This document discusses human resource planning. It begins by defining HRP and its objectives, which include forecasting personnel requirements, coping with changes, using existing manpower productively, and promoting employees systematically. The document then covers factors affecting HRP, the HRP process, demand forecasting techniques, supply forecasting including internal and external labor sources, formulating HR plans, responsibilities for HRP, limitations of HRP, and keys to effective HRP. In summary, the document provides an overview of human resource planning, including its objectives, key components, and challenges.

1. HUMAN RESOURCE
PLANNING
Presented byPresented by ::
Udita vijayvargiaUdita vijayvargia
Saumyah singhSaumyah singh
Swati khemkaSwati khemka

2. ANNOTATED OUTLINE
5-2
INTRODUCTION
HRP offers an accurate estimate of the number of employees
required with matching skill requirements to meet organisational
objectives. HRP is a forward looking function as human resource
estimates are made well in advance. It is, of course, subject to
revision.
Human Resource Planning

3. 5-3
Human Resource Planning
Objective
The basic purpose of HRP is to decide what positions the
organisation will have to fill and how to fill them.
Objectives of human resource planning
Forecast personnel requirements
Cope with changes
Use existing manpower productively
Promote employees in a systematic way

4. Importance
5-4
Organisations use HRP to meet future challenges, cut costs, and
achieve greater effectiveness
Human Resource Planning
Importance of human resource
planning
Create a talent pool
Prepare people for future
Cope with organisational changes
Cut costs
Help succession planning

5. Factors Affecting HRP
 Type and Strategy of Organisation

6. Factors Affecting HRP

7. Factors Affecting HRP
 Organizational Growth Cycles and Planning
 Environmental Uncertainties
 Time Horizons
 Type and Quality of Information
 Nature of Job being filled
 Offloading the work

8. 5-5
Human Resource Planning
The Process Of HRP
The HRP involves forecasting personnel needs,
assessing personnel supply and matching
demand supply factors through personnel –
related programmes.

9. Organisational Objectives and
Policies:
 Objectives of the HR Plan must be derived
from Organisational Objectives.
 In developing these objectives specific
policies need to be formalised, like:
1. Are vacancies to be filled by promotions or
hiring from outside
2.How do the training objective interface with
HRP objectives

10. Organisational Objectives and
Policies:
3.What union constraints are encountered in
HRP and what policies are needed to handle
this constraints?
4.How to enrich the employees job?
5.How to downsize the organisation to make
it more effective?

11. Organisational Objectives and
Policies:
6.To what extent production and operations be
automated and what can be done about the
displaced?
7.How to ensure continuous availability of
adaptive and flexible workforce?

12. HR Demand Forecast
 Demand forecasting is estimating the future
quantity and quality of people required.
 The basis of the forecast must be the annual
budget and long term corporate plan,
translated into activity level for each function
and department.
 Demand forecasting must consider external
and internal Factors

13. 5-7
Forecasting Techniques
HR forecasts are an attempt to find out an organisation's future
demand for employees
Human Resource Planning
Forecasting techniques
Expert forecasts
Trend analysis
Workforce analysis
Workload analysis

14. 5-8
Human Resource Planning
Expert Forecasts: These are based on the judgements of those who
possess good knowledge of future human resource needs
Trend Analysis: This is based on the assumption that the future is
an extrapolation from the past. Human resource needs, as such, can
be estimated by examining pas trends.
Forecasting techniques
An example of trend analysis
2001-02 Production of Units : 5,000
2002-03 No. of Workers : 100
Ratio : 100:5000
2003-04 Estimated Production : 8,000
No. of Workers required : 8000 × = 160
If supervisors have a span of 20 workers, 8 supervisors are also needed in
2003-04.
1 0 0
5 0 0 0

15. 5-9
Workforce Analysis: All relevant factors in planning manpower flows
in a firm such as transfers, promotions, new recruitments, retirement,
resignation, dismissal etc are taken into account while estimating HR
needs
Human Resource Planning
Forecasting techniques
Manpower flows in a bank
P r o m o t io n s o u t
T r a n s fe r s I n > > J o b H o p p in g
> T r a n s fe r s O u t
> R e tir e m e n t
> V R S S c h e m e ( G o ld e n h a n d s h a k e )
R e c r u it s In > > D is c h a r g e o r D is m is s a l
> Te r m in a tio n s
> R e s ig n a tio n s
P r o m o tio n s In > > R e tr e n c h m e n t
> A t tr a c tio n s in O t h e r B a n k s , e tc .

