Human resource planning involves forecasting future human resource needs and developing policies to address potential problems. It is a continuous process that examines skills needed in the future and develops training programs. Key aspects of HR planning include job analysis to determine job requirements, succession planning to ensure leadership continuity, and managing surpluses and deficits in human resources. Organizations use tools like HR audits and ERP systems to evaluate HR activities and automate business processes for improved efficiency.

1. HUMAN RESOURCE MANAGEMENT(552MG53)
Unit -2 : Human Resource Planning
Dr. J.Mexon ,
Department of Management & Commerce,
DMI St. Eugene University.

2. Introduction
• Human resource planning is important for helping both
organizations and employees to prepare for the future. The
basic goal of human resource planning is to predict the
future and based on these predictions, implement
programmes to avoid anticipated problems.
• Very briefly humans resource planning is the process of
examining an organization’s or individual’s future human
resource needs for instance, what types of skills will be
needed for jobs of the future compared to future human
resource capabilities and developing human resource
policies and practices to address potential problems for
example, implementing training programmes to avoid skill
deficiencies.

3. Definitions
• According to Vetter, “HRP is the process by which
management determines how the organization should move
from its current man power position to desired manpower
position. Through planning, management strives to have the
right time, doing things which result in both the organization
and individual receiving maximum long run benefits”.
• According to Gordon Mc Beath, “HRP is concerned with two
things: Planning of manpower requirements and Planning of
Manpower supplies”.

4. Objectives of HR Planning
•Forecasting Human Resources Requirements
•Effective Management of Change
•Realizing the Organizational Goals
•Promoting Employees
•Effective Utilization of HR

5. Characteristics of HR Planning
1. Future Oriented:
2. Continuous Process:
3. Optimum Utilization of Human Resources:
4. Right Kinds and Numbers:
5. Determination of Demand and Supply:
6. Environmental Influence:
7. Related to Corporate Plan:
8. A Part of Human Resource Management System:

6. Need for HRP in Organisations
1) Employment-Unemployment Situation:
2) Technological Change:
3) Demographic Change:
4) Skill Shortage:
5) Governmental Influences:
6) Legislative Control:
7) Impact of the Pressure Group:
8) Systems Approach:
9) Lead Time:

7. Steps in HR Planning
1. Analysing Organizational Objectives:
2. Inventory of Present Human Resources:
3. Forecasting Demand and Supply of Human Resource:
4. Estimating Manpower Gaps:
5. Formulating the Human Resource Action Plan:
6. Monitoring, Control and Feedback:

8. Job Analysis
• Job analysis is the procedure through which you determine the duties
and nature of the jobs and the kinds of people (in terms of skills and
experience) who should be hired for them.’ It provides you with data
on job requirements, which are then used for developing job
descriptions (what the job entails) and job specifications (what kind
of people to hire for the job).
• According to Michael L. Jucius, “Job analysis refers to the process of
studying the operations, duties and organizational aspects of jobs in
order to derive specifications or as they called by some, job
descriptions.”
• According to DeCenzo and P. Robbins, “A job analysis is a systematic
exploration of the activities within a job. It is a basic technical
procedure, one that is used to define the duties, responsibilities, and
accountabilities of a job.”

9. Uses of Job Analysis
1. Achievement of Goals:
2. Organizational Design:
3. Organization and Manpower Planning:
4. Recruitment and Selection:
5. Placement and Orientation:
6. Employee Training and Management Development:
7. Job Evaluation and Compensation:
8. Performance Appraisal:
9. Health and Safety:
10. Employee Counselling:

10. Steps in Job Analysis
1. Determine the Use of the Job Analysis Information:
2. Collection of Background Information:
3. Selection of Jobs for Analysis:
4. Collection of Job Analysis Data:
5. Processing the Information:
6. Preparing Job Descriptions and Job Classifications:
7. Developing Job Specifications:

11. Succession Planning
The term succession planning refers to a business strategy
companies use to pass leadership roles down to another employee
or group of employees.
Succession planning ensures that businesses continue to run
smoothly and without interruption, after important people move on
to new opportunities, retire, or pass away. It can also provide
a liquidity event, which enables the transfer of ownership in a going
concern to rising employees.
Succession planning is a good way for companies to ensure that
businesses are fully prepared to promote and advance all
employees—not just those who are at the management or
executive levels.

12. Human Resource Audit
• Human Resource (HR) Audit is not only a tool for evaluating the
personnel activities of an organisation, but also an important aspect
of the human resource management. It is a great deal of attention
from Human Resource Practitioners.
• According to Eric Flamholtz, “Human Resource Audit is a systematic
assessment of the strengths, limitations, and developmental needs of
its existing human resources in the context of organizational
performance.”
• “HR audit is concerned with the gathering, analysing information, and
then deciding what actions need to be taken to improve
performance” – Storey and Sission

13. HR Audit - Process
1. Determining the Scope and Type of Audit:
2. Determining the Audit Method:
3. Data Collection:
4. Setting the Standards:
5. Feedback about the Results:
6. Develop Action Plans:

14. HR Audit- Approaches
(i) Comparative Approach:
(ii) Consultant Approach:
(iii) Statistical Approach:
(iv) Compliance Approach:
(v) Management by Objectives (MBO) Approach:

15. ERP Technologies
• At its core, an ERP is an application that automates business
processes, and provides insights and internal controls,
drawing on a central database that collects inputs from
departments including accounting, manufacturing, supply
chain management, sales, marketing and human resources
(HR).
• Once information is compiled in that central database,
leaders gain cross-departmental visibility that empowers
them to analyze various scenarios, discover process
improvements and generate major efficiency gains. That
translates to cost savings and better productivity as people
spend less time digging for needed data.

