Lecture 2- HR Planning

7/28/2019 Lecture 2- HR Planning

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HUMAN RESOURCE PLANNING

Also known as workforce planning or personnel

planning.

DefinitionThe process of determining the human resource

needs of an organization and ensuring that the

organization has the right number of qualified

people in the right jobs at the right time.


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Explanation of the definition

Matching the supply of people with those to be hired

Process of determination of HR needs

For a certain period of time

Systematic assessment of future HR requirement

Right people at right place (examples: absence of amanager, workload in a particular dept, due to a talented

marketing manager demand increases but..)


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Relation with Organizational Planning

HRP derived from organizational and operationalplan of the Orgn.

What to do?

Be familiar with the business strategy

Research the HR implications on business

Identifying human resource issues that affect obj


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Steps of HRP

Determining Orgn Objectives

Determining the skills and expertise required

Determining additional HR Requirements

Developing Action Plans


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Determining Orgn Objectives

Objectives should be stated in terms of expectedresults (long term and short term)

Involving all levels of Mgnt in the planning process

Environmental Factors affecting HR needs

Govt influence

General Economic Conditions

The Competition

Changes in the workforce


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Determining Skills and Expertise

After determining objectives skills and expertiserequired to meet their respective objectives to be

determined

Not to look at the present employees but future

Examples: 10% increase of production

Reviewing the current Job descriptions

Determine the number of HR needs


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Methods of forecasting HR needs

Several methods, but should not be taken as absolutesrather approximations

It is Judgmental or mathematical

Judgmental

More used than mathemetical

Managerial estimates

Delphi Technique

Scenario analysis


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Managerial Estimates: Managers determine future needs

based on past experience, it could be top-down, bottom

up or combined.

Delphi Technique: a panel of experts individually andindependently estimates future demand. An intermediary

then presents and asks to readjust or continues until

consensus emerges.

Scenario Analysis: It encourages open and out of the boxthinking, a scenario developed of the future HR needs

based on key point changes.


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Mathematical Techniques

With the increased technical development the use

of M technique increased off late..

Statistical methods

Statistical data are historical data to project future...


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Statistical Modeling

Time Series Analysis: Past staffing levels areexamined; retrenchment (seasonal), calculate

moving average and project

Personnel Ratio: personnel data are examined to

determine historical relationships among thenumber of employees in various jobs.

Productivity Ratio:

Workload

P= -------------------------

Number of People


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i

Regression Analysis: Past levels of various workloadindicators; sales, production etc. are examined for

statistical relationships with staffing levels. Where

sufficiently strong relationships are found, a regression

model is derived.Benchmarking Models are also used in determining skills

and expertise required for the organization.


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Determining Additional HR Requirements

Once a manager has determined the types andnumber of employees required, HRM analyzes

these estimates in light of the current and

anticipated human requires of the orgn.

Skill Inventory:Personal data: age, sex, marital status

Skills: edu, job exp, training

Special qualification: membership, achievements

Salary and job history:

Company data: benefit, seniority, retirement

Capacity of individual

Special preference of the individual: location


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Managerial Inventory: It differs from individualassessments; In addition to bio data assessment of others

like past performances, strengths, weaknesses and

potential for advancement.

Anticipating changes in personnel: some changes can bepredicted; retirement, transfer, promotion but some

changes are difficult to project; death, resignations and

discharges but past records can provide useful info

Documents

Lecture 2- HR Planning