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LEARNING OBJECTIVES
Ms Shabnam
Define Human Resource Planning (HRP)
Understand the nature and importance of HRP
Analyse and evaluate the factors affecting HRP
Critically evaluate the HRP process
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HUMAN RESOURCE PLANNING (HRP)
Ms Shabnam
Human Resource Planning (HRP) refers to theprocess of evaluation and identification of HRrequirements for meeting organisational goals toensure competitive advantage in the marketplace.
HRP should be a key component of nearly everycorporationsstrategic business planning.
HRP translates the organisations objectives andplans in to the number of workers needed to meetthose objectives.
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HUMAN RESOURCE PLANNING (HRP)
Ms Shabnam
HRP planning approach addresses the followingquestions
How many employees do we have/need?
How are they distributed? Their department/branch locations
What is the age profile?
How many will leave in each of the next five years? How many will be required in one, five, ten years?
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Characteristics of Strategic HRP
Ms Shabnam
Having adequate number of employees
Having the right mixture of talent
Moves beyond the traditional role of HR as primarily
an administrative control function Adds value to the organisation
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The Importance of Strategic HRP
Ms Shabnam
Provides a road map for future staffing requirements-provides
future personnel needs
Business competition- to consider optimal solutions for the long-
term and under challenging economic conditions-enables to cope
with business changes
Employee Development-documents the talents and skills of
people who are in place and creates a highly talented workforce
Can anticipate resistance to change and re-location
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Factors that Affect HRP
Ms Shabnam
The stage of business- business growth, businesschange and business decline
Labour cost control- labour budgeting
Impact of Technology Labour market trends and regulations
Demographic trends
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Factors that Affect HRP
Ms Shabnam
Human Resources are unpredictable-they can easilyupset plans through resigning, being sick, refusing totake up certain roles
Surpluses and deficits are more difficult to manage Human Resources need careful and sensitive to
handling, which requires substantial thought andcare on the part of HR managers
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Human Resource Planning Process
Ms Shabnam
The HRP process has to take account of theorganisations likely future demand for labour and ofthe potential supply of labour
Demand forecasting
Supply forecasting
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Human Resource Planning Process
Ms Shabnam
Demand Forecasting: This entails estimating theorganisations future staffing requirement in terms ofnumbers and skills, by reference to its aims andobjectives and taking account of changes in working
practices and activity levels.
Supply Forecasting: This entails estimating thelikely future labour supply, both from and within the
organisation taking account of employee wastage,current skills mix, performance, etc. and from outsidethe organisation taking account of the potential pool ofstaff with the right levels of knowledge and skill.
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STEPS FOR EFFECTIVE HR PLANNING
Ms Shabnam
Demand Forecasting
Inventory Analysis and Supply Forecasting
Audit
Reconciliation Control
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STEPS FOR EFFECTIVE HR PLANNING
Ms Shabnam
Inventory analysis is keeping track of the currentemployees in the organisation to determine the extentto which this meets the forecast
The HR Inventory Analysis Entails Skills inventory or keeping track of the number of
employees and the age, locations, qualifications, andskills of each employee to determine the specific role
each employee would fill in the short term and in thelong term
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STEPS FOR EFFECTIVE HR PLANNING
Ms Shabnam
Forecasting resignations and recruitment andunderstanding their impact on the skills inventorylevels
Forecasting leaves, transfers, dismissals, sabbaticals,prolonged illness
Internal supply of HR include methods such as
replacement schedules, succession planning
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AUDIT
Ms Shabnam
Audit is the process of reconciling inventory with
forecast through a systematic analysis of demand and
supply forecasting and identifying areas where
shortages and surpluses exist
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AUDIT
Ms Shabnam
The audit phase also involves
Identifying reasons for resignations, the cost of suchresignations such resignations such as recruitmentand training costs of new hires, cost of lost
experience, skills and knowledge of the departingemployee and devise retention plans to retain keytalent
Review the effectiveness of the recruitment activities,
training and development initiatives, career planningexercises, succession planning and otherinterventions
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RECONCILIATION
Ms Shabnam
Action plans to bridge the gap between forecast and supply
The various alternatives include:
Strategy to recruit new employees
Adopting retrenchment or downsizing strategy to shedexcess workforce
Training and development plans to right-size theworkforce
Career planning and succession planning to identify key
personnel Changes in work regulation such as timings, overtime
policy etc
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CONTROL
Ms Shabnam
Monitoring and controlling the implementation ofthe HR plan
This entails ensuring implementation proceeds inaccordance with the plan and also taking timely coursecorrections