Process off fore- casting firm’s
future demand and supply for the
right type of people for the right
E.W.Vetter- A process by which an
organization moves from its current
manpower position to its desired
manpower . It strives to have the
right number and right kind of
people at the right places at the
right time both in the organization
and individual level making
maximum long-run benefit.
Importance of Human Resource Planning
1. Future Personnel Needs.
2. Parts of Strategic Planning.
Planning ,Hiring , Training, Remunerating,
3. Creating Highly Talented Personnel.
Expansion policies with expatriate training.
5.Foundations for Personnel Functions
Recruitment , Selection , Training & Development,
Transfers, Promotions , Lay-offs etc.
6. Increasing Investments in HR
Investments in Personnel through direct training
or job assignments.
7.Resistance to change and move.
8. Unite the perspective of Line and Staff Managers.
Need for Human Resource Planning
1.The shortage of certain categories of employees
or skills despite unemployment.
2. Rapid change in technology ,marketing,
Management etc. requires new skills new
3.The change in organizational design and
structure affects manpower demands.
4.Demographic changes in profile of the workforce
In terms of age , sex , education etc.
5.Government policies in respect to reservation ,
child labor , working conditions etc.
6.The labor laws affecting demand for and supply of
7.Trade unions , politicians , sons of the soil are also
8.Introduction of computers , robots etc.
9.Involvement of manpower at the job with the
most suitable candidate.
Factors Affecting HRP
1. Government Policies : Labor Policy, Industrial
Relations Policy , etc.
2. Level of Economic Development-The supply of
Human Resources in the future of the economy.
3.Business Environment- The environmental factors
influences the volume and mix of production to the
future demand of human resources.
4.Level of Technology- Determines the kind of human
5. International Factors-The demand and supply of
Human resources in various countries.
6. Outsourcing- Availability of outsourcing facilities with
required skills and knowledge of people reduces
dependency on HRP.
1.Strategies of the company
Policies and strategies relating to expansion, diversification
2.Human Resource Policies
Quality of HR, compensation level, quality of work life .
3. Job Analysis
Job description and job specialization determines the kind
of employees required.
Organizations with stable competetive environment can
Plan for the long run and firms with unstable competetive
environment can plan for short term range.
5. Type and quality of information
Planning process needs qualitative and accurate
information and so with human resource plan strategic,
organizational and specific action is taken.
6.Company’s Production Operation’s Policy
To prepare the final product it influences the number and
kind of people recquired.
7. Trade Unions- It’s influences the number of working
hours per week, recruitment sources which affect HRP.
Process of Human Resource Planning
Analysing organisational plans
The overall human resource requirements with the
4. Estimating net human resources requirements.
5. With future surplus plan for deployment ,
retrenchment and lay-off.
6.In case of future deficit , forecast of future supply
of human resources from all sources.
7.Plan for recruitment ,development and internal
mobility of future supply should be equal to the
net of human resources.
8. To modify or adjust the organizational plan for
future supply will be inadequate if there is no
reference of future net requirements.
To plan for efficient human resource planning the
following steps should be followed:
• Analyzing the organizational plans. Tech. plan
sales plan , prod.plan, financial plan, marketing ,
• Forecasting the overall HRM.
The job design and analysis be reviewed in view of
Future capabilities ,knowledge and skills of present
The forecasting methods:
It’s a method where managers and supervisors
Handle the working network with their experience.
The top management prepares the organizational
plans, departmental plans and human resources
Ratio Trend Analysis- Ratio of past data relating to
no. of employees of each division.
Present level of production- (1.1.2010)- 5,000
Pres. no.of Foremen – (1.1.2010)- 5
Ratio is 5:5000 i.e.1:1000
Estimates prod. on – 1-1-2011- 10,000units
Foremen recqd. As on – 1.1-2011= 10000
Delphi Technique –
It’s named after the ancient Greek oracle at the
city of Delphi. It requests estimates of personnel
needs from a group of experts , usually managers.
Regression Analysis –
It’s similar to ratio trend analysis and the forecast
is based on the relationship between sales volume
and employee size. Its more statistically
Future Changes Include
They are built by analyzing the past statistical
data And by bringing the relationship among
These variables include factors like manpower
Requirement directly and indirectly like prod.,
sales , work load etc.
It is used to forecast manpower needs based on
Movements in various variables.
Work Study Techniques
It’s the volume of work which is measurable,
in this method total production and activities
are estimated in a year.
Planned operation during the
(for clerical sec. of personnel dept. in XDE Co.
Standard man hours needed to perform
each unit 0.25 hrs.
Planned man hrs. needed per year- 40,000
Work employability per employee in man
Hours - 2,000
Number of employees reqd. in 2010 –
------------ = 20
Thus 20 number of employees are reqd.
For clerical section of HR dept. of XYZ Co.
The supply analysis covers :
1. Existing Human Resources
2. Internal sources of supply
3. External sources of supply
Present Employees – Analysed by HR Audits it
summarises each employee’s skills and abilities.
Non-Managers audits are called Skill Inventories.
Management audits are called Management
Supply Forecast determines whether the HR
Department will be able to procure the required
Number of personnel.
The supply forecast measures the number of
people likely to be available from within and
outside an organization.
Skill Inventories – It consists of personal data,
Skills- education , training ,job experience,
salary ,job history ,company data- ,capacity of in-dividual
,and special preference of individual. It’s
Used for non-managerial positions.
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