HUMAN RESOURCE

PLANNING
Ms. Shifali Garg
Lecturer
 Human Resources Planning is a system of matching the
supply of people (existing employees and those to be
hired or searched for) with openings the organisation
expects over a given timeframe.
 Improper human resource planning may lead to over-
staffing, increased direct cost , cost of training , apart
from the cost of production . Under-staffing also affects
production , morale and productivity therefore, proper
HRP is essential
MEANING OF HUMAN RESOURCE
PLANNING

Human resource planning is the process by

which an organization ensures that it has
the right number and kind of people, at the
right place, at the right time, capable of
effectively and efficiently completing those
tasks that will help the organization achieve
its overall objectives.
DEFINITION OF HUMAN
RESOURCE PLANNING
According to stainer,” human resource
planning is the strategy for the acquisition,
utilisation, improvement and preservation of
an organisation’s human resources. It is
aimed at coordinating the requirements for
and the availability of different types of
employees”.
CHARACTERISTICS OF HUMAN
RESOURCE PLANNING
 Forecasts of the manpower needs.
 Continuous process.
 Integral part of corporate planning.
 Optimum utilisation of organization and human
resources.
 Quantitative and qualitative aspect.
 Primary responsibility of management.
 Long or short term plans.
 Two- phased process.
OBJECTIVES OF HUMAN
RESOURCE PLANNING
 Optimum utilisation of human resource planning.
 Forecast future requirements.
 Control.
 Link human resource planning with organisational
planning.
 Assess the surplus and shortage of human
resources.
 Anticipate the impact of technology on jobs.
 Determine the level of recruitment and training.
 Expansion and diversification.
NEED AND IMPORTANCE OF
HUMAN RESOURCE PLANNING
 Employment situation.
 Technological changes.
 Organisational changes.
 Demographic changes.
 Shortage of skills.
 Pressure groups.
 Lead Time.
 Hiring costs.
 Environment

Corporate Analysis:
Objectives and strategies
Organisational plans
Market forecasts and Budgets
Financial Plans
Production Targets

Demand Forecasting Supply Forecast

• Numbers Manpower Gaps • Manpower Inventory
•Surplus of numbers and • Losses and additions
• Job categories skills • External supply
• Skill requirements • shortages

Manpower Plans
• Recruitment and selection
• Training and Development
• Retention
• productivity

Monitoring and
Control
PROCESS OF HUMAN RESOURCE
PLANNING
 Analysing organisational plans
 Forecasting demand for human resources
a) Managerial judgement
b) Work-study method
c) Ratio- trend analysis
d) Mathematical model
 Forecasting supply of human resources
 Estimating manpower gaps
 Action planning
 Monitoring and control
1) Environmental scanning
 Environmental scanning provides a better understanding
of context in which HR decisions are/will be made. It
help HR planners identify and anticipate sources of
problems ,threats , opportunities that should derive the
organisation’s strategic planning.
 For effective HR planning both external environment
(competitors, regulations etc.) & internal environment
(strategy , technology , culture etc.)
SCANNING HELPS IN
IDENTIFYING

INTERNAL EXTERNAL
ENVIROMENTAL ENVIROMENTAL
STRENGTHS OPPORTUNITIES

WEAKNESSES THREATS
2.ORGANISATIONAL OBJECTIVES &
POLICIES
 In this strategic plans of the organisation are analysed.
Plans concerning technology, production, marketing ,
finance , expansion & diversification give an idea about
the volume of future work activity.
 The future organisation structure & job design should be
made clear.
 It is necessary to study business plans because all
manpower plans stems from business plans relating to
nature, level & organisational activities.
3)FORECASTING HR DEMAND
 Demand forecasting is the process of estimating the future quantity &
quality of people required.
 Demand Forecasting Techniques
1)Managerial Judgement
2)Work Study method
3)Ratio analysis
4) Mathematical models
a) Employment Trends
b)Replacement needs
c)Productivity
d)Growth & Expansion
e)Absenteeism : Man-days lost/Man-days worked + Man
days lost
5) Workload analysis
 Workload Analysis

1. Managerial Judgement: These are based on the

judgments of those who possess good knowledge of
future human resource needs.