16. • ERP software that’s tailored to meet the needs of an
individual business pays major dividends, making these
systems a critical tool for companies across industries and of
all sizes. Many of the world’s best-known and most
successful firms have leaned on ERP for the last quarter
century. Now, this software can be configured and priced to
meet the needs of all-size businesses.
• Put simply, an ERP system helps unify people, core business
processes and technology across an organization.

17. Features of ERP system
1. Common database:
2. Consistent UX/UI:
3. Business process integration:
4. Automation:
5. Data analysis:

18. ERP Modules
• Finance:
• Procurement:
• Manufacturing:
• Inventory management:
• Order management:
• Warehouse management:
• Customer relationship management (CRM):
• Professional services automation (PSA):
• Workforce management (WFM):
• Human resources management (HRM):
• Ecommerce:
• Marketing automation

19. Dealing with HR Deficit
HR deficit means that forecasted HR demand requirements
cannot be satisfied solely by use of the current internal
workforce supply of employees. It occurs when demand for
HR exceeds the current personnel resources available in the
organization’s workforce (HR internal supply). Here are three
ways to fix your organization's labour shortage:
• Increase wages:
• Increase hours:
• Increase productivity:

20. Dealing with HR Surplus
HR surplus occurs when the internal workforce supply
exceeds the organization’s requirement or demand for
personnel. It is also known as a skills surplus.
HR surplus is the situation when the supply of required
human resources is greater than the demand for
required human resources by an organization. In other
words, skills surplus takes place when the supply of
required human resources surpasses the demand of
required human resources in an organization.

21. Several ways exist that you can handle surplus staff, it often pays to
look closely at all alternatives. No matter which methods you use for
dealing with a labour surplus, consider the indirect effects. Following
are some of the methods we adopt to handle HR surplus.
• Layoffs:
• Outsourcing:
• Retraining:
• Hiring Freeze:
• Buyouts and Retirement:
• Pay Cuts:
• Modified Plans:
• Seasonal Hiring Policies:

22. Attrition Management
• Attrition refers to the normal phenomenon of the employees leaving
the company/organization voluntarily (or involuntary) due to reasons
which can be professional or personal pertaining to the company's
environment and culture.
• Attrition rate refers to the rate at which employees are leaving an
organization. It gives an idea as to how many employees are leaving
the company at any given time period. It is an important factor as
companies have to prepare to start recruiting for the positions which
are critical and cannot be left vacant. This rate can be calculated as:
Attrition Rate (%)= (Number of separations/ Average Number of
employees) * 100
• For Example, If a report says that the attrition rate of a particular
company was 10% this quarter this would mean that if company has
1000 employees, 100 have left the company in that particular
quarter.

23. Types of Attrition
1. Voluntary Attrition: When an employee leaves the company for a
better job opportunity or career growth or more pay, and leaves on his
own. This can be due to multiple reasons like just the better role which
is available externally or may be due to internal conditions.
2. Involuntary Attrition: If an employee is terminated from a job due to
some issue like lack of performance. Sometimes, a degrowing business
also forces employees to quit the job, which leads to a higher rate of
people leaving. Many times companies go for layoffs for business and
financial reasons leading to involuntary attrition.
3. Retirement Attrition: Once an employee finishes his/her tenure at a
company and retires. This is mostly a natural attrition that occurs and
companies are prepared with succession planning.

24. Factors Leading to Employee Attrition
1. Better pay & job opportunities outside the organization.
2. Low Pay or no recognition of employees
3. Improper work life balance can cause a high attrition rate.
4. Impolite behaviour of managers and peers leading to ineffective
team management and demotivation.
5. Stagnancy in career growth & poor quality of work life can lead to
higher attrition rate.
6. Inadequate and poor working conditions leading to lack of
motivation.
7. Retirement or untimely death of employees when at job.

25. Steps to Control Attrition
1. Motivating employees through a growth plan.
2. Recognize employee accomplishments through rewards.
3. Expose employees to newer roles and promote training and
development within the organization which helps them build their
careers.
4. Taking constant feedback from employees can help positively
engage unsatisfied staff.
5. Continuously strategize organizational structure to remove
irrelevant job positions to reduce misfit recruitment.

26. Outsourcing
• Outsourcing is a common practice of contracting out business
functions and processes to third-party providers. The benefits of
outsourcing can be substantial - from cost savings and efficiency gains
to greater competitive advantage.
• On the other hand, loss of control over the outsourced function is
often a potential business risk. You should consider carefully the pros
and cons of outsourcing before deciding to contract out any activities
or business operations.

27. Advantages of outsourcing
• Improved focus on core business activities
• Increased efficiency
• Controlled costs
• Increased reach
• Greater competitive advantage
Disadvantages of outsourcing
• Service delivery
• Confidentiality and security
• Lack of flexibility
• Management difficulties
• Instability