2. HRP
Right number of people with right skills at right
place at right time to implement organizational
strategies in order to achieve organizational
objectives
In light of the organization’s objectives-HRP is the
process of analyzing an organization’s human
resource needs and developing plans, policies, and
systems to satisfy those needs.
3. Conti…
Human Resource Planning is concerned with the flow
of people into, through, and out of an organisation.
HR planning necessarily involves a focus on
employees, changing skill levels and the way in
which those skills match organisational needs.
4. ROLE OF HUMAN RESOURCE PLANNING
To determine and facilitate the levels and types of
recruitment that may be required
To identify the need for training and development
To assess current employment costs in relation to
other organisational costs.
To assesses the surplus and shortage of human
resources and take measures accordingly.
To make the best use of human resources
To forecast future requirement of human resources
with different levels of skills.
To ensure proper use of existing human resources in
the organization
5. Benefits of HRP
It provides scope for advancement and development
of employees through training, development etc.
It helps to anticipate the cost of salary enhancement,
better benefits etc.
To plan for physical facilities, working conditions
and the volume of fringe benefits like canteen,
schools, hospitals, conveyance, child care centres,
company stores.
It helps to take steps to improve human resource
contributions in the form of increased productivity,
sales, turnover etc.
6. Proccess of HRP
Organizations need to do human resource planning so
they can meet business objectives and gain a
competitive advantage over competitors.
Human resource planning compares the present
state of the organization with its goals for the future
Then identifies what changes it must make in its
human resources to meet those goals
7. Forecasting as a Part of Human Resource Planning
DEMAND
FORECASTING
SUPPLY
FORECASTING
Determine
organizational
objectives
Demand
forecast for
each objective
Aggregate
demand
forecast
Does aggregate
supply meet
aggregate
demand?
Go to feasibility analysis steps
Choose human
resource programs
External programs
•Recruiting
•External selection
•Executive
exchange
Internal programs
•Promotion
•Transfer
•Career planning
•Training
•Turnover control
Internal supply forecast External supply forecast
Aggregate supply
forecast
No
Yes
8. Conti….
1. Collect Information & Analysis of Existing
Resources
2. Human Resource Forecasting
i) Forecast Demand for Human Resources
ii) Forecast Supply of Human Resources
3 Plan and Conduct Needed Programs
4 Monitoring the Implementation of the Plan
9. 1. ANALYSIS OF THE WORKFORCE
Inventories of the Existing Workforce
Succession Plans-to determine the type and
calibre of managers available to succeed senior
or middle managers who retire or leave
Movement of Employees-promotions and
transfers
Use of Staff-overtime working, Absenteeism,
ineffective or wasted time or efficiency in the
use of labour
Labour Turnover-an analysis of the rates at
which staff are leaving employment.
Costs-to know at which point recruitment
becomes most cost-effective.
10. Human Resource Forecasting
HR Forecasting attempts to determine the supply and
demand for various types of human resources, and to
predict areas within the organization where there will
be labor shortages or surpluses.
There are three major steps to forecasting:
- Forecasting the demand for labor
- Determining labor supply
- Determining labor surpluses and shortages
11. Conti…
Demand forecasting means forecasting of the
quality of human resources (skill, knowledge,
values, capabilities, etc) in addition to
quantity of human resources. Important
forecasting methods are:
a) Managerial Judgement
b) Ratio Trend Analysis
c) Work Study Techniques.
12. Conti…
a) Managerial Judgement:
- Under this method manager or supervisor or
supervisors who are well acquainted with the
workload, efficiency and ability of employees, think
about their future workload, future capabilities of
employees and decide on the number and type of
human resources to be required.
- This is done by the supervisors concerned who send
the proposals to the top officials for approval.
13. Conti…
-Under this bottom up approach, the management at the
top compares the proposals with the organizational
plans, makes necessary arrangements and finalises the
plans.
b) Ratio Trend Analysis:
- Under this method the ratios are calculated, for the
past data relating to number of employees of each
category and production level, sales level, activity
level/workload level and direct employees and indirect
employees.
14. Conti…
- Future production level, sales level, activity
level/workload are estimated with an allowance for
changes in organization, methods, and Jobs.
- Then future resources are calculated on the basis of
established ratios.
For Example:
Present Level of Production ( 1-1-2010) = 2000 Units
Present no. of Foremen Ratio is 4:2000 i.e 1:500
So (1-1-2010) = 4
Estimates production on (1-1-2010) = 5000 Units
Foreman required as on ( 1-1-2010)= 5000/500 = 10
(without giving any provision for changes)
15. Conti….
c) Work Study Techniques:
- These technique are more suitable where the volume
of work is easily measurable.
- Under this method, total production and activities in
terms of clear units are estimated in a year
- Man hours required to produce/perform each unit is
calculated.
- Work ability of each employee is estimated in terms
of man hours after giving due weightage to
absenteeism, rest etc.Then the required no. of
employee is calculated.
16. Conti…
For Example:
Planned Operations during the year 2010 = 1,60,000
Units.
Standard man hours needed to perform each unit in
2010 = 0.25 hours
Planned man hour needed per year in 2010 =
40,000 hrs
Work ability per employee in man hrs in the year 2010 =
2000
No. of employees required in 2010 = 40,000/ 2000 = 20
17. Conti..
Supply Forecasting is to forecast the future supply of
human resource in the firm and the labour market.
The first step of forecasting future supply of human
resource is to obtain the data and information about
the present human resource inventory.
Existing Inventory: includes
- The data related to inventory of human resource in
terms number, department wise, sex wise, payroll
wise etc.
18. Conti….
- Job Family Inventory: inventory of each job
family i.e. all jobs related to clerks, cashiers,
typists etc. and each sub-job family i.e all
jobs having same characteristics ( skill,
qualification) like production engineer (
Mechanical) and maintenance engineer
(Mechanical)
- Age inventory- age wise no. and categories
of employees.
19. Conti….
Forecast Supply Of Hr
• The Internal Supply of Labour
• The External Supply of Labour
-The external labour market
-demographic change
-early retirement
-Changing employment patterns(e.g
computer aided design/manufacture, JIT).
-Changing patterns of work (e.g part-time
workers, flexible workforce etc)
20.
21. Conti…
Determining Labor Surplus or Shortage:
- Based on the forecasts for labor demand and supply,
the planner can compare the figures to determine
whether there will be a shortage or surplus of labor for
each job category.
- Determining expected shortages and surpluses allows
the organization to plan how to address these
challenges.
22. Plan and Conduct Needed Programs …
1. Staff/skill shortages
-promoting existing staff, Redeployment of staff,
training
-getting more from existing staff, Job design
-External recruitment
2. Staff surpluses
-stopping recruitment
-transfer, early retirements, Reducing overtime
-Short-time working, reducing subcontracted work
3) . Managerial succession planning
4. Career planning
5. Organisation and structure plans
6. Performance planning
23. Implementation of the Plan
1. Acquisition Strategies: Which define how the
resources required to meet forecast needs will be
obtained
2. Retention Strategies: Which indicate how the
organisation intends to keep the people it wants.
3. Development Strategies: Training and development
programmes
4. Utilisation Strategies: which indicate intentions to
improve productivity and cost-effectiveness.
5. Flexibility Strategies: How the organisation can
develop more flexible work arrangements.
6. Downsizing Strategies: Which define what needs to be
done to reduce the numbers employed
