Human Resource Planning (HRP)

HUMAN RESOURCE
PLANNING (HRP)
PREPARED BY BLOGGER:
TÜRKİYE’DE YÖNETİM
DANIŞMANLIĞI
(MANAGEMENT
CONSULTANCY IN TURKEY)
TÜRKİYE'DE YÖNETİM DANIŞMANLIĞI

HUMAN RESOURCE PLANNING
(HRP)
Definition of Human Resource Planning
Importance of Human Resource Planning
Human Resource Planning Process
Human Resource Forecasting Techniques
Labor Supply and Demand
Succession Planning

DEFINITON OF HUMAN RESOURCE
PLANNING
«Rigorous HR planning links people management to the
organization's mission, vision, goals and objectives, as well as its
strategic plan and budgetary resources. A key goal of HR planning is
to get the right number of people with the right skills, experience and
competencies in the right jobs at the right time at the right cost.»
(Government of Canada)
As seen in the description, human resource plans are based on
«organization’s mission, vision, goals and objectives, strategic plan»

PAST
«organization’s mission,
vision, goals and objectives,
strategic plan»
FUTURE
«forecasting how many people will
organization need in the future?»
qualitative and quantitative analysis
DEFINITON OF HUMAN RESOURCE
PLANNING

Recruitment
of Talented
Personnel
Coping With
Change
Uncertainty
Reduction
Proper
Utilization of
Human
Resources
Development
of Human
Resources
Future
Manpower
Need
WHAT IS THE IMPORTANCE OF
HUMAN RESOURCE MANAGEMENT
PLANNING?

PLANNING?
The importance of human resource planning are as follows:
Future Manpower Need: Human resource planning is regarded as a
tool to assure the future availability of manpower to carry on the
organizational activities. It determines the future needs of manpower
in terms of number and kind.
Coping With Change: Human resource planning is important to cope
with the change associated with the external environmental factors. It
helps assess the current human resources through HR inventory and
adapts it to changing technological, political, socio-cultural, and
economic forces.

PLANNING?
Recruitment Of Talented Personnel: Another purpose of HR planning
is to recruit and select the most capable personnel to fill job
vacancies.It determines human resource needs, assesses the available
HR inventory level and finally recruit the personnel needed to perform
the job.
 Development Of Human Resources: Human resource planning
identifies the skill requirements for various levels of jobs. Then it
organizes various training and development campaigns to impart the
required skill and ability in employees to perform the task efficiently
and effectively

PLANNING?
Proper Utilization Of Human Resources: Human resource planning
measures that the organization acquires and utilizes the manpower
effectively to achieve objectives. Human resource planning helps in
assessing and recruiting skilled human resource. It focuses on the
optimum utilization of human resource to minimize the overall cost
of production.
Uncertainty Reduction: This is associated with reducing the impact
of uncertainty which are brought by unsudden changes in processes
and procedures of human resource management in the organization.

STAFFING SUB- PROCESSES
Human resource planning (staffing constitutes the first step of this
process )
Determining Staffing authority
Developing supply sources
Evaluation of applications
Employment decisions and recommendations
Recruitment and orientation
Promotion, transfer and dismissal actions

2 BASIC DIMENSIONS OF HUMAN
RESOURCES PLANNING
Expected
Future
Vacant
Positions
Human
Resources
Inventory
(expected
future
human
resources)

RESOURCES PLANNING
Human Resources Inventory (expected future human resources)
: determining the current ability and skills levels of people in
the organization
Qualitative and quantitative analysis about organization’s
human resources
How many people are working in each department?
What are their jobs and tasks?
Their personal and vocational characteristics
How many people will we need in future?

