Human resource planning involves forecasting an organization's future human resource needs and ensuring the organization has the right number and types of employees. It is a process that includes assessing internal and external labor supply and demand, setting objectives, designing and implementing programs, and evaluating outcomes. Key aspects of HR planning include forecasting demand based on factors like organizational growth, forecasting internal supply through tools like staffing tables and succession planning, and balancing supply and demand to determine if actions need to be taken to address surpluses or shortages. The overall goal of HR planning is to help an organization achieve its strategic goals by having the right people in the right jobs at the right time.
Human resource management is the process of planning, organising, directing & controlling of human resource in such a way that the organisational goals achieves effectively & efficiently.
The process of systematically reviewing HR requirements to ensure that the required no. of employees, with the required skill, are available when they are needed.
Human resource management is the process of planning, organising, directing & controlling of human resource in such a way that the organisational goals achieves effectively & efficiently.
The process of systematically reviewing HR requirements to ensure that the required no. of employees, with the required skill, are available when they are needed.
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Explain why human resource management is important to an organization? How external influences affect human resource management . Explain environmental factors affecting human resource management.
A presentation describing HR Business Partnering in terms of its principles, methods and metrics, using Management Consultancy as a benchmark to identify their approaches to adopt within an internal HR team.
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Anything HR Solutions (HR Planning)
MEANING AND DEFINITION
In simple words, HRP is understood as the process of forecasting an organization's future demand for, and supply of, the right type of people in the right number.
After this only the HRM department can initiate the recruitment and selection process
Its called by manpower planning, personal planning or employment planning
Human resource planning, Job analysis, Absenteeism and Employee turnoverSanthanalaxmi Karthikvel
This will give you a clear view on Human resource planning concept, their scope and importance. it gives a detailed description of HRP process along with its benefits. Job analysis is also comes under HRP, hence explanation related to job analysis process is also added here. The result of job analysis is job design. Presentation on job design and the clear content on job description and job specification with their merits and demerits is added in this chapter. The various job design such as job enrichment, job enlargement, job rotation and job simplification with their advantages and disadvantages are included in this chapter. The absenteeism and employee turnover are adjoined here which are the reasons behind the human resource planning. In order to reduce absenteeism and turnover, organisation need to devise employee retention policies. So finally the unit concluded with the retention strategies at various levels.
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2. Human Resources Planning
“HR Planning is the process of using an organisation’s goals and
strategy to forecast the organisation’s HR needs in terms of finding,
developing and keeping a qualified workforce.”
Answers the Question:
“What must we do today to be
prepared for tomorrow”
3. 4-3
HRM Planning
HRM planning is a process by which an organization ensures that it has
the right number and kinds of people, at the right time, capable of
effectively and efficiently completing those tasks that will help the
organization to achieve its overall strategic objectives.
4. 4-4
HRM &
Organizational Strategy
Human resource planning ultimately translate the organization's overall
goals into number and types of employees needed to meet those goals.
Employment planning cannot exist in isolation . It must be linked to the
organization’s overall strategy.
5. 4-5
MissionMission Determining what business
the organization is in.
Objectives
and goals
Objectives
and goals
Setting goals and objective
Strategy Determining how the goals and
objectives will be achieved
Structure Determining what job need to be
done and by whom
People Matching skills, knowledge
and abilities to require the job
7. 4-7
Strategic Planning and HR Planning
Strategic Planning
Procedures for making decisions about the organization’s long-term
goals and strategies
Strategic Human Resources Management
The pattern of human resources deployments and activities that
enable an organization to achieve its strategic goals.
Strategy Formulation — providing input as to what is possible
given the types and numbers of people available.
Strategy Implementation — making primary resource allocation
decisions about structure, processes, and human resources.
8. Human Resources Planning
Strategic PlanningStrategic PlanningHR PlanningHR Planning
-Reciprocal and interdependent relationship
-Environmental scanning critical for both
-Reciprocal and interdependent relationship
-Environmental scanning critical for both
9. Importance Of HRP
1. FUTURE PERSONNEL NEEDS
• Surplus or deficiency in staff strength
• Results in the anomaly of surplus labour with the lack of top executives
2. COPING WITH CHANGE
• Enables an enterprise to cope with changes in competitive forces, markets,
technology, products & government regulations
3. CREATING HIGHLY TALENTED PERSONNEL
• HR manager must use his/her ingenuity to attract & retain qualified & skilled
personnel
• Succession planning
4. PROTECTION OF WEAKER SECTIONS
• SC/ST candidates, physically handicapped, children of the socially disabled &
physically oppressed and backward class citizens.
