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Human resource planning is a process by which an organization ensures that: it has the right number and kinds of people , at the right place, at the right time, capable of effectively and efficiently completing those tasks, that will help the organization to achieve its overall strategic objectives.

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  1. 1. HUMAN RESOURCE PLANNING By Jayant Isaac Author I Academician I Speaker Contact No-9229156307 Email:
  2. 2. HUMAN RESOURCE PLANNING  Human resource planning is a process by which an organization ensures that:  it has the right number and kinds of people  at the right place  at the right time  capable of effectively and efficiently completing those tasks, that will help the organization to achieve its overall strategic objectives.
  3. 3. HRP  Human resource Planning is the process by which a management determines how an organization can move from its current manpower position to desired manpower position.  Through planning, a management strives to have the right number and the right kind of people at the right places, at right time.
  4. 4. FEATURES OF HRP  Process tries to ensure the right people at right place and at right time are available  Determines future needs of manpower as per organizational planning and structure  Takes into account the manpower availability at a future period
  5. 5. OBJECTIVES OF HRP  There are five major objectives of HRP and is mentioned below:      Prevent overstaffing & understaffing. Ensure the organization has the right employees with the right skills in the right place at right times. Ensure that the organization is responsive to changes in the environment. Provide direction and coherence to all HR activities in the system. Unite the perspective of line & staff managers.
  6. 6. TYPES OF HR PLANNING  HR Planning is of two types: Aggregate Planning Successio n Planning
  7. 7. AGGREGATE PLANNING  Aggregate Planning is done for the group of employees at specific level, usually the low level jobs.  Aggregate planning is forecasting the demand for employees.  The single greatest indicator of the demand for employees is demand for organization's product or services.
  8. 8. AGGREGATE PLANNING (CONTD…)  Aggregate planning is done FORCASTING METHOD. through UNIT  In this method, each individual unit, department or branch of the organization estimated its future needs for employees.  For example each branch of a bank may prepare its own forecast for the estimation of its future needs for employees each branch manager has for the particular office. This is also called as bottom-up planning.
  9. 9. AGGREGATE PLANNING (CONTD…)  Top-down forecasting involves senior managers allocating budgeted amount for employee payroll expenditures and then dividing the pool at subsequent levels down the hierarchy.  Each manager receives the budget from the superiors and then decides how to allocate these funds down to the next group of managers.
  10. 10. AGGREGATE PLANNING  Once the demand for the employees is forecasted , the organization plan for an adequate supply of employees to meet its demand.  Further in this process of forecasting the demand of the employee, knowledge, skills, abilities, experience should also be taken into considerations while fulfilling the demand.
  11. 11. STRATEGIES TO MANAGE EMPLOYEE SHORTAGES & SURPLUS Strategies for managing shortages:  Recruit new permanent employee.  Offer incentive to postpone retirement,  Rehire retirees part-time  Attempt to reduce turnover  Work current staff overtime  Subcontract work out  Hire temporary employees & Redesign job process so that fewer employees are needed. Strategies for managing surplus:  Freeze Hiring  No replacement of employees  Offer early retirement schemes  Layoffs  Reduce outsourced work  Expand operations
  12. 12. SUCCESSION PLANNING    Succession Planning involves identifying the key management positions that the organization cannot afford to have vacant. These are generally senior management positions that the organizations feels difficult to fill. Succession Planning works in two ways:   As a facilitator of transition when a employees leaves. As an instrument to identify high potential employee for the need of future assignments.
  13. 13. SUCCESSION PLANNING (CONTD…)   Succession Planning is easy to understand on concept basis, but on practical implementation it is very much difficult. On the basis of traditional approach succession planning it uses a tool called as Replacement Chart.  Replacement Chart identify key positions, possible successor for each of these positions.  Replacement chart can be easily derived by the Organizational Chart
  14. 14. SUCCESSION PLANNING (CONTD…)  SAMPLE REPLACEMENT CHART VICE PRESIDENT OF MKT DIRECTOR-SALES Ready now MANAGERPROMOTIONS 17 months DIRECTORMKT.RESEARCH 1 year In the above chart the VICE PRESIDENT has three(3) direct reporting from Dir-Sales, Mgr. Promotions & Dir-Mkt. Research. Beneath it is the time mentioned for all these three to be ready to take the responsibilities of the VICE PRESIDENT.
  15. 15. SUCCESSION PLANNING (CONTD…)    Succession Planning not only helps to ensure that key management positions remain filled but also helps to identify critical training and development needs of both individual managers and the organization as a whole. Succession planning clearly involves taking an investment-oriented approach towards employee. Succession Planning initiatives aimed at key managers need to be coupled with a specific retention strategy designed for potential successors.
  16. 16. SUCCESSION PLANNING (CONTD…) Pros & Cons of Disclosing Succession Advantages Disadvantages Planning Do Not Tell Tell High performers may leave the org., unsure of the future Unrealistic expectations Allows flexibility as business needs change Retention Strategy Not telling to the employees has a benefit of the employer “not committing” to employees and allows some flexibility in changing the mix of the employees as per the requirement of the business. On the other hand if the individuals are not aware that they have been targeted as "high potentials” they may be more receptive to the opportunities with other employers.
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