HUMAN RESOURCE

PLANNING
INTRODUCTION
DEFINITION OF HRP
 IMPORTANCE OF HRP
PROCESS OF HRP
FACTORS AFFECTING HRP
BARRIERS TO HRP
INTRODUCTION

Planning for human resources is more

important than planning for any other
resources because the demand of latter
depends on size and structure of the
former whether it is in country or in an
Industry. Management of human resource
hardly begins from human resource
planning.
DEFINITION OF HRP

“A process by which an organisation should move

from its current manpower position to desired
manpower position. Through planning the
management strives to have the right number, right
kind of people at right place and at right time, doing
things which results both organisation and individual
receiving maximum long run benefits.”
- E.W. Vetter
IMPORTANCE OF HRP
 Future Personnel Needs-Planning is significant
as it helps determine future needs i.e. VRS
 Coping with change-HRP enables an enterprise
to cope with changes in competitive forces ,
markets, technology, products and government
regulations
 Creating Highly Talented Personnel-Creation of
highly specialized Workforce leading to frequent
shortages in the organization
 Protection of Weaker Sections-A well conceived
personnel planning programme would protect
the interest of special class of Personnel i.e.
SC/ST/PH
BENEFITS OF HRP

 Top management has a better view of the

HR Dimensions of business decision
 Cost saving as the management can
anticipate imbalances before they become
unmanageable and expensive
 Time available to locate talent
 Helps to take steps to improve human
resource contribution.
 Benefits cont….
 Helps to foresee changes in values and
attitude of human resources
 Helps to foresee the need for redundancy
and to provide alternative employment in
consultation with trade unions.
 It provide the scope for advancement and
development of employees through
training.
 HRP PROCESS

ORGANISATIONAL
OBJECTIVES&POLI
CIES

HR NEEDS HR SUPPLY
FORECAST FORECAST

HR PROGRAMMING

HRP
IMPLEMENTATION

CONTROL&EVALUATI
ON OF PROGRAMME
SURPLUS- SHORTAGE-
RES.HIRING,REDUC. RECRUITMENT
LAYOFF SELECTION
FORECASTING TECHNIQUES

 MANAGERIAL JUDGEMENT
 WORKSTUDY TECHNIQUES
 STATISTICAL TECHNIQUE
 DELPHI TECHNIQUE
 MANAGERIAL JUDGEMENT

In this technique the managers sit together,

discuss and arrive at a figure which would be the
future demand for labour.The technique may
involve ‘bottom-up’ or ‘ top down’ approach’
 Work study Technique

 This technique can be used when it is possible

to apply work measurement to calculate the
length of operations and the amount of labour
required.
 Planned output for Next year- 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
 Number of workers required= 1,00,000/2,000=50
RATIO TREND ANALYSIS

Example-:
level of production in present yr = 2000 unit
Present no. of employees = 50
Ratio is 1:40
Estimated production for next yr = 3000 unit
Employees required relative to present ratio

= 3000 / 50
No. of employees = 60
DELPHI TECHNIQUE

It seek estimates of personnel needs from

a group of experts. The HRP experts act
as intermediaries, summarize the various
responses and report the findings back to
the experts. Summaries and surveys are
repeated until the experts opinion begin to
agree. the agreement reached is the
forecast of the personnel needs. No
Interaction among experts
HR SUPPLY FORECAST
Supply forecasting measures the number of
people likely to be available from within an
outside an organization, after making allowance
for absenteeism, internal movements and
promotions, wastage and change in hours and
other conditions of work. The supply analysis
covers:
(1) Existing Human Resources
(2) Internal sources of supply
(3) External sources of supply
 Existing Human Resources

Analysis of present employees is greatly facilitated

by HR audits. HR audits summarizes each
employee’s skills and abilities. The audits of non-
managers are called skill Inventories and those of
the management are called management
Inventories.
Existing HR Cont….
 a) Skills Inventories-
Information about non-managers. They are :
 Personal Data-Age, sex, marital status
 Skills-Education, job experience, training
 Special Qualifications-membership in
professional bodies, special achievements.
 Company Data-Benefit plan data, retirement
information, seniority
 Capacity of an individual-psychological test
score, health
Existing HR Cont…
b) Management Inventories
These include:
 Work History
 Strengths
 Weaknesses
 Promotion potential
 Career goals
 Personal data
 Number and types of employees supervised ,total
budget managed
 Previous management duties
 INTERNAL SUPPLY
 Inflows and outflows

 Turnover rate:
Number of separations during one year/ Avg
Number of Emp during the year*100

 Conditions of work and Absenteeism-Working

hours, overtime, timing of holidays, shift system
Continu…..

Absenteeism –
man days lost due to absenteeism
man days worked +man days lost

 Productivity level-any change in

productivity would affect the number of
persons required per unit of output
 Movement among jobs
EXTERNAL SUPPLY
 Colleges and Universities
 Consultants
 Advertisements-applications
HR Programming &Implementation
 Recruitment, selection& placement
 Training & Development
 Retraining and Development
 Retention plan-compensation plan,
performance appraisal, conflict resolution,
induction crisis, shortages, unstable
recruits
 Downsizing plan- Laying Off
 Managerial succession planning-
CONTROL AND EVALUATION
 Personnel budget
 Auditing human resource
 Job satisfaction of employees
 Periodic reports
BARRIERS TO HRP
 Time Consuming
 Financial forecasting takes precedence
over HRP
 Uncertainties
 Non-involvement of operating managers
 Inadequate Information system
 Trade unions
 Employers
conclusion
Human resource planning is a vital sub
activity of employment function. In fact
employment process begins with human
resource planning but it never ends with
this function.
THANKS