10. Importance Of HRP (contd.)
5. INTERNATIONAL STRATEGIES
• Fill key jobs with foreign nationals and re-assignment of employees
from within or across national borders
6. FOUNDATION FOR PERSONNEL FUNCTIONS
• Provides information for designing & implementing recruiting,
selection, personnel movement(transfers, promotions, layoffs) &
training & development
7. INCREASING INVESTMENTS IN HUMAN RESOURCES
• Human assets increase in value
8. RESISTANCE TO CHANGE AND MOVE
• Proper planning is required to do this
11. 4-11
Importance Of HRP (contd.)
9. OTHER BENEFITS
Upper management has a better view of the HR dimensions of business
decision
More time is provided to locate talent
Better opportunities exist to include women & minority groups in future
growth plans
Better planning of assignments to develop managers can be done
12. Human Resources Planning
-Vacant positions create costly inefficiencies
-Overtime hours at premium cost
-Simultaneous layoffs and hiring
-Mass layoffs requiring:
-severance pay
-extended notice periods
-Vacant positions create costly inefficiencies
-Overtime hours at premium cost
-Simultaneous layoffs and hiring
-Mass layoffs requiring:
-severance pay
-extended notice periods
Results of Inadequate HR Planning:
13. Human Resources Planning
-Ineffective training, development, career planning
-Turnover of high performers
-Problems with employment equity goals
-Inability to meet operational and strategic plans
Results of Inadequate HR Planning
14. Factors Affecting HRP
Internal growth
Informal
Inflexible
Growth through M & A
Reactive
Flexible
Proactive
Formal
1. TYPE & STRATEGY OF ORGANISATION
15. 4-15
Factors Affecting HRP
II. ORGANIZATIONAL GROWTH CYCLES & PLANNING
• Embryonic/ Introduction stage – No personnel planning
• Growth stage – HR forecasting is essential
• Maturity stage – Planning more formalized & less flexible
• Declining stage – Planning for layoff, retrenchment & retirement
15
16. 4-16
Factors Affecting HRP
III. ENVIRONMENTAL UNCERTAINITIES
• Political, social & economic changes
• Balancing programmes are built into the HRM programme through
succession planning, promotion channels, layoffs, flexi time, job sharing,
retirement, VRS, etc….
IV. TIME HORIZONS
Short-term & Long-term plans
V. TYPE & QUALITY OF FORECASTING INFORMATION
• Type of information which should be used in making forecasts
VI. NATURE OF JOBS BEING FILLED
• Difference in employing a shop-floor worker & a managerial personnel
17. Environmental Scanning:
Sources of Information
PublicationPublication
Professional AssociationProfessional Association
Conferences and SeminarsConferences and Seminars
Professional ConsultantsProfessional Consultants
18. The Human Resource Planning Process
Corporate Analysis
Forecast Demand for Labor
Forecast Internal
Supply of Labor
Develop Plan to Match
Demand with Supply
Forecast External
Supply of Labor
19. Strategic Planning
Human Resource Planning
Forecasting Human
Resource
Demand
Comparison of
Requirements and
Availability
Forecasting Human
Resource
Supply
EXTERNAL ENVIRONMENT
INTERNAL ENVIRONMENT
Demand =
Supply
No
Action
Surplus of Workers
Restricted Hiring, Reduced
Hours, Early Retirement,
Layoff
Shortage of
Workers
Recruitment
Selection
The Human Resource Planning Model
21. 4-21
Four Phases HR Planning
The overall process of HR planning generally occurs in four closely related
phases:
1. Assessing supply and demand
2. Developing objectives
3. Designing and implementing programs
4. Evaluating outcomes
22. 4-22
Phase 1: Assessing Supply and Demand
Situation analysis and environmental scanning;
Forecasting HR demands
(Trend projection, unit -demand forecasting) ;
Reconciling the budget;
Forecast HR supply (skills inventory).
23. 4-23
Phase 2 : Developing Objectives
Considering corporate strategy & goals;
The objectives set will also depend upon the needs identified in phase 1;
Organizational culture and employee attitudes such as commitment and
customer focus.
