Human Resource

Planning
 HUMAN RESOURCE PLANNING
• Right number of people with right skills at right
place at right time to implement organizational
strategies in order to achieve organizational
objectives

• In light of the organization’s objectives, corporate

and business level strategies, HRP is the process
of analyzing an organization’s human resource
needs and developing plans, policies, and systems
to satisfy those needs.
 HUMAN RESOURCE PLANNING

Setting human Ensuring HR

resource objectives resource supply
and deciding how meets human
to meet them resource demands
 Think
• Does any organization face problems which
can be sorted with HRP?
• Is HRP a part of any organization, department,
functional stream in an organization?
• Does HRP have any role in entrepreneurial
venture?
 HRP Types

Soft
Ensuring the availability of Hard
people with right type of
Quantitative analysis in
attitude and motivation who
order to ensure that the right
are committed to the
number and right sort of
organization and engaged in
people are available.
work as well as behave
properly.
 Hard Soft
Forecasting Define where the
company is now

Analysis Define where it wants to

Monitoring and be in the future
review Analysing the external
environment, influences
and trends
Formulating plans to
implement necessary
changes
• Macro – HRP – Population planning and
control, literacy and education, health and
medical care, housing.

• Micro – HRP
• Dimension of HDI
• A long and Healthy life
• Knowledge
• A decent standard of living
 HDI
Composite measure of the three dimensions:
• Life expectancy
• Adult literacy
• Standard of living of human development
 Aim of HRP
• Attract and retain competent employees
• Anticipate the problems of potential surpluses
or deficit of people.
• Develop a well trained and flexible workforce.
• Reduces dependence on external recruitment
when key skills are in shortage.
• Improve the utilization of people by
introducing more flexible systems of work
 The HR Planning Cycle has
four general stages:
1. Forecasting future demand of HR
2. Forecasting future internal supply
of HR
3. Forecasting future external supply
of HR
4. Formulating responses to the
forecasts
 Business
HRP Process Strategic
Plans

Resourcing
Strategy
Labour
Scenario Demand /
Turnover
Planning Supply
Analysis
forecasting
Operational
Work environment Human Resource
effectiveness
analysis Plan
analysis

Resourcing Retention Flexibility Productivity

Work
Environment
Stage 1: Forecasting Future Demand (2)

Techniques Used to Forecast Demand:

1 Systematic Techniques
– Time series or ratio trend analysis
– Work-study approach
– Productivity trend analysis
2 Managerial Judgement
3 Working back from costs
Stage 2: Forecasting Internal Supply

• Involves identifying/acknowledging the

existing staff employed by an organisation
– department by department
– grade by grade
• Involves:
– Skills Audits
– Predicting Staff Turnover
– Internal promotion analysis
Stage 3: Forecasting External Supply

• Filling the GAP using the external labour market:

– Local
– National
– International

• HR Planners must gain an understanding of the

dynamics of the Labour Market to update plans
as trends change and develop accordingly.
 Stage 3: Forecasting External
Supply / Dynamics of the Labour Market
• The following statistics can be most useful
– General population density
– Population movements
– Age distribution
– Social class
– Unemployment rates
– School leavers
– Proportion with higher education
– Skill levels
– Skills shortages

• Sources of Info include: ‘Labour Market Trends’, Labour Market

Quarterly, Annual Social Trends survey, Chamber of Commerce, Training
and Enterprise Councils
 Stage 4: Formulating Responses to
the Forecasts/Action Planning
• Forecasting should identify any potential
mismatch between future demand and supply
• If demand exceeds supply – develop plans to
match the shortfall
• If supply is likely to exceed demand – develop
plans to reduce the surplus
(Taylor, 2002; Beardwell and Claydon, 2007)
• Labour Turnover
(Number of leavers in a specific period (usually 1
year) * 100)/ Average no. of employee during
the same period
• Stability Index
(No. with 1 year’s service or more *100)/
Number employed 1 year ago
Alternatives to Deal with Employee Shortages and Surpluses
 Rightsizing

To reduce (as a workforce) to an optimal size

Thank You…