HUMAN RESOURCE PLANNING

Lecture #4
HUMAN RESOURCE PLANNING
Lecture #4
HUMAN RESOURCE PLANNING
Human Resource Planning, also termed as manpower
planning, is a process for determining and assuring the
organization will have an adequate number of qualified
persons, available at the proper times, performing jobs which
meet the needs of the enterprise and which provide
satisfaction for the individuals involved.
HR planning definition
• 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,
▫ At the right time,
▫ Capable of effectively and efficiently completing those
tasks that will help the organisation achieve its overall
strategic objectives.
• It is the process of assessing the future supply of and
demand for human resources.
• It also provides mechanisms to eliminate any gaps that
may exist between supply and demand
• It is a process of determining what positions in the firm
will have to be filled and when
Definition (cont..)
• Human Resource planning translates the organization’s
overall goal into the number and types of workers
needed to meet those goals.
• Without clear-cut planning, estimation of an
organization’s human resource need is mere a
guesswork.
Definition (cont..)
• Thus, HR planning determines the number and
types of employees to be recruited into the
organisation or phased out of it
Strategic Human Resource Planning
• Strategy (from Greek Stategiya) art of troop leader;
office of command, generalship.
• It is a high level plan to achieve one or more goals under
conditions of uncertainty, which included several subsets
of skills including "tactics", “planning”, “logistics” etc.,
• The term came into use in the 6th century in East Roman
terminology, and was translated into Western languages
only in the 18th century.
• From then until the 20th century, the word "strategy"
came to designate "a comprehensive way to pursue some
goals and objective with a clear vision keeping in view
existin threats or risks"
Strategic Human Resource Planning
• A HR plan of action designed to achieve a long-
term or overall goal.
• Strategic HR planning generally involves setting
goals, determining actions to achieve the goals,
and mobilizing human resources to execute the
actions.
• It involves activities such as strategic
planning and strategic thinking regarding HR.
Strategic Human Resource Planning
• Strategy Formulation
▫ Where do we want to be?
▫ Vision
▫ Mission
▫ Goals
▫ Objectives
 Why Human Ressources Planning?
The importance of systematic manpower planning has been
recognized only in recent years. Traditionally, management
assumed that it could always obtain the personnel if required
whenever it needed them.
Mostly firms did not engage in formal human resource planning.
But formal personnel planning is essential for the enterprise that
is moderate to large in size, that experience changes in
technology, products, markets, and internal organization and that
utilizes a lot of high-talent personnel.
 Factors affecting planning
(Why Human Ressources Planning?)
Some specific reasons why management should carry on
systematic human resource planning

• Changing Demographic
• Organisation Strategic and HR policies
• Future Personnel Needs.
• Coping with Change.
• High-Talent Personnel
• Strategic Planning
• Equal Employment Opportunity
• Foundation for Personnel Functions
• Government policies regarding gender balance, disability
employment, mandatory retirement age
Why Human Resouces Planning?

Changing demographic
Changing demographic means more young, more
old, more educated or otherwise adding up in the
market.
If the markets of labour changes to more young,
more old, more women or more educated people
etc, then the job descriptions, compensations
strategies and general way of working might
have to change to suit these groups
Why Human Resouces Planning?

Organization policies, values and strategy

1. Organizational policies on recruitment, promotion, succession
management and career planning, retirement, workforce mix
etc
2. Organizational values and strategies
▫ values - If it values longevity of employees, then the HR plan
might adopt that a strategy to recruit and promote 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
 Why Human Resouces Planning?
• Future Personnel Needs
Planning is vital for ascertaining personnel needs for the future.

• Coping with Change

Human resource planning enables the enterprise to adapt to change
in competitive forces, markets, technology, products, and
government regulations. Such changes often generate changes in
job content, skill demands, number and types of personnel.

• High-Talent Personnel
The mix of people employed in many organizations has shifted
toward the high-telent occupations – managerial and professional
personnel. There is often a scarcity of such talent. The lead time to
hire and develop high talent personnel problem is management
succession planning.
 Why Human Resouces Planning?
• Strategic Planning
The modern competitive enterprise engages in strategic planning.
Human resource planning is an essential component of strategic
planning.

• Equal Employment Opportunity

The Federal government’s equal employment opportunity and
affirmative action regulations mandate that employers meet agreed
goals for the hiring, placing, training, upgrading, and compensation of
protected categories of people.

