Human resource planning

5/22/2013 Bipin Prasad 1
UNIT 2
HUMAN RESOURCE
PLANNING

Human Resource Planning
 Forward looking functions
 Assess Human Resource requirements in
advance keeping the production schedule,
market fluctuations, demand forecasts etc
 Right number of qualified people into right
job at the right time so that an organisation
can meet its objectives.
 Subjected to revision
 Short term ( 2 Year)/ Long term (5 or more
years)

Definition
 Human Resource Planning is a process
of determining and assuring that the
organization will have an adequate
number of qualified persons, available
at the proper times, performing jobs
which meet the needs of the enterprise
and which provide satisfaction for the
individuals involved.

Importance Of HRP
 People bank
 Creating High Talented Personnel
 Foundation of personnel function
 Expand and contract
 Cut Cost
 Succession Planning
 Resistance to change reduces

Factors affecting HRP
 Type and strategy of organisation.
 Organisational growth cycle and
planning
 Environmental uncertainties
 Type and quality of Information
 Nature of jobs being field
 Outsourcing.

Human Resource Planning Process
Environmental scanning
Organisational Objectives and Policies
HR Needs forecast HR Supply forecastHR Programming
HRP Implementation
Control & Evaluation of Programmes
Surplus
Restrict hiring,
Reduce hours,
VRS, lay off etc
Shortage
Recruitment and
Selection

Planning process
1. Environmental Scanning
• Economic
• Technological changes
• Demographic Changes
• Political Changes
• Social Concern
2. Organisational objective and policies
• Vacancies filled by promotion/ external recruitment.
• Training and Development objectives
• Job Enrichment
• Creative and new jobs
• Ensure continuous availability and flexible workforce.

• Estimating future quantity and quality of people require.
• Basis of forecast: Annual Budget, Long term corporate plans,
activities of different departments.
• Need of forecast: Quantify the job, Determine Staff mix in
future, Appropriate staffing levels to avoid costs Prevent shortage
of people, Monitor compliance with legal requirements.
• Factors for forecast: a) External factors: Competition,
Economic climate, Law & regulatory
bodies, Change in technologies, Social
factor
b) Internal Factors: Budget constrains,
production levels, New product &
services, Organisational structure and
employee separations
3. HR Needs Forecast

• Forecasting Techniques:
 Managerial judgment: Discuss and arrive to a figure,
Approaches; Bottom up and Top- down. Suitable for Small
firms.
 Ratio trend analysis: quickest forecasting techniques:
Study past ratios
 Workforce analysis
 Work study Techniques (Work load analysis)
Future Demand depends upon:
1. Employment Trends
2. Replacement Trends
3. Productivity
4. Absenteeism
5. Expansion and Growth

4. HR supply Forecast
• Existing Inventories: Head counts, Job family inventory,
Age inventory etc…
Existing inventory = Present Inventory + Potential
addition – Potential losses
• Turnover Rate
(No. of employee leave the Organisation / Avg. no of
employee during the year) * 100
5. HR programming
Reconcile demand and supply of
employees

6. HRP implementation
 Converts HR plans into action
 Recruitment, selection, placement, training programmes
7. Control & Evaluation
 Assessment against budgets, targets and Standards
 Establish reporting procedure.
8. Surplus
 Redeployment
 Retrenchment.
• Reduce Hour . Lay off
• Work sharing . Leave of absence without pay
• CSR/ Iron hand shake . Attrition
• Golden hand shake . VRS
9. Shortage
 Outsourcing
 Employment
 Training
 Development
 Internal mobility

In recent years focus on HRP has
increased due to the following reasons:
 Employment Situation
 Technological Changes
 Organizational Changes
 Demographic Changes
 Shortage of Skills
 Legislative Controls
 Pressure Groups
 Systems Concept
 Lead Time
 Hiring Costs
 Increased Mobility

Example of distribution of
responsibilities in HR Planning

Definition
 The procedure for determining the
duties and skill requirements of a job
and the kind of person who should be
hired for it.
 Two approaches:
 job oriented
 person oriented

 Job Analysis is a process to
 Understand the position for content &
clarity
 Identify activities, competencies and
accountabilities associated with the job.
 Normal job to be analyzed, not the job
holder or the additional portfolio’s he could
be handling and not the job as it should be.

