TwinTo is a leasing and mortgaging product

development company based out of the US and its

13th year of operation decided to come to India and
set up its offshore product development centre in
PUNE. On the day it launched the India operation on
1st June 2015, it had already hired CEO, HR and IT
head, CFO and core development team of 15 Java
developers and 5 quality control engineers, 1 chief
architect, one system admin and one facility
manager. Six months from the launch date the team
was trained and live on to product development and
was doing the development for five key product
• The US based strategy and Planning team was extremely
satisfied with progress and the quality of the work done in
the Indian Unit. They now build the Indian unit to move
from 20% development work to 50% model. They also want
to close the quality assurance centre in US and move the
entire quality assurance unit in INDIA.
They have hired your team to build the plan for HR.

What information you will need?

How you will identify the HR requirement for the company
in INDIA?
What external information you will consider during
planning of HR?
HUMAN RESOURCE
PLANNING
5-2

INTRODUCTION

Human resource planning is a process by which an

organization ensures that

 it has the right number and kinds of people

 at the right place

 at the right time

 capable of effectively and efficiently completing those tasks that will

help the organization achieve its overall strategic objectives

Human Resource Planning

HR planning must be

 linked to the organization’s overall strategy to

compete domestically and globally.

 translated into the number and types of workers

needed

Senior HRM staff need to lead top management in planning

for HRM issues.
5-3

Objectives of human resource planning

Forecast personnel requirements

Cope with changes
Use existing manpower productively
Promote employees in a systematic way

Human Resource Planning

5-4

Importance of human resource planning

Create a talent pool

Prepare people for future
Cope with organizational changes
Cut costs
Help succession planning

Human Resource Planning

THE HR PLANNING PROCESS
Environment
Organizational
objectives and
policies

HR Needs Forecast HR Supply Forecast

HR programming

HRP
Implementation

Control and
Evaluation of
Programme

Surplus
restricted hiring Shortage
reduced hours Recruitment and
Selection
Figure 2–4 Model of HR Forecasting

FORECASTING
FORECASTINGDEMAND
DEMAND
Considerations
Considerations Techniques
Techniques BALANCING
BALANCING
• •Product/service • •Trend SUPPLY
SUPPLYAND
Product/servicedemand
demand Trendanalysis
analysis DEMAND
AND
• •Technology • •Managerial DEMAND
Technology Managerialestimates
estimates
• •Financial
Financialresources
resources • •Delphi technique
Delphi technique
• •Absenteeism/turnover
Absenteeism/turnover (Shortage)
(Shortage)
• •Organizational
Organizationalgrowth
growth Recruitment
Recruitment
• •Management philosophy
Management philosophy • •Full-time
Full-time
• •Part-time
Part-time
• •Recalls
Recalls
Techniques
Techniques External
ExternalConsiderations
Considerations
• •Staffing
Staffingtables
tables • •Demographic
Demographicchanges
changes
(Surplus)
(Surplus)
• •Markov • •Education Reductions
Markovanalysis
analysis Educationof
ofthe
theworkforce
workforce Reductions
• •Skills inventories • •Labor mobility • •Layoffs
Layoffs
Skills inventories Labor mobility
• •Replacement • •Government • •Terminations
Replacementcharts
charts Governmentpolicies
policies Terminations
• •Succession planning • •Unemployment • •Demotions
Succession planning Unemploymentraterate Demotions
• •Retirements
Retirements
FORECASTING
FORECASTINGSUPPLY
SUPPLY

11
5-8

Forecasting techniques
Management Forecasts
The opinions (judgments) of supervisors, department managers, experts, or
others knowledgeable about the organization’s future employment needs.

Delphi Technique
An attempt to decrease the subjectivity of forecasts by soliciting and
summarizing the judgments of a preselected group of
individuals.The final forecast represents a composite group
judgment.

Human Resource Planning

5-8

Forecasting techniques
Trend Analysis: This is based on the assumption that the future is
an extrapolation from the past. Human resource needs, as such, can
be estimated by examining pas trends.