24. 4-24
Phase 3 : Designing and Implementing Programs
To increase the supply of certain categories of employees or to decrease
the number of current employees;
To make organizations more attractive to a broader of applicants;
To improve the organizations socialization efforts so that good
employees want to remain with the organization;
To downsize or ‘right-size’ the organization.
25. 4-25
Phase 4 : Evaluating Outcomes
To quantify the value of HR;
An HRIS facilitates rapid and frequent collection of data;
Data collection is important for evaluating programs and making
adjustments;
Determining the effectiveness of HR plans;
Demonstrating the significance of planning and HRM department itself
to the organization as a whole.
28. Forecasting Future HR Needs (Demand)
Forecasting based on:
Demand for product/service
Projected turnover
Quality and nature of employees
Decisions regarding product quality
Plans for technological change
Plans to reduce headcount
Financial resources
29. Forecasting Future HR Needs (Demand)
Quantitative Approaches:
Trend analysis: Review past employment levels
Ratio analysis: Ratio of business activity/employees
Scatter plot: Graph of business activity/employees
Regression analysis: Statistical relationship
between business activity and employees
30. 4-30
Quantitative Approach: Trend Analysis
Trend analysis means study of a firm’s past employment needs over
a period of years to predict future needs.
31. Quantitative Approach: Trend Analysis
Forecasting labor demand based on an organizational index such as sales:
Select a business factor that best predicts human resources needs.
Plot the business factor in relation to the number of employees to
determine the labor productivity ratio.
Compute the productivity ratio for the past five years.
Calculate human resources demand by multiplying the business factor by
the productivity ratio.
Project human resources demand out to the target year(s).
32. Example of Trend Analysis of HR Demand
Figure 4.4
1997 $2,351 14.33 164
1998 $2,613 11.12 235
1999 $2,935 8.34 352
2000 $3,306 10.02 330
2001 $3,613 11.12 325
2002 $3,748 11.12 337
2003 $3,880 12.52 310
2004* $4,095 12.52 327
2005* $4,283 12.52 342
2006* $4,446 12.52 355
BUSINESS ÷ LABOR = HUMAN RESOURCES
FACTOR PRODUCTIVITY DEMAND
YEAR (SALES IN THOUSANDS) (SALES/EMPLOYEE) (NUMBER OF EMPLOYEES)
*Projected figures
33. Ratio Analysis:
A forecasting technique for determining future staff needs by using
ratios between sales volume and number of employees needed.
For example, a salesperson traditionally generates Tk. 5,00,000 in
sales and that in each of the last two years you required ten
salespeople to generate Tk. 5 million in sales. Also assume that your
plans calls for increasing your firm’s sales to Tk. 8 million next year
and to Tk. 10 million two years hence. Then, if the sales revenue –
salesperson ratio remains the same, you would require six new
salesperson next year (each of whom produces an extra Tk. 5,00,000
in sales.) In the following year, you would need an additional four sales
people to generate the extra Tk. 2 million in sales.
Quantitative Approach: Ratio Analysis
34. 4-34
Quantitative Approach: Regression Analysis
REGRESSION ANALYSIS:
• Drawing a statistical comparison of past relationship among variables
• Statistical relationship between no. of patients (business factor) &
employment level of nurses in a nursing home may be useful in
forecasting the no. of employees that will be needed if the no. of
patients increases by say 20%
35. 4-35
Quantitative Approach: Regression Analysis
LINEAR REGRESSION ANALYSIS
• Relationship between two
variables which is directly &
precisely proportional
• Production output &
manpower are the two
variables & the relationship
between these two is
plotted on a graph by
drawing a “line of best fit”
• Analysis aims at providing a
measure of the extent to
which changes in the values
of two variables are
correlated with one another
X
a
b Y
Manpower
Production
level
x
x
x
x
x
x
36. 4-36
Qualitative Approach: Managerial Judgment
In this all managers sit together, discuss and arrive at a figure which
would be the future demand for labour.
This technique may involve a ‘bottom-up’ or ‘top-down’ approach. A
combination of both could yield positive results.
37. 4-37
Qualitative Approach: Delphi Technique
This technique is the method of forecasting personnel needs.
It solicits estimates of personnel needs from a group of experts, usually
managers.