JOB ANALYSIS
 When an individual moves on, he takes
along with him, his:
 managerial style
 problem solving ability and
 performance.
 What he leaves behind is his:
 functions,
 scope of work and
 accountabilities
 In other words, HIS JOB REMAINS.

JOB ANALYSIS IS ….
NOT
 A personal analysis
 A performance appraisal

Uses Of Job Analysis
 Human resource planning
 Recruitment and Selection
 Placement
 Training and development
 Job evaluation
 Performance appraisal
 Employee counseling
 Job design
 Organizational design

The Output of Job Analysis
 Job description
 A list of a job’s duties, responsibilities,
reporting relationships, working conditions,
and supervisory responsibilities
 Job specifications
 A list of a job’s “human requirements,” that is,
the requisite education, skills, personality, and
so on.

 Job Description: A job description is an
organized factual statement of job contents in
the form of duties and responsibilities of a
specific job.
 The preparation of job description is
necessary before a vacancy is advertised.
 It tells in brief the nature and type of job.
 Job description document discloses what is to
be done, how it is to be done and why it is to
be done.

1.Job title
2.Job location
3.Job summary
4.Duties to be performed
5.Machines, tools, materials
6.Relation to other jobs
7.Nature of supervision
8.Working environment
Contents of Job Description:

 A job specification is a document which
states the minimum acceptable human
qualities necessary to perform a job
properly.
 It sets forth requirements sought in the
person who is to be selected to perform a
particular job.
 The job specification should define the
minimum acceptable standards for
employment and performance on the job.
Job Specification:

Contents of Job Specification:
 What human traits and experience are
required to do the job well?
 Qualifications
 Prior experience
 Special training
 Personality factors
 Physical characteristics
 Other attributes/qualities

JOB ANALYSIS
A process of obtaining all pertinent Job facts
JOB DESCRIPTION
A statement containing items
such as:
-Job Title
-Location
-Job Summary
-Duties
-Machines, Tools and Equipment
-Supervision given or received
-Working Conditions
-Hazards
JOB SPECIFICATION
A statement of human
qualifications necessary to do the
job. Like:
-Education
-Experience
-Training
-Judgment
-Initiative
-Physical Effort
-Physical Skills
-Communication Skills
-Emotional Characteristics
-Unusual sensory demands such
as sight, smell, hearing

Process of Job Analysis
1. Determination of Uses of Job Analysis
2. Strategic Choices in Job Analysis
 Employee Involvement
 Level of Details
 Timing and Frequency of Analysis
 Past Oriented v/s Future Oriented

3. Information Collection
 Type of Information to be collected
 Persons in Information Collection
 Methods of Information Collection
4. Information Processing

JOB Design
 The term job design refers to the way the
tasks are combined to form a complete job.
 Job design is a process which integrates
work content (tasks, functions,
relationships),the reward and the
qualifications required for each job in a way
that meet the needs of employees and the
organization.

Purpose Of Job Design
 To meet the organizational requirements such
as higher productivity, operational efficiency,
quality of product/service etc.
 To satisfy the needs of the individual
employees like interest, challenge,
achievement or accomplishment etc.
 To integrate the needs of the individual with
the organizational requirements.

Techniques Of Job Design
 Work simplification:
In work simplification the complete job
is broken down into small sub-parts,
usually consisting of few operations.
This is done so that employees can do
these jobs without much specialized
training.

 Job Rotation:
Job rotation refers to the practice of
shifting people from one job to
another within a working group so
that there is some variety and relief
from the boredom of routine.

 Job Enlargement:
It means assignment of varied tasks or
duties of the jobs of employees all on
the same level.
The additional tasks or duties do not
require new skills but can be
performed with similar skills and efforts
as before.

Job Enrichment:
It implies increasing the contents of a
job or the deliberate upgrading of
responsibility, scope and challenge in
work.
It is motivational technique which
emphasizes the need for challenging
and interesting work.
It leads to a vertically enhanced job by
adding functions from other
organizational levels.

Human resource planning

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