Human Resource Planning

Human resource planning can only be as

good as the ability of the company to
predict what will happen OUTSIDE the
company, economic trends, upturns,
downturns, what competitors are doing,
Successful
and a raft of other things the company companies can crash and burn
has
no control over. quickly, or lose revenue, resulting in a need
to layoff staff in an uncontrolled and
unplanned way.
The pace of change is so quick in the
workplace that it's hard to predict what
skills (and therefore, what employees, will
be needed in even the near future.
People make decisions about their own
careers, whether to stay or go, and these
days, there's much more movement of
employees from company to company.
What is Human Resource
Planning

Process of striking a balance between

human resources required and acquired in
the organization

HRP is “ the process of forecasting an

organization’s future demand for and supply
of, the right type of people in the right
number”
Company Profile
 HRP Process

“HRP includes estimation of

How many qualified people are
necessary to carry out the assigned
activities
How many people will be available
What, if anything, must be done to
ensure that personnel supply equals
personnel demand at the appropriate
point in future”
-Terry Leap and Michael Crino
Objectives
 Maintain required quantity and quality of
HR
 Forecast attrition/turnover
 Meet HR needs during expansion or
diversification
 Foresee effect of Technology on HR
 Develop existing HR to meet future needs
 Contingency Planning
 Need for and Importance of
HRP

Future Personnel Need

Part of Strategic Planning

Creating Highly Talented Personnel

International Strategies

Unite perspectives of Line and Staff

Managers

Foundation of Personnel Functions

Combating Resistance to change

 HRP Model
Organizational Plans
and Objectives

Identify future
human resource
requirements

Compare with
current HR inventory

Determine the numbers,

Determine the
levels and criticality of
redundant number
vacancies
Analyze the cost and Analyze the cost and
time involved in time involved in
managing the demand managing the surplus
Choose the resource
and method of
Redeploy Retrench
recruitment
Phases in HRP

Situational
Analysis

Recruitment,
Promotion,
Forecasting
Compensation
and Training

Anticipating
Manpower
problems
Factors Affecting HRP
 HRP Process
Monitoring of Understand Process of
external forces Organization estimating the
Environmental Scanning

influencing the al Objectives future quantity

Objectives and Policies

organization and quality of

HR Demand Forecast
Identify HR
concerns people required

Economic, Are vacancies Consider

to be filled? Internal and
Social, External Factors
What is the
Legislative, T&D status?
Technological, What are union
constraints?
Demographic,
How to enrich
Political jobs?
Whether to
recruit or
downsize
 HRP Process

Forecasting the May lead to

Matching Demand & Supply

quantity and Shortage or

Monitoring and Control

quality of Surplus
people Recruitment
available Review
Transfer
Supply Forecast

Regulate
Promotion
Internal Monitor
Training
External Reveal
Downsizing deficiencies
Due allowances
for transfers, VRS Corrective
absenteeism, Retrenchment measures
promotions,
Redeployment
change in work
hours
 Forecasting Techniques

Judgmental Mathematical

 Estimates/  Statistical Regression

Analysis (Gross sales and
Managerial number of employees)
Judgments  Simulation Models (Growth
in number of patients and
 Rule of Thumb estimate of health workers
required)
 Delphi Technique
 Productivity Ratio (average
 Nominal Group number of units produced
per person)
 Staffing Ratio (number of
workers per supervisor)
 Managerial Judgments

 Discussion and common consensus on

the figure signifying future demand for
labour
 Bottom-Up/Top-down/ Combination

HR Manager

Departmenta
l Heads
Line Manager
 Ratio- Trend Analysis

 Forecasting based on time series data

 Study of past ratios and forecasting future
ratios. E.g.
Total output/No of workers
Total sales volume/Number of sales
executives
 Quickest forecasting technique
 Allowances are made for expected changes
 Illustration
Ratio Trends Analysis
 Work-study Techniques

 Calculated on the basis of length of operations and

amount of labor required.
 Used by Fredrick Taylor in the Time and Motion
studies. E.g.
 Planned output = 25,000 units
 Standard Hours per unit = 4
 Planned hours required for the year= 25000*4 =
1,00,000
 Productive hours per worker/per year = 2,000
 Number of workers required (1,00,000/ 2,000) = 50
 Can be combined with ratio-trend analysis to
forecast for indirect workers, establishing ration
between 2 categories
 Delphi Technique

Members asked to provide estimate of HR requirements through

designed questionnaire

Each member completes first questionnaire anonymously and

independently

Results compiled, transcribed, copied

Each member receives a copy of result

Member reviews their estimate

Step 4 and Step 5 repeated till consensus reached

Delphi Technique

Advantages Disadvantages
 Face to Face
interaction not  Time consuming
needed
 Speedy decisions
 Physical not reached
locations no
challenge  Alternatives
arising out of
interactions lost
 Flow Model

 Markov Model
 Uses historical data from personnel
movement from internal labour supply to
decide what will happen in future
 Determine time period that will be
covered
 Employee category called as states
 Enumeration of annual flow among
various categories
 Estimating probability of flow from one
category to another based on past trends
Balancing Demand and Supply
Dealing with surplus

 Retrenchment
 Outplacement
 Lay-offs
 Leave of Absence without pay
 Loaning
 Work Sharing
 Reduced work hours
 VRS/CRS
 Attrition