The HRP experts act as intermediaries, summarize the various responses
and report the findings back to the experts.
Summaries and surveys are repeated until the experts opinion begin to
agree.
38. Forecasting HR Supply
Forecasting the supply of labor is really two tasks:
Forecasting Internal Supply
The number and type of employees who will be in the firm at some
future date
Forecasting External Supply
The number and type of people who will be available for hiring from
the labor market at large
40. Forecasting Internal Labor Supply
• Staffing Tables
– Graphic representations of all organizational jobs, along with the
numbers of employees currently occupying those jobs and future
(monthly or yearly) employment requirements.
• Markov Analysis
– A method for tracking the pattern of employee movements through
various jobs.
43. Forecasting Future HR Supply
• Manual or computerized records
• Used to identify internal candidates for transfer
or promotion
• Summary of each employee’s:
• Education
• Experience
• Interests
• Skills
• Manual or computerized records
• Used to identify internal candidates for transfer
or promotion
• Summary of each employee’s:
• Education
• Experience
• Interests
• Skills
Skills Inventories
44. PERSONNEL INVENTORY
Date: month, year
Employee Name Department Date of Joining
Key Words Work Experience
Word Description Activity
1.
Accounting
2.
Bookkeepi
ng
Tax
Accounting
General
Ledger
Supervisi
ng &
Analyzing
Supervisi
ng
From To Description
1.
1973
2.
1965
3.
1964
1978
1973
1965
Chief Tax Accountant
at XYZ Stores
Bookkeeper at XYZ
Manufacturing
Auditing Training at XY
Bank
Job Title Branch or Section Date of Birth
Employee Number Marital Status
45. Personnel Inventory (contd.)
Education
Degree Major Year
1. MBA
2. B. Com
HRM
Accounting
1985
1984
Special Courses
Course Year
1. Management Theory
2. Business Planning
1994
1991
Career & Development interests
Are you interested Yes
In an
alternative
Type of work? No
Would you accept Yes
Transfer to
Another
division? No
Would you Yes
Accept promotion for
Further Development
No
MEMBERSHIPS
Accounting Society
Management
Association
LANGUAGES
Name
Fluency
Bangla Fluent
English Read
POSITION PREFERENCE
1. Accounting
2. Auditing
LOCATION PREFERENCE
1. Dhaka
2. Chittagong
HOBBIES
1. Reading
2. Boating
PERFORMANCE SCORE
Employee Signature:
Date:
Personnel Department:
Date
46. Forecasting Future HR Supply
summary of each management employee’s:
• background
• qualifications
• interests
• skills
• managerial responsibilities
• duties in current/previous positions
• management training
Management Inventories
47. Forecasting Future HR Supply
Visual representations of likely internal
Replacement employees for each position
Data on each candidate includes:
Age
Present performance rating
Promotability status
Visual representations of likely internal
Replacement employees for each position
Data on each candidate includes:
Age
Present performance rating
Promotability status
Replacement Charts
48. P E R S O N N E L R E P L A C E M E N T C H A R T
* * * M s . R a h im a ( 5 5 )
E x p e r ie n c e - 9 y e a r s
* * M r . K a b ir ( 4 7 )
E x p e r ie n c e - 2 y e a r s
0 0 M r . M a m u n ( 5 1 )
E x p e r ie n c e - 1 y e a r s
* M r . M o n ir ( 4 9 )
E x p e r ie n c e - 1 y e a r s
V P P e r s o n n e l
* * * M r . R a h im ( 6 0 )
E x p e r ie n c e - 6 y e a r s
* * * M r . S a fiq u e ( 4 2 )
E x p e r ie n c e - 3 y e a r s
0 0 M r . A r if ( 4 0 )
E x p e r ie n c e - 4 y e a r s
* M r . Z a k ir ( 3 9 )
E x p e r ie n c e - 2 y e a r s
V P M a r k e t in g
0 0 M r . K a r im ( 5 2 )
E x p e r ie n c e - 5 y e a r s
* M r . R a fiq u e ( 5 4 )
E x p e r ie n c e - 6 y e a r s
0 0 M s . N is h a t ( 5 6 )
E x p e r ie n c e - 8 y e a r s
0 M r . N a y e e m ( 5 2 )
E x p e r ie n c e - 3 y e a r s
V P F in a n c e
* M r . M a h b u b ( 4 5 )
E x p e r ie n c e - 1 y e a r s
* * M r . E n a m u l ( 5 0 )
E x p e r ie n c e - 8 y e a r s
* M r . F ir o z e ( 4 9 )
E x p e r ie n c e - 3 y e a r s
V P P r o d u c t io n
0 0 M r . H a m id ( 4 3 )
E x p e r ie n c e - 4 y e a r s
P R E S I D E N T
***Promotable now **Promotable in one year
* Potential for further promotion
00 Satisfactory, but not promotable 0 Dismiss
50. Forecasting Future HR Supply
