Human Resource Planning

Human Resource
Planning
Some facts
• HRM= People Dimension in Management
• HRM has 4 steps: ATMM (Acquisition,
Training and Development, Motivation &
Maintenance )
• Getting and Keeping good people is critical
to the success of every organization whether
it be public or private
There is only one constant in the
universe.
• What is that?
That is…………
“Change”
What is HR Planning ?
•Human Resource Planning is the process by which an organization
ensures that it has the right number and kind of people, at the right
places, at the right time, capable of effectively and efficiently
completing those tasks that will help the organization achieve its
overall objectives.
HR/ Manpower Planning is the process of acquiring and utilizing

human resources in the organization. It ensures that the organization
has the right number of employees in the right place at the right time.
• Success in business is dependent on:
– Reacting quickly to opportunities
– Rapid access to accurate information
• Human resource planning (HR
planning):
– How organizations assess the future supply
of, and demand for, human resources
– Provides mechanisms to eliminate gaps that
may exist between supply and demand
– Requires readjustment as labor market
conditions change
Why Human Resource Planning is
important ?
Linking business strategy with

operational strategy:
HRP is an important process to maintain the link
between business strategy and it operation. It
follows different procedures including the need to
assess the impact of technological changes on new
jobs and new skills
important ?
Minimizing the risk of loosing:

By forecasting the needs of technical and other
human resources it can minimize the future risk of
loosing. Delay in recognizing human resources
might be costly and expensive in the future.
(Example: Government run banks are compelled to upgrade
own staff by providing latest skills and knowledge to them
to compete with other fast growing banking organizations.)
important ?
HRP needs for HRD :
HRP is important for planning the investment in
the development and utilization of human
resources. Any investment in the HR activities is
considered an investment for the future growth and
development of the organization.
(Example: When curriculum has to be changed, required
knowledge and skills of teachers/instructors should be
developed prior to implement the new curriculum. So,
educational institutions have to be aware of that)
important ?
HRP is pro-active, not reactive :

For solving any sort of future HR problem HRP is
pro-active rather than re-active.
(Example: HRP might be helpful to accommodate

government legislation regarding inclusion, qualification,
possible future demand of trade unions)
important ?
HRP is not in isolation :

HRP recognizes that there must be an explicit link
between planning function of human resources and
other organizational functions, such as strategic
planning and market forecasting.
important ?
HRP promotes awareness :

HRP promotes the awareness that human
resource activities are equally important at every
level of the organization. Both line and staff
managers have to be involved in HR planning
activities.
The HR Planning Process
• The four phases or stages of HR
planning:
– Situation analysis or
Environmental scanning
– Forecasting demand
– Analysis of the supply
– Development of action plans
Situation Analysis & Environmental
Scanning
• The first stage of HR planning is the point at which
HRM and strategic planning first interact
– The strategic plan must adapt to environmental
circumstances
– HRM is one of the primary mechanisms an organization can
use during the adaptation process
• Without a plan to support recruitment and selection, it
is impossible to stay competitive
– The problems associated with changing environments are
greater today than ever before
– Success now depends on being a “global scanner”
Forecasting Demand for Employees
• This phase of the process involves estimating:
– How many employees will be needed
– What kinds of employees will be needed
• Quantitative tools can help with forecasting,
but it involves a great deal of human judgment
– The demand for employees is closely tied to the
strategic direction that the organization has chosen
• Growth
• Reengineering
• Reorganization
Forecasting Demand for Employees
• Techniques to help reduce the uncertainty
inherent in HR planning:
– Expert estimates
– Trend projections
– Statistical modeling
– Unit-demand forecasting
• Key to effective planning is accurately and
freely sharing information
Analyzing the Current Supply of
Employees
• This phase of HR planning should answer the
question:
“How many and what kinds of employees do I
currently have, in terms of the skills and training
necessary for the future?”
• This involves more than simply counting
current employees
– The smaller and more centralized the organization,
the easier it is to conduct a skills inventory.
The Skills Inventory
• Both a skills inventory and a management inventory:
– Identify the skills, abilities, experiences, and training
employees currently have
– Are useful for career planning, management development,
and related activities
• In its simplest form, a skills inventory is a list of:
– Names
– Characteristics
– Skills
Action Decisions in HR Planning
• After the supply of and demand for

workers has been analyzed, the two
forecasts must be compared
– Whenever there is a gap between the two
estimates, a course of action must be chosen.

Human Resource Planning

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Human Resource

HR/ Manpower Planning is the process of acquiring and utilizing

Linking business strategy with

Minimizing the risk of loosing:

HRP is pro-active, not reactive :

(Example: HRP might be helpful to accommodate

HRP is not in isolation :

HRP promotes awareness :

• After the supply of and demand for

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