Human Resource Planning

Definition
It is the process of getting the right number
of qualified people into the right job at time
so that an organization can meet its
objectives.

The process of analyzing and identifying
the need for and availability of human
resources so that the organization can
meet its objective
HRP is a forward looking process short
term as well as long term
It tries to assess human resource
requirements in advance keeping the
production schedules, market fluctuations,
demand forecast in the background
It is subject to revision, in tune to the
requirements of an organisation from time
to time
It is an integral part of overall corporate
plan.
Optimum HRP therefore, aims at
Balancing demand , supply, distribution
and allocation of manpower
Controlling cost of human resource
Formulation policies on transfer,
succession, relocation of manpower.
Importance / Benefits of HRP
Reservoir of talent
Prepare people for future
Expand or Contract
Cut cost
Succession planning
Objectives
Forecast personnel requirements
Cope with changes
Use existing manpower productively
Promote employees in a systematic manner
Achieve efficiency of work in all spheres of
corporate body
Ensure cost minimization
Eliminate all types of wastage including waste of
time
Factors that Effect HRP
Lack of skilled resource
Change in organization
Changes within the organization like
promotions succession planning, policies
Change in policies/regulations

Process of Human Resource
Planning
Forecasting the Demand for Human
Resources
a)External challenges
Economic developments
Political, legal, social and technical changes
Competition

b) Organisational decision
c) Workforce factors
d) Forecasting techniques
Qualitative:
Delphi Technique
Nominal Group Technique
Quantitative: methods are based on the
assumption that future can be extrapolated
from the past
Trend Analysis
Delphi
There is a Mediator.
Individuals give the projection to the
mediator.
The mediator than passes the projection to
the Individuals.
Others get an opportunity to view the
projection of others.
The process is on until consensus is
reached
Advantages
Less interpersonal problems
Experts make revision independently

Disadvantages
Time consuming
At times does not include pass data
Nominal
Members sit face to face and share their
opinions to come to conclusion.
There is a person who writes on the board.
It facilitates group thinking and exchange
of ideas

Trend Analysis
Determine the appropriate business factor
that relates to the size of the workforce.
Identify the historical record of that in
relation to the size of the work force
Calculate the productivity ratio
Determine the trend
Make necessary adjustments in the
trends, past and future
Project to the target year


2009-10: Units of Production: 10,000
2009-10: No. of workers: 100
Ratio : 100: 10,000

2011-12 Estimated production 12,000

No. of workers required 12,000* 100 = 120
10,000

Preparing Manpower Inventory ( Supply
Forecasting)
a) Internal labour Supply
Skills inventory
Replacement chart
b) External labour supply projections are
based on skill levels in the Market. Factors
that determine external labour supply are
Education levels
Demographic changes in population.
Technological development

Population mobility
Demand for specific skills etc.
3) Gap Analysis : The existing number of
personnel and their skills are compared
with the forecasted human resource
needs to determine the qualitative and
quantitative gaps in the workforce.

Implementation Plans
Recruitment and retention plans
Selection and promotion plans
Training plans
Appraisal plans
Redeployment plans
Downsizing plans
Limitations
Problem of Accuracy
Emphasis on qualitative aspects- moral,
career goals etc are ignored.
Time consuming
Resistance from both employer and
employee
When faced with a shortage

Recruit new full time employees
Offer incentives for postponing retirement
Rehire retired employees part time
Attempt to reduce turnover
Work Present staff overtime
Subtract work to another firm
Hire temporary hands
Re-engineer to reduces needs
Out source an entire function
Use technology to improve productivity
Re-allocate people from elsewhere in the organisation
Re-allocate work tasks among current employees

When Faced with a surplus

Do not replace employees who leaves
Offer incentives for early retirement
Transfer or re-assign excess staff
Use slack time for employees training or
equipment maintenance
Reduce work hours
Lay off employees
Freeze hiring