Human Resource

Planning

What is HR Planning ?



Human Resource Planning is the process by which an
organization ensures that it has the right number and kind of
people, at the right places, at the right time, capable of effectively
and efficiently completing those tasks that will help the
organization achieve its overall objectives.
( Source: Decenzo and Robbins 2000, Personnel/Human Resource Management))
What is HR Planning?
HR/ Manpower Planning is the process of acquiring and
utilizing human resources in the organization. It ensures
that the organization has the right number of employees
in the right place at the right time.
( Source: Adhikari, Dev Raj, 2001,Human Resource
Management )


What is HR Planning?
Employment planning is the process of formulating
plans to fill future openings based on an analysis of the
positions that are exppected to be opeb and whether
these will be filled by inside or outside candidates. (
Source: Dessler, G. 2000,Human Resource
Management )


Trends in Human Resource
Management



Work Force Diversity
Women Participation

Racial/Caste Composition

Portion of Ageing work force

Technological Change

Trends in Human Resource
Management



Globalization/Changing Economy
Production globalization
(Example: same product from different countries, production of
different accessories-parts in different countries)
International competition of market
( Example: automobile, electronics, knowledge industries etc.)
Manufacturing plant in different countries
( Example: Sony in Malaysia, )
Job sifting from one place to another
( Example: Tendency to use cheaper workforce, e. g. garments)
High performance work system

Trends in Human Resource
Management



Other Trends:
Changing legal provisions such as equal
opportunity laws are being passed which
bars discrimination on the basis of age, sex,
race, religion, disability, national origin etc.
Health and occupational safety rules are
also affect HRM.

Why Human Resource Planning is
important ?



Linking business strategy with
operational strategy:
HRP is an important process to maintain the link
between business strategy and it operation. It
follows different procedures including the need to
assess the impact of technological changes on new
jobs and new skills
(Example: Nepal Telecom staff used to operate Wireless Set
before, but at present complex IT equipments must to
handle.)

Why Human Resource Planning is
important ?



Minimizing the risk of loosing:
By forecasting the needs of technical and other
human resources it can minimize the future risk of
loosing. Delay in recognizing human resources
might be costly and expensive in the future.
(Example: Government run banks are compelled to upgrade
own staff by providing latest skills and knowledge to them
to compete with other fast growing banking organizations.)

Why Human Resource Planning is
important ?



HRP needs for HRD :
HRP is important for planning the investment in
the development and utilization of human
resources. Any investment in the HR activities is
considered an investment for the future growth and
development of the organization.
(Example: When curriculum has to be changed, required
knowledge and skills of teachers/instructors should be
developed prior to implement the new curriculum. So,
educational institutions have to be aware of that)

Why Human Resource Planning is
important ?



HRP is pro-active, not reactive :

For solving any sort of future HR problem HRP is
pro-active rather than re-active.

(Example: HRP might be helpful to accommodate
government legislation regarding inclusion, qualification,
possible future demand of trade unions)

Why Human Resource Planning is
important ?



HRP is not in isolation :

HRP recognizes that there must be an explicit link
between planning function of human resources and
other organizational functions, such as strategic
planning and market forecasting.


Why Human Resource Planning is
important ?



HRP is promotes awareness :

HRP promotes the awareness that human resource
activities are equally important at every level of the
organization. Both lone and staff managers have to
be involved in HR planning activities.


Assessing Human
Resource Strategy



How strategy affects?
The organizations objectives and strategies
for the future determine future need of
human resources. It means number and mix
of human resources are reaction to the overall
organizational strategy.


Assessing Human
Resource Strategy



Implications of future demands

Projection of future human resource needs and future
direction of the organization is done basing upon the
assessment of its current human resources situation.
So, year by year analysis for every job level and type is
necessary.
Organization usually needs heterogeneous mix of people but
it is not easy task to maintain all type of people in the
organization. If accurate estimates are to be made of future
demand in both qualitative and quantitative terms, a lot of
information is required.

Assessing Human
Resource Strategy



Implications of future supply

Increase and decrease of future human
resources assessed by estimating changes in
internal supply looking at different factors of
changes.
So, increasing and decreasing of human
resources is normal.

Assessing Human
Resource Strategy



Increasing supply

Increment in human resource supply can be done by
combination of following sources:
New hiring : easily predictable with high accuracy
Transfer of personnel: affects in other unit and so difficult.
Individuals returning from long leaves: Such as maternity,
military service. These are easy to estimate as they are for
fixed period. But difficulties arises when the period exceeds
not from the cause of the organization. In this situation the
organization can not fire the employee as per legislation.



Assessing Human
Resource Strategy



Decreasing supply

Decrease in human resource supply can be done by
combination of following sources:
Retirements : easily predictable with high accuracy
but very difficult to forecast voluntary quits,
prolonged illness and deaths.
Dismissals: It can be forecast within reasonable
limits of accuracy.
Sabbaticals: easy to predict as it is given to the
employees in frequent intervals, especially to the
universities teachers usually with full salary paying.