Independent University

School of Business and Entrepreneurship

MBA 509
Human Resources Management;
Autumn Semester 2020
Lecture 3
 Today’s lecture outline
oHR Planning [HRP]:
Define & discuss;
Why necessary?
oHR Planning [HRP] ... Characteristics;
oHRP … Limitations & Problems;
oHRP ... Influencing Factors;
oFormulating HRP;
Human Resource Planning (HRP)
Alice: Would you tell me, please, which
way I ought to go from here?
Cheshire Cat: That depends a good deal
on where you want to go.
Alice: I don’t care where…..
Cheshire Cat: Then it doesn’t matter
which way you go.
(Alice in Wonderland, Lewis Carroll)
 Human Resource Planning (HRP)
HRP is the process of including forecasting,
developing and controlling by which a firm ensures
that it has the right number of people & the right kind
of people at the right place at the right time doing
work for which they are economically most useful.
In light of the organization’s objectives, corporate &
business level strategies, HRP is the process of
analyzing an organization’s human resource needs &
developing plans, policies, & systems to satisfy those
needs.
 HRP
PPs...are planned expressions of the company’s
official attitudes towards the range of behaviour
within which it will permit or desire its employees
to act.
...are statements of the organization’s overall
purpose and its objectives in the various areas
with which its operations are concerned.
…lay down the decision-making criteria in line with
the overall purpose of the organization in the area
of HR management.
 Five Essential Elements

o Analyzing the current human resource;

o Reviewing employee utilization;
o Forecasting the demand for employees;
o Forecasting supply;
o Developing a HRP;
 Why HRP?
 Replacement of persons;
 Employee turnover;
 Explanation plan;
 Technological changes;
 Assessing needs: the ‘demographic imperative’
demands more such planning;
 Training becomes effective;
 Increase service quality, reduce operating cost &
increase return on assets;
HRP & its characteristic features

Systematic approach;
Continuity of process;
Flexibility;

d s &
Nee ging s
h a n nce
c sta
c um
ci r
Development of HRP

At national level;
At sector level;
At industry level;
At individual enterprise;
 HRP… limitations & problems
Limitations of forecasting;
Employers’ & employees’ traditional bias & apathy
(indifference/lethargy);
Resistance from employees;
Incidence of absenteeism-A stumbling block in HR
planning;
Illiteracy & paucity (scarcity/lack) of skilled labour-
A serious problem for HR planning;
Expensive & time consuming;
 HRP: Influencing Factors

Internal Environment
Top management’s support & acceptability;
Changes in the company’s policies & strategies;
Time horizons (long term or short term);
Layout of equipment;
HRP: Influencing Factors…
External Environment
o Social factors:
Labour supply & demand;
Local & regional unemployment trends;
Competitors’ activities;
o Political factors;
o Economic factors;
o Level of technology;
o Government’s policies;
o International factors;
o ‘Sons of the soil’ issue;
 Characteristics of a HRP
Expression of intentions of top management;
Relationship to objectives;
Long lasting;
Clarity;
Participation;
Written form;
Consistency;
 Formulating HRP
Gathering information:
Labor legislation;
Social values & customs;
Employees aspirations;
Environment study;
Examination of alternative policies;
Getting approval of proposed policy;
Adopting & launching policy;
Appraising the policy;