This document discusses human resource planning and management. It begins by defining human resource management and its functions, which include proactively acquiring, retaining, developing, adjusting, and managing changes to human resources to ensure organizational success. It then discusses several key aspects of human resource planning: 1. The importance of linking HR planning to organizational strategic planning and forecasts. 2. Methods for forecasting future personnel needs, including qualitative approaches like expert opinions and the Delphi technique, and quantitative approaches like regression analysis. 3. Assessing available internal and external resources to meet future needs, using tools like replacement charts, succession planning, and transition matrices. 4. Developing action plans to reconcile supply and demand,

1. Human Resource Management
Human Resource Planning
By
Engr. Attaullah Shah
BSc. Civil ( Gold Medal), MSc. ( Str. Engg),
MBA, MA ( Eco), MSc ( Envir design) , PGD ( Comp Sc)
PhD Scholar ( UET TAXILA)
Project Director Allama Iqbal Open University
E-mail: pd@aiou.edu.pk
pdaiou@yahoo.com
Website: www.aiou.edu.pk
Telephone/Fax: 051-9250100
Cell: 0333-5729809

2. Some quotes on Human Resource
 The most beloved of you by me, and nearest to me in the
next world, are those of good dispositions; ...the farthest
from me are the ill-tempered. wisdom, 119
 Our progress as a nation can be no swifter than our
progress in education. The human mind is our fundamental
resource. John Fitzgerald Kennedy
 “it is very, very hard to get ahead without being a positive
person because, very simply, no one likes to work under or
near a dark cloud. Even if the “cloud” is very smart.” – Jack
Welch, Winning
 Human beings, who are almost unique in having the
ability to learn from the experience of others, are also
remarkable for their apparent disinclination to do so. Douglas
Adams

3.  Human labor cannot be treated merely as a resource necessary for
production -- the so-called 'work force.' Man cannot be regarded as a tool of
production. Man is the creator of work and its craftsman.” Pope John Paul II quotes
 “We need to equip ourselves with specific skills, such as change
management, business process consulting and human resources in order to
have an edge over competing markets or countries.” Mark Edwards
 A boss creates fear, a leader confidence. A boss fixes blame, a leader
corrects mistakes. A boss knows all, a leader asks questions. A boss makes
work drudgery, a leader makes it interesting. A boss is interested in himself
or herself, a leader is interested in the group. Russell H. Ewing
 Show me a man who is a good loser and I'll show you a man who is playing
golf with his boss. Jim Murray
 Teamwork: Simply stated, it is less me and more we. Anonymous
 It is amazing how much you can accomplish when it doesn't matter who
gets the credit. Anonymous
 A leader is a dealer in hope. Napoleon Bonaparte

4. What is Human Resource Management and
its functions?

5. Human Resource Strategy: A People-Centered
Approach
 Human Resource Management (HRM)
The proactive acquisition, retention,
development, adjustment and managing
changes of human resources necessary for
organizational success.
HRM has moved from a support staff function
(personnel) to a more strategic role in
organizations.

6.  Human Capital or Human Resource.
A term that recognizes the greater societal value
of developing all present and future work force
participants to their fullest potential.
Is your HRD playing these functions. If No then
Why?

7. People-Centered Organizations
Enjoy a Competitive Advantage
 People-centered Practices:
Protection of job security
Rigorous hiring process
Employee empowerment
Compensation linked to performance
Comprehensive training
Reduction of status differences
Sharing of key information

8. HRM activities and Responsibilities of Line Manager and the
HR Department
Activity Line Manager HRD
Staffing Data for job, Min qualification,
integrating strategic plans with HR
plan, Interviewing candidates,
making final decision on entry level
hires and promotion
Job Analysis
HRP
Recruitment & Selection
Employees Laws and Regulations.
Retention Fair Treatment
Open Communication, team work,
performance based pay increases,
Respect and dignity of employees.
-Compensation and benefits.
-Health and Safety
-Employee Services.
Development -On job training,
- Job enrichment,
-Motivational strategies,
-performance feedback to employees,
-Coaching
-Dev legally sound performance Mangt.
-Technical Training
-Moral Surveys
-Managerial and OD
-HR research
Adjustments -Discipline,
-Discharge
-Lay offs
- Investigate Employees Complaints.
-Replacement Services
-Retirement Counseling
Managing
Changes
- Provide vision to unit as to where
the Organization is going?
- Provide expertise to manage the overall
process of managing change.

9. Human Resource Planning
 What is planning?
To establish the long term and short objectives and identify the ways
and means to achieve these.
 Planning Types:
- Strategic: Creating the tomorrow’s Org.
- Tactical: Dealing with growth of current operations.
- Operational: Day to day operations.
Human Resource Planning ( HRP)
The process of understanding the available competencies in an
Org and allow the Org to plan for changes to new jobs required
to achieve the Org goals.
Human resource planning involves getting the right number of
qualified people into the right jobs at the right time.