16. 5-10
Human Resource Planning
Workload analysis: Based on the planned output, a firm tires to
calculate the number of persons required for various jobs.
Forecasting techniques
An example of workload analysis
Planned output for the year 10,000 pieces
Standard hours per piece 3 hours
Planned hours required 30,000 hours
Productive hours per person per year 1,000 hours (estimated on annual basis)
(allowing for absenteeism, turnover, idle time etc.)
No. of workers required 30
If span of control in the unit is 10 per officer, then 3 officers are also required.

17. 5-11
Human Resource Planning
Supply Forecasting
A) Internal labour supply: a manpower inventory in terms of
the size and quality of personnel available (their age, sex,
education, training, experience, job performance, etc) is usually
prepared by HR departments. Several techniques are used
while ascertaining the internal supply of manpower (a supply of
employees to fill projected vacancies can come from within the
firm or from new hires )

18. 5-12
Human Resource Planning
Estimated internal labour supply
for a given firm
T h e F ir mS o u r c e s o f In flo w s
 T r a n s f e r s
 P r o m o tio n s
 N e w R e c r u its
 R e c a lls
 P r o m o t io n s
 Q u its
 Te r m in a tio n s
 R e tir e m e n ts
 D e a th s
 L a y o ffs
E m p lo y e e s In E m p lo y e e s O u t
C u r r e n t
s t a f f i n g
le v e l
P r o je c t e d
o u t f l o w s
th is y e a r
P r o je c t e d
i n f l o w s
th is y e a r
F ir m ’s in te r n a l
s u p p ly f o r t h is
tim e n e x t y e a r
– + =
P r o je c te d O u t f lo w s
C u r r e n t S ta ffin g
L e v e l

19. 5-15
Skills inventory: It is a summary of the skills and abilities of non
managerial employees used in forecasting supply.
Staffing table: Shows the number of employees in each job, how they are
utilised and the future employment needs for each type of job.
Human Resource Planning
Supply Forecasting

20. 5-16
Human Resource Planning
Skills inventory: an example
N a m e : A . K . S e n D a te p r in t e d : 1 - 4 - 2 0 0 4
N u m b e r : 4 2 9 D e p a r tm e n t : 4 1
K e y w o r d s W o r k e x p e r i e n c e
W o r d D e s c r i p t i o n A c t iv it y F r o m T o
A c c o u n t in g Ta x S u p e r v is io n 1 9 9 8 2 0 0 0 Ta x c le r k A B C C o m p a n y
a n d a n a ly s is
B o o k K e e p in g L e d g e r S u p e r v is io n 2 0 0 0 2 0 0 2 A c c o u n t a n t X Y Z C o .
A u d it in g C o m p u te r A n a l y s i s 2 0 0 2 2 0 0 3 C h ie f A c c o u n t s T T B a n k
r e c o r d s O f f i c e r
E d u c a tio n S p e c ia l Q u a lific a tio n s M e m b e r s h i p s
D e g r e e M a jo r Y e a r C o u r s e D a te 1 . A IM A
M B A F in a n c e 1 9 9 8 D B F 1 9 9 6 2 . I S T D
B .C o m A c c o u n t s 1 9 9 5 R is k M a n a g e m e n t 1 9 9 9 3 . I C A
C o m p u t e r L a n g u a g e s P o s i t io n L o c a t i o n H o b b ie s
L i t e r a c y p r e f e r e n c e c h o i c e
 Ta lly F r e n c h A c c o u n t in g K o lk a t a C h e s s
 B a n k in g A u d it in g D e lh i F o o t b a ll
S o f tw a r e B a n g a lo r e B o a t in g
E m p lo y e e s S ig n a tu r e _ _ _ _ _ _ _ _ _ _ H R D e p a r tm e n t_ _ _ _ _ _ _ _
D a te _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ D a t e _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

