Human Resource Planning

HUMAN RESOUCE PLANNING

Definition: The process of determining manpower
requirements and the means of meeting those requirements.
HRP is the process by which an orgn. ensures that it has the
right number and right kind of people, at right places, at the
right time capable of effectively completing tasks that help in
achieving organization's objectives.
Need for HRP
It provides personnel to carry out work
Replace personnel
To meet labor turnover problems
To meet needs of expansion programs
To meet challenge of new technology
Identifying areas of surplus personnel
Objectives of HRP
1. Having right no. and kind of people for better
functioning
2. Forecasting turnover rates
3. To meet HR needs during expansion and
diversification
4. Technology and its impact on HR
5. Meeting future HR requirements
6. Optimize staffing
7. Contingency plans
8. Estimating HR value and their contribution to the
organisation
HRP at Different Levels
 Corporate Level Planning
 Intermediate Level Planning
 Operations Planning
 Planning short term activities
Process of HRP
1. Analysing organisational plans
2. Demand forecasting
3. Supply forecasting
4. Estimating net HR requirement
5. In case of future surplus, plan for redeployment, retrenchment,
and lay-off
6. In case of future deficit, forecast the supply of HR from all
sources
7. Plan for development, and internal mobility if future supply is
more than or equal to net HR requirements
8. Plan to modify or adjust the organisational plan if future supply
will be inadequate with reference to future net requirements
 Causes of demand for
Human Resources in the Future
External Organizational Workforce

 Economic developments  Strategic plans  Retirement

 Social-political-legal  Budgets  Resignations

challenges

 Technological changes  Sales and production  Terminations

forecasts

 Competitors  New ventures  Deaths

 Organization and job  Leaves of absence

designs
Forecasting Human Resource Needs
Expert
Informal and instant decisions
Formal expert survey
Delphi technique:
Forecasting Human Resource Needs
Trend

Extrapolation
Trend analysis
Ratio analysis
Forecasting Human Resource Needs
Other

• Budget and planning analysis

• New-venture analysis
• Computer models: The use software
packages to determine of future staff needs by
projecting sales, volume of production, and personnel
required to maintain a volume of output.
The supply of Human Resource
Internal Supply Estimates

• Human resource audits

• Replacement charts: Company records showing
present performance and promotability of inside
candidates for the most important positions
• Skills Inventory: It is used to assess the current
supply of employees to note the skills, abilities
experiences, and training the employees currently
have.
Content of skills inventory
I. Employees past data C. Edu. achievements
A. Titles & job des. in the D. Special projects made
last 2-5 years in this & in 3 years
previous orgn. II. Present skill status
B. Critical skills developed A. Last 3 PAs
while in these positions B. Employee’s perception
of what is done well on
present job eg. skill
(contd.)
C. Same data as II B from C. Specific trg. & dev.
employee’s superior efforts the individual is
III. Data that focus on future motivated to undertake
on-the-job, off-the-job,
A. Personal career goals (1-3
in classroom and
years)
experiential
B. Views of individual’s
superiors on what he
could become
 The supply of Human Resource
External Supply Estimates

• Labour market analysis

• Community attitudes
• Demographics
 Managing Oversupply

• Hiring freeze
• Early retirement offers
• Job sharing
• Use of part-time workers
• Internal transfers
Managing Oversupply

• Layoffs
• Leave without pay
• Loaning
• Termination
• Outplacement
Overcoming Employee Shortages
• Overtime
• Part-time workers
• Temporary employment agencies
• Transfers
• Contract workers
• Promotions