Shows processes involved in Human Resource Planning

1. HUMAN RESOURCE MANAGEMENT
Human Resource Planning
Dr. V. K. Jain
GMN College
Ambala Cantt

2. INDEX
Meaning of HRP
Process of HRP
Importance of HRP
Barriers to HRP and Steps to make it
Effective

3. HUMAN
RESOURCE
PLANNING
Meaning
Lorem ipsum dolor sit amet,
consectetur adipiscing elit.
Lorem ipsum dolor sit amet,
consectetur adipiscing elit.
Lorem ipsum dolor sit amet,
consectetur adipiscing elit.
50%
80%
35%
HUMAN RESOURCE Planning:
It is basically concerned with
procurement of right persons, in
right numbers and at right time
HRP is affected by HR policy of the
organization, production,
development and automation of
company, expansion and
diversification needs etc.
It minimizes imbalance caused due
to non-availability of right type of
manpower for a desired position
and at right time.
“Human Resource Planning is the process of
determining the manpower requirements and
the means for meeting these requirements in
order to carry out the integrated plan of the
organization.” Coleman
Human Resource Planning consists of:
• Forecasting future manpower requirements
based on
 economic environment and
development of industry;
 Judgemental estimates as per specific
future plans of the company
• Making inventory of manpower and their
utilization.
• Anticipating manpower problems as per
forecast of manpower in future.
• Planning for recruitment, selection,
promotion, transfer etc.
HRP is a continuous process. In view of the
ever changing future needs, it must be flexible
to ensure adjustments in manpower
requirements.

4. 6. Control and Appraisal of HR Plan
5. Implementation
of HR Plan
3. Forecasting
HR Supply
2. Forecasting
HR Demands
4. Estimate Net
HR Gaps/
Requirements
HUMAN RESOURCE PLANNING PROCESS
1. Analyzing Organizational
Objectives, Plans and Policies

5. 1. Analyzing Organizational Objectives, Plans and Policies
• Knowledge of organizational objectives, plans and policies is required for
effective HRP.
• Knowledge of objectives of HRP is required as they are derived from
organizational objectives.
• The objectives of HRP must be in consistent with objectives of the organization as the
HRP is concerned with meeting organizational needs of future manpower requirements.
• Hence, the HR department needs to begin HRP based on analysis of
organizational objectives, plans and policies.
• Further, HRP should take into account the organizational policies for expansion,
diversification, upgradation, implementation of new technology, automation plan, financial and
marketing policies.
• HR policies regarding filling up vacant posts from external or internal sources,
training and development, job enrichment, career planning etc. need to be
properly analyzed.
It will help to make an assessment of manpower for the present and future
needs

6. 2. Forecasting Human Resource Demand
• To estimate future manpower requirements with right quality and in right
quantity on the basis of organizational plans over a given period of time.
• Forecasting of manpower must take into account the replacement needs
due to retirement, resignation, death etc.
• Further, employment trends, growth and expansion needs, absenteeism
and labour turnover are also to be considered.
• To keep in mind that job Analysis is pre-requisite to select the right persons
with right quality for the job.
• Various forecasting techniques are given below:

7. • This technique is used by
every organization.
• Two approaches – Top Down
and bottom up are used.
• Under ‘Top Down’ the top
management makes forecast
of manpower requirements for
the entire organizations and
sent to the Depts. for their
Information and approval.
• In ‘Bottom Up’, the depts send
their requirements on the basis
of which forecast is made
by the top mgt.
• This technique is used where work
load is easily measurable
• Under this method total workload
is converted into manhours needed
to produce one unit considering the
capabilities of the work force.
• Demand for manpower is thus
estimated on the basis of estimated
total production and manhours
required to produce one unit and
worker’s contribution in terms of man
hour.
• Demand for HR can also be
determined by ratio between
production level and number of
workers available
• This ratio can be used to
estimate future HR requirements
FORECASTING TECHNIQUES FOR HR DEMAND
Managerial
Judgement
Work Study
Technique
Ratio Trend
Analysis
Econometric
Model
A combination of the two –
‘Participative Approach’ where
dept. heads and top mgt Meet and
decide HR needs can be better.
Let us assume:
Estimated Production = 3,00,000 Units
Standard Hrs for one Unit = 2 Hrs.
Contribution per employee = 1500 Hrs.
Est. Manpower =300000x2=600000 hrs
= 600000/1500 = 400 workers
Let us assume:
Production = 3,00,000 Units p.a.
Number of workers = 1500
Ratio between production and
workers = 300000 : 1500
= 200 : 1
Est. Production for next year
= 4,00,000 Units
Number of Workers required =
= 400000/200 = 2,000 Workers
(on the basis of 200 : 1)
• These models are based on
mathematical and statistical
techniques for estimating
future manpower
requirements.
• Under this model relationship
is established between HR
(dependent variable) and
Sales, Ptoduction, Workload
etc. (Independent Variables)
to predict the requirements of
manpower

8. FORECASTING TECHNIQUES FOR HR DEMAND
Techniques used
by other
organizations
Organization-
cum-
succession
Charts
Historical
Records
Statistical
Techniques –
Correlation/
Regression
Delphi Technique
Other Techniques
This technique takes into consideration HR requirements given by expert group i.e. managers.
They collect data about manpower needs, estimate the requirements and prepare report.
The process continues till all experts agree on the estimates.

9. 3. FORECASTING HR SUPPLY
Estimated
Supply of HR
Present or
Existing HR
Potential
Additions of
HR
Potential
Loss of HR
1. Present / Existing HR: It explains HR inventory on the basis of department, age, sex, marital status, skill, experience,
qualification, training, potentials etc. Internal mobility on account of promotion/ transfer should be evaluated.
= + -
To determine the size and quality of present and potential HR resources available from within and outsode the organization
to meet the future demand of HR. The following figure explains supply forecasting
2.. Potential Additions of HR: Due to fresh recruitment needs, slelection, promotion, transfer etc.
3. Potential Losses of HR: Due to death, retirement, resignation, retrenchment, discharge, promotion and transfer. It may
also be due to absenteeism or labour turnover.

10. 4. Estimating Net Human Resource Requirements
• To estimate gap between HR demand and HR supply as per the forecast
both in qualitative and quantitative terms.
• Determining the requirements of manpower by subtracting HR supply from
HR demand and surplus manpower if any.
• Preparing a blueprint of the requirements of each department both on
qualitative and quantitative basis.
• First of all Surplus of manpower is adjusted to other departments
• Shortage of Manpower is met by making plan for recruitment, selection,
placement.
5. Implementation of Human Resource Plan
6. Control and Appraisal of Human Resource Plan
• First assessment of HRP efforts and their contribution in achieving organizational
objectives.
• In case Manpower needs are not met effectively, review HR plan or organizational plan.

11. Thank You