Introduction to Human Resource

Planning
• Human Resource Planning is the first step in HR management.

• HRP is a strategy used by a company to maintain a steady stream

of skilled employees while avoiding employee shortages or
surplus.

• It helps to achieve organizational goals and objectives.

 Definition of HRP
According to Geisler, “ HRP is the process including forecasting, developing
and controlling by which a ensures that it has;
• The right number of people,
• The right kind of people,
• At the right places,
• At the right time, doing work for which they are economically most
useful”.
 Factors Affecting HRP
• Type and strategy of organization.
• Organization growth cycles and planning.
• Environmental uncertainties.
• Type and quality of forecasting information.
• Time horizons.
• Labour market.
• Outsourcing.
 Type and Strategy of Organization
• Type of organization is an important consideration since it involves in
Production process.
• Number and type of staff needed.
• Supervisory or managerial personnel required.
• The strategic plan of the organization defines the organizations needs.
• Employee must be hired for an organizational growth.
 Organizational growth cycles and planning

All organizations pass through different stages of growth from the day of its
inception. The stage of growth in which an organization is determines the
nature and extends of HRP.
• Start up or Embryonic Stage
• Growth Stage
• Maturity Stage
• Decline.
 Environmental Uncertainty
• Environmental uncertainty- Political, social and economic changes affect
all organizations and the fluctuations that are happening in these
environments affect organizations drastically.
• Personnel planners deal with such environmental uncertainties by
carefully formulating recruitment, selection, training and development
policies and programmes .
 Type and quality of forecasting information
• The information used to forecast personnel needs originates from a
multitude of sources.
• The forecast depends to a large extent upon the type of information and
the quality of data that is available to personnel planners.
• The quality and accuracy of information depend upon the clarity with
which the organizational decision makers have defined their strategy,
structure, budgets, production schedule .
 Time Horizons

• HR plans can be short term or long term.

• Short term plans spans from six months to one year, while long term
plans spread over three to twenty years.
• The extent of time period depends upon the degree of uncertainty that is
prevailing in an organizations environment.
 Labour Market

Labour market comprises people with skills and abilities that can be tapped
as and when the need arises. When one talks about labour supply, the
following deserve due consideration:
• The size, age, sex and educational composition of the population .
• The demand for goods and services in the country.
• The nature of production technology.
• Employability of the people.
 Outsourcing
• Outsourcing – the process by which employees transfer routine or peripheral
work to the another organizations.
• Outsourcing is a regular feature both in the public sector as well as in the
private sector companies.
• Many of the organizations have surplus labour and hence instead of hiring more
people they go for outsourcing. Outsourcing is usually done for non critical
activities.
• Several organizations outsource part of their work to outside parties in the form
of subcontract.