• Foundation for Personnel Functions

Personnel planning provides essential information for designing and
implementing personnel activities such as recruitment, selection,
transfers, promotions, layoffs, and training.
THE HR PLANNING PROCESS
Planning for human resources should be tied in with overall enterprise
long-range planning. Unfortunately, many enterprises do no formal
long-range or strategic planning. For many organizations, the creation
and adoption of an annual budget constitutes the sole mechanism of
planning for organization needs.
Many companies carry out systematic planning only for those
categories of personnel which have been in short supply or for those
types of skills which require a long development time within the
organization.
THE HR PLANNING PROCESS
The major components of the human resource-planning process are;
1. Goals and plans of the organization
2. Current human resource situation
3. Human resource forecast
4. Implementation programs
5. Audit and adjustment.
Major Steps in the Human Resource Planning Process

GOALS AND PLANS OF ORGANIZATION

Strategic Planning: Public Policy, social trends, economic conditions,
technology, market conditions, strength s and weaknesses of organization,
projected outputs for planning periods.

CURRENT HUMAN RESOURCE SITUTATION

Skill inventory, numbers of people grouped by job, department, organization
level, location, age, education, in service training completed, performance.

HUMAN RESOURCE FORECAST

Strategic Planning: Public Policy, social trends, economic conditions,
technology, market conditions, strengths and weaknesses of organization,
projected outputs for planning periods.

IMPLEMENTATION PROGRAMS
Recruitment, selection and placement, performance appraisal. Career
planning; transfer, promotion, layoff, training and development, motivation
and compensation.

AUDIT AND ADJUSTMENT

Measure implementation progress, compare with plan, take corrective action.
Change human resource plans if enterprise plans are altered. Periodically
update skills inventory, forecast, and implementation programs.
1. Goals and Plans of Organization
• Analysing ad evaluating Environmental influencers
▫ Political Trends and legislation which have an impact
upon business
▫ Economic conditions such as completion, inflation,
rate of change in GNP and unemployment
▫ Social trends in leisure time, work values and
retirement
▫ Technological advances affecting the enterprise
1. Goals and Plans of Organization
• Analysing ad evaluating Environmental influencers
• Identify the values and aspirations of the organizations’s
directors and executives
• Identify and evaluate internal strength, weaknesses.
Consider existing human, financial and technical
resources of existing facility
• Develop a strategy which relates the strengths of
Company and the aspirations of executives with the
opportunities perceived in the environment
1.Goals and Plans of Organization
• Create specific enterprise objectives and plans for
achieving these objectives
• Prepare plans for the functional areas of business,
production, finance, marketing, engineering. Determine
strength, deficiencies and needs
• Communicate with the members of organization and
involve them in planning process.
2. Current Human Resource Situation
• The second phase of planning is the preparation of an
inventory f personnel presently within organization. This
is often called as skill inventory or Management
Information System. A skill inventory consists of up-to-
date information regarding the qualification and
experience of existing employees. Normally Skill
inventory is prepared only for certain categories such as
Management, Technical and professional craftsmen.
• Skill Inventory has important uses when human resource
forecasting is prepared.
• It’s a live process
• Performance appraisal of inventory may be clubbed in
the system
3. Human Resource Forecast
• HR forecast is determination of demand for people and of
the appropriate types and skills for given period in future.
4. Implementation Plans
• Implementation means converting the human resource
plans into action.
• After plans, recruitment and selection starts.
• The selection programs must be professionally designed
• Performance appraisal methods are revamped and
improved.
• Career development formats are prepared.
5. Audit and Adjustment
• For any of various reasons the programs for human
resource planning may have several deficiencies which
need to be evaluated / audited for improvement and
adjustment.
Strategic Human Resource
Planning
What is Strategy?
• Strategy (from Greek Stategiya) art of troop leader;
office of command, generalship. It is a high level plan to
achieve one or more goals under conditions of
uncertainty, which included several subsets of skills
including "tactics", “planning”, “logistics” etc.,
• The term came into use in the 6th century in East Roman
terminology, and was translated into Western languages
only in the 18th century. From then until the 20th
century, the word "strategy" came to designate "a
comprehensive way to pursue some goals and objective
with a clear vision keeping in view existin threats or
risks"
What is Strategy?
• A plan of action designed to achieve a long-term
or overall goal.
• Strategy generally involves setting goals,
determining actions to achieve the goals, and
mobilizing resources to execute the actions.
• A strategy describes how the ends (goals) will be
achieved by the means (resources).
• Strategy can be intended or can emerge as a
pattern of activity as the organization adapts
to its environment or competes. It involves
activities such as strategic planning and strategic
thinking.
Strategic Planning and
Management Model
• Strategy Formulation
▫ Where do we want to be?
▫ Vision
▫ Mission
▫ Goals
▫ Objectives
VISION
Vision without Action is a Daydream
Action without Vision is a Nightmare
• Not Optional
• Stretch – 30+ Years
• 8-10 Words in length
• Future State
• Brief and Memorable
• Inspiring and Challenging
• Descriptive of the Ideal
Vision Examples
• “Light the Fire Within”
• “A Safer Future for All Communities”
• “See the Mountains – Breathe Freely”
• The best quality food
• To Be the Happiest Place on Earth
• To Be the World’s Best Quick Service Restaurant
• 7 minute response time
• Zero accidents / zero tolerance
MISSION
• What is our purpose?
• Describes current state
• Timeline is 3-5 Years
• Builds on our distinctive competencies
• Tends to focus on Core Business
• 30-35 Words in length
Mission Examples
• “To Lead All Communities in Disaster
Preparedness, Mitigation, and Recovery by
Maximizing Assistance and Support.”
• “Caltrans Improves Mobility Across California.”
• To produce superior financial returns for our
shareholders as we serve our customers with the
highest quality transportation, logistics, and e-
commerce.
GOAL
• Supports the Mission
• Deals with One Issue or Item of Focus
• Reflects a primary activity or strategic direction
• Encompasses a long period, i.e. at least 3 years
Goal Examples
• Achieve excellence in the delivery of disaster
recovery and mitigation programs.
• Professionally develop our employees for best
performing attributes and values.
• Increase the supply of affordable housing.
• Become a model for customer service.
• To provide benefits in correct amounts and
issued in a timely manner.
OBJECTIVES
• Add specificity beyond Goals
• Answer the questions
▫ What is to be accomplished?
▫ When?
• Should contain the SMART Elements
OBJECTIVES: SMART Model
• Specific
• Measurable
• Aggressive but Attainable
• Results-Oriented / Realistic
• Timeframe
Strategic Objective Examples
• Provide clean drinking water to 80% population of
Punjab by 2030
• By June 30, 2015 achieve 75% rating on the service index
from all stakeholders.
• Increase Economic Growth rate of province by 8% within
two years.
• Increase sales growth 6-8% in the next 5 years. (P&G)
• Cut corporate overhead costs by $30 million per year.
(Fortune Brands)
• Operate 6,000 stores by 2010 – up from 3,000 in the
year 2000. (Walgreen’s)
CASE STUDY
Human Resource Planning

