Amity Business School

Human Resource PLANNING

Amity Business School

HRP has been defined by Geisler (1967), As a process of forecasting, developing and controlling human resources in an enterprise. This process helps the enterprise to ensure that it has right number of people and the right kind of people at the right place at the right time performing tasks for which they are most effective.


Amity Business School

‡ To ensure optimum use of existing HR ‡ To forecast future requirement for HR ‡ To provide control measures to ensure that necessary HR are available as and when required. ‡ To assess the surplus and shortage of HR (Downsizing) ‡ To determine the level of Recruitment and Training

Amity Business School

‡ ‡ ‡ ‡ ‡ Replacement of persons Labour Turnover Expansion Plans Technological Changes Assessing Needs

Amity Business School FACTORS AFFECTING HRP ‡Organizational growth cycle and planning ‡Environmental uncertainties ‡Outsourcing ‡Nature of jobs being filled ‡Types and quality of forecasting information ‡Time horizons ‡Type and strategy of organization .

Amity Business School .

Amity Business School Environment Organizational Objectives and Policies HR NEEDS FORECAST HR PROGRAMMING HRP IMPLEMENTATION CONTROL & EVALUATION OF PROGRAM Surplus HR SUPPLY FORECAST Shortage .

industry. ‡ Internal data required include short. .Amity Business School ENVIRONMENT ANALYSIS ‡ The first step in the human resource planning process is to understand the context of human resource management. technology and competition. labor market regulations and trends. ‡ Data on external environments includes the general status of the economy. unemployment rate. and the age and sex distribution of the labor force.and long-term organizational plans and strategies and the current status of the organization's human resources. skills available. ‡ Human resource mangers should understand both internal and external environments.

the company can identify its human resource requirements. ‡ The company strategy and business plan will determine what work activities are anticipated in the short term and long term. . ‡ Based on these activities.Amity Business School ORGANIZATION OBJECTIVES AND POLICIES ‡ The human resource plan must be linked with the organization's strategic plan.

HR SUPPLY FORECAST ‡ Organizations can hire personnel from internal and external sources. ‡ The skill inventories method is one of the techniques used to keep track of internal supply. . ‡ Forecasting should consider the past and the present requirements as well as future organizational directions. ‡ A forecast of the supply of employees projected to join the organization from outside sources. given current recruitment activities. ‡ Skill inventories are manual or computerized systems that keep records of employee experience. education and special skills. is also necessary.Amity Business School HR NEEDS FORECAST ‡ The aim of forecasting is to determine the number and type of employees needed in the future. ‡ Bottom-up forecasting is one of the methods used to estimate future human resource needs by gathering human resource needs of various organizational units.

.Amity Business School HRM PROGRAMMING ‡HR Programming. the third step in the Human Resource Planning process assumes greater importance. ‡After the organization's personnel demand and supply are forecast these two must be reconciled or balanced ‡So that vacancies can be filled by the right employees at the right time.

* Training and Development * Retaining and Deployment * The Retention Plan * The Redundance Plan * The succession Plan .Amity Business School HRM IMPLEMENTATION ‡ Implementation requires converting HR plan into action. ‡ A series of action programmes are initiated as a part of HR plan implementation. Selection and Placement. ‡ These programmes include * Recruitment.

‡ Selection programme should be professionally designed. Selection and Placement ‡ Job vacancies.Amity Business School Recruitment. ‡ Business Process Reengineering (BPR) Training and Development ‡ Necessary for the existing staff ‡ Frequency and budget allocation .Identification of sources and search for suitable candidates.

Amity Business School Retraining and Redeployment ‡ Imparting new skills ‡ Gainful employment Retention plan ‡ ‡ ‡ ‡ ‡ ‡ Compensation plan Performance appraisal Employees leaving in search of green pastures Employees quitting because of conflict The induction crisis Shortages and unstable recruits .

formal assessment and development plans . review.Amity Business School Downsizing plan ‡ Trimming of labour force is required where there is surplus workforce ‡ Voluntary Retirement Scheme (VRS) ‡ Lay-off Managerial succession planning ‡ Need for good managers is perpetual ‡ Successful programmes include top management¶s involvement.

‡But they should also report employment costs against budget . targets and standards. ‡The HR Plan should include budgets.Amity Business School CONTROL AND EVALUATION ‡ Control and evaluation represents the final stage in the HRP process. ‡These procedures may simply report on the numbers employed against establishment and on the numbers recruited under the recruitment targets . ‡It should also clarify responsibilities for implementation and control ‡It should establish reporting procedures which will enable achievements to be monitored against the plan. and the trends in wastage and employment ratios. .

