HUMAN RESOURCE PLANNING

By Team 1

OBJECTIVE

• Introduction• HRP : concepts and aim• HRP at macro and micro levels

• Definition Human Resources Planning is defined as the process of assessing an organization’s

human resources needs in the light of organizational goals and changing condition and making plans to ensure that a competent, stable workforce is employed. The actual planning process will vary a great deal from organization to organization.

• HRP has 4 steps : ATMM Acquisition , Training And Development, Motivation And Maintenance.

• Why important? Linking business strategy with operational strategy

Human Resource Planning (HRP) may be defined as strategy for acquisition, utilization, improvement and preservation of the human resources of an enterprise.

• The major activities of HRP include: forecasting (future requirements), inventorying (present strength), anticipating (comparison of present and future requirements) and planning (necessary programme to meet future requirements).

INTRODUCTION

OBJECTIVES OF HRP

• The objectives of HRP are mainly to:

a) ensure optimum utilization of human resources currently employed;b) assess or forecast future requirements;c) cope up with the changing scenario;d) attaching with business plans of organization;e) anticipate redundancies;f) provide basis for human resource development (HRD); andg) assist in productivity bargaining.

• Benefits of HRPProper HRP results into a number of benefits. Some of them are:a) Create reservoir of talent.b) Preparation for future HR needs.c) Promote employees in a systematic manner.d) Provide basis for HRD.e) Help in career and succession planning.

HRP AT MACRO LEVEL AND MICRO LEVEL

HRPThe process of analysis and identifying the need for & availability of human resources for a firm, an industry, a country, or at a

global level

Micro HRPProcess of forecasting demand for and supply of HR for a specific organization

HRP

HRP AT MACRO LEVEL Macro HRP refers to assessing and forecasting demand for skill

and availability of skills at national or global level. It considers industrial and economic growth of the country,

industry shifts, and the changing nature of jobs. Example: IT industry, fashion designers etc The macro HRP seeks to bridge the demand-supply gap through

professional and technical courses in colleges and university. The policy–makers have the responsibility for ensuring that educational institutes are geared to the present and future demands of the industry.

HRP AT MICRO LEVEL

Micro HRP refers to a firm’s strategy to optimize its human resources. The process of forecasting demand for and supply of human resources for a specific organization

At micro level HRP is influenced by technology changes, organizational restructuring, competency gap, strategic objectives, trade unions pressure, lead time for manpowerprocurement. HRP has become an important enterprise wide strategic function not only to achieve goals and

objectives but also to maintain consistent level of performance of organization. Globally, skill shortages, competency gaps, redundancies, downsizing, rightsizing are the major issues in today’s organization.

• Different activities performed are: - Forecasting future manpower requirements

- Preparing an inventory of present manpower - Anticipating problems of manpower - Meeting manpower requirements

OBJECTIVES OF HRPMACRO HRP MICRO HRP

To forecast economic and business environment.

To estimate future demand of numbers and types of skills by various industries

To ensure effective labour supply to different industries through activities such as interacting with educational institution

To ensure effective utilization of HR

To prevent overstaffing and understaffingTo ensure employee availability

To ensure that the firm is responsive to the environment

To provide direction to all HR activitiesTo build line and staff partnerships

Steps in HRP:

• Job analysisprocess of determining the nature of a specific job through a detailed and systematicstudy.

• Job description and job specificationJob description is recording of duties, responsibilities and conditions needed forsatisfactory performance of a particular job.The term description covers job content(conditions, tasks, responsibilities) andspecification to denote job requirements (i.e, qualities necessary) in the worker for satisfactory performance of the job.

• Developing work rules - pre determined decisions about certain course of action to be taken when contingencies arise - documented form and used as control device

• Application of IE techniques work study, method study and work measurement techniques

MANPOWER DEMAND FORECASTING

Manpower demand forecasting is influenced by two factors :

Volume of outputLevel of productivity

Manpower requirement may change due to change in output volume which calls for analysis of performance

Similarly, as the level of productivity alters over time, it also affects manpower requirements. this calls for analysis of productivity

ANALYSIS OF PERFORMANCE

• To derive manpower demand, it is necessary to estimate the manpower requirements in relation to the workload.

-Each unit of manpower or man-hours or man days required for different categories of job to accomplish the job in its entirety, are determined. After such determination the total workload is related with the manpower units of different categories and then finally the total requirement of manpower of different categories is determined.

Two types: direct and indirectDirect analysis is to review past performance to derive a ratio between two

variables (workload and manpower of certain category).Example

category A category B

Manufacturing 1 ton of saleable steel requires 10 skilled workers.

Manufacturing 1 ton of saleable steel requires 10 skilled workers.

2 tons require 20 skilled workers 2 tons requires 15 skilled workers

Company A has a constant ratio, while company B has a variable ratio, as it can double the rate of production, adding relatively less number of manpower and therefore, can achieve the economy of scale.

• Indirect analysis is based on the estimates of past experience. For short range forecasts, indirect analysis is more preferred.

Analysis of productivityTwo components: technological change and manpower utilizationAs technological changes requires huge capital investment,

organizations look for better manpower utilization to increase productivity. Also productivity substantially vary the level of performance.

Thus manpower demand forecasting can be made more effective by considering both the variables ,i.e, the performance and productivity

BUSINESS PLAN

• A business plan is a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals.

• Business plans may be internally or externally focused. Externally focused plans target goals that are important to external stake holders, particularly financial stakeholders. They typically have detailed information about the organization or team attempting to reach the goals. With for-profit entities, external stakeholders include investors and customers. External stakeholders of non-profits include donors and the clients of the non-profit's services. For government agencies, external stakeholders include tax-payers, higher-level government agencies, and international lending bodies such as the IMF, the World Bank, various economic agencies of the UN, and development banks.

• Internally focused business plans target intermediate goals required to reach the external goals. They may cover the development of a new product, a new service, a new IT system, a restructuring of finance, the refurbishing of a factory or a restructuring of the organization.

• Business plans are decision-making tools. There is no fixed content for a business plan. Rather the content and format of the business plan is determined by the goals and audience. A business plan represents all aspects of business planning process; declaring vision and strategy alongside sub-plans to cover marketing, finance, operations, human resources as well as a legal plan, when required. A business plan is a bind summary of those disciplinary plans

THANKYOU