This document provides an overview of human resource planning. It discusses how HR planning determines future human resource requirements and effectively utilizes existing human resources to fulfill needs. Key aspects covered include forecasting demand and supply, quantitative and qualitative analysis, legal issues, current trends, and the importance of HR planning in helping organizations achieve objectives. The document also outlines the various internal and external factors that influence HR planning and provides examples of techniques used, such as trend analysis, replacement charts, competency models, and succession planning.

1. Manpower Planning or
Human Resource Planning

2. Chapter outline
 HR Planning
 Environment of HR Planning
 Staffing Planning
 Legal Issue
 Current trends in HR Planning
 Forecasting Demand & Supply
 Quantitative & Qualitative determination

3. INTRODUCTION
HUMAN RESOURCE PLANNING
HRP is a process by which the management of an
organization determines its future human
resource requirement and how the existing
human resource can be effectively utilized to
fulfill the requirements.

4. HUMAN RESOURCE PLANNING
1) Employment-Unemployment Situation
2) Technological Change
3) Demographic Change
4) Skill Shortage
5) Governmental Influences
6) Legislative Control
7) Impact of the Pressure Group(unions, politician etc.)
8) Lead Time
WHY IS HUMAN RESOURCE
PLANNING IS NEEDED ?

5. Importance
• Organizational Objectives & Policies (expansion,downsizing,acquisition,merger)
• Forecast HR requirement (Prevent shortage / excess of staff )
• Determine future staff-mix
• Cope-up with the change — in market conditions, technologies, products,
government regulations and policies, etc.
• Helps in succession planning
• Use existing HR productivity.
• Promote employees in a systematic manner.
• Cut cost
HUMAN RESOURCE PLANNING

6. HRP at Different Planning levels
• Identify the broad policies
• Align HR objective with
organization objective
• Determining recruitment
• layoff strategy
• retention strategy,
• selection process
• Planning for T& D
• Employee welfare activities
• Grievance handling
• Employee engagement
activities
Corporate level
planning
Business level
planning
Operational level planning
Planning short term activities

7. HUMAN RESOURCE
PLANNING PROCESS
HUMAN RESOURCE PLANNING

8. ENVIRONMENT
ORGANISATION OBJECTIVE AND POLICIES
HR DEMAND FORCASTING HR SUPPLY FORCASTING
HR PROGRAMMING
HR IMPLEMENTATION
CONTROL AND EVALUTION OF PROGRAMMING
HR SURPLUS
Restricted Hiring Reduced Hours and
VRS, Lay Off, etc.
HR DEFICIT/ SHORTAGE
(Recruitment and Selection)
ANALYSIS OF HR REQUIREMENT

9. The Basic Elements
of Human Resource Planning
3-9

10. ENVIRONMENT of HRM
“Our assets walks out of the door each evening .
We have to make sure that they come back next
morning”
Human Resource Management
- N. R. NARAYANA MURTHY

11. EXTERNAL
FACTORS
INTERNAL
FACTORS
ENVIRONMENT
of
HRM
Human Resource Management
• Mission
• Policies
• Organization culture
• Organization structure
• HR system
• Workforce diversity
• Unions
• Employee demands
and expectation
• PESTEL
P - political factors
E – economical factors
S – social factors
T – technical factors
E – environmental factors
L – legal factors

12. 3-12
Examples of External
Influences on Staffing

13. Demand forecasting techniques
Quantitativetechnique
• Estimation
• Ratio Analysis
• Trend analysis & projection
• Computerized Forecast
• Regression Analysis
• H R Budget and Planning
Analysis
• Scenario Forecasting
• Work Study Analysis
• Simple averaging
• Markov analysis
• Indexation
• Extrapolation
Qualitativetechnique
• Managerial Judgment
• Estimation
• Expert Advice
• Delphi technique
• Nominal Group Technique
• Job Analysis
• Group brainstorming
• Simulation models

14. 5-12
Estimated internal labor supply for a given
firm
The FirmSources of Inflows
 Transfers
 Promotions
 New Recruits
 Recalls
 Promotions
 Quits
 Terminations
 Retirements
 Deaths
 Layoffs
Employees In Employees Out
Current
staffing
level
Projected
outflows
this year
Projected
inflows
this year
Firm’s internal
supply for this
time next year
– + =
Projected Outflows
Current Staffing
Level

15. HR SUPPLY FORECASTING techniques

16. Supply Forecasting Methods
 Trend analysis
 Competency model
 Replacement Charts
 Staffing table
 Succession Planning
 Flow Modeling/Markov Analysis

17. Trend analysis
 Trend analysis involves collecting and evaluating
data to identify patterns of information that might
impact the future.
 By examining the trends of the past, the HR
department can predict the effect of the same
activity on the future of the organization,
because it is assumed that these patterns will
remain stable.

