HUMAN RESOURCE PLANNINGDefinition ObjectivesNeed & importanceProcess

Human Resource Planning offers an accurate estimate of the number of employees required with matching skill requirements to meet organizational objectives.

HRP is a forward looking function as human resource estimates are made well in advance.

HRP is the process by which an organization ensures that it has the rt. no. & kind of people at the rt. places, at the rt. time, capable of

effectively & efficiently completing those tasks that will help the organization achieve its overall objectives.

HRP ,then translates the organization's objectives & places into the no. of workers needed to meet their objectives.

Need for HRP

• future HR needs

• technological change

•Organizational changes—the changes in org. design and structure

•Demographic changes—changing profile of work force.

•Skill shortages--To meet shortages.

•Labor laws

•Govt. policies in respect to reservation, child labor

•Pressure from trade unions

•The involvement of lead time in manning the job with most suitable capabilities

•International strategies

•Is foundation for HR functions

HRP at diff. Levels• National level

• sectoral level eg.agricultural sector , industrial sector

• industry level eg. Cement, textile, chemical• unit level—org. or Co. based on its corporate\ business plan.

• Departmental level

• Job level

Factors affecting HRP

• Type & strategy of organisation merger etc

• environmental uncertainties

•Type & quality of forecasting information

• nature of jobs being filled

• off-loading the work

•Org. growth cycles & planning.

• time horizonShort plan

Long range plan

Importance

Organisations use HRP to meet future challenges, cut costs, and achieve greater effectiveness

Importance of human resource planning

Create a talent pool

Prepare people for future

Cope with organisational changes

Cut costs

Help succession planning

Analysing org.al objectives, plans

& prgms.

DEMAND FORECAST Resourse requirement

skillwise ,knowledgewise etc.

Present prgms

Control & reviewmechanisms

SUPPLY FORECAST Present inventory of Human Resources + additions – losses (skillwise knowledgewise etc.)

Net human resources requiremnets for futures (skill , knowledge,values etc)

Forecast the future supply human resources in all sources if supply is inadequate

Surplus of future of available human resources within the organization

Shortage of future available human resource within the Organization

Minus

Adjust or Modify the Organisational Plan

Plan for

Redeployment Retrenchment/ Redundancy

Plan for

Employment Training Development Internal mobility

(1)

(2)(3) (4)

(5)

(6)

(7)

(8)

(9)

The Process Of HRP

1)Analyzing the organisational plan –into production plan ,plans for expansion diversification etc.

Each plan can be further analysed into sub units

2)Forecasting the overall human resource requirements.

Forecasting Techniques

Forecasting demand

Expert Forecasts: These are based on the

judgments of those who possess good

knowledge of future human resource needs

--by supervisors

--by top mgmt.

Best approach is participative

Statistical techniquesTrend Analysis: This is based on the assumption that the future is an extrapolation from the past. Human resource needs, as such, can be estimated by examining past trends.Ratios are calculatedEg –decline in physical stamina of employees change in values in extra & social activities are also calculated

Econometric modelBy analyzing the past statistical data & by bringing relationships among variables

Delphi Technique An attempt to decrease the subjectivity of

forecasts by soliciting and summarizing the judgments of a preselected group of individuals.

The final forecast represents a composite group judgment.

Existing inventory

• Heads counts regarding total, deptt. wise,sex wise, designation-wise, skill wise

• Job family inventory eg clerks, cashiers

• age inventory—balance of young & old is preferred

•Inventory of qualifications & training including minute qualifications & training received

• Inventory of salary grades—pay wise,allowances wise

• Inventory of past performance & future potentialities

• local & non--local wise inventory

Potential losses

Potential additions

Permanent total

PermanentPartial

Temporary total

Temporary partial

New hiresPromotions inTransfer in

Demotions in

Acquiring new skills,knowledge,values aptitude etc.by the existing employees

Deputations in

Consultancyor advice

Deptt.OrSub unit

PresentHR

Voluntary quitsDeathRetrenchmentDismissalsRetirementPromotions outDemotions outTransfers out

Loss of some skills,capabilities etc.due to ill health or accident

Loss of values,aptitudes etc.,due to change in the attitude ofexisting employees towards job,deptt & org

Absenteeism(temporary loss)Deputations outLay offConsultancyor advice

Permanent total

Permanent partial

Temporary total

Temporary partial

ADDITION LOSS

3) Analyzing sources of supply

A)Internal labour supply:

B) External Labour supply:

Local

National

HRIS can provide managers with a listing of

candidates with required qualifications after

scanning the data base.

Supply Forecasting

4)Estimating the net human resource requirement

5)Action plan for redeployment , redundancy, retrenchmentIf surplus in job—redeployment in form of transfers.Org. should plan for trg. or re-orientation before re-deployment.

7) Action plan for recruitment ,development etc.

8) Modify the org. planIf future supply of HR from all external sources is estimated to be inadequate or less than the requirement, the manpower planner has to suggest the mgmt. to alter or modify the org.al plan.

9) Retention planFor retention of the existing employees by improving QWL.10) Control & review mechanism

6)Forecast future supply from all the sources if supply is inadequate

Responsibility For Human Resource Planning

HRP is a top management job. HR plans are

usually made by the HR division in consultation

with other corporate heads.

Limitations \Barriers Of Human Resource Planning

•Uncertainties

• People question the importance of HRP .They say offer attractive packages & u get or can quit people.

No need

This view is also held by top mgmt. ie. lack of top mgmt. Support

• HR plan may not adjust with org.al plan

• HR information not readily available.

• Conflict between short term & long term HR needs.

• Time & expense.

• Conflict between quantitative & qualitative approaches to HRP.

• Non-involvement of other mgrs.eg.mkting, production mgr. not concerned much about it.

The Top Ten Measures Of Human Capital

1. Your most important issues

2. Human capital value added

3. Human capital ROI

4. Separation cost

5. Voluntary separation rate

6. Total labor-cost/revenue percentage

7. Total compensation/revenue percentage

8. Training investment factor

9. Time to start

10. Revenue factor