Professional Documents
Culture Documents
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Learning Outcomes
• Define HR planning
• Discuss the need for HR planning
• Describe how strategic planning could be integrated
with HR planning
• Discuss how HR planning takes place at different
levels and the process of HR planning
• Discuss guidelines for HR planning
• Identify strengths and weaknesses of human
resource planning
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Introduction
• In hiring members to the organisation, it is vital to
decide on the requirements that need to be fulfilled
• In other terms it is about deciding on what the
organisation is looking for individuals in recruiting
them for various positions
• HR planning determines the human resource needs
of the whole enterprise and its every department
for a given future period for various operations
envisaged in connection with accomplishment of
organisational objectives and goals
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Defining HR Planning
• “HR planning is the process-including forecasting,
developing and controlling-by which a firm ensures that
it has the right number of people and the right kind of
people at the right places at the right time doing work
for which they are economically most useful”
-Geisler-
• “The process of assessing the organisation’s human
resource needs in the light of organisational goals and
making plans to ensure that a competent, stable
workforce is employed”
-Wendell French-
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Characteristics of HR Planning
• HR plan must include HR needs in light of
organisational goals and objectives
• HR plan must be directed towards well defined
objectives
• HR plan must ensure that the right kind of people,
and the right number of people at the right time are
doing work for which they are economically most
useful
• HR plan should pave the way for an effective
motivational process
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Characteristics of HR Planning
• HR plan should take into consideration the periodic
developments that take place and should be
accordingly extended to meet the requirements
• Adequate flexibility must be maintained to suit the
changing needs of the organisation
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Need for HR Planning
• The rationale for HR planning stems from the idea
that organisational success heavily depends on
human resources. If the right person does not do
the right job it will affect organisational
performance
• Forecasting and auditing provides background
information about internal factors and skill
requirements as well as vacancies according to
which manpower planning could be done. The
normal wastage arising from death, turnover and
superannuation should be considered 7
Need for HR Planning
• HR planning enables managers to take into
consideration emerging HR trends and
requirements in deciding on recruiting people in
future
• HR planning will help to position employees
appropriately taking into consideration lead times
taken for identifying shortages, recruiting people,
selecting them etc.
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Need for HR Planning
• The significance of HR planning lies in:
– Not having more or less number of employees than
required resulting in an unnecessary shortage or cost of
for the organisation
– Being able to plan training and development
programmes to meet the skill requirements of people
based on changing environmental and organisational
conditions
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Strategic Planning and HR Planning
• The starting point of HR planning is the
organisation’s purpose or mission
• The strategic plan of the organisation describes the
path the organisations intend to take in achieving
the organisational vision
• Human resources management plays a vital role in
implementing the strategic plan
• The number and the quality of people being
employed by the organisation would resemble the
organisational goals and objectives
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Strategic Planning and HR Planning
• If the HR plan is moving in one direction and the
strategic plan is moving in a completely different
direction it is not possible to meet the
organisational vision and objectives
• Hence HR planning has to be done in line with the
strategic plan of the organisation
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HR Planning at Different Levels
• HRP at National Level
– This helps to plan for educational facilities, health care
facilities, agricultural and industrial development and
employment plans etc.
– The government of the country plans for HR at National
level
– It also plans for occupational distribution, regional and
sectoral allocation of human resources
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HR Planning at Different Levels
• HRP at Sectoral Level
– HRP at sectoral level plans for human resources in a
particular sector such as agriculture, industry etc.
– It helps the government to allocate resources to
different sectors depending on the priority accorded to
the particular sector
• HRP at Industry Level
– This takes into account the output of a particular
industry and the manpower requirement to obtain the
same
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HR Planning at Different Levels
• HRP at Unit Level
– HRP at company level is estimating the HR needs of a
particular company in question
– It is based on the business plan of the company
– A manpower plan avoids the sudden disruption that
might occur due an issue of a shortage of a particular
type of labour essential for the company
– Knowing the requirements in advance enables the
development of appropriate strategies
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HR Planning at Different Levels
• HRP at Departmental Level
– This looks at manpower needs at departmental level of
the organisation
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HR Planning Process
1. Analysing organisational plans and deciding
objectives
2. Analysing factors for manpower requirements
1. Demand forecasting
2. Supply forecasting
3. Developing employment plans
4. Developing human resource plans
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1. Analysing Organisational Plans and Deciding
Objectives
• Firstly short and long term objectives should be
analysed
• The organisational plan is a blueprint of desired
objectives and would incorporate the growth rate of
the company, diversification plans, market
opportunities and government policies
• HRP should meet two requirements namely,
– It should be directly related to the essential nature of the
organisation
– The changes in the selected factors should be
proportional to changes in HR requirements 17
2. Analysing Factors for Manpower Requirements
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2. Analysing Factors for Manpower Requirements
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2. Analysing Factors for Manpower Requirements
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Limitations of HR Planning Programmes
• Inaccuracy: the forecasts made could be inaccurate
due to various reasons resulting in wrong decisions
being made on manpower requirements
• Uncertainties: technological uncertainties and
market fluctuations could impact forecasting
• Lack of support: HR planning requires the support
of all divisions and departments of the organisation
and when the appropriate support is not given HR
planning might fail
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Limitations of HR Planning Programmes
• Number game: sometimes focusing too much on
numbers could overlook the quality of people being
absorbed to the company
• Inefficient information systems: information
systems that do not give proper information could
result in inaccurate manpower planning processes
• Time and expenses: manpower planning is an
expensive and time consuming task
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Questions and Discussion
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