Human Resources Planning

Definition
Importance
Factors affecting HR Planning
Barriers of HR Planning
Process
Techniques
Guidelines


Some Facts
HRM= People Dimension in Management
HRM has 4 steps:ATMM(Acquisition,Training and
Development,Motivation &Maintenance)
Getting and keeping Good People is critical to the
success of every organisation whether it be
private or Public.
Five Key Questions in Human
Resource Planning
How many employees do we need ---in terms of
numbers?
What are we looking for in terms of skills,
knowledge, experience, abilities etc.---in terms of
quality
Where do we need the employees---the location,
the division, the department?
When do we need the employees---immediately, in
the next three months, six months?
How long do we need them---for a limited period or
for a long period?
Human Resource 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
time, capable of effectively and efficiently
completing those tasks that will help the
organization achieve its overall objectives.
Definitions of Human Resource Planning
According to Vetter," the process by which
management determines how an
organisation should move from its current
manpower position to its desired
manpower position.

In the word of Coleman," Manpower planning
is the process of determining manpower
requirements and the means for meeting
those requirements in order to carry out
the integrated plan of the organisation.
Nature of Human Resource or Man
Power Planning
Aims at ascertaining the future manpower
needs of the organisation both in numbers and
kinds.
Is an on-going and continuous process
Presents an inventory of existing manpower of
the organisation (skilled and untapped talent)
Helps in determining the shortfall (or surplus) of
manpower by comparing the total manpower
needs with the present supply of manpower.
Plans are made for both long-term or short-
term.

Features
Forward planning
In sync with organizational needs
In tune to corporate plan
Proactive
Get qualified people at a right time

Objectives
Optimum utilization of Human Resource.
Forecast personnel requirements
Cope with changes
Meeting personnel requirement.
Prevent disruption of work.
Control cost.
Personnel motivation.
To determines need of recruitment and
training of personnel.


Why Human Resource Planning is
Important?
Linking Business Strategy with operational
strategy

HRP is a important process to maintain the link
between business strategy and its operation. It
follows different procedures including the need
to assess the impact of technological changes
on new jobs and new skills.
Why Human Resource Planning is
Important?
Minimizing the risk of loosing
By forecasting the needs of technical and other
human resources it can be minimize the future
risk of loosing. Delay in recognizing human
resources might be costly and expensive in
the future.

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.
(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.
Why Human Resource Planning is
Important?
HRP promotes Awareness
HRP promotes the awareness that human
resources activities are equally important at
every level of the organization. Both line and
staff managers have to involved in HR
planning activities.
Steps in Human Resource Planning
Determination of Objectives of Human Resources
Planning
Preparation of Current Skill
Demand Forecasting(estimating future manpower
needs by references to corporate and functional
plans and forecasts of future activity levels.)
Employment Trend (Stable and Unstable)
Replacement Need
Productivity
Absenteeism
Growth and Expansion


Steps in Human Resource
Planning Cont
Supply forecasting
Human Resource Audit
Replacement Chart
Gap analysis
Employment plan
(Recruitment,Selection,Placement,transfer and
Promotion).
Training and development program

Environmental Scanning
Environment scanning refers to the systematic
monitoring of the external forces influencing the
organization.
Managers monitor several forces but the following
are pertinent for HRP :
Economic factors
Technological, Political, Social factors,
By scanning the environment for changes,
managers can anticipate their impact &
adjustment early.
Organizational Objectives & Policies
HR plans need to be based on organizational
objectives.
Once the organizational objective are specified,
communicated & understood by all concerned,
the HR department must be specify the
objective with regards the HR utilization in the
organization.
Specific requirement in term of number &
characteristic of employee should be derived
from the organizational objective.
Forecasting Techniques
Forecasting Techniques vary from simple to sophisticated ones.

The technique are as follow -:

Managerial Judgment - Managers discuss and arrive at a figure of inflows
& outflows which would cater to future labour demand. The technique may
involve a bottomup or a topdown approach. This technique is used in
smaller organization or in those companies where sufficient data base is
not available.

