i t io n a l n u m b e r s n e e d e d d u r in g t h e y e a r ( 8 + 9 ) M ANPOW ER NEEDED

Human Resource Planning

 Linking Organizational
Strategy to Employee Planning
• Focus on the vision
• External supply
• Internal supply analysis
• Availability/scarcity of labor
•Cost effectiveness
 Forecasting

• Forecasts are of two types: Demand

forecasting and supply forecasting
• Demand forecasting is affected by business
projections
• Qualitative – Quantitative
• Qualitative – Delphi
• Quantitative – Trend analysis
• Regression analysis
 Trend Analysis
Expert Forecasts: These are based on the judgements of
those who possess good knowledge of future human
resource needs

Trend Analysis: This is based on the assumption that the

future is an extrapolation from the past. Human resource
needs, as such, can be estimated by examining pas trends.
2001-02 Production of Units : 5,000
2002-03 No. of Workers : 100
Ratio : 100:5000
2003-04 Estimated Production : 8,000
No. of Workers required : 8000 × 1 0 0 = 160
5000
If supervisors have a span of 20 workers, 8 supervisors are also needed in
2003-04.
 Supply Forecasting

• Succession planning/career plans

• Database generated from payrolls, job
profiles, job families, age distributions and
experiences
• Company’s internal policies/practices
• Performance appraisal system and results
• Market analysis
• External supply
5-12

Estimated internal labour supply

for a given firm
S o u r c e s o f In flo w s T h e F ir m P r o je c te d O u t f lo w s

 P r o m o t io n s

 T r a n s fe rs  Q u its
C u r r e n t S ta ffin g
 P r o m o t io n s Level  Te r m in a t io n s
E m p lo y e e s I n E m p lo y e e s O u t
 N e w R e c ru its  R e t ir e m e n t s

 R e c a lls  D e a th s

 L a y o ffs

C u rre n t P r o je c t e d P r o je c t e d F ir m ’s in t e r n a l
s ta ffin g – o u tflo w s + in f lo w s = s u p p ly fo r th is
le v e l t h is y e a r t h is y e a r tim e n e x t y e a r
5-16

Skills inventory: an example

N a m e : A .K . S e n D a te p rin te d : 1 -4 -2 0 0 4
N u m be r : 4 2 9 D e p a r tm e n t : 4 1

K e y w o rd s W o rk e x p e rie n c e
W o rd D e s c r ip tio n A c t iv ity F ro m To
A c c o u n tin g Ta x S u p e r v is io n 1 9 9 8 2 0 00 Ta x c le r k A B C C o m p an y
a n d a n a ly s is
B o o k K e e p in g L e d g e r S u p e rv is io n 2 0 0 0 2 0 0 2 A c c o u n ta n t X Y Z C o .
A u d itin g C o m p u te r A n a ly s is 2 0 0 2 2 0 0 3 C h ie f A c c o u n t s T T B an k
re c o rd s O ffic e r

E d u c a t io n S p e c ia l Q u a lif ic a ti o n s M e m b e r s h ip s

D e g re e M a jo r Ye a r C o u rs e D a te 1 . A IM A

M B A F in a n c e 1 9 98 D B F 1 99 6 2 . IS T D
B .C o m A c c o u n ts 1 9 9 5 R is k M a n a g e m e n t 1 9 99 3 . IC A

C o m p u te r L a n g u a g e s P o s it io n L o c a tio n H o b b ie s
L ite r a c y p re fe re n c e c h o ic e

 Ta lly F re n c h A c c o u n t in g K o lk a t a C h ess
 B a n k in g A u d it in g D e lh i F o o t b a ll
S o ftw a re B a n g a lo r e B o a t in g

E m p lo y e e s S ig n a tu r e _ _ _ _ _ _ _ _ _ _ H R D e p a r tm e n t_ _ _ _ _ _ _ _
D a te _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ D a te _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Human Resource Planning

5-18

Replacement chart
G e n e ra l M a n a g e r Key
V. K . G a rg N a m e s g i v e n a r e r e p la c e m e n t
A /2 c a n d id a te s
P A to A . P r o m o t a b le n o w
G e n e ra l M a n a g e r B . N e e d in g d e v e l o p m e n t
L . M a th e w s C . N o t s u ita b le t o p o s it io n
B /1 1 . S u p e r io r p e r fo r m a n c e
2 . A b o v e A v e ra g e p e rfo rm a n c e
A s s is ta n t G e n e r a l M a n a g e r 3 . A c c e p ta b le p e r fo r m a n c e
R .K . A ro ra A /2 4 . P o o r p e rfo rm a n c e
B .K . N e h ru B /3

D iv is io n : D iv i s i o n : D iv is io n :
A c c o u n t in g & P la n n in g M a n a g e r Te c h n ic a l A d v is o r
H R M anager
Ta x a t io n M a n a g e r A .N . G u p ta A /1 N .R . M u rth y B /3
C .P. T h a k u r A /1
A .T. R o y C /2 K . P. R a o B /1

N o r t h e r n R e g io n C e n tr a l R e g io n S o u t h e r n R e g io n M a n a g e r E a s te rn R e g io n
M anager M anager A . S u b ra m a n y a m B /2 M anager
L .C . S r iv a ts a v A / 2 S .P. K u m a r A /1 B .K . M e n o n B /1 R . K r is h n a B /3
A. Thapar C /4 R . P andey B /3

Human Resource Planning

 Implementation Plans

• Recruitment and retention plans

• Selection and promotion plans

• Training plans
• Appraisal plans
• Redeployment plans
• Downsizing plans
Uses of a Human Resource Information
Systems (HRIS)
Employee and Labour
Relations
• Union Negotiation Costing
• Auditing Records
• Attitude Survey Results
• Exit Interview Analysis
• Employee Work History
Health, Safety and
Security
• Safety Training
• Accident Records
• Material Data Records
Compensation and Benefits
• Pay Structures
• Wage/Salary Costing
• Flexible Benefit
Administration
• Vacation Usage
• Benefits Usage Analysis
HR Planning and
Analysis
• Organisation Charts
• Staffing Projections
• Skills Inventories
• Turnover Analysis
• Absenteeism Analysis
• Restructuring Costing
Equal Employment
• Internal Job Matching
• Affirmative Action
• Job Description
Plan
Tracking
• Applicant Tracking
• Workforce Utilisation
• Availability Analysis
Staffing
HRIS • Recruitment Sources
• Applicant Tracking
• Job Offer Refusal
Analysis
HR Development
• Employee Training Profiles
• Training Needs Assessments
• Succession Planning
• Career Interests and
Experience
18
Strategic HR Initiatives
Strategy HR
Initiative

Strategies for
Strategies for
Managing
Managing Surplus
Shortages

• Recruit new permanent • Hiring freeze

employees • Do not replace those who
• Offer incentives to postpone leave
retirement • Offer VRS schemes
• Re-hire retirees part-time • Reduce work hours
• Attempt to reduce turn- • Leave of absence
over • Across the board pay-cuts
• Work current staff overtime • Layoffs
• Subcontract work to • Reduce outsourced work
another company • Employee training
• Hire temporary employees • Switch to variable pay plan
• Redesign job process so • Expand operators
that fewer employees are
needed

19