Human Resource

Planning

Richa Sinha

Definition

HRP offers an accurate estimate of the

number of employees required with matching
skill requirements to meet organizational
objectives. HRP is a forward looking function
as human resource estimates are made well in
advance. It is, of course, subject to revision.
Systematic process of matching internal and
external supply of people with job openings
anticipated in the organization over a
specified period of time.

Objective

The basic purpose of HRP is to decide what

positions the organization will have to fill and
how to fill them.
Forecast
personnel
personnel needs

requirements-future

Cope with changes-govt,mkt,technology

Use existing manpower productively
Promote employees in a systematic way

Importance

Organizations use HRP to meet future

challenges, cut costs, and achieve greater
effectiveness
Create a talent pool
Prepare people for future
Cope with organizational changes
Cut costs
Help succession planning

Human Resource Planning Process

External Environment
Internal Environment

Human Resource Planning

Forecasting
Human
Resource
Requirements

Comparing
Requirements
and Availability

Demand =
Supply

Surplus of
Workers

No Action

Restricted Hiring,
Reduced Hours, Early
Retirement, Layoffs,
Downsizing

Forecasting
Human Resource
Availability

Shortage of
Workers
Recruitment
Selection
4-5

Some Meanings

Requirements forecast - Determining number,

skill, and location of employees organization
will need at future dates in order to meet
goals
Availability forecast - Determination of
whether firm will be able to secure employees
with necessary skills, and from what sources.

5-7

Forecasting Techniques

HR forecasts are an attempt to find out an organization's

future demand for employees

Forecasting techniques
Expert forecasts
Trend analysis
Workforce analysis
Workload analysis

5-8

Forecasting
Techniques

Expert Forecasts: These are based on the

judgments of those who possess good
knowledge of future human resource needs
Trend Analysis: This is based on the
assumption that the future is an extrapolation
from the past. Human resource needs, as
such, can be estimated by examining pas
trends.

5-9

Forecasting
Technique

Workforce Analysis: All relevant

factors in planning manpower flows in a
firm such as transfers, promotions, new
recruitments, retirement, resignation,
dismissal etc. are taken into account
while estimating HR needs.

5-10

Forecasting
Technique

Workload analysis: Based on the planned output,

a firm tires to calculate the number of persons
required for various jobs.

An example of workload analysis

Planned output for the year
Standard hours per piece
Planned hours required
Productive hours per person per year

10,000 pieces
3 hours
30,000 hours
1,000 hours (estimated on annual basis)

(allowing for absenteeism, turnover, idle time etc.)

No. of workers required

30

If span of control in the unit is 10 per officer, then 3 officers are also required.

5-11

Supply Forecasting

Internal labor supply: a manpower

inventory in terms of the size and quality of
personnel available (their age, sex, education,
training, experience, job performance, etc.) is
usually prepared by HR departments. Several
techniques are used while ascertaining the
internal supply of manpower (a supply of
employees to fill projected vacancies can
come from within the firm or from new hires)
A)

5-12

Estimated internal labour supply

for a given firm

S o u r c e s o f In flo w s

T h e F ir m

T r a n s fe rs

P r o j e c t e d O u t f lo w s
P r o m o t io n s
Q u its

C u rr e n t S ta ffin g
Level

P r o m o t io n s

E m p lo y e e s O u t

E m p lo y e e s I n

N e w R e c r u its

Te r m i n a t i o n s

R e c a ll s

R e t ir e m e n t s
D e a th s

C u rre n t
s ta ffin g
le v e l

P r o je c t e d
o u tflo w s
t h is y e a r

P r o je c t e d
in f lo w s
t h is y e a r

L a y o ffs

F i r m s in t e r n a l
s u p p ly f o r t h is
tim e n e x t y e a r

5-13

Supply Forecasting

Staffing table: Shows the number of

employees in each job, how they are utilized
and the future employment needs for each
type of job.
Skills inventory: It is a summary of the skills
and abilities of non managerial employees
used in forecasting supply.

5-16

Skills inventory: an example

N a m e : A .K . S e n
N u m b e r :

4 2 9
K e y

w o rd s

W o rd

D e s c r ip tio n

A c tiv ity

A c c o u n tin g

Ta x

S u p e r v is io n
a n d

D a te

p rin te d

D e p a r tm e n t :
W o rk

1 -4 -2 0 0 4
4 1

e x p e rie n c e

F ro m

To

1 9 9 8

2 0 0 0

Ta x

c le r k

A B C C o m p a n y

a n a ly s is

B o o k K e e p in g

L e d g e r

S u p e rv is io n

2 0 0 0

2 0 0 2

A c c o u n ta n t

X Y Z C o .

A u d itin g

C o m p u te r

A n a ly s is

2 0 0 2

2 0 0 3

C h ie f A c c o u n ts

T T B a n k

re c o rd s

O ffic e r

E d u c a t io n

S p e c ia l Q u a lif ic a t i o n s

M e m b e r s h ip s

D e g re e

M a jo r

Ye a r

C o u rs e

D a te

1 .

M B A

F in a n c e

1 9 9 8

D B F

1 9 9 6

2 . IS T D

B .C o m

A c c o u n ts

1 9 9 5

R is k M a n a g e m e n t

1 9 9 9

3 . IC A

C o m p u te r
L ite r a c y

Ta ll y

B a n k in g

L a n g u a g e s
F re n c h

S o ftw a r e

P o s it io n
p re fe re n c e

L o c a tio n
c h o ic e

A IM A

H o b b ie s

A c c o u n tin g

K o lk a t a

C h e s s

A u d it in g

D e lh i

F o o t b a ll

B a n g a lo r e

B o a t in g

E m p lo y e e s S ig n a tu re _ _ _ _ _ _ _ _ _ _

H R D e p a rtm e n t_ _ _ _ _ _ _ _

D a te _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

D a te _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

5-17

Supply Forecasting

Replacement chart: It is a visual

representation of who will replace
whom in the event of a job opening.

