Human Resource PLANNING

Always recognize that human individuals are ends, and do not use
them as means to your end

Prof. Ganga Karunathilaka

PhD (MSU-Malaysia),Mcom (Kel),
BBMgt(HRM)sp.Hons(Kel.)
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Associate Professor-NSBM
 Definitions for HR Planning
1. Human Resource planning may be defined as
an attempt to forecast how many and what
kind of employees will be required in the
Soft Concept
future. Hard
Concept

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2. Human Resource Planning is
the process for ensuring that
the human resource
requirements of an
organization are identified, and
plans are made for satisfying
those requirements. -Michael
Organizational goals
Armstrong,2009 • Profit
• Income Need people
• Image (HR requirements)
• Customer satisfaction
3 • Competitive advantage
 3.The development of
a comprehensive
staffing strategy for
meeting the
organization’s future
human resource
needs.

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 4.Workforce planning places
the right people at the
right place and right time
to meet the organization’s
strategic plan and
objectives. (Ghame
&Benet, 2012)
suitable people required place required time

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Human Resource Planning Process-1
Forecast future demand for HR

Estimate HR Supply

Compare forecast demand with estimated Supply

Decide strategies to be taken

Feed back
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 Human Resource Planning Process - 2

Strategic Human Compared Human

Resource Resource
Planning Demand with Supply

If non
Variance End

If Surplus If Shortage
Decisions Decisions
Action Lay Off Overtime
Decision Retirement
Recruitment
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End End
 Relationship of HRP to Strategic
Planning
 Employment planning must be linked to the

organization’s overall strategy

 HRP must be responsive to the changes both

within & outside the organization

 To ensure that appropriate personnel are

available to meet the requirements set during the

strategic planning process, HRM engage in
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employment planning
 Forecast future demand for HR

HR Demand forecasts
 Determine how many and what type of people

are needed.
 When forecasting future demand for human

resources, consideration of factors affecting

demand of human resources needs to be done.

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 HR Demanding factors
 Demand for the  Workflow Analysis

product and “The process of analyzing the tasks

necessary for the production of a product
services
or service”
 Expansion  Output
 Diversification  Work process
 Growth  Inputs ( Raw Materials, Equipment, HR)
 Work flaw design and organizational
 Retirements
Structure
 Resignations  Identify the positions and job needed
 Terminations  Position: A set of duties performed by a
 Death particular person
 Job: A set of Related Duties
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HR supply forecasts
 Supply forecasting measures the number of

people likely to be available from with in the

organization.

Existing Staff Labour market

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 Analysis of HR supply and demand
Labor Deficit
 Provide over time

 Promote current employees

to new positions
 Provide training and development

 Capital Substitution

 Hire casual/ part time / contract

basis employees
 Hire new permanent employees
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Labor surplus
Restricted hiring
Reduced hours
Transfer them to other
Early retirement
areas
Layoffs
 Provide VRS ( voluntary
Company expansion
retirement scheme)

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 Importance of HRP
1. Future personnel needs
 Surplus or deficiency in staff strength
 Results in the anomaly of surplus labor with the lack of top executives

2. Coping with change

Enables an enterprise to cope with changes in competitive forces, markets,
technology, products & government regulations
3. Creating highly talented personnel
 HR manager must use his/her ingenuity to attract & retain qualified &
skilled personnel
 Succession planning

4. Protection of weaker sections

Future weaker candidates, physically handicapped, children of the socially
disabled & physically oppressed and backward employees

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 5. International strategies
 Fill key jobs with foreign nationals and re-assignment of
employees from within or across national borders

6. Foundation for personnel functions

 Provides information for designing & implementing
recruiting, selection, personnel movement(transfers,
promotions, layoffs) & training & development

7. Increasing investments in human resources

 Human assets increase in value

8. Resistance to change and move

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 Proper planning is required to do this