Human resource planning is one of the HRM functions. This function plays a vital role in planning the right number of work force in right time and in right place.

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Dr K.Sunanda
Associate Professor
Department of Business Management

2. HR Planning
• The process of systematically reviewing HR
requirements to ensure that the required
number of employees, with the required skills,
are available when they are needed
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• HR Planning at National level, Industry level
and Industrial unit level
• Just think about employee movement in an
organization

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4. Factors Affecting HR Planning
• Type and Structure of Organization
• Organizational growth cycle and planning
• Environmental Uncertainties
• Time horizons
• Type and Quality of information
• Nature of Jobs Being Filled
• Availability of funds
• Labour market
• Outsourcing
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5. Organizational Life-Cycle Stages and
HR Activities
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LIFE-CYCLE
STAGE STAFFING COMPENSATION
TRAINING
AND
DEVELOPMENT
LABOR /
EMPLOYEE
RELATIONS
Introduction Attract best
technical and
professional
talent.
Meet or exceed
labor market rates
to attract needed
talent.
Define future
skill
requirements
and begin
establishing
career ladders.
Set basic
employee-
relations
philosophy of
organization.
Growth Recruit
adequate
numbers and
mix of qualifies
workers. Plan
management
succession.
Mange rapid
internal labor
movements
Meet external
market but
consider internal
equity effects.
Establish formal
compensation
structures.
Mold effective
management
team through
management
development
and
organizational
development.
Maintain
labor peace,
employee
motivation,
and morale.

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LIFE-
CYCLE
STAGE
STAFFING COMPENSATION
TRAINING AND
DEVELOPMENT
LABOR /
EMPLOYEE
RELATIONS
Maturity Encourage
sufficient turnover
to minimize layoffs
and provide new
openings.
Encourage
mobility as
reorganizations
shift jobs around.
Control
compensation
costs.
Maintain
flexibility and
skills of an aging
workforce.
Control labor
costs and
maintain labor
peace. Improve
productivity.
Decline Plan and
implement
workforce
reductions and
reallocations,
downsizing and
outplacement may
occur during this
stage.
Implement
tighter cost
control.
Implement
retraining and
career consulting
services.
Improve
productivity and
achieve flexibility
in work rules.
Negotiate job
security and
employment-
adjustment
policies

7. Human Resource Planning Process
External Environment
Internal Environment
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Strategic Planning
Human Resource Planning
Forecasting
Human
Resource
Requirements
Comparing
Requirements
and Availability
Forecasting
Human Resource
Availability
Surplus of
Workers
Demand =
Supply
No Action Restricted Hiring,
Reduced Hours,
Early Retirement,
Layoff, Downsizing
Shortage of
Workers
Recruitment
Selection

8. Barriers to HRP
• HR practitioners are perceived as experts in
handling personnel matters, but are not
experts in managing business
• HR information often is incompatible with
other information used in strategy formulation
• Conflict may exist between short term and
long term HR needs
• Non-involvement of operating managers
renders HRP ineffective
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9. Requisites for Successful HRP
• HRP must be recognized as an integral part of
corporate planning
• Support of top management is essential
• Organization records must be complete, up to
date and readily available
• Best suited techniques must be used
• Constantly revised and improved in the light
of experience.
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10. THANK YOU
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