1. Human Resource Planning &
Development
UNIT - 1

2. Introduction
Human Resources planning is a process by which
management determine how the organization should move
from its current manpower position to its desired
manpower position. Through planning, management strives
to have the right number and the right kinds of people, at
the right place, at the right time, doing things, which result
in both organization and the individual receiving maximum
long-run benefits HR planning is a mechanism created to
forecast the required human resource to perform a specific
task. It also assesses the skill requirement of employees for
each job. It is a complex task which estimates the future
demand and supply position of HR in the organization.
Hence, it gives a picture of infinite future in advance in
terms of human resource requirement for the company.

3. Meaning
• Human resource planning involves getting the right number of qualified
people into the right jobs at the right time
• 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

4. Concept of HRP
• Human Resource Planning (HR Planning) is both a process and a set of
plans.
• An effective HR plan also provides mechanisms to eliminate any gaps that
may exist between supply and demand. Thus, HR planning determines the
members and types of employees to be recruited into the organization or
phased out of it.
• Dynamic by nature, the HR planning process often requires periodic
readjustments as labor market conditions change
• It is how organizations assess the future supply of and demand for human
resources.

5. Definition
• Acc to Geisler, “ HRP is the process including
forecasting, developing, implementing & controlling
– by which a firm ensures that it has the right
number of people & right kind of people, at the right
place ,at the right time doing things for which they
are economically most suitable.

6. 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

7. 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

8. • HRP ensures that the organization has:
– Right Number
– Right Kind
– Right Place
– Right Time

9. Objectives of HRP
• Forecasting Human Resource Requirement
• Effective Management of change
• Realizing Organizational Goals
• Effective utilization of HR
• Promoting Employees

10. Objectives of HRP
• Forecasting Human Resources Requirements: HRP is essential to
determine the future needs of HR in an organization. In the absence of
this plan it is very difficult to provide the right kind of people at the right
time.
• Effective Management of Change: Proper planning is required to cope
with changes in the different aspects which affect the organization. These
change needs continuation of allocation/ reallocation and effective
utilization of HR in organization.
• Realizing the Organizational Goals: In order to meet the expansion and
other organizational activities the organizational HR planning is essential.
• Promoting Employees: HRP gives the feedback in the form of employee
data which can be used in decision-making in promotional opportunities
to be made available for the organization.
• Effective Utilization of HR: The data base will provide the useful
information in identifying surplus and deficiency in human resources.

11. Needs of HRP
• Employment – Unemployment situation
• Technological change
• Organizational change
• Demographic change
• Skill shortage
• Government influence
• Legislative control
• Impact of the pressure group
• Systems approach
• Lead time

12. NEEDS OF HRP
• Employment-Unemployment Situation: Though in general the number of
educated unemployment is on the rise, there is acute shortage for a variety of
skills. This emphasis is the need for more effective recruitment and retaining
people.
• Technological Change: The myriad changes in production technologies, marketing
methods and management techniques have been extensive and rapid. Their effect
has been profound on the job contents and job contexts. These changes cause
problems relating to redundancies, retaining and redeployment. All these suggest
the need to plan manpower needs intensively and systematically.
• Organizational Change: In the turbulence environment marked by cyclical
fluctuations and discontinuities, the nature and pace of changes in organizational
environment, activities and structures affect manpower requirements and require
strategic considerations.
• Demographic Change: The changing profile of the work force in terms of age, sex,
literacy, technical inputs and social background has implications for HRP.
• Skill Shortage: Unemployment does not mean that the labour market is a buyer’s
market. Organizations generally become more complex and require a wide range
of specialist skills that are rare and scare. Problems arise when such employees
leave.

13. Cont………
• Governmental Influences: Government control and changes in legislation with
regard to affirmative action for disadvantages groups, working conditions and
hours of work, restrictions on women and child employment, causal and contract
labour, etc. have stimulated the organizations to be become involved in systematic
HRP.
• Legislative Control: The policies of “hire and fire” have gone. Now the legislation
makes it difficult to reduce the size of an organization quickly and cheaply. It is
easy to increase but difficult to shed the fat in terms of the numbers employed
because of recent changes in labour law relating to lay-offs and closures. Those
responsible for managing manpower must look far ahead and thus attempt to
foresee manpower problems.
• Impact of the Pressure Group: Pressure groups such as unions, politicians and
persons displaced from land by location of giant enterprises have been raising
contradictory pressure on enterprise management such as internal recruitment
and promotion, preference to employees’ children, displace person, sons of soil
etc.
• Systems Approach: The spread of system thinking and advent of the macro
computer as the part of the on-going revolution in information technology which
emphasis planning and newer ways of handling voluminous personnel records.
• Lead Time: The log lead time is necessary in the selection process and training and
deployment of the employee to handle new knowledge and skills successfully.

