HUMAN RESOURCE PLANNING

DR. SAIMA AKHTAR

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
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 organization's human resource needs

in the light of organizational goals and making plans to ensure that a
competent, stable workforce is employed”
-Wendell French-
 • Human Resource planning is the process by which an
organisation ensures that:

• It has the right number and kinds of people,

• At the right places,

DEFINING HR
PLANNING (CONT.) • At the right time,

• Capable of effectively and efficiently completing those

tasks that will help the organisation achieve its overall

strategic objectives.
 • HR plan must include HR needs in light of organizational
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
CHARACTERISTICS which they are economically most useful
OF HR PLANNING • HR plan should pave the way for an effective motivational
process

• 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
 • The rationale for HR planning stems from the idea that organizational
success heavily depends on human resources. If the right person does
NEED FOR HR not do the right job it will affect organizational performance
PLANNING • 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
• 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.
SIGNIFICANCE OF HR• The significance of HR planning lies in:
PLANNING
• 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
organizational conditions
 • Values - If it values longevity of employees, then the HR
FACTORS AFFECTING
plan might adopt that a strategy to recruit and promote
PLANNING from within.

• Strategy –
• How does the organisation intend to use HR to
achieve business strategy
• If an organisation is pursuing a diversification strategy,
then the HR plan should ensure that it is prepared with
staff that can help the firm achieve its strategy, e.g.
new organisation structure, recruitment and selection,
training etc.
 • If the HR plan is moving in one direction and the strategic
STRATEGIC PLANNING
plan is moving in a completely different direction it is not
AND HR PLANNING possible to meet the organizational vision and objectives

• Hence HR planning has to be done in line with the

strategic plan of the organisation
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
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
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
• HRP at Departmental Level
• This looks at manpower needs at
departmental level of the organisation
 • Analyzing organizational plans and deciding objectives

• Analyzing factors for manpower requirements

HR PLANNING • Demand forecasting
PROCESS • Supply forecasting

• Developing employment plans

• Developing human resource plans

 • Firstly short and long term objectives should be analyzed

• The organizational plan is a blueprint of desired objectives and

would incorporate the growth rate of the company,

ANALYZING diversification plans, market opportunities and government

ORGANIZATIONAL PLANS policies
AND DECIDING OBJECTIVES
• 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
 • The existing job design and analysis may thoroughly be
reviewed keeping in view the future capabilities, knowledge and
ANALYZING FACTORS FOR skills of employees
MANPOWER
REQUIREMENTS • Manpower requirements have to be analyzed in two ways:

• Demand forecasting

• Supply forecasting
 • Demand forecasting: the process of estimating the future
requirements of manpower by function or by level of skill
ANALYZING FACTORS FOR
MANPOWER • Two kinds of forecasting techniques are used namely
REQUIREMENTS judgmental forecasts and statistical projections

• Judgmental forecasts: the traditional method where forecasts

are made based on the judgment of managers and executives
 • Statistical forecasts: using statistical methods such as ratio-trend
analysis, econometric model, work study technique to forecast
the requirements

ANALYZING FACTORS FOR • Supply forecasting: this is about the availability of human
MANPOWER resources within and outside the organisation
REQUIREMENTS
• Firstly it is needed to obtain information regarding the available
human resources at present

• Could take HR audits, employee wastage and internal

promotions into consideration
 • After deciding on the number it is important to determine the
nature of the job through job description and job specification

DEVELOPING • Job description: will describe the work performed,

EMPLOYMENT PLANS responsibilities, skills and training required, conditions under
which the job has to be performed

• Job specification: this is the output of job description, would

cover minimum qualifications required (e.g. education,
experience, mental skills, personality factors
 • Net human resources should be determined in terms of demand
and supply for human resources

DEVELOPING A HUMAN • Adjustments begin when the demand and supply are identified
RESOURCE PLAN • When the internal supply is higher, recruiting from outside is
stopped and when the demand outweighs supply external
recruitments are made

• Also when the general demand is higher than the supply focus
would be on retaining employees as well
 • Improvement of labour productivity: through HR planning it is
possible to identify methods of satisfying employees as well as
making the right person available for the right job
ADVANTAGES OF HR
• Adjusting with rapid technological change: through HR planning
PLANNING PROGRAMMES
it is possible to forecast the requirements of HR and recruit
people who suit the requirements

• Reducing labour turnover: efficient manpower planning enable

the reduction of skilled and experienced people leaving the
organisation
 • Control over recruitment and training cost: highly capable
people are in short supply and will have to incur a high cost in
recruiting them and proper manpower planning will help reduce
ADVANTAGES OF HR this cost
PLANNING PROGRAMMES
• Helps facilitate expansion programmes: as the company grows
proper manpower planning would enable the organisation to
meet HR needs appropriately
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
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