Strategic HR planning is a process that aligns human resource management with organizational goals, forecasting current and future workforce needs to ensure effective staffing. It involves key components such as requirement forecasting, employee availability analysis, and systematic data management. Proper HR planning enhances decision-making, employee retention, and overall organizational success.

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2. Strategic HR
Planning
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3. Strategic HR Planning
• Strategic HR planning is a process that helps your
organization identify current and future human
resources needs in order to achieve your goals.
• It should link HRM to the overall strategic plan of an
organization.
• Strategic HR Planning involves developing a project plan.
• SHRP is the determination of the overall organizational
purpose and goals and how they are to be achieved.
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Strategic
HR
Planning

5. Steps of HRP
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7. Essential Components of HRP
• Requirement
Forecasting human requirement involves the determining
the number and types of employees needed.
• Availability
When employee requirements have been analyzed, the
firm determines whether there is a surplus or shortage of
manpower.

8. Why is strategic HRP important?
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9. Significance of Human Resource Planning
• HRP is a process that has to be commenced from somewhere and
completed for a particular purpose. It involves gathering information that
ensures managers are able to make sound decisions.
• The obtained information is also utilized in order to achieve it’s the goals.
• If HR planning is applied properly, it can help in answering the four
important questions:
– What is the strength of the organization?
– As far as skill sets are required what kind of employees does the
organization have?
– How should the organization function in order to be able to utilize all its
resources properly?
– How can the company retain its employees?
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10. Developing HRP for an Organization
• Effective HR planning helps the
organization work smoothly and
also achieves success in the
present times.
• HR professionals working
towards developing HR planning
for an organization , assists the
organization to manage its staff
strategically.
• Apart from that HR planning can
also ensure a proper career
planning for employees and help
them in achieving their goals.
• It will also ensure augmentation
and eventually make the
organization a better place to
work in. The major steps involved
in HR planning include the
following:
– Forecasting
– Inventory
– Audit
– HR Resource Plan
– Plan of Action
– Monitoring and Control
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11. Functions of HRP
• Work-force profile analysis
– Work-force labor supply and demand
analysis or work force profile analysis
review.
• Work-force dynamic analysis
– Number of new hires, transfers and
promotions, number still needed in the
future and those employees who are
available to fill up job openings in the
future.
• HRP for decision making
– This application pertains to information
about employees who are about to
retire, job classification of employees
for promotions and those departments
that lack basic skills for the job.
• Performance Management
application
– Employee performance ratings,
disciplinary actions, work rule violations
and the daily productivity index could
now be stored in computer data base as
bases for management decisions.
• Training and Development
applications
– These are used primarily to track down
the need for employees training programs,
courses to attend certified skills, and
educational qualifications.
• Compensation and benefits
applications
– This include payroll, job evaluation, salary
survey, salary planning and analysis,
executive compensation planning and
management benefits.
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12. Features of HRP
• Systematic forecasting of
manpower needs
– On the basis of business
condition and forecasts,
manpower needs are
planned and monitored
closely.
• Performance management
– Analyzing, improving and
monitoring the
performance of each
employee and of the
organization as a whole.
• Career management
– Determining, planning and
monitoring the career
aspirations of each
individual in the
organization and developing
them for improve
productivity.
• Management Development
– Assessing and determining
the developmental needs
of managers for future
succession requirements.
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13. Developing HRP for an Organization
• From forecasting to Action of planning requires a lot
of concentrated effort.
• The HR department of any organization has an
enormous task – that of keeping pace with all the
changes and ensure that the organization has the
right kind of employees at the right time.
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14. Important elements in HRP
1. Organizational goals- the human resource planning process should be
tied up with the organizational strategic goals.
2. Human resource forecast- process is the forecasting of human resource
needs based on the business strategies, production plans, and the various
indicators of change in technology and the organization’s operating
methods.
3. Employee information- process is maintaining accurate information
concerning the composition, assignments, and the capabilities of the
current workforce.
4. Human resource availability projections- process is estimating the
number of current employees and those that could be available in the
future.
5. Analyzing and evaluating human resource gaps- process is comparing
what is needed when what is available in terms of numbers, mix, skills,
and technologies.
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15. How HR is planning employment?
1. Long term trend- is usually done for a period of five years or
more depending on the company operations and customer
demands.
2. Cyclical variations- refers to reasonable and predictable
movements that occur over a period of one year or more.
3. Seasonal variations- this is a reasonable prediction change
over a period of one year.
4. Random variations- this is one occasion where there is no
special pattern and is quite difficult to predict or determine.

