Meaning: HRP is a process of striking balance between human resources required and acquired in an organization.

Definition: Human Resource Planning is a process of determining and assuming that the organization will have an adequate number of qualified persons, available at the proper times, performing jobs which meet the needs of enterprise and which provide satisfaction for the individuals involved. Beach.

 Ensure

adequate supply of manpower as and when required Ensure proper use of existing human resources in the organization Forecast future requirements of human resources with different levels of skills Assess surplus or shortage, if any, of human resources available over a specifies period of time

 Anticipate

the impact of technology on jobs and requirements of human resources Control the human resources already deployed in the organization Provide lead time available to select and train the required additional human resource over a specified time period

 Type

and Strategy of Organization Organizational Growth Cycles and Planning Environmental Uncertainties Time Horizons Type and Quality of Information Labour Market Outsourcing

Environmental Scanning

Economic factors Eg., General and regional conditions Technological Changes Eg., Robotics and Automation Demographic changes Eg., Age, Literacy Political and legislative issues Eg., Laws and administrative rulings Social concerns Eg., Educational facilities

Organizational objectives and policies Specific policies need to be formulated to address them following questions:

Are vacancies to be filled by promotions from within or hiring from outside? How to enrich employees job? Should the routine and boring jobs continue or be eliminated? How to ensure continuous availability of adaptive and flexible workforce?

HR Demand forecast Demand forecasting is the process of estimating the future quantity and quality of people required. The basis of the forecast must be the annual budget and long-term corporate plan, translate into activity levels for each functions and department.

Demand Forecasting Techniques Managerial Judgement Ratio-trend analysis Regression analysis Work-study techniques Delphi technique Flow models Others

Managerial Judgement
Bottom-up Approach: Managers submit their departmental proposals to top managers who arrive at the company forecasts. Top-down Approach: Top managers prepare company and departmental forecasts. These forecasts are reviewed with departmental heads and agreed upon

Ratio-Trend Analysis Involves studying past ratios and forecasting future ratios making some allowances for changes in the organization or its methods. Regression Analysis Forecast is based on the relationship between sales volume and employee size. Regression analysis is more statistically sophisticated.

 Planned

output for next year25,000 units Standard hrs/unit 4 Planned hours required for the year (25,000x4) 1,00,000 Productive hrs per worker/year (after allowing normal overtime, absenteeism and idle time)
2,000 Number of workers required 50 (1, 00,000/2,000)

The members are asked to provide their estimates of human resource requirements through a series of carefully designed questionnaire. Each member anonymously and independently completes the first questionnaire Results of the first questionnaire are compiled at a central location, transcribed and copied. Each member receives the copy of the result After viewing the results, members are again asked to review their estimates. The initial results typically trigger new estimates or cause changes in the original position. Steps d and e are repeated as often as necessary until a consensus is reached.

Flow Models Among the flow models, the simplest one is called the Markov Model.

 Supply

forecast determines whether the HR department will be able to procure the required number of personnel

The supply analysis covers Existing Human Resources Internal sources of supply External sources of supply

Existing human resources (Present Employees) Analysis of present employees is greatly facilitated by HR audits. HR audits summarise each employees skills and abilities

Turnover rate Turnover rate is the traditional and simple method of forecasting internal supply. The turnover rate is: Number of separations during one year X 100 Average number of employees during the year

Conditions of work and absenteeism Number of persons days lost X 100 Average number of persons x number of working days

Movement among jobs Some jobs are sources of personnel for other jobs. For example, secretaries may be obtained by the promotion of typists and branch managers are obtained from a pool of section managers.

External Supply New blood and new experience will be available Organization needs to replenish lost personnel Organizational growth and diversification create the needs to use external sources to obtain additional number and type of employees.

What is Recruitment? Recruitment is generating of applications or applicants for specific positions to be filled up in the organization. Define Recruitment. A process of searching for prospective employees and stimulating and encouraging them to apply for jobs in an organization Flippo

1. Present Employees 2. Employee Referrals 3. Former Employees 4. Previous Applicants

1. Employment Exchanges 2. Advertisements 3. Employment Agencies 4. Professional Associations 5. Campus Recruitment 6. Deputation

7. Word-of-Mouth
8. Raiding