10. II. Why is it important?
A. often long lag times to fill positions
B. often influences both turnover and
productivity
C. the “demographic imperative”
demands more such planning

11. 3. When there are variances, action
plans must be formulated, e.g.,
a. for surpluses, will organization use
layoffs, retirement incentives, reduced
hours, or something else?
III. How do you do it?
A. General Comments:

12. 3. When there are variances, action
plans must be formulated, e.g.,
a. for surpluses, will organization use
layoffs, retirement incentives, reduced
hours, or something else?
b. for shortages, will organization use
overtime, temporary workers, or recruit
new permanent workers?
III. How do you do it?
A. General Comments:

13. 1. Approaches to forecasting:
a. Qualitative:
III. How do you do it?
B. Methods Used for Human Resource
Planning:
i. Expert opinions
ii. Delphi technique
iii. “Bottom-up” approach

14. 2. It works best when it is tied to:
a. the organization’s strategic planning
process
b. all available forecasts (technological,
economic, market, etc.)
III. How do you do it?
1. It is a process of comparing human
resource supply with human
resource demand.
A. General Comments:

15. Four Phases to HR Planning
 “What will we need?”
 Determine future HR requirements
 “What’s available?”
 Determine future HR availabilities
 Internally
 Externally
 Reconcile requirements and availabilities
 Anticipate “gaps”
 Develop action plans
 Control and evaluate

16. HR Planning Process
Current Workforce
Business Plans
External & Internal
Scanning
Losses,
Internal Moves,
Accessions
Organization
Plans
Forecasted
HR
Availabilities
Reconciliation
(Gaps)
Forecasted
HR
Requirements
Action
Plans
Staffing
Activities
Other
HR
Activities

17. HR Planning Strategy
 Seven
strategic
staffing
decisions:
Organization
Mission
Goals & Objectives
Organization Strategy HR Strategy
Staffing Strategy
Acquire or Develop Talent
Staffing as a Lag or Lead System
Specific or General Competencies
Exceptional or Acceptable Workforce Quality
External or Internal Hiring
Active or Passive Pursuit of Diversity
Core or Flexible Workforce

18. Organizational Life-Cycle Stages and
HR Activities
LIFE-
CYCLE
STAGE
STAFFING COMPENSATION
TRAINING AND
DEVELOPMEN
T
LABOR /
EMPLOYEE
RELATIONS
Introduction Attract best
technical and
professional talent.
Meet or exceed labor
market rates to attract
needed talent.
Define future skill
requirements and
begin establishing
career ladders.
Set basic
employee-
relations
philosophy of
organization.
Growth Recruit adequate
numbers and mix of
qualifies workers.
Plan management
succession. Mange
rapid internal labor
market movements
Meet external market
but consider internal
equity effects.
Establish formal
compensation
structures.
Mold effective
management team
through
management
development and
organizational
development.
Maintain labor
peace,
employee
motivation, and
morale.

19. Organizational Life-Cycle Stages
and HR Activities (cont’d)
LIFE-
CYCLE
STAGE
STAFFING COMPENSATION
TRAINING AND
DEVELOPMENT
LABOR /
EMPLOYEE
RELATIONS
Maturity Encourage sufficient
turnover to minimize
layoffs and provide
new openings.
Encourage mobility as
reorganizations shift
jobs around.
Control
compensation costs.
Maintain flexibility
and skills of an aging
workforce.
Control labor costs
and maintain labor
peace. Improve
productivity.
Decline Plan and implement
workforce reductions
and reallocations,
downsizing and
outplacement may
occur during this
stage.
Implement tighter
cost control.
Implement retraining
and career consulting
services.
Improve
productivity and
achieve flexibility in
work rules.
Negotiate job
security and
employment-
adjustment policies

20. How does HR Planning occur?
1. What does the environment look like?
2. What are our future personnel needs?
(forecast demand)
a. Judgmental
 Estimates
 Rule of Thumb
 Delphi Technique
 NGT
 Brainstorming

21. The Nominal Group Technique
A small group of 4-5 people gathers around a table. Leader
identifies judgment issue and gives participants procedural
instructions.
Participants write down all ideas that occur to them, keeping
their lists private at this point. Creativity is encouraged during
this phase.
Leader asks each participant to present ideas and writes them
on a blackboard or flipchart, continuing until all ideas have been
recorded.
Participants discuss each other’s ideas, clarifying, expanding,
and evaluating them as a group.
Participants rank ideas privately in their own personal order and
preference.
The idea that ranks highest among the participants is adopted
as the group’s judgment.

22. The Delphi Technique
Leader identifies judgment issues and develops questionnaire.
Prospective participants are identified and asked to cooperate.
Leaders send questionnaire to willing participants, who record
their judgments and recommendations and return the
questionnaire.
Leaders compiles summaries and reproduces participants’
responses.
Leader sends the compiled list of judgment to all participants.
Participants comment on each other’s ideas and propose a final
judgment.
Leader looks
for consensus
Leader accepts consensus judgment as group’s choice.