‡Hire temporary employees. . ‡Offer incentives to postpone retirement. ‡Layoffs. ‡Work current staff overtime ‡Subcontract work to another company. ‡Rehire retirees part time. ‡Reduce outsourced work ‡Employee training ‡Switch to variable pay plan.Amity Business School STRATEGIES FOR MANAGING SHORTAGES ‡Recruiting new permanent employees. STRATEGIES FOR MANAGING SURPLUSES ‡Hiring freeze. ‡Redesign job process so that fewer employees are needed. ‡Leave of Absence ‡Across the border pay cuts. ‡Expand operations. ‡Do not replace those who leave ‡Offer VR schemes. ‡Attempt to reduce Turnover. ‡Reduces work hours.


discuss and arrive at a figure which would be the future demand of labor . This technique is used in smaller organizations or in those companies where sufficient data isn¶t available. .Amity Business School MANAGERIAL JUDGMENT This technique is very simple . In this manager sit together. The technique may involve a µbottom to up¶ or µtop to bottom¶ approach .

Amity Business School RATIO ANALYSIS Ratio analysis is the quickest forecasting technique which involves studying past ratios and forecasting future ratios making some allowances for change in the organization or its method . .

It is used to measure the changes in a variable as a result of changes in other variables.REGRESSION ANALYSIS Amity Business School Regression analysis identifies the movement of two or more inter-related series. . Regression analysis determines the relationship between Y variables such as the number of employees and X variables such as service delivery by actually measuring the relationship that existed in the past. Use of the method begins with a series of observation each costing of a value for the Y variable plus a value for each X variable.

Leaders compiles summaries and reproduces participants¶ responses. Leader looks for consensus Leader accepts consensus judgment as group¶s choice. Participants comment on each other¶s ideas and propose a final judgment. Leader sends the compiled list of judgment to all participants. who record their judgments and recommendations and return the questionnaire. Prospective participants are identified and asked to cooperate. . Leaders send questionnaire to willing participants.The Delphi Technique Amity Business School Leader identifies judgment issues and develops questionnaire.

continuing until all ideas have been recorded. Leader identifies judgment issue and gives participants procedural instructions. and evaluating them as a group. expanding. Participants discuss each other¶s ideas. keeping their lists private at this point. Participants rank ideas privately in their own personal order and preference. Leader asks each participant to present ideas and writes them on a blackboard or flipchart. clarifying. Creativity is encouraged during this phase. The idea that ranks highest among the participants is adopted as the group¶s judgment.The Nominal Group Technique A small group of 4-5 people gathers around a table. . Amity Business School Participants write down all ideas that occur to them.

Amity Business School WORK STUDY Work study is the study of work. It is the systematic examination of the methods of carrying out activities such as to improve the effective use of resources and to set up standards of performance for the activities carried out . It examines both the method and duration of the work involved in a process. It is the analysis of work dividing it into smaller parts followed by rearrangement of these parts to give the same effectiveness at lesser cost.

‡ Setting standards for labor cost ctrl documentation. ‡ Measurement of work values. ‡ Ensure proper performance of those employed in the production process. ‡ To initiate and maintain incentive bonus schemes. material and equipment used in the production process. ‡ Efficient use of human efforts. ‡ Examination of weakness if any in the production process.Amity Business School OBJECTIVES OF WORK STUDY ‡ To recommend and implement the desired improvements in work methods by establishing the most economical way of doing work. ‡ Investigation and analysis of existing situation. ‡ Most effective use of the existing or proposed plant. . ‡ To standardize the method.

Work measurement.Ergonomics.Amity Business School COMPONENTS OF WORK STUDY 1.Method Study 2.Job evaluation: Functional/ Non functional . 3. 4.

which can be. 4. Results in improved safety. It is a tool. 6. 5. It is most accurate method of determining the standards of performance on which effective planning and ctrl depends. It is a mean of raising productivity of a factor by reorganization of the work involving little or no capital expenditure on plant and equipment. 2. It results in savings and efficient use of resources. . 3. Reduction in training time. 7.Amity Business School IMPORTANCE OF WORK STUDY 1. It is a systematic study where no factor of production is overlooked. applied everywhere.

In this technique the forecasters will: ± Determine the time that should be covered. ± Count annual movements.Amity Business School FLOW MODELS ‡ Associated with forecasting personnel needs. called flows. Among states for several time periods . ‡ Simplest one is known as MARKOV MODEL. ± Establish categories. to which employees can be assigned. called states.

called states to which employees are assigned Count annual movements. among the states for different time periods Estimate the probability of transitions from one state to other based on past trends . called flows.MARKOV MODEL Amity Business School Determine the time that should be covered Establish categories.