Formal education
Industry experience
Work experience
Product/service
knowledge
Training courses
Formal education
Industry experience
Work experience
Product/service
knowledge
Training courses
Language skills
Relocation
limitations
Career interests
Performance ratings
Language skills
Relocation
limitations
Career interests
Performance ratings
Computerized Skills Inventory
51. Forecasting Future HR Supply
• analyze demand for managers/professionals
• audit existing executives, project future supply
• individual career planning/career counseling
• accelerated promotions
• performance-related training and development
• planned strategic recruitment
• analyze demand for managers/professionals
• audit existing executives, project future supply
• individual career planning/career counseling
• accelerated promotions
• performance-related training and development
• planned strategic recruitment
Succession Planning
52. Forecasting Future HR Supply
• General economic conditions
• National labour market conditions
• Local labour market conditions
• Occupational market conditions
Forecasting Supply of External Candidates
53. Sources of Information About External Labor Markets
• Bureau of Statistics
• Labor Force Survey
• Planning and development agencies
• Chambers of Commerce
• Industry and trade group publications
• State and local employment agencies
58. Human Resource Planning
Product
Demand
Labor
Productivity
Internal
Labor Market
External
Labor Market
Labor Demand Labor Supply
Conditions and Select Responses
1. Labor Demand Exceeds Labor Supply
•Training or retraining
•Promotion from within
•Recruitment from outside
•Use of part-timers or temporary workers
•Succession planning
•Subcontracting
•Use of overtime
59. Human Resource Planning
Product
Demand
Labor
Productivity
Internal
Labor Market
External
Labor Market
Labor Demand Labor Supply
Conditions and Select Responses
2. Labor Supply Exceeds Labor Demand
•Pay cuts
•Reduced hours
•Voluntary early retirements
•Inducements to quit (for example, severance pay)
•Layoffs
•Work Sharing
3. Labor Demand Equals Labor Supply
•Replacement of quits from inside or outside
•Internal transfers and redeployment
60. Balancing Supply and Demand
Dealing with a Labour Surplus
• Hiring freeze
• Early retirement programs
• Reducing hours (job sharing, reduced
workweek, part-time work, work sharing)
• Internal transfers
• Layoffs
• Termination with outplacement assistance
61. Balancing Supply and Demand
Dealing with a Labor Shortage:
• Overtime
• Hiring temporary employees
• Subcontracting work
• External recruitment
• Transfers
• Promotions
62. Managing Human Resource
Surplus or Shortage
• Downsizing approaches
– Attrition and hiring freezes
• Not replacing departing employees and not hiring new
employees/
– Early retirement buyouts
• Offering incentives that encourage senior employees to
leave the organization early.
– Layoffs
• Employees are placed on unpaid leave until called back to
work when business conditions improve.
• Employees are selected for layoff on the basis of their
seniority or performance or a combination of both.
63. Managing Human Resource
Surplus or Shortage
• Downsizing approaches (cont’d)
– Outplacement services provided to displaced employees to give
them support and assistance:
• Personal career counseling
• Resume preparation and typing services
• Interviewing workshops
• Referral assistance
• Severance payments
• Continuance of medical benefits
• Job retraining
Editor's Notes
This illustration outlines the elements of human resource planning (HRP). Human resource planning is the process an organization uses to ensure that it has the right amount and the right kinds of people to deliver a particular level of output or services in the future. Firms that do not conduct HR planning may not be able to meet their future labor needs, or may have to resort to layoffs.
This illustration outlines the elements of human resource planning (HRP). Human resource planning is the process an organization uses to ensure that it has the right amount and the right kinds of people to deliver a particular level of output or services in the future. Firms that do not conduct HR planning may not be able to meet their future labor needs, or may have to resort to layoffs.