Expected Future Vacant Positions: the number of current and
expected future vacant positions
Redundancy: Retirement , work out, transfer, promotion and disease
Absence or other reasons
RESOURCES PLANNING

PURPOSES OF HUMAN RESOURCE
PLANNINGTo achieve optimum employment level
 Prevent company from «last minute staffing loss»
 Find right human resource number, compatible with the
amount of workTry to work. If we dont plan it, may encounter
some problems:
 Interruption of production
 delaying of customer orders
 customer unhappiness
To benefit maximum from employees efforts

OTHER REASONS OF HUMAN
RESOURCE PLANNING
Following internal changes and constraints in human resources
Training and improvement of current staff
Announcement of vacancies on time
Recruitment of new employees
Predicting labor costs
Adapting rapidly to changing conditions in the community
Responding to technological innovations and market conditions
Acting in accordance with the law and legal regulations
Controlling labor costs that affect the profitability of capital

ORGANIZATIONAL STRATEGY AND
HR PLANNING
Humanresourceplanning
Organizational
strategy
Reconstruction
strategy (Downsizing)
Stable strategy
Reconstruction
strategy (Growth)

INTELLECTUAL CAPITAL
"The only irreplaceable capital an organization possesses is the
knowledge and ability of its people. The productivity of that capital
depends on how effectively people share their competence with those
who can use it."
Andrew Carnegie

THE WAR FOR TALENT
The war for talent is a term coined by Steven Hankin of McKinsey &
Company in 1997, and a book by Ed Michaels, Helen Handfield-Jones,
and Beth Axelrod, Harvard Business Press, 2001
refers to an increasingly competitive landscape for recruiting and
retaining talented employees
While talent is vague or ill-defined, the underlying assumption is
that for knowledge-intensive industries, the knowledge worker (a
term coined by Peter Drucker) is the key competitive resource.
Knowledge-based theories of organizations consistently place
knowledge workers as a primary, competitive resource.

THE WAR FOR TALENT
The war for talent is intensified by
demographic shifts (primarily in the
United States and Europe).
This is characterized by increasing
demand along with decreasing supply
(demographically).
There are simply fewer post-baby-boom
workers to replace the baby-boom
retirement in the US and Europe (though
this is not the case in most of East Asia,
Southeast Asia, Central Asia, Central
America, South America, or the Middle
East; Eastern Europe also tends to have
similar demographics, namely an aging
and/or shrinking labor force). TÜRKİYE'DE YÖNETİM DANIŞMANLIĞI

ANALYSIS OF EXTERNAL
ENVIRONMENTAL FACTORS
The structure of the labor and labor market
Legal regulations
Economic conditions
Geographic and competitive conditions
Technology
Unions

Job analysis
Organizational culture and management style
Workforce skills inventory
ANALYSIS OF INTERNAL
ENVIRONMENTAL FACTORS

PROCESS (FROM COMPANY
STRATEGY)
Control
and
evaluatio
n
Final plan
and
implemen
tation
Approval of
Senior
manageme
nt
Budget
adjustme
nt
Forecastin
g and
Balancing
HR supply
and
demand
Informatio
n
collecting
and
analysis
Human
Resourc
e
Plannin
g
Compan
y
strategy

COMPANY STRATEGY
Mintzberg concludes that there are five types of strategies:
Strategy as plan – a directed course of action to achieve an intended set of goals; similar
to the strategic planning concept;
Strategy as pattern – a consistent pattern of past behavior, with a strategy realized over
time rather than planned or intended. Where the realized pattern was different from the
intent, he referred to the strategy as emergent;
Strategy as position – locating brands, products, or companies within the market, based
on the conceptual framework of consumers or other stakeholders; a strategy determined
primarily by factors outside the firm;
Strategy as ploy – a specific maneuver intended to outwit a competitor; and
Strategy as perspective – executing strategy based on a "theory of the business" or natural
extension of the mindset or ideological perspective of the organization.

