Human Resource Planning

HRP is the process by which an organization

has right number and kind of people, at right
place,at right time, capable of effectively and
efficiently completing tasks that will help the
organization achieve its objective.
Objective of HRP

 To forecast human resource requirement.

 To cope up with change.

 To promote employees in systematic manner.

 To use existing human productively.

Benefits of HRP
 Prepares people for future.

 Creates reservoir for people.

 Cuts cost.

 Helps in expanding or contracting the business.

 Succession planning.
The Planning Process
Environment

Organizational Objective
and Policies

HR needs Forecast HR Supply Forecast

HR Programming

HR Implementation

Control and Evaluation

of Programme

Surplus Shortage
Restricted Hiring Recruitment
Reduced Hours Selection, etc
VRS,Lay off, etc.
Process of HRP
 Environmental scanning:
Environmental scanning refers to the systematic monitoring of external forces
influencing the organization.

 The following forces are pertinent to HRP:

 childcare,educational facilities and priorities.

 Economic factors, including general and regional condition.

 Technological changes, including robotics and automation.

 Demographic changes, including age composition and literacy.

 Political and legislative issues, including law and and administrative ruling.

 Social concerns, including childcare,educational facilities and priorities .

Organizational Objectives and Policies

 HR plans needs to be based on organizational objectives.

 It implies that the objectives of the HR plan must be derived from

organizational objectives.

 Specific requirements in terms of number and characteristics of

employees should be derived from organizational objectives.

 Once the organizational objectives are specified,communicated

and understood by all concern, the HR department must specify
its objectives with regards to HR utilization in the organization.
Forecasting HR Demand

 Demand forecasting is the process of estimating the

quantity and quality of people needed to meet future
needs of the organization.

 Demand forecasting must consider several factors

both external(foreign and domestic competition,
economic climate,law and regulatory bodies,
changes in technology, social factors) and
internal(budget constraint, production level, new
product and service, organizational
structure,employee separation)
HR Supply Forecast

 Supply forecast determines whether the HR

department will be able to procure the required
number of personnel.

 Specifically, supply forecast measures the number

of people likely to be available from within and
outside an organization.
Supply analysis includes:

 Existing human resources,

 Internal sources of supply,

 External sources of supply.

HR Programming
 Once the organization’s personnel demand and
supply are forecast,the two must be balanced.

 This is required to fill the vacancies by the right

employees at right time.
HR Plan implementation

 Implementation requires converting an plan into action

 A series of action plans are initiated such as:

 Recruitment and selection and placement,

 Training and Development,

 Retraining and redeployment,

 Retention plan, redundancy plan and succession plan.

 Strategic HR Initiatives
Strategic HR Initiatives

Strategies for managing Strategies for managing

shortages surpluses

• Recruit new permanent employees. • Hiring freeze.

• Offer incentives to postpone • Do not replace those who
retirement leave.
• Rehire retirees part-time. • Offer VRS.
• Attempt to reduce turnover. • Reduce work hours.
• Work current staff overtime. • Across the board pay cuts.
• Subcontract work to another • Layoffs.
company. • Reduce outsourced work.
• Hire temporary employees. • Employee training.
•Redesign job so that fewer • Switch to variable pay.
employees are needed.
Control and Evaluation
 Control and evaluation represents the final phase of
evaluation process.

 The HR plans should include budgets, targets and

standards.

 It should clarify the responsibilities of implementation and

control .

 It should establish reporting procedures which will enable

the achievements to be monitored against plan.