Leveraging
Business
through effective
Human
Resources planning

The PerFact Service Academy

Questions to be answered
1. What are the shared values of Perfect Service Academy as per
vision of organization?
2. What is the strategic goal of the company and the prime focus
areas or the corporate objectives?
3. As per case study, in the coming year what activities will be
focused towards achievement of the corporate objectives?
4. To achieve the goal and objectives, company need to start
marketing, suppose the company exists in Pakistan and providing
cooperate trainings in Pakistan, what will be the PEST and SWOT
analysis which must be considered to kick start. Kindly also
consider latest growth in Construction sector in the country and
forth coming projects under CPEC.
5. Based on PEST, Scenario analysis, SWOT, future organizational
goal and objectives, present HRP model for the company for next
year. Kindly also consider latest growth in Construction sector in
the country and forth coming projects under CPEC.
Questions to be answered
5. Based on PEST and SWOT, set the number of proposed
trainees for next year. What areas and levels of training you
want to enhance in organization? Give detail of proposed
trainings.
6. Present the current Manpower status of training center to train
current trainees (i.e. 480 trainees a year)?
7. Propose the planned Manpower strength for to achieve newly
set growth targets training for 100% manpower utilization.
Kindly, consider the high turnover and absenteeism of the
employees in the organization for HR planning.
8. What will be qualification and JDs of newly recruited staff?
9. When newly proposed staff is hired? You want to hire them on
permanent, contract or any other mode? Give the schedule of
recruitment.
Questions to be answered
10. What method you will propose for induction / selection of
Human Recourse, you have planned for achieving goal and
cooperate object, recruitment plan of which you have already
given in previous question.
11. Finally, based on all previous information give a schedule of
additional / all trainings for the next year.
12. Last, but not the least, prepare a successive planning for the
organization.
 Questions?

Thank You