This document provides an overview of human resource planning. It defines HRP as forecasting an organization's future demand for and supply of employees. The importance of HRP includes ensuring the right number and quality of employees, supporting strategic planning, and uniting managerial perspectives. Factors like organizational growth and the environment impact HRP. The planning process involves scanning the environment, forecasting HR needs and supply, developing HR programs, implementation, and evaluation. Forecasting techniques and analyzing internal and external sources of employees are discussed.

1. Course: MBA SEM 2
Subject: Human Resource Management
Unit 2
Human Resource Planning

2. Meaning and Definition
• Human Resource Planning is the process of
forecasting a firm’s future demand for, and
supply of, the right type of people in the
right number.
• In other words of D.S.Beach (1967) Human
resource planning may be defined as,
“the process of ensuring the right number
of qualified people into the right job at the
right time to deliver the result in an
efficient and effective manner.”

3. Importance of HRP
1. Future Personnel Needs
2. Part of strategic planning
3. Creating highly talented personnel
4. International Strategies
5. Foundation for personnel functions
5. Increasing investments in human resources
6. Resistance to change and move
7. Unite the perspectives of line and staff managers.
8. Other benefits

4. Factors affecting HRP
• Type and Strategy of the Organization
• Organizational Growth Cycles and Planning
• Environmental Uncertainties
• Time Horizons
• Type and Quality of information
• Nature of Jobs Being Filled
• Outsourcing

5. Environment
Organizational objectives and policies
HR Needs Forecast HR supply Forecast
HR Programming
HR Implementation
Control and Evaluation
of Programme
Surplus
Restricted Hiring Reduced
hours VRS, Lay off, etc
Shortage, Recruitment,
selection, etc.

6. The Planning Process
1. Environmental Scanning
• Economic factors
• Technological changes
• Demographic changes
• Political and legislative
• Social concerns

7. 2. Organizational Objectives and
policies
3. HR Demand Forecast
• Quantify the jobs necessary for
producing a given number of
goods, or offering given amount of
services
• Determine what staff-mix is
desirable in the future

8. • Assess appropriate staffing levels in
different parts of the organization so as
to avoid unnecessary costs.
• Prevent shortages of people
• Monitor compliance with legal
requirements with regard to reservation
of jobs.

9. • Forecasting Techniques
1. Managerial judgment
2. Ratio-trend analysis
3. Regression analysis
4. Work study techniques
5. Delphi technique

10. 4. HR Supply Forecast
A. Existing human resources
B. Internal sources of supply
C. External sources of supply
- Skill inventories
- management inventories

11. Internal supply:
• Inflows and Outflows
• Turnover rate
• Conditions of work and absenteeism
• productivity level
• movement among jobs

12. External supply:
Reasons-
1. new blood and new experience will be available
2. Organisation needs to be replenish lost
personnel
3. organizational growth and diversification create
the needs to use external sources to obtain
additional numbers and types of employees.

13. 5. HR programming
6. HR plan implementation
• Recruitment, Selection and placement
• Training and development
• retaining and redeployment
• Retention plan
 Compensation plan
 performance appraisal
 employees leaving in search of green pastures
 employees leaving because of conflict

14. • the induction crisis
• shortages
• unstable recruits
7. Control and evaluation

15. Bibliography
• http://www.whatishumanresource.com
• Human Resource and Personnel Management-
K. Aswathappa, Tata McGraw Hill