‡ Makes sense to the decision makers ‡ Likely to accept results .Amity Business School ADVANTAGES ‡ Easy to understand its underlying assumptions.

Amity Business School DISADVANTAGES ‡ Heavy reliance on past data ‡ Accuracy in forecasts about the individuals is sacrificed to achieve accuracy across groups .

Amity Business School HR SUPPLY FORECAST .

Amity Business School EXISTING HUMAN RESOURCES ‡Present Employees ‡Skills Inventories ‡Management Inventories .

Amity Business School INTERNAL SUPPLY ‡Inflows and outflows ‡Turnover rate ‡Conditions for work and absenteeism ‡Productivity level ‡Movement among jobs .

Amity Business School EXTERNAL SUPPLY ‡Industry to industry ‡Organizations to organizations ‡Geographical locations ‡Colleges and Universities ‡Consultants .

Amity Business School Human Resource Information System 36 .

maintaining. ‡ HRIS is a part of the organization¶s Management Information System. ‡ An integrated system of hardware. retrieving and validating data needed by an organization about its human resource. 37 . software. storing. and databases designed to provide information used in HR decision making.Amity Business School ‡ HRIS is a systematic procedure for collecting.

‡ Availability of data for effective HR strategic planning.Amity Business School Benefits of HRIS ‡ Administrative and operational efficiency in compiling HR data. 38 .

Amity Business School Application Of HRIS ‡ ‡ ‡ ‡ ‡ ‡ Training management Turnover analysis Succession planning Attendance reporting HRP Strategy Planning 39 .

g... prescription drug programs) Health Programs (e.Amity Business School Input Data Types Job Analysis Recruitment Selection/Job Posting/ Employee Referral T&D Performance Appraisal Compensation Benefits Safety Health Labor Relations Employee Relations HRIS Output Data Uses Employee Tracking Diversity Programs Hiring Decisions Training Programs/Elearning/Management Succession Compensation Programs Benefit Programs (e. Employee Assistance Programs) Bargaining Strategies Employee Services 40 Organizational Strategic Plans Human Resource Management Plans .g.

Amity Business School Implementation Steps ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Step 1.Inception of Idea Step 2.Training Step 8.Vendor Analysis Step 6.Feasibility Study Step 3.Defining the requirements Step 5.Selecting a Project Team Step 4.Tailoring Step 9.Package Contract Negotiation Step 7.Collecting the Data 41 .

Amity Business School ‡ ‡ ‡ ‡ ‡ Step 10.Starting Up Step 12.Testing the System Step 11.Maintenance Step 14.Evaluation 42 .Running Parallel Step 13.

Uses Of HRIS Amity Business School HR Planning and Analysis Employee and Labour Relations HRIS Health. Safety and Security Compensation and Benefits Equal Employment and Staffing HR Development 43 .

Human Resource Information System Amity Business School  A model of a Human Resource information system Input Work Output force subsyst subsyst planning ems ems subsyste Accounti Recruitin m ng g informati subsyste on Work m Internal system force sources manage HRIS ment Datab HRs subsyste Compens ase research m ation subsyste subsyste m Users Benefits m Environ subsyste mental m sources HRs Environ intelligen mental ce reporting subsyste subsyste m Data Information m 44 .

‡ Plans should be prepared by skill levels rather than by aggregates. ‡ The time horizon of plan must be long enough to permit any remedial action. .Amity Business School REQUISITES OF HRP ‡ HRP must be recognized as an integral part of corporate planning. ‡ Backing of top management for HRP is absolutely essential. ‡ Personnel records must be complete. up-to-date and readily available.

Amity Business School ‡ HRP responsibilities should be centralised in order to co-ordinate consultation between different management levels. ‡ The techniques of planning should be those best suited to the data available and the degree of accuracy required. 46 .

but are not experts in managing business. ‡ HR information often is incompatible with the information used in strategy formulation. ‡ There is conflict between quantitative and qualitative approaches to HRP. 47 .Amity Business School BARRIERS TO HRP ‡ HR practitioners are perceived as experts in handling personnel matters. ‡ Non-involvement of operating managers renders HRP ineffective. ‡ Conflicts may exist between short-term and long-term HR needs.

‡ HRP acts as a basis for other personnel functions. .Group learnings Amity Business School ‡ HRP is significant as it helps determine future personnel needs. ‡ HRP helps overcome resistance to change. ‡ It ensures protection to weaker sections.

Amity Business School .

Sign up to vote on this title
UsefulNot useful