21. 5-17
Human Resource Planning
Replacement chart: It is a visual representation of who will replace
whom in the event of a job opening.
Supply Forecasting

22. 5-18
Human Resource Planning
Replacement chart
G e n e r a l M a n a g e r
V . K . G a r g
A / 2
K e y
N a m e s g iv e n a r e r e p la c e m e n t
c a n d id a te s
A . P r o m o t a b le n o w
B . N e e d in g d e v e lo p m e n t
C . N o t s u ita b le t o p o s it io n
1 . S u p e r io r p e r fo r m a n c e
2 . A b o v e A v e r a g e p e r f o r m a n c e
3 . A c c e p ta b le p e r f o r m a n c e
4 . P o o r p e r fo r m a n c e
P A to
G e n e r a l M a n a g e r
L . M a t h e w s
B / 1
A s s is ta n t G e n e r a l M a n a g e r
R .K . A r o r a A / 2
B . K . N e h r u B / 3
D iv is io n :
H R M a n a g e r
C .P. T h a k u r A /1
D iv is io n :
A c c o u n t in g &
Ta x a t io n M a n a g e r
A .T. R o y C /2
D iv is io n :
P la n n in g M a n a g e r
A .N . G u p t a A /1
K .P. R a o B /1
Te c h n ic a l A d v is o r
N . R . M u r t h y B /3
N o r t h e r n R e g io n
M a n a g e r
L .C . S r iv a ts a v A / 2
A . T h a p a r C /4
C e n tr a l R e g io n
M a n a g e r
S .P. K u m a r A /1
R . P a n d e y B / 3
S o u t h e r n R e g io n M a n a g e r
A . S u b r a m a n y a m B / 2
B .K . M e n o n B /1
E a s te r n R e g io n
M a n a g e r
R . K r is h n a B /3

23. 5-19
B) External Labour supply: External hires need to be contacted
when suitable internal replacements are not available. A growing
number of firms are now using computerised human resource
information systems to track the qualifications of hundreds or
thousands of employees. HRIS can provide managers with a
listing of candidates with required qualifications after scanning the
data base.
Human Resource Planning
Supply Forecasting

24. 5-20
Important barometers of labour
supply
Human Resource Planning
1. Net migration into and out of the area
2. Education levels of workforce
3. Demographic changes in population
4. Technological developments and shifts
5. Population Mobility
6. Demand for specific skills
7. National, regional unemployment rates
8. Actions of competing employers
9. Government policies, regulations, pressures
10. Economic Forecasts for the next few years
11. The attractiveness of an area
12. The attractiveness of an industry in a particular place

25. 5-22
Formulating HR Plans
Human Resource Planning
Once supply and demand for labour is known adjustments can be
made formulating requisite HR plans
A variety of HR plans
 Recruitment plan
 Redeployment plan
 Redundancy plan
 Training plan
 Productivity plan
 Retention plan

26. 5-23
Responsibility For Human Resource
Planning
HRP is a top management job. HR plans are usually made by the
HR division in consultation with other corporate heads. Any
deviations from the formulated plans and their causes must be
looked into, from time to time in order to assess whether the plans
require revision or modification.
Human Resource Planning

27. 5-24
Limitations Of Human Resource
Planning
HR professionals are basically confronted with three problems while
preparing and administering HR plans: accuracy, inadequate top
management support, lopsided focus on quantitative aspects.
Human Resource Planning

28. 5-25
Effective Human Resource Planning
HR plans must fit in with overall objectives of a firm. They must get
consistent support from top management. Computerised human resource
information systems must be used for applicant tracking, succession
planning, building skills inventories etc. The whole exercise must be
carried out in coordination with operating managers.
Human Resource Planning