HR Planning• HR Planning is the process of examining an organizations’ future human resource need.• It involves: – Identifying and acquiring the right number of people with the proper skills – Motivating them to achieve high performance – Creating interactive links between business objectives and resource planning activities
Human Resource PlanningHuman Resource Planning (HR Planning) is both a process and a set of plans.It is how organizations assess the future supply of and demand for human resources.An effective HR plan also provides mechanisms to eliminate any gaps that may existbetween supply and demand. Thus, HR planning determines the members and typesof employees to be recruited into the organization or phased out of it.Dynamic by nature, the HR planning process often requires periodic readjustments aslabor market conditions change.
Strategic Planning HRP Process Human Resource Demand Human Resource SupplyTechnological forecasts Annual employment Existing employment inventoryEconomic forecasts requirements After application of expectedMarket forecasts Numbers Compared loss and attrition ratesOrganizational planning Skills withInvestment planning Occupational categoriesAnnual operating plans If none Variances End If surplus If shortage Decisions Decisions Action Layoff, Overtime, Decisions retirement, recruitment, etc. etc. End End
The HRP ProcessAll effective HR planning shares certain features. It is generally agreed that HRplanning involves four distinct phases or stages: Situation analysis or environmental scanning Forecasting demand for human resources Analysis of the supply of human resources Development of plans for action
Why is HRP important ?• Even an imperfect forecast is better than none at all• Anticipating needs – prepare for the future gives you an edge• Address potential problems – avoid skill deficiencies
What is HRP?• HRP is a sub-system of total organizational planning.• HRP facilitates the realization of the company’s objectives for the future by providing the right type and number of personnel• HRP is also called Manpower planning, Personnel planning or Employment planning
• HRP ensures that the organization has: – Right Number – Right Kind – Right Place – Right Time
Benefits of HRP• Create reservoir of talent• Prepares people for future• Expand or Contract• Cut Costs• Succession Planning