1 - Chp - Human Resource Planning

8/3/2019 1 - Chp - Human Resource Planning

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HUMAN RESOURCE

ACQUISITION AND

DEVELOPMENT


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HUMAN RESOURCE PLANNING

MODULE - 1


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23-09-2011

In todays class let us discuss about : -

Definition of HRP Meaning of HRP

Objectives of HRP

Importance of HRP

Factors Affecting HRP

HRP Process


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DEFINITIONS

HRP is a process by which an organizationstrikes a balance between the humanresources REQUIRED and ACQUIRED inthe organization.

HRP is defined as the process by whichmanagement determines how an organizationshould move from its current manpowerposition

to its desired manpowerposition.


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DEFINITIONS

Manpower planning is a process including

forecasting, developing and controlling by which afirm ensures that it has the right numberof peopleand the right kind of people at the right places atthe right time

doing work for which they are economically mostuseful.

E. Geister


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Characteristic of HRP

1. HRP is a subsystem of the total organizational planning.

2. HRP should ensure right number of people, right kind of

people at the right time.

3. HRP includes the inventory of present manpower, supply anddemand of the manpower and the possibilities of using the

manpower to its full capacity.

4. HRP includes determination of HR both in quantitative andqualitative terms.


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Objectives of HRP

To ensure optimum use of existing HR.

To forecast future requirement for HR.

To provide control measures to ensure thatnecessary HR are available as and when

required.

To assess the surplus and shortage of HR.


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Objectives of HRP Contd.

To anticipate the impact of technology onjobs and HR.

To determine the level of Recruitment and

Training. To meet the needs of expansion and

diversification programmes.


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Importance of HRP:

1. Each Organisation needs personnel with necessary qualifications,skills, knowledge, experience & aptitude .

2. Need for Replacement of Personnel - Replacing old, retired ordisabled personnel.

3. Meet manpower shortages due to labour turnover - Indian Airlines,Gas Authority of India headless for 10 months.

4. Meet needs of expansion / downsizing programmes - As a result ofexpansion of IT companies the demand for IT professionals areincreasing. PSUs offering VRS to employees to retrench staff andlabour costs. DOT.COMs firing staff.

5.C

ater to Future Personnel Needs - Avoid surplus or deficiency oflabour. 75% of organizations are overstaffed. Redeployment ofstaff to other units.

6. Nature of present workforce in relation with Changing Environment -helps to cope with changes in competitive forces, markets,technology, products and government regulations.


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Factors Affecting HRP


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1. Nature of work in an Organization : -

2. Organizational growth cycle and planning Start up, growth, maturity, decline

3. Environmental uncertainty

4. Policies of the government

5. Company Objectives

6. Labour Unions

7. Time period

8. Technology

9. HR policies

Factors Affecting HRP: -


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PROCESS OF HRP :-


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HRP Process

HR Needs Forecast

HR Programming

HRP Implementation

Control and Evaluation

ShortageSurplus

Environment

Org objectives and policies

HR Supply Forecast


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Forecasting Techniques :

JudgmentalForecast : -

1. Managerial Judgment

2. Delphi Method

Statistical Techniques: -

1. Ratio Trend analysis2. Work study technique

3. Scatter Plots


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Management Judgment Method

1. The top and operating managers participate.

2.Both bottom-up approach and top-down

approach methods are used.

- Operating managers prepare manpower plans

and send up to the top level for approval.

- Or, the top mangers prepare the forecast and

send down to the operating levels forcomments after which it is finalized.

3. Neither of them is accurate, the combination of

both will yield a positive result.


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Delphi technique method

This is a more refined judgmental method;

It is group decision making system.

The managers involved do not meet face-to-face.

It is most popular method, but it is more time consuming.

The following steps are involved:

the managers are asked to provide manpower estimates on a

pre-designed questionnaire, to HR department.

Each manager submits his estimate anonymously and

independently.


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Delphi technique method

- The HR dept compiles and summarizes the various

responses and reports the findings back to each the

managers.

- After receiving the feedback, the managers are

surveyed once again, for reviewed estimates.- The summaries and surveys are repeated until the

managers opinions begin to agree.

- The agreement reached is the forecast of the

manpower needs.


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Work Study Method

Can be used where work methods and time standard are

available. This technique is suitable where volume of

work is easily available. E.G,.

- Planned output for next year units : 50,000

- Standards hours per day : 8

- Planned hours required (50,000 * 8) : 400,000

- Productive hours per workman/year : 2000

- No. of workers required, 400.000/2000 : 200


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Ratio Trend Analysis Method

1. Very quick method, on the basis of studying past ratios.

e.g. total output/number of workers, total sales

volume/number of sales persons)

2. Past ratios are used for future forecasts, e.g.

- production last year : 100,000 units

- number of workers last year : 100

- estimated production next year 120.000

- no. of workers required next year 120

i.e, (120.000/100.000)* 100

After computing the above number, adjustments are to be

made for planned separations.


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SCATTER DIAGRAM

A scatter diagram is a tool for analyzingrelationships between two variables.

One variable is plotted on the horizontal axis and

the other is plotted on the vertical axis. Thepattern of their intersecting points can graphically

show relationship patterns.


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Scatter Diagram


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Computerised Forecasting:

Employers use software programs to forecast

personnel requirements.

Determination of future staff needs by

projecting sales, volume of production, and

personnel required to maintain this volume

of output, using software packages.


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HR Supply Forecasting:

Supply forecasting measures the number of people likely

to be available from within and outside an organization.

Existing Human Resources:

Existing Human Resources analysis is facilitated by HR

Audits which includes Skill Inventories and

Management Inventories.


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Internal Supply:

It includes estimation of future losses due to

Retirements

Ill health Death

Lay-offs

Employee turnover

Internal Supply = Current personnellevel outflows + inflows


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External Supply:

It is important for the company as they bring new

experience, lost personnel are needed to be

replenished and expansion plans need morepeople than the internal supply


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Documents

1 - Chp - Human Resource Planning