Ratio-Trend Analysis - Studying past ratios, i.e. No. of Workers Vs Volume
of Sales, forecasting future ratios and adjusting for future changes in the
organization. This is a quickest forecasting technique.

Work-Study Technique work study technique can be used when it is
possible to apply work measurement to calculate the length of operation
and the amount of labour required..








Delphi Technique - From a is quite useful where
the problem cannot be solved by using analytical
technique but it solution require s subjective
judgment on a collective basis.

Work Force Analysis:
a ) Inflows & Outflows- The number of losses & gains
of staff is estimated .

b) Turnover Rate - refers to rate of employees
leaving. = ( No. of separations in a year / Avg no.
of employees during the year ) x 100


Forecasting Techniques cont..
Forecasting Techniques
Cont.
c) Absenteeism
unauthorized absence from work= ( total absentees in
a year / Avg no. of employees x No. of working
days) x 100

d) Productivity Level - = Output / Input. Change in
productivity affects no. of persons per unit of output.

e) Movement among Jobs - internal source of
recruitment, selection and placement


Forecasting Techniques cont..
Job Analysis: Helps in finding out the abilities or
skills required to do the job efficiently.
HR Supply Forecast
Process of estimating future quantity and
quality of manpower available internally &
externally to an organization.
Supply Analysis
1. Existing Human Resources
2. Internal Sources of Supply
3. External Sources of Supply
Existing Human Resources
It is generally facilitated by HR audit. HR audit
summaries each employees skills & abilities.
The audit of non managers are called skills
inventories & those of management are called
management inventories.
Computer is used for collecting, storing ,
maintaining, retrieving, & validating the HR data
& this process is called HRIS i.e. human
resources information system
Forecasting Techniques
Staffing Table :It shows no of employees in each
job. It tries to classify employees on the basis of
age,sex,position,category,experience,qualificati
ons,skills, etc.
Markov Analysis: This technique uses historical
rates of promotions, transfers, and turnover to
estimate future availability in the work force.
Based on the past probabilities ,one can
estimate the number of employees who will be
in various positions with the organization in
future.
Forecasting Techniques
Replacement Chart: It shows the profile of job
holders department wise and offers a snap-shot
of who will replace whom if there is a job
opening.
External Supply: External recruitment, selection
& placement - Advertisements, Manpower
Consultants, Campus Recruitment, Unsolicited
Applications, Employee Referrals

Determining Manpower Gap
The existing number of personnel and their skills (
from human resource inventory) are compared
with the forecasted manpower needs (demand
forecasting) to determine the quantitative and
qualitative gaps in the workforce.
Formulating HR Plan
Recruitment Plan: Recruitment, Selection,
Placement, transfer and Promotion
Redeployment Plan: It will indicate the programmes
for transferring or retaining existing employees for
new jobs. Redeployments may include the following
measures: Transfer ,Employment in Sister
Concerns, Create Projects to accommodate surplus
staff, Provide trainings.
Redundancy Plan: It will indicate who is redundant,
when and where, the plans for retraining, where this
is possible and plan for golden handshake, Iron
Hand Shake, Layoff.
Formulating HR Plan Cont..
Training Plan: It will indicate the number of
trainees or apprentices required and the
programme for recruiting or training them ,
existing staff requiring training or retraining,
new courses to be developed or changes to be
effected in existing courses.





Barriers to effective Human
Resource Planning





Identity Crisis
Lack of Support of Top Management
Insufficient Initial Efforts
Coordination with other Managerial Functions
Expensive and Time Consuming
Environmental Uncertainty
Conflict between Long-term and Short term
HRP
Insufficient Information

Guidelines for Effective Human
Resource Planning
o Organized Effort
o Support of Top Management
o Size of initial Effort
o Coordination with other Management Functions
o Integration with Organisational Plans
o Involvement of Operative Managers