2. Work study Method: In this method time and

motion study is used.eg:

Planned output for next years: 50,000 units

Standard hours per unit: 2
Planned hours required: 50,000*2=1,00,000
Productive hours per worker in the year 2,000
No. of workers required 1,00,000/2000=50
If span of control is 10,(50/10) supervisor will be required.
 3. Ratio Trend analysis: This is based on the assumption
that the future is an extrapolation from the past. Human
resource needs, as such, can be estimated by examining past
trends.
E.g.:
2008-09 Production of Units : 50,000 units
2008-09 No. of Workers : 50
Ratio : 50:50000 or 1:1000
2010--11 Estimated Production : 60,000
No. of Workers required : (60,000 × 1)/1000
= 60
 4. Mathematical models: It expresses
the relationship between Independent
and dependent variable.
Employment Trends: comparing and analyzing the staff during the
past five years
Replacement Trends: depend on death, retirement, resignation and
termination of employees.
Productivity: Matching of skills with job requirement, job analysis
technique
Absenteeism: Mandays lost due to absenteeism/(Mandays
worked+ Mandays lost)
4. Forecasting Supply of HR
 Internal and External supply
 Internal (transfers, promotions etc.)
consists manpower inventory, detail
bio-data, manning table(job-wise
list),manpower replacement charts etc.
 Future internal supply=Present
inventory of HR+ potential additions-
Potential losses.
5)ESTIMATING MANPOWER GAPS
 Net human resources requirements or manpower
gaps can be identify by comparing demand
forecasts supply forecast. Such comparison will
be reveal either shortage or surplus of human
resources in future.
 SHORTAGE :Shortage suggest the no. Of persons
to be recruited from outside.
 SURPLUS: Surplus implies redundant to be
redeployed or terminated .
 Similarly, gap may occur in
term of knowledge , skills and
aptitudes .Employees estimated to be deficient
can be trained where as employees with higher
skills may be given more enriched jobs.
 Expected Loss of manpower
Potential losses of HR can arise in the form of :resignations,
discharges, deaths, layoff, promotions, transfers, ill-
health, injury etc.
Additions to HR: promotions, demotions, transfers,
acquisition of new skills etc.
Future internal supply of hr= Present inventory of
HR+potential additions- Potential losses.
Calculating Manpower Requirements
Years 1 2 3
1. Manpower Demand
a. Numbers required at the beginning of the year
b. Changes forecast during the year
c. Requirements at the end of the year(a+b)
2. Manpower supply
a. Numbers available at the beginning of the year
b. Additions due to transfers and promotions
c. Losses due to separation,etc.
d. Numbers available at the end of the year(a+b-c)
3. Requirements
a) deficit(1-2)
b) Loss out of those recruited during the year
c) Additional numbers required during the year(a+b)
6)_ACTION PLANNING
 Once the manpower gap are identified, plans to bridge
these gaps. Plans to meet the surplus manpower may be
redeployed in other departments/units and retrenchment
in consultation with the trade unions.
 Deficit can be met through recruitment , selection ,
transfer , promotion , and training plans. Realistic plans
for the procurement & development of manpower should
be made after considering the macro & micro
environment which affect the manpower objective of the
organisation.
LEVELS OF HUMAN RESOURCE
PLANNING
 National level
 Sectoral level
 Industry level
 Unit level
PROBLEMS IN HUMAN RESOURCE
PLANNING
 Inaccuracy
 Employees resistance
 Uncertainties
 Inefficient information system
 Lack of support management support
 Time and expenses
GUIDELINES FOR EFFECTIVE
PLANNING
 Tailormade
 Appropriate time horizon
 Adequate organisation
 Top management support
 Participation
 Information system
THANKS