Paper

HR-01: Human Resource

Management
Session Unit 3
Topic

Human Resource Planning

Presenter

S.C Kapoor
Executive Director
THIRD MILLENNIUM
BUSINESS RESOURCE ASSOCIATES
PRIVATE LIMITED

Human Resource Planning

Human
Resource
Planning
systematically
forecasts
an
organisations future demand for,
and supply of, employees.

Human Resource Planning

Contd.

Geislers Definition
Human Resource Planning is the
process of forecasting, developing and
controlling, by which a firm ensures
that it has the right number and the
right kind of people at the right place
at the right time doing work for which
they are economically most useful.

Objectives
1. To ensure optimum use of the
human
resources
currently
employed.
2. To provide for the future manpower
needs in terms of skills, numbers
and ages.

Benefits (Why Manpower

Planning?)
1. Examination of utilisation of human
resources.
2. Reviewing and adapting the way the
organisation is at present.
3. Reviewing and modifing human
resource policies and practices in
terms of cost-effectiveness and
acceptability.

Benefits (Why Manpower

Planning?) Contd.
4. Human resource is procured,
developed and utilised effectively
and efficiently.
5. The organisation is more likely to
have the human resource it needs to
achieve its future objectives and
reach this position economically.

Determinants of Human
Resource Forecasting
1. Business Plans
2. Technological Changes
3. External Factors
4. Natural / Operational Drainage
5. Job Analysis
6. Job Standard
7. Job Evaluation

Cause of Demand for Human

Resources in the Future
External

Organisational

Work Force

Economics
Strategic Plans Retirement
Social Budgets
Resignations
Political-Legal
Technology

Sales and
Production
Forecasts

Terminations

Competitors

New Ventures
Organisation
and Job
Designs

Deaths
Leaves of
Absence

Human Resources Planning

Table 200
Function

Human
Resource

Category

Top Mgmt.
Senior Mgmt.
Middle Mgmt.
Junior Mgmt.
Sub-Ordinates

January
Re Ex
q i
u s
i
t
r
i
e n
d g

Febr
200..
uary R Exi Ga
G
to e s
a
p
p Dece q ti
mber u n
i
g
r
e
d

1
2
5
16
40

0
1
2
-1
4

1
1
3
17
36

Work Load Analysis

Work Load Analysis determines how
many employees of various types are
required to achieve total targets.
It is essential to determine the work load
in some tangible units so that they may be
translated into man hours required per
unit of activity.

Work Load Analysis Contd.

The HR Planner needs to find out sales
forecasts, work schedules, etc. and thus
determine the manpower required per unit of
product.
The sales forecasts are translated into work
performance for the various departments of the
enterprise. In a manufacturing enterprise, one
has to first find out the master schedule and
then departmental schedule. The departmental
workloads are then converted into man hours
in terms of different skills required.

Work Load Analysis Contd.

Similarly, plans are made concerning the
amount of work that each of the other parts
(marketing, materials, accounts etc.) of the
organisation is expected to accomplish
during the period under consideration.
Past experience can be utilized for
translating work loads into man hours
required.

Work Load Analysis Contd.

To take an illustration, let us presume that
the annual production target of a company
is 1,80,000 units. The standard man hours
required to complete a unit of the product
are two hours. Past experience reveals that
a worker on an average can contribute
about 2,000 man hours per year.

Work Load Analysis Contd.

The work-load may be calculated as under:
a. Annual Production Target
b. Standard Man Hours
required per unit

= 1,80,000 units
= 2 hours

c. Planned Man Hours for

the year (a x b)

= 3,60,000
hours

d. Annual Contribution of an
Employee

= 2,000 hours

e. Number of Employees
required (c/d)

= 180

Work Load Analysis Contd.

Thus, 180 employees are needed
throughout the year to meet the production
target of 1,80,000 units. However, this
figure cannot be relied upon fully as the
actual production is influenced by many
other factors such as availability of inputs
and power, breakdown of machinery,
strike, lockout, etc.

Work Load Analysis

Contd.

Workload Analysis is suitable for short

term
projection
of
man
power
requirements.
Long-term projections are made with the
help of work force analysis.

Work Force Analysis

Work Force Analysis is needed because it
is almost certain that all employees will not
be available on all working days. This is
primarily because of:
1. Absenteeism
2. Employee Turnover
Both these factors operate to reduce
the number of employees available.

Work Force Analysis

It is therefore, necessary to keep a sufficient
margin for absentees, employee turnover
and idle time on the basis of past
experience.
If it is essential to keep a margin of 20% of
the manpower required as per work load
analysis, the company must ensure that it
has at least 210 employees on its payroll to
meet the annual production target.

My grateful thanks
to
Mr. Sidharta Mukherjee
Mr. S.C. Kapoor
Mr. K.K. Srivastava
Ms. Charu Malhotra
Mr. Mohammad Arif
and
many others from whom I have learnt immensely

THANK YOU !