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Human Resource Human Resource PlanningPlanning

Ms.Sadhana Banerji Asst.Professor-NDIM

Human Resource Planning

• The process by which an organization ensure that it has right number of and right kind of people at the right place ,at right time capable of effectively and efficiently completing those task that will help the organization achieve its overall objectives.

Objective of HRP• Preventing understaffing and

overstaffing.• Ensure the organization has the right

employees with the right skills at the right place at the right time.

• Ensure that organization is responsive to changes in its environment.

Nature of Human Resource Planning.

• It tells an organization how much human resource is required both in kind and in number.

• It gives inventory of existing manpower in the organization.

• It enables identification of the gap of existing man power.

• Determines the shortfall or surplus.

Process of Human resource Planning.

HRP basically involves forecasting personnel needs, assessing personnel supply and matching demand –supply factors through personnel related programmes.

HR supply forecast.

HR Need forecast.

HR Programming.

HRP Implementation.

Control and Evaluation

Recruitment.Surplus

Organizational Objectives and policies

Environment

Organizational “Objectives and

policies• HR plans need to be based on the

organizational objectives. • HR plan must be derived from

organizational objectives.

Human resource demand forecast.

• Demand forecasting is the process of estimating the future quantity and quality of people required.

• There are several reasons to conduct demand forecasting:

Quantify the jobs necessary for producing a given numbers of goods.

Determine what staff mix is desirable in the future. Preventing shortage of people where and when

they needed most.

Various forecasting techniques

A)Quantitative

Trend analysis- HR needs can be estimated by examining past trends.

Example of Trend Analysis of HR Demand

1999 Rs. 2,935 8.34 352

2000 Rs. 3,306 10.02 330

2001 Rs. 3,613 11.12 325

2002 Rs. 3,748 11.12 337

2003 Rs. 3,880 12.52 310

2004 Rs. 4,095 12.52 327

2005* Rs. 4,283 12.52 342

2006* Rs. 4,446 12.52 355

BUSINESS LABOR HR FACTOR PRODTY DEMAND

YEAR (SALES IN ‘000) (SALES/EMPLOYEE) (NO. OF EMPLOYEES)

*Projected figures

÷ =

Contd…B) Qualitative: Delphi Techniques-Taking estimates of

personnel needs from a group of experts. The final forecast represents a composite group judgment

Managerial judgment- experienced

managers estimate the future manpower requirements and their skill level for their respective departments .

HR Supply forecast.• The basic purpose is to find out

the quality and size of personnel available within the organisation.

Forecasting Supply of Employees: Internal Labor Supply

• Staffing Tables• Skill Inventories• Replacement Charts

Forecasting Internal Labor Supply

• Staffing Tables– Graphic representations of all

organizational jobs, along with the numbers of employees currently occupying those jobs and future (monthly or yearly) employment requirements.

Internal Supply Forecasting Tools

• Skill Inventories– Files of personnel education, experience,

interests, skills, etc., that allow managers to quickly match job openings with employee backgrounds.

• Replacement Charts– Listings of current jobholders and persons

who are potential replacements if an opening occurs.

An Executive Replacement Chart

HRP ConsiderationsBalancing supply and

demand

HR Programming.• Once an organization's personnel

demand and supply are forecast.• The two must be reconciled or

balanced in order that vacancies can be filled by the right employees at the right time.

HR Plan Implementation.

• Converting an HR plan into action.• A series of action programmes are

initiated as a part of HR plan implementation.(Recuitment,selection and placement, T and D, retaining etc.)

Control And evaluation• HR plan should includes budgets,

targets and standards.• Comparison between what has been set

and what is actually achieved.• Cost against budget.

IF HR SUPPLY IS IN SURPLUS

• VRS• LAY-OFFS : due to shortage of

POWER,, MACHINE BREAKDOWNS .• Restricted Hiring.

IF HR is in shortage.• Recruitment ,selection and

Placement.

Requisites for Successful HRP

1. HRP must be seen as equally vital as business planning

2. The planner of human resource must be aware of the corporate objectives.

3. Top-management support4. Periodic review and revision of the forecasting

techniques and the forecasts.5. An excellent and up-to-date HRIS6. Active involvement of line managers and co-

ordination between line mgrs and HR function