1. 3. FORECASTING SUPPLY OF HUMAN
RESOURCE
The forecast for supply of human resources can be done in
two 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

2. The manpower inventory helps in determining and evaluating the
quantity 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 of
resignations, discharge, deaths, lay offs, termination, promotions,
demotions, transfers, etc. Similarly, additions also may occur in the
form of new recruits, promotions, transfers, etc.
Thus,
Future internal present inventory potential potential
supply of human = of human resources + additions - losses
resources

3. Forecast external supply of human resource
There are various internal and external
factors which affect the supply of human resources from external
sources. Internal factors include:-
→ training facilities
→ salary levels
→company image
→salary levels, etc
External factors include:-
→population
→unemployment level
→transportation facilities
→social security measures, etc.

4. 4. ESTIMATING MANPOWER GAPS
The Net human resource requirements or
manpower gaps can be identified by comparing demand forecasts
and supply forecasts. Such comparison will reveal
→ either deficit or surplus of human resource in future
→ deficit suggests the number of persons to be recruited from
outside
→ 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. 5. ACTION PLANNING
Once the manpower gaps are identified, plans are
prepared to bridge these gaps. Plans to meet the surplus manpower
may be:-
→ Redeployment plan
a) transferring to other units
b) retraining for new jobs
→ Redundancy plan
a) number and names of redundants
b) time of redundancy
c) department where redundancy exists
d) retrenchment and layoff, etc.
Deficit can be met through:-
→ Recruitment plan
a) number and type of persons required

6. b) time periods required
c) possible sources of recruitment
d) selection techniques to be used
→ Promotion plan
a) ratio of promotion to external recruits
b) basis of promotion
→ Transfer plan
a) transfer policy and rules
b) channels of transfer
→ Training and development plan
a) number of people to be trained
b) skill areas for training
c) availability of trainers
d) methods of training
e) training period
f) changes to be made in existing courses, etc.

7. Various other plans like productivity plan and retention plans are also
prepared
→ Productivity plan
a) work simplification
b) mechanization and automation
c) job redesign
d) incentives and profit sharing schemes, etc
→ Retention plan
a) improving compensation levels
b) providing opportunities for career development
c) changes in work requirements, etc.
In case the future supply of human resource from all external
resources is estimated to fall short of requirements, the human
resource planner should recommend modification of organizational
plans.

8. 6. MONITORING AND CONTROL
This phase involves:-
a) allocation and utilization of human resource over time
b) review of manpower plans and programs to reveal deficiencies
c) take corrective actions to remove the deficiencies
d) periodic updation of manpower inventory
c) make necessary modifications in manpower plans in light of
changing environment and needs of the organization
d) appraisal of existing manpower plans.

9. HUMAN RESOURCE PLANNING PROCESS
1. CORPORATE ANALYSIS
a) objectives and strategies
b) company organizational plans
c) market forecasts
d) financial plans
e) production targets
2.
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