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HR PLANNING, IMPORTANCE

& METHODS
PRESENTED BY:- PRESENTED TO:-
1) SONAL SHENDE MR. E PIMENTA SIR
2) SHUBHAM AGARWAL
3) AYESHA SAYYED
4) SAKSHI JHARODIA
5) SHUBHAM NAHAR

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HR Planning Definition

Human Resource planning is the process by which an


organisation ensures that it has:

• The right number and right kind of people,


• At the right place,
• At the right time,
• Capable of effectively and efficiently complete tasks that
will help the organisation achieve its overall strategic
objectives.

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Definition (cont..)

• It is the process of assessing the future supply and


demand for human resources.

• It also provides mechanisms to eliminate any


gaps that may exist between supply
and demand.

• It is a process of determining what positions in the


firm will have to be filled and when.

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Need & Importance of HR Planning
• HR Planning is helpful in selection and training activities.

• It Identifies gap in existing manpower in terms of their


quantity and talent.

• It facilitates the expansion and diversification of an


organization.

• HR planning is helpful in effective utilization of


technological progress.

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Cont…

• HR planning creates awareness about the effective


utilization of technological progress.

• It is useful in anticipating the cost of human resources.

• Helps in planning for welfare facilities.

• It facilitates educational reforms.

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Process of HR planning

• Review your current organizational strategic plan.

• Review the current human resources situation.

• Forecast on the future HR needs (supply and demands).

• Planning on meeting HR needs.

• Implement the plan – recruit, select, training, downsizing.

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1. Reviewing the current strategic plan
• HR planning goes hand in hand with the organizational
strategic planning.

• Strategic planning refers to organizational decision, how


it wants to accomplish its mission and strategies.

• The 1st stage of HR planning is the point at which HRM and


strategic planning initially interact.

• Future direction in terms of technology, markets,


organizational structures etc.

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2. Review the current human Resource
situation
• This is done by studying HR records to determine:

• How many do we have in what category: Quality and quantity.

• Who is leaving the organization and when (project turnover as result of


resignation and termination).

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3. Forecasting Future Human Resource Needs

I. Forecast Staff demand.

II. Forecast Staff supply.

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Forecasting demand
Consider:
• Major customer requirements and hence forecast on
revenue and seasonal fluctuations.

• Projected staff turnover (as a result of resignation or


termination or retirement).

• Strategic decisions to upgrade the quality of products or


services or enter new markets.

• Technological and other changes resulting in increased


productivity.

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Techniques of forecasting demand
• Experts estimates - provide the organization with demand
estimates based on experience, guesses, intuition, and
subjective assessment of available economic and labor force
indicators.

• Trend Projections - Developing a forecast based on past


relationship between a factor related to employment and
employment itself.

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Techniques for forecasting ….

• Statistical modeling -Using sophisticated forecasting and


modeling techniques, using factors such as sales, GDP,
incomes etc. and develop mathematical models for
forecasting.

• Unit demand forecasting - The unit manager analysis person


by person, job-by-job needs in the present as well as in the
future.

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Forecasting supply

Internal supply
• The main task is to determining which current employees
might be qualified for the projected openings.
• This determines how many, and what kind of employees are
currently available in terms of skills and training necessary
for the future.
• The major tool used to assess the current supply of
employees is the skills inventory.
• In some organizations, there will be a separate inventory just
for managers called a management inventory.

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Forecasting external supply

• From the labor market.

• Consider: economic indicators – competition and wage


levels, cost of living, education levels, unemployment levels.

• Forecast on the availability of potential job candidates in


specific occupation e.g. IT, HR, Finance etc. :- is there an
under or over supply.

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Action decisions in surplus conditions
• Attrition and Hiring Freeze – through attrition, individuals
who quit, die, or retire are not replaced. Those who remain
must handle the same workload with fewer people.

• Early Retirement/ Buy Outs –a means of encouraging more


workers to leave the organization early with some
incentives.

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Cont…

• Lay offs – can be temporary or permanent. A temporary lay


off occurs during slack periods when the workforce.

• Leave of Absence without Pay – this gives workers the


opportunity to take leaves of absence without pay.
Individuals offered this leave are usually employees whose
jobs may be eliminated in the future.

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Cont…

• Demotions – to reduce the number of employees where


there is a surplus at a senior level and there is a shortage at
a lower level.

• Transfers – employees can be transferred from


areas/departments with surpluses to department with
shortages.

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