An example of trend analysis

2012-013 Production of Units : 5,000
2012-013 No. of Workers : 100
Ratio : 100:5000
2013-14 Estimated Production : 8,000
No. of Workers required : 8000 × = 160
If supervisors have a span of 20 workers, 8 supervisors are also needed in
2013-14 100
5000

Human Resource Planning

5-11

Supply Forecasting

Internal labour supply: a manpower inventory in terms of

the size and quality of personnel available (their age, sex,
education, training, experience, job performance, etc) is usually
prepared by HR departments
Several techniques are used while ascertaining the internal supply
of manpower (a supply of employees to fill projected
vacancies can come from within the firm or from new hires )

Human Resource Planning

5-12

Estimated internal labour supply

for a given firm
S o u r c e s o f In flo w s T h e F ir m P r o je c te d O u t f lo w s

 P r o m o t io n s

 T r a n s fe rs  Q u its
C u r r e n t S ta ffin g
 P r o m o t io n s Level  Te r m in a t io n s
E m p lo y e e s I n E m p lo y e e s O u t
 N e w R e c ru its  R e t ir e m e n t s

 R e c a lls  D e a th s

 L a y o ffs

C u rre n t P r o je c t e d P r o je c t e d F ir m ’s in t e r n a l
s ta ffin g – o u tflo w s + in f lo w s = s u p p ly fo r th is
le v e l th is y e a r t h is y e a r tim e n e x t y e a r

Human Resource Planning

5-13

Supply Forecasting Techniques

Staffing table: Shows the number of employees in each job,. It tries

to classify employees on the basis of age, gender, positions,
experience, qualification, skills etc. how they are utilised and the
future employment needs for each type of job.

Marcov analysis: Uses historical information from personnel

movements of the internal labour supply to predict what will happen
in the future

Human Resource Planning

5-14

Marcov analysis for a hypothetical

retail company
2 0 0 3 -2 0 0 4 S to re A s s t. S to r e S e c tio n D e p t. S a le s E x it
M a n a g e rs M a n a g e rs H eads H eds E x e c u tiv e s

S to re M a n a g e rs 80% 20%
(n = 1 5 )
12 3

A s s t. S to re 11 % 83% 6%
M a n a g e rs
4 30 2
(n = 3 6 )
S e c t io n 15%
11 % 66% 8%
H eads
(n = 9 4 ) 11 63 8 14

D e p a r tm e n ta l
10% 72% 2% 16%
H eads
(n = 2 8 8 ) 29 207 6 46

S a le s
E x e c u tiv e s 6% 74% 20%
(n = 1 4 4 0 ) 86 1066 288

F o re c a s te d
S u p p ly 16 41 92 301 1072 353

F ig u r e s in c ir c le s s h o w t h e t r a n s it i o n p e r c e n t a g e s

Human Resource Planning

5-15

Supply Forecasting
Skills inventory: It is a summary of the skills and abilities of non
managerial employees used in forecasting supply. Such a record helps
an organization to quickly match forthcoming job opening with
employee background.

Human Resource Planning

5-16

Skills inventory: an example

N a m e : A .K . S e n D a te p r in t e d : 1 -4 -2 0 0 4
N um ber : 429 D e p a r tm e n t : 41

K e y w o rd s W o rk e x p e rie n c e
W o rd D e s c r ip tio n A c t iv ity F ro m To
A c c o u n t in g Ta x S u p e r v is io n 1998 2000 Ta x c le r k ABC C om pany
a n d a n a ly s is
B o o k K e e p in g Ledger S u p e r v is io n 2000 2002 A c c o u n ta n t XYZ Co.
A u d itin g C o m p u te r A n a ly s is 2002 2003 C h ie f A c c o u n t s T T B a n k
re c o rd s O ffic e r

E d u c a tio n S p e c ia l Q u a lific a tio n s M e m b e rs h ip s

D e g re e M a jo r Ye a r C o u rse D a te 1 . A IM A

M BA F in a n c e 1998 D BF 1996 2 . IS T D
B .C o m A c c o u n ts 1995 R is k M a n a g e m e n t 1999 3 . IC A

