Human Resource Planning

HUMAN RESOURCES
PLANNING

THE RI GHT PEOPLE AT THE RI GHT PLACE AT
THE RI GHT TI ME

1
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.

DEFINITIONS
In simple words, HRP is understood as the process of
forecasting an organizations future demand for, and
supply of, the right type of people in the right number

Human Resource planning is the process by which a
management determines how an organization should
move from its current manpower position to its desired
manpower position. Through planning a management
strives to have the right number and the right kinds of
peoples at the right places, at the right time to do the
things which result in both the organization and the
individual receiving the maximum long range benefit---
ERIC W Vetter

IMPORTANCE OF HR PLANNING
Future Personnel needs
Part of strategic planning
Creating Highly Talented Personnel
International Strategies
Foundation for HR Functions
Increasing Investments in Human Resources
Resistance to change and Move

FACTORS AFFECTING HRP
Type and strategy of organization
Organizational growth cycle and planning
Environmental uncertainties
Time horizon
Type and quality of forecasting information
Labour Market
Outsourcing

HRP PROCESS
ENVIRONMENT SCANNING
External Forces are as follows

Economic Factor
Technological changes
Demographic changes
Political issues
Social concerns
Government Regulation
Employment opportunities vis--vis unemployment
levels
Competitors strategy

ENVIRONMENT SCANNING
Internal Changes in Organizational Environment

Product mix and capacity utilization.
Acquisition and merger.
Activities of expansion operations and technological
up gradation.
Wages revision and bonus payment.
Working environment and conditions.
Changes in ownership and Boards of Directors.
Morale and motivation of new managers.
Reorganization and induction of new managers
ORGANIZATIONAL OBJECTIVES AND POLICIES
HR plans need to be based on organizational
objectives. This implies that the objectives of the HR
plan must be derived from organizational objectives.
Keeping in view the organizational objectives, specific
policies need to be formulated like
1. Are vacancies to be filled by promotions from within or
hiring from outside.
2. How to enrich employees job
3. To what extent production and operations be automated
and what can be done about those displaced.
4. How to ensure continuous availability of adaptive and
flexible workforce.

HR DEMAND FORECAST
Demand forecasting is the process of estimating the quantity and
quality of people required to meet future needs of the organization
Forecasting Methods
1. Managerial judgement: In this managers sit together, discuss
and arrive at a figure which would be the future demand for
labour.
2. Ratio trend analysis: The technique involves studying past ratios
and forecasting future ratios making some allowances for
changes I the organization or its methods.
3. Regression analysis: This is similar to ratio-trend analysis in that
forecast on the relationship between sales volume and
employee size
4. Work study techniques: Work-study techniques can be used
when it is possible to apply work measurement to calculate the
length of operations and the amount of labour required.

HR DEMAND FORECAST
1. Delphi technique: Named after the ancient Greek
Oracle at the city of Delphi, the Delphi technique
is a method of forecasting personnel needs. It
solicits estimates of personnel needs from a group
of experts, usually managers.
2. Flow Models: Flow models are very frequently
associated with forecasting
HR SUPPLY FORECAST
The supply analysis covers
Existing human resources:
Internal sources of supply
External sources of supply
Present Employees:
Skills Inventory: Audit of Non managers. Include-personal data, skill, salary
& job, company data, capacity of individual etc.
Management Inventory: Audit of Managers. It includes-Work history,
strength & weakness, carrier goal, personal data, previous duties etc.
Internal Sources: The techniques generally used for the purpose
are:
Inflow and outflow
Productivity level
Movement among jobs
External Supply: University, college, Recruiting agency, open job
market, Experienced employee market. individuals after early retirement.
Ex-Army Etc.

HR PROGRAMMING
Once an organizations 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
Implementation requires converting an HR plan into
action. A series of action programmes are initiated
as a part of HR implementation.

Human Resource Planning

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HUMAN RESOURCES

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