HUMAN RESOURCE

PLANNING/
MANPOWER PLANNING
Chapter outline

Objectives

Estimating Manpower requirements

Recruitment and selection

Retention of manpower

Succession Planning
Five Keys Questions in Human Resource Planning

 How many employees do we need—in terms of numbers?

 What are we looking for in terms of skills, knowledge, experience, abilities

etc.—in terms of quality?

 Where do we need the employees—the location, the division, the

department?

 When do we need the employees—immediately, in the next three months,

six months etc.?

 How long do we need them—for a limited period or for a long period?

Introduction
HRP is a process by which the management
of an organization determines its future
human resource requirement and how the
existing human resource can be effectively
utilized to fulfill the requirements.

HUMAN RESOURCE PLANNING

Importance
• Organizational Objectives & Policies (expansion, downsizing,
acquisition, merger )
• Forecast HR requirement (Prevent shortage / excess of staff )
• Determine future staff-mix
• Cope-up with the change — in market conditions, technologies,
products, government regulations and policies, etc.
• Helps in succession planning
• Use existing HR productivity.
• Promote employees in a systematic manner.
• Cut cost

HUMAN RESOURCE PLANNING

 HRP at Different Planning levels
Cor
por • Identify the broad policies
ate • Align HR objective with
leve
l
organization objective
pla
• Determining recruitment nni
ng
• layoff strategy
• retention strategy, Business level
planning
• selection process

• Planning for T& D

• Employee welfare
Operational level planning activities

• Grievance handling
• Employee engagement Planning short term activities
activities
HUMAN RESOURCE PLANNING
PROCESS
 ENVIRONMENT

ORGANISATION OBJECTIVE AND

POLICIES

ANALYSIS OF HR REQUIREMENT

HR DEMAND FORCASTING HR SUPPLY FORCASTING

HR PROGRAMMING

HR IMPLEMENTATION

CONTROL AND EVALUTION OF

PROGRAMMING

HR SURPLUS HR DEFICIT/
Restricted Hiring Reduced SHORTAGE
Hours and VRS, Lay Off, etc. (Recruitment and
Selection)
HUMAN RESOURCE PLANNING
Environment of HRM

“Our assets walks out of the door each evening .

We have to make sure that they come back next
morning” - N. R. NARAYANA MURTHY

Human Resource Management

Examining external and internal issues

External challenges
• Economic developments
• Political, legal, social, technological changes
• Competition

Internal challenges
• Organizational decisions
• Expansion
• Diversification

Workforce factors
• Retirement
• Resignation
• Termination
 F o re ca s t
a nd
HR Dem
Process of estimating future quantity and quality of manpower
required for an organization.

Future Needs of the organization

• Long Term Plan

 TERM 5 years
Growth & Expansion
New Factory

• Short Term Plan

TERM 1- 2 years
Adding New Shift
Replacement

HUMAN RESOURCE PLANNING

Supply Forecasting
Important Indicators of Labor
Supply
1. Net migration into and out of the area
2. Education levels of workforce
3. Demographic changes in population
4. Technological developments and shifts
5. Population Mobility
6. Demand for specific skills
7. National, regional unemployment rates
8. Actions of competing employers
9. Government policies, regulations, pressures
10. Economic Forecasts for the next few years
11. The attractiveness of an area
12. The attractiveness of an industry in a particular place
 ro g r a m
HR P
i. Recruitment plan: Will indicate the number and type of people required and when they are needed;
special plans to recruit right people and how they are to be dealt with via the recruitment programme.

ii. Redeployment plan: Will indicate the programmes for transferring or retraining existing
employees for new jobs.

iii. Redundancy plan: Will indicate who is redundant, when and where; the plans for retraining,
where this is possible; and plans for golden handshake, retrenchment, lay-off, etc.
 
iv. Training plan: Will indicate the number of trainees or apprentices required and the programme
for recruiting or training them; existing staff requiring training or retraining; new courses to be
developed or changes to be effected in existing courses.

v. Productivity plan: Will indicate reasons for employee productivity or reducing employee costs
through work simplification studies, mechanisation, productivity bargaining; incentives and profit
sharing schemes, job redesign, etc.

vi. Retention plan: Will indicate reasons for employee turnover and show strategies to avoid wastage
through compensation policies; changes in work requirements and improvement in working
conditions.

vii. Control points: The entire manpower plan be subjected to close monitoring from time to time.
Control points be set up to find out deficiencies, periodic updating of manpower inventory, in the
light of changing circumstances, be undertaken to remove deficiencies and develop future plans.

HUMAN RESOURCE PLANNING

HR Programming and
Implementation
Balancing Demand and Supply Vacancies filled in by the right
employee at the right time

RESULTS =

• HR DEFICIT
HR Demand > HR Supply

• HR SURPLUS
HR Demand < HR Supply

HUMAN RESOURCE PLANNING

• Comparison between standard human resource
planning and actual implemented program

• To check and evaluate whether organization was

able to achieve its objective or not?

• To take corrective and necessary steps, if

organization is deviated from its objective.

HUMAN RESOURCE PLANNING

BARRIERS TO HRP

• Time Consuming
• Expensive
• Probability of inaccuracy /Uncertainties
• Financial forecasting takes precedence over HRP
• Non-involvement of operating managers
• Inadequate Information system
• Trade unions
• Employers and employee resistance
Responsibility for HRP
• Assist and counsel operating managers to plan and set
objectives.

• Collect and summarize manpower data keeping long-run

objectives and broad organisational interests in mind.

• Monitor and measure performance against the plan and

keep top management informed about it.

• Provide proper research base for effective manpower and

organisational planning.
Thank You