18. Trend analysis
 For example, an organization reviewing historical
data may realize that every year, approximately five
percent of their staff retire, six percent resign, and
three percent are dismissed.
 Using a simple trend analysis, future HR supply
forecasts can be established by assuming an
average reduction in internal HR supply of 14
percent per year.

19. Competency model
 Competencies are behaviours that encompass
the knowledge, skills, and attitudes(KSA)
required for successful performance.
 Competency modelling is the activity of
determining the specific competencies that are
characteristic of high performance and success
in a given job.

20. Competency model
 A future-oriented model that first reviews
competencies that are aligned with an
organization’s mission, vision, and strategy, and
then aims to identify an ideal workforce in terms
of these competencies .
 Skills/competency models focus on matching the
right skills or competencies needed for each job
with the skills available within the organization

21. Competencymodel

22. Replacement chart
 A chart used to estimate vacancies in higher
level jobs and identify how potential HR supply
can fill these vacancies via internal movements
from lower levels jobs
 Replacement charts provide identification of
potential replacements for vacancies within an
organization

23. Replacement chart
 A comprehensive replacement chart will include
information regarding possible replacements for
vertical or horizontal movement.
 Generally, a replacement chart includes
information about employees’ performance,
readiness to fill the position, and education.

24. Replacement chart
General Manager
V. K. Garg
A/2
Key
Names given are replacement
candidates
A. Promotable now
B. Needing development
C. Not suitable to position
1. Superior performance
2. Above Average performance
3. Acceptable performance
4. Poor performance
P A to
General Manager
L. Mathews
B/1
Assistant General Manager
R.K. Arora A/2
B.K. Nehru B/3
Division:
HR Manager
C.P. Thakur A/1
Division:
Accounting &
Taxation Manager
A.T. Roy C/2
Division:
Planning Manager
A.N. Gupta A/1
K.P. Rao B/1
Technical Advisor
N.R. Murthy B/3
Northern Region
Manager
L.C. Srivatsav A/2
A. Thapar C/4
Central Region
Manager
S.P. Kumar A/1
R. Pandey B/3
Southern Region Manager
A. Subramanyam B/2
B.K. Menon B/1
Eastern Region
Manager
R. Krishna B/3

25. Staffing table
Staffing tables are graphic representations of all
organizational jobs, along with the numbers of
employees currently occupying those jobs and
future (monthly or yearly) employment
requirements, which can be derived from demand
forecasts.

26. Staffing table
For a line worker, for example, there is a 20% probability of being
gone in 12 months, a 0% probability of promotion to manager, a
15% probability of promotion to supervisor, and a 65% probability
of being a line worker this time next year. Such transition matrices
form the bases for computer simulations of the internal flow of
people through a large organization over time.

27. Succession Planning
Succession planning is a longer-term process
of grooming a successor (selected from a pool
of candidates on the basis of perceived
competency) for management or critical
positions.

28. Succession Planning
 Determining the internal labour supply calls
for a detailed analysis of how many people
are currently in various job categories or
have specific skills within the organization.
 The planner then modifies this analysis to
reflect changes expected in the near future
as a result of retirements, promotions,
transfers, voluntary turnover, and
terminations.

30. Markov analysis
 Analysis that helps to predict internal employee
movement from one year to another by identifying
percentages of employees who remain in their jobs,
get promoted or demoted, transfer, and exit out of
the organization
 By tracking and predicting employment movement
within an organization, the Markov analysis allows
for the development of a transition matrix to forecast
internal labour supply.

31. Internal Versus External Staffing
3-31

32. Staffing Alternatives to Deal With
Employee Shortages
3-32

33. Staffing Alternatives to Deal With
Employee Surpluses
3-33

34. HR DEFICIT
• Recruitment and selection
• compensation schemes
• Hiring part time employees
• Recalling existing employees
• Poaching
• Placement
• Retention Plan
HR SURPLUS
• Job sharing
• Hiring freeze
• Attrition
• Retrenchment
• Outplacement
• Layoffs
• Voluntary retirement
• Downsizing Plan
• Relocation
HUMAN RESOURCE PLANNING

35. BARRIERS TO HRP
• Time Consuming
• Expensive
• Probability of inaccuracy /Uncertainties
• Financial forecasting takes precedence over HRP
• Non-involvement of operating managers
• Inadequate Information system
• Trade unions
• Employers and employee resistance

36. Thank You