Human Resource Planning

Dr. Meenakshi Khemka

Effective Human Resource Planning is a process of

banalyzing an organization's human resource needs

Concept of Human Resource Planning

bunder changing conditions and

bDeveloping activities necessary to satisfy these

needs

� HRP facilitates the process of selection of

future human resources with the required

Concept of Human Resource Planning

skills, qualifications, intelligence, values, etc

by providing information related to the type of

tests and interview techniques to be used

Human Resource Planning

Process by which an organization ensures that it has

� right number of people

� at the right time � at the right time

� at the right places

� capable of effectively and efficiently completing the

tasks that will help the organization achieve its

overall objectives

HRP – Macro Level

�Population planning and control

�Literacy and education

�Health and medical care

�Housing

HRP – Micro Level

�Technology changes

�Organizational restructuring

�Skill and competency gap

�Strategic objectives

�Trade union pressure

HRP Process

�Assessing the present human resources

�Assessing the future of the organization

�Matching future demand and supply of human

resources

Planning and Forecasting

�Employment or Personnel Planning

� The process of deciding what positions the

organization will have to fill, and how to fill

them

�Succession Planning

�What to Forecast?

� Overall personnel needs

� The supply of inside candidates

� The supply of outside candidates

Forecasting Personnel Needs

ForecastingTools

Trend Analysis Scatter PlottingRatio Analysis

Drawbacks to Traditional Forecasting Techniques

�They focus on projections & historical relationships

�They do not consider the impact of strategic

initiatives on future staffing levels

�They support compensation plans that reward �They support compensation plans that reward

managers for managing ever-larger staffs

�They “bake in” the idea that staff increases are

inevitable

�They validate and institutionalize present planning

processes and the usual ways of doing things

Using Computers to Forecast Personnel Requirements

�Computerized Forecasts

� Software that estimates future staffing needs by:

�Projecting sales, volume of production, and

personnel required to maintain different personnel required to maintain different

volumes of output

� Forecasting staffing levels for direct labor,

indirect staff, and exempt staff

�Creating metrics for direct labor hours and

three sales projection scenarios—minimum,

maximum, and probable

Forecasting Outside Candidate Supply

�Factors In Supply of Outside Candidates

� General economic conditions

� Expected unemployment rate� Expected unemployment rate

�Sources of Information

� Periodic forecasts in business publications

� Online economic projections

Assessing Present Human Resources

Developing a profile of the current human

resources -

�an inventory of the workers and skills presently �an inventory of the workers and skills presently

available within the organization

�a comprehensive job analysis for the entire

organization

Human Resource Inventory

�The report contains information on the education,

training, prior employment, current position,

performance ratings, salary levels, languages

spoken, capabilities and specialized skills of every spoken, capabilities and specialized skills of every

employee in the organization

�Human Resource Information System (HRIS) is a

device for providing HR inventory information

Implications of Future Demand

�Once the current human resources situation is

assessed and the future direction of the organization

is understood, the future human needs can be

projectedprojected

�For this, a year- by - year analysis for every key job

level has to be done

�This will result in a human resource inventory

covering a specified number of years in the future

Implications of Future Demand

�Organizations usually require a heterogeneous

mix of people

�A shortage in engineering cannot be offset by

transferring from the purchasing area where there transferring from the purchasing area where there

is an oversupply

�Thus, accurate estimates are to be made of

future demands, in both qualitative & quantitative

terms

Implications of Future Supply

Internal supply

�Sources that can increase the supply of human

resources--new hires, transfers

�New hires are easy to predict as they are self-

initiated

�Predicting transfers are difficult as they often

depend on concurrent action in other units

Implications of Future Supply

Internal supply

�Decrease in internal supply of human

resources is the result of retirements,

dismissals, transfers, lay- offs, voluntary

quits, prolonged illness or death

Implications of Future Supply

External Supply

�Recent graduates from schools and colleges,

increase the supply of human resources

�Migration into community, increase in the number of

unemployed people, and individuals who are

employed but seek other employment opportunities,

represent additional sources that increase the

human resources supply

Matching Future Demand and Supply

�By matching demand and supply, HR department can

identify areas in which shortages exist

�This helps the company to hire good people either to

satisfy current requirements or to have ready satisfy current requirements or to have ready

resources for the future

�Sometimes, inadequate availability of human

resources necessitates a change in the

organization's objectives

Need for Retrenchment

�Organizations suffering from the problems of

overstaffing and experiencing a decline in overstaffing and experiencing a decline in

business would have to consider retrenchment

Retrenchment

�Organizations communicate what is going to

happen; identify inefficient employees and

retain productive employees

�These displaced employees are provided with

career counselling

Lay-offs

�Lay-offs may be temporary or permanent

�Temporary lay-offs usually occur in slack periods

when the workload of a unit does not promise when the workload of a unit does not promise

adequate work for the complete workforce

�Once the workload comes back to its normal

levels, the worker will be recalled

Loaning or Lien

� Organizations loan valuable human resource to

other organizations, retaining them on their

payrolls and take them back once the slack period

is over

�Usually, higher level managers are sent on special �Usually, higher level managers are sent on special

projects with government or quasi-government

agencies

�These loaned managers get a part of their salary

from the organization and the rest from the

agencies that have loaned them

�One person’s job is shared by two people

�These two people split an eight- hour work day

�Though two people hold one job, the company

Work Sharing

�Though two people hold one job, the company

has to pay only one person’s wage

�This option helps organizations to retain

competent employees in lean periods

Early Retirement

� The main purpose of this technique is to retire

some of the highest paid individuals in the

organization and delegate their responsibilities to

other employees who are collectively paid less

than that individual

�This is a cost-saving technique

Attrition

�Attrition is a process whereby as incumbents

leave their jobs for reasons such as retirement,

resignation, transfers etc, those jobs are not filledresignation, transfers etc, those jobs are not filled

�This is accompanied by a hiring freeze

�No recruitment will take place for jobs that are to

be eliminated

Limitations

• Accuracy

Support• Support

• Number game

THANK

YOUYOU