5-18

Replacement chart

Key

G e n e ra l M a n a g e r
V. K . G a rg

A /2

P A to
G e n e ra l M a n a g e r
L . M a th e w s
B /1

A s s is t a n t G e n e r a l M a n a g e r
R .K . A ro ra
A /2
B .K . N e h ru
B /3

D iv i s i o n :
H R M anager
C .P. T h a k u r
A /1

D iv is io n :
A c c o u n t in g &
Ta x a t io n M a n a g e r
A .T. R o y
C /2

N o r t h e r n R e g io n
M anager
L . C . S r iv a t s a v A / 2
A. Thapar
C /4

C e n t r a l R e g io n
M anager
S . P. K u m a r
A /1
R . P andey
B /3

N a m e s g i v e n a r e r e p la c e m e n t
c a n d id a te s
A . P r o m o t a b le n o w
B . N e e d in g d e v e l o p m e n t
C . N o t s u it a b l e t o p o s it io n
1 . S u p e rio r p e rfo rm a n c e
2 . A b o v e A v e ra g e p e rfo rm a n c e
3 . A c c e p ta b le p e r f o rm a n c e
4 . P o o r p e rfo rm a n c e

D iv is io n :
P la n n i n g M a n a g e r
A .N . G u p ta A /1
K . P. R a o
B /1
S o u t h e r n R e g io n M a n a g e r
A . S u b ra m a n y a m B /2
B .K . M e n o n
B /1

Te c h n ic a l A d v is o r
N .R . M u rth y
B /3

E a s te r n R e g io n
M anager
R . K r is h n a
B /3

5-19

Supply Forecasting

B) External Labor supply: External hires

need to be contacted when suitable internal
replacements are not available. A growing
number of firms are now using computerized
human resource information systems to track
the qualifications of hundreds or thousands of
employees. HRIS can provide managers with a
listing of candidates with required
qualifications after scanning the data base.

5-20

Important barometers of
labor supply

1.

Net migration into and out of the area

2.

Education levels of workforce

3.

Demographic changes in population

4.

Technological developments and shifts

5.

Population Mobility

6.

Demand for specific skills

7.

National, regional unemployment rates

8.

Actions of competing employers

9.

Government policies, regulations, pressures

10. Economic Forecasts for the next few years

11. The attractiveness of an area
12. The attractiveness of an industry in a particular place

5-21

Manpower Gap Analysis

This is used to reconcile the forecasts of labour demand and
supply. This process identifies potential skill shortages or
surpluses of employees, skills and jobs

Estimating manpower requirements

1
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

N u m b e r r e q u i r e d a t t h e b e g i n n in g o f t h e y e a r
C h a n g e s t o r e q u ir e m e n t s f o r e c a s t d u r i n g t h e y e a r
To t a l r e q u ir e m e n t s a t t h e e n d o f t h e y e a r ( 1 + 2 )
N u m b e r a v a ila b le a t t h e b e g in n in g o f t h e y e a r
A d d i t io n s ( t r a n s f e r s , p r o m o t io n s )
S e p a r a t io n s ( r e t ir e m e n t , w a s t a g e , p r o m o t io n s o u t a n d o t h e r lo s s e s )
T o t a l a v a il a b le a t t h e e n d o f y e a r ( 4 + 5 + 6 )
D e f ic it o r s u r p l u s ( 3 - 7 )
L o s s e s o f t h o s e r e c r u it e d d u r in g t h e y e a r
A d d i t io n a l n u m b e r s n e e d e d d u r in g t h e y e a r ( 8 + 9 )

Ye a r
2

DEM AND
------- -----S U P P LY
-------------------R E C O N C IL IA T IO N
O F THE ABO VE
M ANPOW ER NEEDED

Job Analysis

Richa Sinha

Definition

Job analysis is a systematic process of

determining skills, duties, and knowledge
required for performing jobs in organization.
Job - Consists of group of tasks that must be
performed for organization to achieve its goals.
Position - Collection of tasks and
responsibilities performed by one person; there
is a position for every individual in
organization.

Job analysis should

accomplish

What physical and mental tasks does

worker accomplish?
When is job to be completed?
Where is job to be accomplished?
How does worker do job?
Why is job done?
What qualifications are needed to
perform job?

Job Analysis: A Basic Human Resource Management Tool

Tasks

Responsibilitie
s

Duties

Training and
Development

Job
Descriptions
Job
Analysi
s

Staffing

Performance
Appraisal

Job
Specifications

Compensation
Safety and Health
Employee and Labor
Relations

Knowledg
e

Skills

Abilities

Legal Considerations

Why conduct a job

analysis

Staffing - Haphazard if recruiter does not know

qualifications needed for job.
Training and Development - If specification lists
particular knowledge, skill, or ability, and person
filling position does not possess all necessary
qualifications, training and/or development is
needed.
Performance Appraisal - Employees should be
evaluated in terms of how well they accomplish the
duties specified in their job descriptions and any
other specific goals that may have been
established.

Why conduct a job

analysis

Compensation Value of job must be

known before dollar value can be
placed on it.
Safety and Health Helps identify
safety and health considerations.
Employee and Labor Relations Lead to
more objective human resource
decisions.
Legal Considerations Having done job
analysis important for supporting