C o m p u te r Languages P o s it io n L o c a tio n H o b b ie s
L ite r a c y p re fe re n c e c h o ic e

 Ta ll y F re n c h A c c o u n tin g K o lk a t a C hess
 B a n k in g A u d it in g D e lh i F o o t b a ll
S o ftw a re B a n g a lo r e B o a t in g

E m p lo y e e s S ig n a tu re _ _ _ _ _ _ _ _ _ _ H R D e p a rtm e n t_ _ _ _ _ _ _ _
D a te _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ D a te _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Human Resource Planning

5-17

Supply Forecasting
Replacement chart: It is a visual representation of who will replace
whom in the event of a job opening.

Human Resource Planning

5-18

Replacement chart
G e n e ra l M a n a g e r Key
V. K . G a rg N a m e s g i v e n a r e r e p la c e m e n t
A /2 c a n d id a te s
P A to A . P r o m o t a b le n o w
G e n e ra l M a n a g e r B . N e e d in g d e v e l o p m e n t
L . M a th e w s C . N o t s u it a b l e t o p o s it io n
B /1 1 . S u p e rio r p e rfo rm a n c e
2 . A b o v e A v e ra g e p e rfo rm a n c e
A s s is t a n t G e n e r a l M a n a g e r 3 . A c c e p ta b le p e r f o rm a n c e
R .K . A ro ra A /2 4 . P o o r p e rfo rm a n c e
B .K . N e h ru B /3

D iv is io n : D iv is io n : D iv is io n :
A c c o u n t in g & P la n n i n g M a n a g e r Te c h n ic a l A d v is o r
H R M anager
Ta x a t io n M a n a g e r A .N . G u p ta A /1 N .R . M u rth y B /3
C .P. T h a k u r A /1
A .T. R o y C /2 K . P. R a o B /1

N o r t h e r n R e g io n C e n t r a l R e g io n S o u t h e r n R e g io n M a n a g e r E a s te rn R e g io n
M anager M anager A . S u b ra m a n y a m B /2 M anager
L . C . S r iv a t s a v A / 2 S .P. K u m a r A /1 B .K . M e n o n B /1 R . K r is h n a B /3
A. Thapar C /4 R . P andey B /3

Human Resource Planning

5-19

Supply Forecasting
B) External Labour supply: External hires need to be contacted
when suitable internal replacements are not available. A growing
number of firms are now using computerised human resource
information systems to track the qualifications of hundreds or
thousands of employees. HRIS can provide managers with a
listing of candidates with required qualifications after scanning the
data base.

Human Resource Planning

5-21

Manpower Gap Analysis

This is used to reconcile the forecasts of labour demand and supply.

This process identifies potential skill shortages or surpluses of
employees, skills and jobs

Human Resource Planning

5-22

Formulating HR Plans
Once supply and demand for labour is known adjustments can be
made formulating requisite HR plans

A variety of HR plans
 Recruitment plan
 Redeployment plan
 Redundancy plan
 Training plan
 Productivity plan
 Retention plan

Human Resource Planning

5-23

Responsibility For Human Resource

Planning
HRP is a top management job. HR plans are usually made by the
HR division in consultation with other corporate heads. Any
deviations from the formulated plans and their causes must be
looked into, from time to time in order to assess whether the plans
require revision or modification.

Human Resource Planning

5-24

Limitations Of Human Resource

Planning
HR professionals are basically confronted with three problems while
preparing and administering HR plans:

Accuracy
Resistance by employees
 Inadequate top management support
focus on quantitative aspects.

Human Resource Planning

5-25

Effective Human Resource Planning

HR plans must fit in with overall objectives of a firm. They must get
consistent support from top management. Computerised human resource
information systems must be used for applicant tracking, succession
planning, building skills inventories etc. The whole exercise must be
carried out in coordination with operating managers.

Human Resource Planning