Gives insight of Major aspects of Human Resource Planning to include meaning,Objectives,Importance and the process of HR planning

1. Human Resources Planning
= Resources
Sanjiv Kumar Mahajan
Career Points University Kota

2. Preview
 Introduction
 Definition & Meaning of HRP
 Objectives of HRP
 Importance of HRP
 HRP Process
 Conclusion

3.  Human Resource an important corporate asset and the
overall performance of companies depends upon the
way it is put to use
 Globally Major issues in organizations are skill
shortages, competency gaps, downsizing & rightsizing.
Introduction

4.  Causes of the issues are Inadequate Business
Planning, Job Descriptions, inadequate Training &
Development Programmes
 In order to realize company objectives, human
resource planning (HRP) is essentially the process
of getting the right number of qualified people into
the right job at the right time so that an organization
can meet its objectives
Introduction

5. • Process of forecasting an organisation’s future demand, and
supply/availability of, right type of people in right number
• Process that identifies current and future human resources
needs for an organization to achieve its goals.
• HRM Department can initiate recruitment & selection process
only after HRP
• Also called manpower/personnel/ employment planning
• Improper HRP – Over staffing or Understaffing
HRP : Definition

6.  Anticipate the impact of technology on job and
requirements of human resources.
 Analyse Current Workforce
 Effective Management of Change – To cope up with
mkt conditions , technology products and govt
regulations effectively
 Effective utilisation of existing human resources.
 Forecast requirements of human resources with
different levels of skills.
Objectives of HRP

7.  Assess surplus or shortage, if any, human resources
available
 Ensure adequate supply of manpower as and when
required.
 To relate future human resources to future enterprise
needs
 Provide lead time available to select and train the
required additional human resource over a specified
time period.
Objectives of HRP

8.  Part of Strategic Planning
 International Business Expansion Strategies
 Creating highly skilled personnel with necessary
qualifications, skills, knowledge, experience &
aptitude (L&T, ITI)
 Foundation for Personnel Functions – Provides
info for Recruitment , Selection, Transfer, Layoffs
etc
Importance of HRP

9.  Cater to Future Personnel Needs
 Surplus or deficiency of labour - 75% of organisations are
overstaffed. Redeployment of staff to other units.
 Manpower Shortages due to Turnover
 Needs of expansion / downsizing
 Lead Time Long lead time necessary for selection,
Training and development of employees.
Importance of HRP

10. HRP Process

11. Organizational
objectives and policies
HR Demand forecast HR Supply forecast
Estimating Manpower Gap/
HR Programming
Control and Evaluation
Restricted Hiring
Reduced Hours
VRS,Lay off etc
Recruitment,
Postpone
retirement/Rehire/
hire temp
employees
Overtime
Environmental Scanning
Action Planning /
HR Plan Implementation
•Recruitment & Selection
•Training & Development
•Promotion
•Retention
•Retrenchment
Outcome
Outcome
Process
ShortageSurplus

12. 12
Systematic process of studying & monitoring the internal
& external environment of the organization in order to
pinpoint opportunities & threats
Environment Scanning
External Factors
 Labour Market Trends
 Current & Projected
Economic Conditions
 Changes in Legislations
 Technological
Advancements
 Social Concerns
Internal Factors
 Workforce composition
(profile, skills)
 Changes in
organizational structure
 Financial Health

13.  Downsizing / Expansion
 Acquisition / Merger / Sell-out
 Technology upgradation / Automation
 New Markets & New Products
 External Vs Internal hiring
 Training & Re-training
Organization Objectives & Policies

14. process of estimating future quantity and quality of
manpower required for an organisation.
• External Factors. Competition, laws & regulation,
changes in technology and social factors
• Internal Factors - Budget constraints, production
levels, new products & services & organisational
structure
HR Demand Forecast

15. Purpose
 To quantify the jobs necessary for producing a
given no of goods
 Determine staff mix desirable in future
 Assess appropriate staffing level at different
levels of organisation
 Prevent shortage of people
 Monitor compliance with legal requirements
HR Demand Forecast

16.  Managerial Judgement Managers discuss and arrive at a
figure that would be future labour demand. Top-Down or
Bottom-Up approach
 Ratio - Trend Analysis Studies past ratios between two
variables ie no of workers & sales in an organisation and
forecasting future ratios making allowances for changes in
organisation etc.
 Regression Analysis Same as trend analysis
Forecasting Techniques

17.  Work-Study Technique Based on Volume operations &
work efficiency of personnel. Volume of Operation derived
from organisation plan of documents & increase/decrease
measured.
H required for planned output
Standard h /person/year
 Delphi Technique Experts independently develop forecasts
that are shared with each other, but in this approach the
experts never actually meet. Each of the members refines
his or her forecasts until a group consensus is reached.
Forecasting Techniques

18. process of estimating future quantity and quality of
manpower available internally & externally to an
organisation.
Supply Analysis Covers
• Existing Human Resources
• Internal Sources of Supply
• External Sources of Supply
HR Supply Forecast

19. HR Supply Techniques
Existing Human Resources
Skill Inventories
 Consolidated information about non Managers in the
organisation – Personal Data,Skills,Special Qualifications,
Preference etc
 Provide information for transfer & promotion decision
Management Inventories Consolidated information about
Managers in the organisation- Work History, Strengths,
Weaknesses, Career Goals etc

20. HR Supply Techniques
Internal Supply
Infows & outflow
Inflows - Transfers in and promotion in
outflows - Resignation,Discharge, retirement promotions etc
Turnover Rate
No of employees left job in one year X 100
Average no of employees in year

21. HR Supply Techniques
Internal Supply
Replacement Planning Short-term technique
 Records indicating which employees are currently ready
for promotion to a specific position.
 When needs forecasted for particular job, replacement
charts provide data about internal candidates to fill the
openings
Succession Planning Long term technique
 Focus on development of Leaders to replace leaders as
they retire from organisation.

22. External Supply
 Resorted to
 When cost of procuring workforce from within the organisation
more & present staff cannot be spared
 Organisation Growth & Diversification.
 Replenish lost personnel
 Economic and workforce development agencies
typically can provide data on the labour supply
availability.
HR Supply Techniques

23. • Essential to monitor effectiveness of HRP & ensure
continuous improvements.
• Evaluation & Control required to:-
 Identify deviations or deficiencies
 Make modification to plans wrt changing requirements
 Determine the extent to which HR objectives have been met.
 Address new workforce issues that may arise
Evaluation & Control

24. Thank You