23. How does HR Planning occur?
1. What does the environment look like?
2. What are our future personnel needs?
(forecast demand)
b. Statistical
 Regression

24. Statistical Techniques Used to Project
Staffing Demand Needs
Name
Regression analysis
Productivity ratios
Description
Past levels of various work load indicators, such as sales,
production levels, and value added, are examined for
statistical relationships with staffing levels. Where
sufficiently strong relationships are found, a regression (or
multiple regression) model is derived. Forecasted levels of
the retained indicator(s) are entered into the resulting
model and used to calculate the associated level of
human resource requirements.
Historical data are used to examine past levels of a
productivity index (P):
P = Work load / Number of People
Where constant, or systematic, relationships are found,
human resource requirements can be computed by diving
predicted work loads by P.

25. Statistical Techniques Used to Project
Staffing Demand Needs (cont’d)
Name
Personnel ratios
Time series analysis
Description
Past personnel data are examined to determine historical
relationships among the employees in various jobs or job
categories. Regression analysis or productivity ratios are
then used to project either total or key-group human
resource requirements, and personnel ratios are used to
allocated total requirements to various job categories or to
estimate for non-key groups.
Past staffing levels (instead of work load indicators) are
used to project future human resource requirements. Past
staffing levels are examined to isolate and cyclical
variation, long-tem terms, and random movement. Long-
term trends are then extrapolated or projected using a
moving average, exponential smoothing, or regression
technique.

26. Regression Analysis
1. Statically identify historical predictor of workforce size
Example: FTEs = a + b1 sales + b2 new customers
2. Only use equations with predictors found to be
statistically significant
3. Predict future HR requirements, using equation
Example: (a) FTEs = 7 + .0004 sales + .02 new
customers
(b) Projected sales = $1,000,000
Projected new customers = 300
(c) HR requirements = 7 + 400 + 6 = 413

28. How does HR Planning occur?
b. Statistical (cont.)
 Ratio analysis
2. What are our future personnel needs?
(demand forecast cont.)

29. How does HR Planning occur?
3. Are resources available – internally or
externally – to fill those needs?
a. Internal
 Replacement charts

30. Employee Replacement Chart for
Succession Planning

31. How does HR Planning occur?
3. Are resources available – internally or
externally – to fill those needs?
a. Internal
 Replacement charts
 Promotability

33. How does HR Planning occur?
3. Are resources available – internally or
externally – to fill those needs?
a. Internal
 Replacement charts
 Promotability
 Succession planning
 Skills inventory
 Transition (Markov) matrix

34. A Sample Transition Matrix
Part A: Personnel Supply
Estimated Personnel Classification in Year T + 1 (%)
Classifications in Year T P M S Sr A Exit
Partner .70 .30
Manager .10 .80 .10
Supervisor .12 .60 .28
Senior .20 .55 .25
Accountant .15 .65 .20
Part B. Staffing Levels
Estimated Personnel Availabilities in Year T + 1 (%)
Beginning
Classifications in Year T Levels P M S Sr A Exit
Partner 10 7 3
Manager 30 3 24 3
Supervisor 50 6 30 14
Senior 100 20 55 25
Accountant 200 30 130 40
10 30 50 85 130

35. How does HR Planning occur?
3. Are resources available – internally or
externally – to fill those needs?
b. External – what do you look at?
- try to determine availability of
qualified labor; Surplus? Shortage?

36. How does HR Planning occur?
4. What should we do?
- create plan of action to reconcile supply and
demand
a. Set objectives
b. Generate alternatives

37. Staffing Alternatives to Deal with
Employee Surpluses
Source: Compliments of Dan Ward, GTE Corporation

38. Staffing Alternatives to Deal with
Employee Shortages
Source: Compliments of Dan Ward, GTE Corporation

39. How does HR Planning occur?
4. What should we do?
- create plan of action to reconcile supply and
demand
a. Set objectives
b. Generate alternatives
c. Assess alternatives

40. Alternative Scheduling Options
Alternative
Percent Using
(N = 427 companies)
The following definitions were used in this survey
for alternative scheduling strategies:
• Part-time: A regular employee who works fewer than 35 hours per
week.
• Flextime: A system than enables employees to vary their schedules:
Usually, the flexibility applies to starting and finishing times.
• Compressed workweek: A full-week schedule (usually 40 hours) than
occurs in fewer than five days, such as four 10-hour days.
• Job sharing: Two or more employees split a full-time position, diving
the responsibilities, and, to some degree, the compensation.
• Work-at-home: A program that enables employees to complete work at
home (or at a remote office closer to home) on a regular basis. It is often
referred to as “flexplace” or “telecommuting.”
84%
40%
23%
18%
13%

41. How does HR Planning occur?
4. What should we do?
- create plan of action to reconcile supply and
demand
a. Set objectives
b. Generate alternatives
c. Assess alternatives
d. Choose alternative – KEEP
PHILOSOPHY IN MIND

42. How does HR Planning occur?
5. How did we do?
a. Did company avoid surplus/shortage?
b. Evaluate usefulness of methods used
c. Goals v. Production Levels, etc.