3. FORECASTING SUPPLY OF HUMAN RESOURCE The forecast for supply of human resources can be done intwo stages:-→ Estimate the future internal supply of human resource→ Analyse the external supply of human resource.Forecast internal supply of human resource:- This involves various steps:-a) Assessment of present human resource-this can be done by preparing a human resource audit/inventory. It contains data about the current human resource.It’s main components are:- > head counts > job family inventory > age inventory > skill inventory
The manpower inventory helps in determining and evaluating thequantity and quality of the internal human resources.b) Estimate expected loss and additions to manpower –potential losses of human resources can arise in the form ofresignations, discharge, deaths, lay offs, termination, promotions,demotions, transfers, etc. Similarly, additions also may occur in theform of new recruits, promotions, transfers, etc.Thus,Future internal present inventory potential potentialsupply of human = of human resources + additions - lossesresources
Forecast external supply of human resource There are various internal and externalfactors which affect the supply of human resources from externalsources. Internal factors include:-→ training facilities→ salary levels→company image→salary levels, etcExternal factors include:-→population→unemployment level→transportation facilities→social security measures, etc.
4. ESTIMATING MANPOWER GAPS The Net human resource requirements ormanpower gaps can be identified by comparing demand forecastsand supply forecasts. Such comparison will reveal→ either deficit or surplus of human resource in future→ deficit suggests the number of persons to be recruited fromoutside→ surplus implies redundants to be redeployed or terminated.Gaps may occur in terms of knowledge, skills and aptitudes.→ employees estimated to be deficient can be trained→ employees with higher skills may be given more enriched jobs.
5. ACTION PLANNING Once the manpower gaps are identified, plans areprepared to bridge these gaps. Plans to meet the surplus manpowermay be:-→ Redeployment plana) transferring to other unitsb) retraining for new jobs→ Redundancy plana) number and names of redundantsb) time of redundancyc) department where redundancy existsd) retrenchment and layoff, etc.Deficit can be met through:-→ Recruitment plana) number and type of persons required
b) time periods requiredc) possible sources of recruitmentd) selection techniques to be used→ Promotion plana) ratio of promotion to external recruitsb) basis of promotion→ Transfer plana) transfer policy and rulesb) channels of transfer→ Training and development plana) number of people to be trainedb) skill areas for trainingc) availability of trainersd) methods of traininge) training periodf) changes to be made in existing courses, etc.
Various other plans like productivity plan and retention plans are alsoprepared→ Productivity plana) work simplificationb) mechanization and automationc) job redesignd) incentives and profit sharing schemes, etc→ Retention plana) improving compensation levelsb) providing opportunities for career developmentc) changes in work requirements, etc.In case the future supply of human resource from all externalresources is estimated to fall short of requirements, the humanresource planner should recommend modification of organizationalplans.
6. MONITORING AND CONTROLThis phase involves:-a) allocation and utilization of human resource over timeb) review of manpower plans and programs to reveal deficienciesc) take corrective actions to remove the deficienciesd) periodic updation of manpower inventoryc) make necessary modifications in manpower plans in light ofchanging environment and needs of the organizationd) appraisal of existing manpower plans.
HUMAN RESOURCE PLANNING PROCESS 1. CORPORATE ANALYSIS a) objectives and strategies b) company organizational plans c) market forecasts d) financial plans e) production targets2. 3. 4. DEMAND FORECAST SUPPLY FORECAST a) numbers MANPOWER GAPS a) manpower inventory b) job categories a) surplus of numbers and b) losses and additions c) skill requirement skills c) external supply b) shortages 5. MANPOWER PLANS a) recruitment and selection b) training and development c) redeployment/ retrenchment d)redundancy e)retention f)productivity 6. MONITORING AND CONTROL