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Human Resource Planning

The actual HRM process begins with number and type of people required during the coming period. After this only can people be hired to fill the jobs. HRP is a subsystem organizational planning. in the total

■ “HRP includes estimation of how many qualified people are necessary to carry out the assigned activities, how many people will be available, and what, if anything, must be done to ensure that personnel supply equals personnel demand at the appropriate time in the future.” - Terry L. Leap and Michael D. Crino

” . Leap and Michael D. and what.Terry L. if anything. must be done to ensure that personnel supply equals personnel demand at the appropriate time in the future.■ “HRP includes estimation of how many qualified people are necessary to carry out the assigned activities. how many people will be available. Crino .

3) Forecast future requirements of resources with different levels of skills. human Contd. 2) Ensure proper use of existing human resources in the organization. … .OBJECTIVES OF HRP 1) Ensure adequate supply of manpower as and when required.

6) Control the human resources already deployed in the organization. human resources available over a specific period of time. if any. 8) The ultimate objective is to relate future human resources to future enterprise needs so as to maximize the future return on investment in human resources. 5) Anticipate the impact of technology on job and requirements for human resources. .4) Assess surplus or shortage.

Importance of HRP Future Personnel Needs – VRS. Overstaffing. absence of succession planning Coping with change Creating highly talented personnel Protection of weaker sections International strategies Foundation of personnel functions Increasing investment in human resource Resistance to change and move .

Factors Affecting HRP Type and strategy of organization – Production processes involved – Number and type of staff needed – Supervisory and managerial personnel required Strategic plan of the org defines the org. HR needs. .

Internal Growth Narrow Informal Reactive Inflexible Factors Affecting HRP Growth through M&A Broad Formal Proactive Flexible Continual Strategic Choices in HRP .

the shorter the plan’s time horizon and vice versa .Factors Affecting HRP Organizational growth cycles and planning – The stage of an organization’s growth influences HRP Environmental uncertainties Time horizons – Greater the uncertainty.

Factors Affecting HRP Type and quality of information Nature of jobs being filled – Easy to employ shop-floor workers as compared to hiring managerial personnel Off-loading the work – Several organizations off-load part of their work to outside parties .

etc.The HRP Process Environment Organizational Objectives and Policies HR Needs Forecast HR Programming HRP Implementation Control & Evaluation Surplus Restricted Hiring. VRS Lay off. Shortage Recruitment and Selection HR Supply Forecast .

translated into activity levels for each function and department Organizations generally follow more than one forecasting technique .The HRP Process HR plans to be based on organizational objectives The HR needs forecast should be based on the annual budget and long-term corporate plan.

laws and regulatory bodies. It takes into consideration several factors like external factors which includes competition. changes in technology. It includes internal factors like budget constraints. production levels. .HR Demand Forecast Demand forecasting is the process of estimating the future quantity and quality of people required. org structure and employee separations.

Forecasting Techniques Managerial judgment Ratio trend analysis Work study techniques Delphi technique Flow models Others .

OR. . ■ Quick method but may suffer from subjectivity. . . ■ Both “bottom-up” approach and “top-down” approach methods are used.MANAGERIAL JUDGEMENT METHOD ■ The top and operating managers participate. the top managers prepare the forecast and send down to the operating levels for comments after which it is finalized.Operating managers prepare manpower plans and send up to the top level for approval.

WORK STUDY METHOD ■ can be used when it is possible to apply work measurement to calculate the length of operations and the amount of labour required. Eg starting point in a manufacturing company is the production budget .

■ After computing the above number. . on the basis of studying past ratios say between number of workers and sales in an org and forecasting future ratios. adjustments are to be made for planned separations.RATIO-TREND ANALYSIS METHOD ■ Very quick method.

Contd.DELPHI TECHNIQUE METHOD ■ This is a more refined judgemental method. … . ■ The managers involved do not meet face-to-face. hence can be more accurate than the management judgement method. ■ But it is more time consuming.

Contd.The HR department compile and summarize the various responses and report the findings back to each the managers. to HR department. Each manager submits his estimate anonymously and independently. ` .The managers are asked to provide manpower estimates on a pre-designed questionnaire. … .■ The following steps are involved : .

for reviewed estimates.The summaries and surveys are repeated until the managers’ opinions begin to agree. .The agreement reached is the forecast of the manpower needs. the managers are surveyed once again.After receiving the feedback. .. .

the two must be balanced so that vacancies can be filled by the right employees at the right time .The HRP Process The supply analysis covers – Existing human resources – Internal sources of supply – External sources of supply Once the organization’s demand and supply are forecast.

strenghts. management inventories include work history. education. weakness. . Non managers. career goals etc. salary and job history etc.Existing human resource is facilitated by HR audits. HR audits summarize each employees skills and abilities.skilled inventories Managers.management inventories Information of skilled includes personal data.

2. 3. Turnover rate : Number of separations during one year divided by average no. conditions of work and absenteeism. productivity level and movement among jobs. of employees during the year * 100. . turnover rate. Internal supply includes inflows and outflows.

selection and placement – Training and development – Retraining and redeployment – Retention Plan – Redundancy plan – Succession plan .The HRP Process Implementation requires converting HR plan into action – Recruitment.

The HRP Process To control deviations. evaluation should be done against – Budgets – Targets – Standards – Trends Clarification of responsibilities has to be done .

HRP Process Assessing current human resources Assessing where the organization is going Matching future demand and supply of human resources .

up-todate and readily available .Requisites for Successful HRP The planner of human resources must be aware of the corporate objectives Backing of top management for HRP is absolutely essential HRP responsibilities should be centralized in order to co-ordinate consultation between different management levels Personnel records must be complete.

Requisites for Successful HRP The time horizon of the plan must be long enough to permit any remedial action Data collection. techniques of planning and the plans themselves need to be constantly revised and . analysis.

Barriers to HRP Resistance by employers and employees Uncertainties Inadequacies of information system HR information often is incompatible with the information used in strategy .