14. Benefits of HRP
• Defining future personnel needs
• Coping with change
• Providing base for developing talents
• Forcing top management to involve in HRM

15. Factors affecting HRP
ORGANIZATIONAL GROWTH CYCLES & PLANNING
• Embryonic stage – No personnel planning
• Growth stage – HR forecasting is essential
• Maturity stage – Planning more formalized & less flexible
• Declining stage – Planning for layoff, retrenchment &
retirement
ENVIRONMENTAL UNCERTAINITIES
• Political, social & economic changes
• Balancing programmes are built into the HRM
programme through succession planning, promotion
channels, layoffs, flexi time, job sharing, retirement, VRS,
etc….

16. Factors affecting HRP
TIME HORIZONS
• Short-term & Long-term plans
TYPE & QUALITY OF FORECASTING
INFORMATION
• Type of information which should be used in
making forecasts
NATURE OF JOBS BEING FILLED
• Difference in employing a shop-floor worker & a
managerial personnel

17. HRP ProcessENVIRONMENT
ORGANISATIONAL
OBJECTIVES AND POLICIES
HR NEEDS FORECAST HR SUPPLY FORECAST
HR PROGRAMMING
HRP IMPLEMENTATATION
CONTROL AND
EVALUATION OF PROGRAMME
SURPLUS SHORTAGE
RESTRICTED HIRING RECRUITMENT
REDUCED HOURS AND SELECTION
VRS, LAY OFF, etc
THE HRP PROCESS

18. Organizational Objectives and Policies
HR plans need to be based on Organizational Objectives.
The role of HRP is to subserve the overall objectives by
ensuring availability and utilization of Human Resources.
In developing these objectives, specific policies need to be
formulated to address the following questions:
 Are vacancies to be filled from promotions from within or hiring
from outside?
 How do training and development objectives interfere with the
HRP objectives?
 What union constraints are encountered in HRP and what policies
are needed to handle these constraints?
 How to enrich employees job? Should the routine and boring jobs
continue or be eliminated?
 How to downsize the organization to make it more competitive?

19. HR Demand Forecast
• Demand forecasting is the process of
estimating the future quantity and quality of
people required.
• The basis of the forecast must be the annual
budget and long-term corporate plan,
translated into activity levels for each function
and department

20. • Demand forecasting must consider several
factors both internal and external.
• Among external factors are competition(foreign
and domestic), economic climate, laws and
regulatory bodies, changes in technology and
social factors.
• Internal factors include budget constraints,
production levels, new products and services,
organizational structure and employee
separation.

21. Demand forecasting helps to:
– Quantify the jobs necessary for producing a given
number of goods
– Prevent shortage of people where and when they
are needed most
– Determine what staff-mix is desirable in the future
– Monitor compliance with legal requirements with
regard to reservation of jobs
– Asses appropriate staffing levels in different parts
of the organization so as to avoid unnecessary
costs

22. Forecasting Techniques
• Managerial judgement
• Ratio-trend analysis
• Work study techniques
• Delphi technique
• Flow models
• Other technique

23. Managerial Judgement
• In this all managers sit together, discuss and
arrive at a figure which would be the future
demand for labour.
• This technique may involve a ‘bottom-up’ or
‘top-down’ approach. A combination of both
could yield positive results.

24. Ratio-trend analysis
• This is the quickest forecasting technique.
• This technique involves studying past ratios,
say, between the number of workers and sales
in an organization and forecasting future
ratios, making some allowance for changes in
the organization or its method

25. Work-study techniques
• Work study techniques can be used when it is
possible to apply work measurement to
calculate the length of operations and the
amount of labour required

26. Delphi technique
• This technique is the method of forecasting
personnel needs.
• It solicits estimates of personnel needs from a
group of experts, usually managers.
• The HRP experts act as intermediaries,
summarize the various responses and report
the findings back to the experts.
• Summaries and surveys are repeated until the
experts opinion begin to agree.

27. HR SUPPLY FORECAST
• Supply forecasting measures the no of people
likely to be available from within and outside
an organization, after making allowance for
absenteeism, internal movements and
promotions, wastage and changes in hours
and other conditions of work.

28. Need for supply forecast
• Quantify no of people and positions expected
in near future.
• Clarify the staff mixes.
• Prevent shortage of people
• Asses present staffing levels in different parts
of organization.

