1. Human Resources
Planning
Instructor
Mr. Shyamasundar Tripathy
Management Faculty(HR)

2. HUMAN RESOURCE PLANNING
Definition :
 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, corporate and
business level strategies, HRP is the process of analyzing an
organization’s human resource needs and developing
plans, policies, and systems to satisfy those needs

3. Characteristics of HRP
 Incorporate the human recourses needs into in the
light of organizational goals.
 Directed towards well-defined objective.
 The way for an effective motivational process.
 Periodically review of existing plan.
 Adequate flexibility must be maintained.

4. Needs of HRP
 Forecast future personnel needs
 Cope with change
 Creating highly talented personnel
 Protection of weaker sections
 International strategies
 Increasing investments in HR
 Resistance to change & move.
 It reduces the cost of production.

5. Importance of HRP
1) Each Organisation needs personnel with necessary
qualifications, skills, knowledge, experience & aptitude .
2)Need for Replacement of Personnel
3)Meet manpower shortages due to labour turnover
4) Meet needs of expansion / downsizing programmes.
5) Cater to Future Personnel Needs - Avoid surplus or
deficiency of labour.
6) Nature of present workforce in relation with Changing
Environment - helps to cope with changes in competitive
forces, markets, technology, products and government
regulations.

6. HRP at Different Levels
 National Level
 Sectoral level
 Industry level
 Unit Level
 Departmental level

7. Process of HRP
 Analyzing organizational plan and deciding objective.
 Analyzing factors for manpower requirements.
1. Demand forecasting
2. Supply forecasting.
 Developing employment plan.
 Developing Human resource plan.

8. Analyzing organizational plan and
deciding objective
 Analysis of organizational plans and programme helps
in forecasting the demand for human recourses as it
provides the quantum of future activity.
 It should be directly related to essential nature of the
organization
 The change of selected factors should be proportional
to change in the human recourses required in the
organization.

9. Analyzing factors for manpower
requirements
 The existing job design and analysis may thoroughly
be reviewed keeping in view the future capability,
knowledge and skills of present employees.
 The factor of manpower requirements can be analyzed
by two ways.
1. Demand forecasting
2. Supply forecasting

10. Demand forecasting
 process of estimating future quantity and quality of
manpower required for an organization.
 External factors - competition, laws & regulation,
economic climate, changes in technology and social factors
 Internal factors - budget constraints, production levels,
new products & services, organizational structure &
employee separations.

11. Forecasting Techniques
Managerial Judgement - Managers discuss and arrive at
a figure of inflows & outflows which would cater to
future labour demand.
Ratio-Trend Analysis - Studying past ratios, ie No. of
Workers Vs Volume of Sales, forecasting future ratios and
adjusting for future changes in the organisation..
Work-Study Technique - Used when length of
operations and amount of labour required can be
calculated. #
Delphi Technique - From a group of experts the
personnel needs are estimated.

12. HR Supply Forecast
process of estimating future quantity and quality of
manpower available internally & externally to an
organisation.
Supply Analysis
• Existing Human Resources
• Internal Sources of Supply
• External Sources of Supply

13. Existing Human Resources
Capability / Skills Inventory using HR Information System
General Information -
Name: Present Address: Department:
Sex: Designation:
DOB: DOJ:
Marital Salary:
Status: Permanent Address: Grade:
Qualification -
Degree/Diploma Institution Class Year of Pass
Experience/Skills -
Job Title/ Organisation Brief Skill/
Appointment Responsibilities Specialisation
Outstanding Achievement / Additional Information -
Awards Performance Disciplinary Action
Promotions Merit Rating Absenteeism
Achievements
Career Plans:

14. Internal Supply
 Inflows & Outflows - The number of losses & gains of
staff is estimated.
 Turnover Rate - refers to rate of employees leaving.
= ( No. of separations in a year / Avg no. of
employees during the year ) x 100
 Absenteeism - unauthorized absence from work.
= ( total absentees in a year / Avg no. of
employees x No. of working days) x 100
 Productivity Level - = Output / Input. Change in
productivity affects no. of persons per unit of output.
 Movement among Jobs - internal source of
recruitment, selection and placement

15. External Supply
 External recruitment, selection & placement -
Advertisements, Manpower Consultants, Campus
Recruitment, Unsolicited Applications, Employee
Referrals
 Yield ratios - are estimated in the process of hiring
applications.
Hiring Process Ratio
 Ad generates 2000 applications. 200 are potential 10:1
 Out of 200, 40 attend interview 5:1 Out of
40, 30 were offered jobs 4:3 Out of 30,
20 accepted 3:2 Overall Yield
Ratio (2000:20) 100:1

16. Developing Employment plans
 After determining the number of personnel for each
job in the organization. The human resource
department has to determine the nature of job, i.e. Job
description and job specification

17. Developing Employment plans
Job Description
A proper definition & design
of work. A statement
containing:
Job Title
Location
Job Summary
Duties & Responsibilities
Materials, Tools & Equipment
used
Forms & reports handled
Supervision given / received
Working conditions
Hazards & Safety precautions
Job Specification
A statement of human
qualifications necessary to
do the job containing:
Education & Qualifications
Experience & Training
Knowledge & Skills
Communication skills
Physical requirements - Height,
Weight, Age
Personality requirements -
Appearance, Judgement,
Initiative, Emotional stability

18. HRP Process - Determination of Quantity of Personnel
Organisational Objectives
HR Programming
HR Needs Forecast HR Supply Forecast
HRP Implementation
Control & Evaluation
Surplus - Restricted Hiring,
Lay Off, VRS, Reduced Hours
Shortage - Recruitment &
Selection

19. Developing a Human Resource Plan
 Balancing Demand and Supply
 Vacancies filled in by the right employee at the right time

20. HR Plan Implementation
 Recruitment, Selection & Placement
 Training & Development
 Retraining & Redeployment
 Retention Plan
 Downsizing Plan

21. Control & Evaluation
Are Budgets, Targets & Standards met?
Responsibilities for Implementation &
Control
Reports for Monitoring HR Plan

22. Requisites for successful HRP
 HRP must be recognised as an integral part of
corporate planning.
 Backing from top management.
 Personnel records should be complete, up-to-date and
readily available.
 Techniques used should be best suited for data
available and degree of accuracy required.
 Plan by skill levels rather than by aggregates.

23. Advantage of HRP
 Improvement of labour productivity
 Recruitment of qualified HR
 Adjusting with the rapid technology change
 Reducing labour turnover
 Control over recruitment and training cost
 Mobility of labour
 To treat the manpower like real corporate assets

24. Limitation of HRP
 Inaccuracy
 Lack of support
 Employees Resistance
 Lack of purpose
 Time and expenses
 Inefficient information
 Numbers Game

25. Thank You