16. HR role in providing Competitive Advantage
• Emergent strategies
– It consist of strategies that
evolve from the grassroots
of the organization and can
be thought of as what the
organization actually do.
• Intended strategies
– There are the results of
the rational decision
making by top
management as they
develop strategic plans.
– It is a pattern of plans
that integrates an
organization’s major goals,
policies, and action
sequences into a cohesive
whole.
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17. Human Resource Information System(HRIS)
•HRIS is any organized approach to obtaining relevant
and timely information in which to base human resource
decision.
• An effective HRIS is crucial to sound human resource
decision making.
•It is designed to provide information that is SMART

18. Human Resource Information System(HRIS)
• Systematic Information
– It must be systematically arranged
and contain the needed data.
• Management oriented
– The data and information are
essential tools for effective
manpower planning, retention,
development and separation of
employees.
• Applicable
– The data and information stored in
file must be applicable in meeting
human resource decision. A relevant
data must be discarded.
• Result- oriented
– The results from the information and
the decisions derived thereat must be
acceptable to management and the
employees concern.
• Time bound
– Relevant resource information are
necessary for effective decision
making. The need for timely decisions
are crucial to the effective
management of human resources.
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19. An effective HRIS also produces and forecasts several
important reports related to business operations
• Routine Reports
– These are human resource data
summarized on schedule basis
like current manpower status,
regular employees, contractual
employees, supervisor and
managerial employees on a
regular payroll.
• Exception Report
– This information may contain
confidential data that are
available only for
managerial decision making
and needs immediate attention.
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• On demand Reports
– This may pertain to productivity
index, individual performance
record, and other information that
may lead to downsizing and other
personal action.
• Manpower forecasts
– Applies to predictive models based
on specific situation. This may cover
increase or decrease to manpower
requirements due to seasonal
demands or increase in customer
orders.

20. Human Resource Forecasting
Process of projecting the organization future HR need (demand) and how it will meet
those needs (supply) under a given set of assumptions about the organization policies
and the environment conditions where it operate.
Without Forecasting we can not asses the distinct between the supply and demand.
Forecasting HR Demand
• Forecasting HR demand is the process of
estimating the future HR requirement of
right quality and right number.
• HR demand forecasting requirement is to
be estimated keeping in view the
organization plan over given period of
time.
• Job analysis and forecasting about the
quality of potential HR facilitates demand
forecasting.
Forecasting HR supply
• The purpose of identifying future HR
supply requirements is to determine
the number of employees require for
each job and their knowledge, skills ,
abilities and other characteristics.
• HR supply forecasting is essential in
determining the characteristics of
hiring sources with the
predetermined planning horizon in
order to establish whether future HR
supply is sufficient to match future
HR demands
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21. HR Demand and Supply
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22. Forecasting HR Demand
Factors affecting
• Human Resource Demand
Forecasting depends on
several factors, some of
which are given below:
• Employment trends
• Replacement needs
• Productivity
• Absenteeism
• Expansion and growth
Techniques
1. Managerial Judgment
2. Work Study Technique
3. Ratio-trend Analysis
4. Econometric Model
5. Delphi Model
6. Other Techniques
– Organization-cum-succession-charts
– Estimation based on techniques of
production
– Estimates based on historical records
– Statistical techniques e.g. co-relation
and regression analysis.
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23. Forecasting HR supply
Factors affecting Externally
• Supply and Demand of jobs or skills
• Education accomplishment levels
within a region
• Compensations pattern based on
experience , occupation or
Education
• Immigration and emigration
patterns within the area
• Forecast of economic Growth an
decline
Factor affecting Internally
• Organizational features (e.g ., staffing
capabilities )
• Productivity – Rates of productivity ,
productivity changes
• Rates of promotion , demotion ,
transfer and turnover
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Forecasting Methods of
HR Supply
•Trend Analysis
•Competency model
•Replacement charts

24. Outsourcing
• Outsourcing is the business practice of hiring a party
outside a company to perform services and create
goods that traditionally were performed in-house by
the company's own employees and staff.
• Outsourcing is a practice usually undertaken by
companies as a cost-cutting measure.
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25. • Offshoring is moving the work to a distant country. If the distant workplace is a
foreign subsidiary/owned by the company, then the offshore operation is
a captive.
• Insourcing entails bringing processes handled by third-party firms in-house, and is
sometimes accomplished via vertical integration.
• Offshore outsourcing is the practice of hiring an external organization to perform
some business functions ("Outsourcing") in a country other than the one where
the products or services are actually performed, developed or manufactured
("Offshore").
• Farmshoring refers to outsourcing to USA rural-located companies.
• Homeshoring (also known as Homesourcing) is a form of IT-enabled "transfer of
service industry employment from offices to home-based ... with appropriate
telephone and Internet facilities. These telecommuting positions may be
customer-facing or back-office ,]and the workers may be employees
or independent contractors.
• An Intermediary is when a business provides a contract service to another
organization while contracting out that same service.
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26. Business Process Outsource (BPO)
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27. Outsourcing Models
• There are many outsourcing models, and they've varied by
country, year and industry.
• Another approach is to differentiate between tactical and strategic
outsourcing models.
• Tactical models include
– staff augmentation
– project-based
– to gain expertise not available in-house.
• Strategic consultancy includes for Business Process Management
(BPM) improvement.
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28. Key Drivers to Outsource
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29. Outsource Services
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30. Conclusion
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