29. Supply Analysis
• Existing human resources
• Internal sources of supply
• External sources of supply

30. Existing human resources
• Skill inventories –
1. Personal data
2. Skills
3. Special qualifications
4. Salary and job history
5. Company data
6. Capacity of individual
7. Special preference of individual

31. • Management inventories
1. Work history
2. Strengths
3. Weakness
4. Promotion potential
5. Career goals
6. Personal data
7. Number and types of employees supervised
8. Total budget managed
9. Previous management duties.

32. Internal supply and techniques
• Inflows and outflows
IS= current supply – outflow + inflow
• Turnover rate
No of seperations during one year × 100
Avg no of employees during the year

33. • Conditions of work and absenteeism.
Absenteeism is given by
no of persons – days lost ×100
Avg no of persons × no of working days
• Productivity level

34. External supply
• New blood and new experience
• To replenish old personnel
• Organizational growth and diversification

35. HR programming
• After personal demand and supply forecast,
the two must be balanced or reconciled. this
will help to fill the vacancies at right time with
right kind of employees

36. HR Plan implementation
• Converting HR plan into action.
• Action programmes are..
• Recruitment
• Selection & placement
• Training and development
• Retraining & redeployment
• The retention plan
• The retrenchment plan
• The VRS plan

37. Control and evaluation
• Establish the reporting procedures
• Identifying who are in post and those who are
in pipe line
• It should report employment costs against
budget and trends in wastage and
employment ratios

38. Approaches to HRP
• Social demand Approach
• Rate of return Approach
• Manpower requirement Approach
• Quantitative Approach
• Qualitative Approach
• Mixed Approach

39. Social Demand Approach
The social demand approach lies on the assessment of society’s requirement for
education. In principles, it is an aggregate of individuals demand for education in
respect of all individuals within the society. It is not always possible particularly in
large societies, to assess individual demand for education. In practice, therefore,
social demand approach relies on a projection of past trends in demographic
aspects of population and the enrollment at the different levels of education.
Social demand approach is thus capable of revealing the number of students with
differently typesof professional preparations that may be a given target date,
based on past experiences. Projections of social demand for education are
contingent upon given levels of:
• Income of educated people,
• Taste and references of household for education,
• Demographic characteristics such as fertility and mortality,
• Direct costs of education,
• Student grants, and
• Existing standard of admission to various levels of education.
Added to these constraints, there are the perennial problems associated with the
data base on demographic aspects at disaggregated levels such as districts, blocks
and villages and data on wastage and stagnation in education, and intensity of
utilization of existing educational facilities. Social demand approach thus suffers
from the suffers from the difficulties associated with any futurological exercise.
difficulties associated with any futurological exercise.

40. Rate of Return Approach
Critics of social demand approach argue that the decision to choose
more or less of education, beyond a legal school-learning age, is made by an individual who
attaches
a positive value to the present and the future benefits of education. Aggregate of individuals
demand
for education, which is constructed the social demand for education, should then be based
exaggerate
of individuals assessment of benefits of education-reflecting the social benefits.
This brings us the rate of return approach to education:
Rate of return approach looks upon education as a contributor to productivity and this
sense, it is expected to facilitate investment decisions in education whether or not the
students should undergo
more schooling, or whether or not the state should invest more and expand educational
facilities.
Like in the rate of return on investment analysis, rate of return on investment in education is
used
to expand educational facilities until schooling equalizes.
• On the one hand yield of investment in different types of education, and
• On the other hand yield of investment in education vis-à-vis other sectors of economy.

41. Manpower Requirement Approach
The fundamental axioms of manpower requirements
approach is that there is a definite link between the
education and economic growth and that lack of skilled
manpower in required number impedes growth. In this
approach an attempt is made to forecast future
requirements of educated manpower to fulfill a future
target of Gross National Product (GNP) or specified
targets of industrial production. Based on the forecasts
of educated manpower requirement over a specified
period, the planners would then indicate the directions
of development of the educational sector over the
same specific period.

42. Basics steps in MRA
• Anticipating the directions and the magnitude of
development of each individual sectors of the economy.
• Evolving norms of the employing manpower in each
individual sector keeping the view the
• Technological options—Present as well as future—for each
sector of the economy.
• Translating the physical targets for the development of
each individual sector into the manpower requirement
using the sector specific manpower norms.
• Estimating the educational; equivalents of the manpower
requirement.
• Analyzing the implications of estimates of educated
manpower requirements for educational

43. Quantitative Approach
• It is also known as top down approach of HR planning
under which top level make and efforts to prepare the draft
of HR planning. It is a management-driven approach under
which the HR planning is regarded as a number's game. It is
based on the analysis of Human Resource Management
Information System and HR Inventory Level. On the basis of
information provided by HRIS, the demand of manpower is
forecasted using different different quantitative tools and
techniques such as trend analysis, mathematical models,
economic models, market analysis, and so on. The focus of
this approach is to forecast human resource surplus and
shortages in an organization. In this approach major role is
played by top management.

