School of Management Studies

Human Resource Planning

“Strategy for the acquisition, utilization, improvement
and preservation of organization’s Human Resources”

“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”
 School of Management Studies

Human Resource Planning

• HRP is forward looking & future oriented

• HRP is ongoing & Continuous process
• HRP is an integral part of organization’s planning
• HRP is both qualitative & quantative
• HRP is evaluation of demand and supply
• HRP can be both long term & short term
• HRP is management oriented for effective utilization of resources
 School of Management Studies

Human Resource Planning

Significance of Human Resource Planning
• To avoid sudden disruption of production
• To expand business
• To reduce wastage
• To meet the challenges of attrition
• To fill the gap due to mobility (Promotions, transfers etc.,)
• To identify right kind of people
• To design suitable training program/methods
• To redeploy surplus manpower
 School of Management Studies

Human Resource Planning

Need for Human Resource Planning
• To meet the shortage of employees
• To meet the technology/management changes
(new skills and category of employees)

• Demographic changes (profile, Age, Gender, education etc.,)

• Govt. policies (social reservations, child labour, working conditions)
• Labour laws
• Trade unions, Politicians, sons of soil etc.,
• Introduction of Computers/Auto-machine
 School of Management Studies

Human Resource Planning

Factors affecting Human Resource Planning
External Factors
• Govt. policies
• Economic Conditions
• Business environment
• Technology
 School of Management Studies

Human Resource Planning

Factors affecting Human Resource Planning
Internal Factors
• Company policies (Expansion, diversion etc.,)
• H R Policies (Training & development, compensation etc.,)
• Job Analysis
• Production policies (produce or out-source etc.,)
• Trade unions
 School of Management Studies

Human Resource Planning

Process of Human Resource Planning
Analyzing organizational Plans
• Production plan
• Technological plan
• Marketing plan
• Financial plan
 School of Management Studies

Human Resource Planning

Process of Human Resource Planning
Forecasting demand for Human Resources
• Managerial judgment
(Experienced management may design manpower needs)
• Work study method
(Volume of work is easily measurable, total production in terms of units are estimated)
• Statistical techniques
(Ratio trend analysis, Econometric method)

• Delphi technique
 School of Management Studies

Human Resource Planning

Process of Human Resource Planning
Forecasting supply of Human Resources
• Internal
• External
 School of Management Studies

Human Resource Planning

Process of Human Resource Planning
Estimating manpower gaps
• Physical Human Resources
• Gap in knowledge, skills and aptitude
(Gap may be deficit or surplus)
 School of Management Studies

Human Resource Planning

Process of Human Resource Planning
Action plan
• Training
• Placement
 School of Management Studies

Human Resource Planning

Process of Human Resource Planning
Modify the organizational plan
• Outsource
• Contingent employees
 School of Management Studies

International Human Resource Planning

Why international Human Resource Planning ?
• Under LPG conditions business expanding as global business

• Manufacturing is being shifted to the countries where the

resources are available

• Advantage in terms of cost, quality, innovation etc.,

• Exports and imports has increased by 20 times from 1950 to 2007

 School of Management Studies

International Human Resource Planning

Issues of global division of work force
New world order
• MNCs save significantly by shifting the manufacturing activity to
countries where human resources are available and at cheep cost

• Provides value to customers

• Provides jobs to the host country

• Income to the host country governments

• First world countries shall specialize on knowledge based human

capital (Education, R&D etc.,)

• First world countries are loosing the job opportunities in

manufacturing sector
 School of Management Studies

International Human Resource Planning

Issues of global division of work force
Professional categories
75% of the future HR will be in Three professional categories

1. Routine production services

- Manufacturing workers (workmen, supervisors, foremen etc.,)
- Routine and doesn’t need extraordinary skills
- Wage and salary has grate influence on such HR
2. In-person services
- Job require little training and skills (Sales, Customer care etc.,)
- Need to work closely with customers
- Jobs are in the location of the customer
3. Symbolic-analytic services
- High level skills are required (leadership, decision making,
managerial, creative etc.,)
- Need not be in particular location
- Can be drawn form different parts of the world
- High salary and more expensive
- Need best skills
 School of Management Studies

International Human Resource Planning

Issues of global division of work force
Future implications for HR supply

• Availability of work force in different countries

• Cost of work force

• Mobility of work force

• MNCs strategy to meet workforce needs

 School of Management Studies

International Human Resource Planning

External environment scanning

• Labor market conditions & characteristics

• Govt. policies and legal regulations
• Global competition
• Cross-national cooperation and conflict
• Cultural differences