MINTZBERG 5 TYPE OF
STRATEGIES
Plan Pattern Position
Ploy Perspective

INFORMATION COLLECTING AND
ANALYSIS:
HR INVENTORY
The human resources of the organization are divided into
managerial and non-managerial categories,
 the skills inventory is related with non-managerial employees
 the management inventory is related with the management personnel.
The process of preparing a human resource inventory involves
the determination of personnel whose inventory is to be made,
cataloging the factual information of each employee,
systematic and detailed appraisal of these employees
a thorough study of the individuals who have potential for growth.

MANAGER INVENTORY EXAMPLE

JOB ANALYSIS
What kind of jobs are available in the business right now ?
What is the relationship between different jobs ?
How many employee perform each job?
How important is each job ?

JOB ANALYSIS / JOB DESCRIPTION /
JOB SPECIFICATION

BALANCING LABOR SUPPLY AND
DEMAND
Human resource planning professionals should follow the following
changes and developments:
 Changes occur in the quantity of production
 New products plans
 Products that company plans to stop production
 Sales quantity
 Changes in the organizational structure
 Technological innovations
 Financial situation

HOW CAN WE ESTIMATE THE AMOUNT
OF PRODUCTION IN THE FUTURE?
Calculation of the amount required to be produced for the next period is
usually based on sales and orders.
 This plan is expressed in the form of a business unit such as «quantity,
weight, box orders and similar»
For example
During 40-hours work a week, we want to produce1000 refrigerators
assembly workers may require 9000 hours of operation.
If we divide 9000 hours /40 hours per week
We need 225 assembly workers

SUCCESSION PLANNING
Identification and development of potential successors for key
positions in an organization, through a systematic evaluation process
and training.
Unlike replacement planning (which grades an individual solely on the
basis of his or her past performance) succession planning is largely
predictive in judging an individual for a position he or she might
never have been in.

REPLACEMENT PLANNING AND
SUCCESSION PLANNING
Replacement planning is a sort of contingency plan.
The idea is a company will name a next-in-line or “backup” for
major positions with the idea that these people will not be needed
unless something goes wrong.
The thought that goes into naming such replacement is
comparatively minimal; the focus is on meeting basic needs and
ensuring that “must have” qualifications will be met.
In contrast, succession planning is part of the long-term plan of a
healthy company.
The focus here is on planning for change as part of healthy growth,
and acknowledging even top-level people leave.
Succession planning means that replacements are mentored and
developed, not just placed on a list outlining “Plan B.” TÜRKİYE'DE YÖNETİM DANIŞMANLIĞI

MARKOV ANALYSIS
Markov Analysis is powerful analyses that can be applies on wide
range of areas to help businesses forecast the future
probabilities/outcome of an event.
For instance, it is used in HR planning of human resources,
forecasting bad debts, forecasting brand loyalty, forecasting market
shares and so on.
Suppose that the HR manager wish to forecast demand and supply of
its workforce for future recruitment planning purposes. Based on
historical data of its workforce transition activities, the HR manager
had the following information about its workforce.

EXAMPLE
The table above indicates that of the initial 10 top managers in 2013, 80% of them will
remain in their existing positions while 2% of them are predicted to be demoted and 18% of
them will relinquish their position due to various reasons (e.g retirement). The HR manager
wishes to know the supply of its workforce in the next coming two years 2014/15 to plan
for recruitment purposes. This can be done via Markov Analysis of 2 transitional states.

FORECASTED 2014 WORKFORCE
SUPPLY
The above single transition Markov Analysis shows that in year 2014, it is forecasted that a
total supply of 9.5 top managers, 13 middle managers,16.2 low managers and 6.3 of them
exited. Usually, the numbers are rounded to its nearest decimal values. If the same
probabilities hold, the forecasted 2015 workforce supply is shown in the table below in a 2
transitional Markov Analysis.

The above two transition Markov Analysis shows that in year 2015, it is forecasted
that a total supply of 8.9 top managers, 11.204 middle managers,13.156 low
managers and 11.74 of them exited.
FORECASTED 2015 WORKFORCE
SUPPLY

Human Resource Planning (HRP)

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