44. Qualitative Approach
• This approach is also known as bottom up approach of
HR planning under which the subordinates make an
effort to prepare the draft of HR planning. Hence, it is
also called sub-ordinate-driven approach of HR
planning. It focuses on individual employee concerns. It
is concerned with matching organizational needs with
employee needs. Moreover, it focuses on employee's
training, development and creativity. Similarly,
compensation, incentives, employee safety, welfare,
motivation and promotion etc. are the primary
concerns of this approach. In this approach, major role
is played by lower level employees.

45. Mixed Approach
• This is called mixed approach because it
combines both top-down and bottom-up
approaches of HR planning. In fact, the effort is
made to balance the antagonism between
employees and the management. Hence, it tends
to produce the best result that ever produced by
either of the methods. Moreover, it is also
regarded as an Management By Objective(MBO)
approach of HR planning. There is a equal
participation of each level of employees of the
organization.

46. IMPORTANCE OF HRP
1. FUTURE PERSONNEL NEEDS
• Surplus or deficiency in staff strength
• Results in the anomaly of surplus labor with the lack of top
executives
2. COPING WITH CHANGE
• Enables an enterprise to cope with changes in competitive forces,
markets, technology, products & government regulations
3. CREATING HIGHLY TALENTED PERSONNEL
• HR manager must use his/her ingenuity to attract & retain qualified
& skilled personnel
• Succession planning
4. PROTECTION OF WEAKER SECTIONS
• SC/ST candidates, physically handicapped, children of the socially
disabled & physically oppressed and backward class citizens.

47. IMPORTANCE OF HRP
5. INTERNATIONAL STRATEGIES
• Fill key jobs with foreign nationals and re-assignment of
employees from within or across national borders
6. FOUNDATION FOR PERSONNEL FUNCTIONS
• Provides information for designing & implementing
recruiting, selection, personnel movement(transfers,
promotions, layoffs) & training & development
7. INCREASING INVESTMENTS IN HUMAN RESOURCES
• Human assets increase in value
8. RESISTANCE TO CHANGE AND MOVE
• Proper planning is required to do this

48. IMPORTANCE OF HRP
. OTHER BENEFITS
• Upper management has a better view of the HR
dimensions of business decision
• More time is provided to locate talent
• Better opportunities exist to include women &
minority groups in future growth plans
• Better planning of assignments to develop
managers can be done

49. Time Dimension of HRP
• Short – term Human Resource Planning
a. Matching at organizational level
b. Matching at individual level
• Long – term Human Resource Planning

50. Types of HR Plans
• Philosophy: The organisations’ role that they wish to play in society in terms of
philosophy. The philosophy of the company should have clarity of thought and
action in the accomplishment of economic objectives of a country. The
philosophy bridges the gap between society and the company.
• Purpose: Every kind of organized group activities or operations has a purpose.
For example, the purpose of a bank is to accept deposits and grant loans and
advances.
• Objectives: Objectives are the ends towards which organisational activity is
aimed. Every department has its own objectives which may not be completely
same as of the other department or organisation.
• Strategies: Strategy is determination of the basic long term objectives of an
enterprise and the adoption of courses of action and allocation of resources
necessary to achieve these goals.

51. • Policies: Policies are general statements or understandings which guide or
direct thinking and action in decision making. However, all policies are not
statements.
• Procedure and Rules: Procedures are plans that establish a desired method of
handling future activities. They detail the exact manner in which a certain
activity must be accomplished.
• Programmes: These are complexes of goals, policies, procedures, task
assigment rules, steps to be taken, or sources to be employed and other elements
necessary to carry out a given course of action.
• Budget: A budget is a statement of expected results in terms of members. It may
be referred to as a numerical programme. Cash budget, sales budget, capital
expenditure budget are some of the examples of budget.

52. Requisites for successful HRP
 Recognize of corporate planning
 Backing of top management for HRP
 HRP responsibilities should be centralized
 Personnel record must be complete, up-date and
readily available
 The time horizon of plan should be long for
remedial action
 The techniques of planning should be best suit
 Plans should be prepared by skill level
 Data collection, analysis, techniques

53. Barriers to HRP
• Improper linkage b/w HRP & corporate
strategy
• Inadequate appreciation of HRP
• Rigidity in attitude
• Environmental uncertainties
• Conflict b/w long term & short term HRP
• Inappropriate HR information system