HR PLANNING

PRAGYAN PARAMITA DAS

RCM, BHUBANESWAR
DEFINITION
 Process by which a company decides how an
organisation should move from its current
manpower position to its desired manpower
position.
INTRODUCTION
 Definition: HR-Planning is the process of developing
and determining objectives, policies and
programmes that will develop, utilise and distribute
manpower so as to achieve the organisational goals.
 It is the process by which right number of people,
of right kind, at right place doing the right things
for the goal achievement of the organisation are
ensured by the management along with HR-
department.
 It’s a two-phased process where management can
project the future manpower requirement and
develop manpower action plans to accommodate
the implication of projections.
INTRODUCTION……
 It aims at ascertaining the manpower needs
of the organisation both in right number and
of right kind.
 It aims at continuous supply of right kind of
personnels to fill various positions in the
organisation.
 A/to- Geisler-Manpower planning is the
process including forecasting, develoing and
controlling by which a firm ensures that it
has the right kind and right number of people
doing work for which they are economically
most useful.
NEED FOR HRP
 To carry on work
 People need to be replaced
 People leave the organisation
 Companies expand
 Changing needs that cannot be met by old
labour force
 To rightsize the company
RELATION BETWEEN ORGANIZATIONAL
PLANNING & HR PLANNING
 Organization’s business or strategic planning
process is the first planning process done by
the company
 The organisational strategy should :
- A clear statement of the company’s mission
- A clear statement of the company’s purpose,
plans
- An action plan based on the available
resources
 Human resource planning depends on the
organizational strategy or plan
 Contributes a lot to the main organizational
strategic plan
HR PLANNING-REQUISITES
 Should be aware of business strategy

 See that human resource programs

satisfy the top management

 Convert business objectives into hr

objectives
STRATEGY-LINKED HRP
 HRP is not the responsibility of HR managers
only
 Has to be do done together with operating
managers
-a close working relationship
 Hr managers provide with the structure and
support
 Top Management support should be there
TIME FRAME OF HRP
 Short term : (0-2) years

 Intermediate : (2-5) years

 Long Range :(beyond 5 years)

SHORT RANGE
 Demand:
 Individuals leave,
Number and Kinds of
 lay-offs, employees needed
 technological expansion,
 new regulations
 Supply:

 Departmental
 Expected Promotions
INTERMEDIATE
 Demand
 Needs from plans and budgets
 Any expansion or adjustment of plan
 Supply

 Hr vacancies expected
 Managerial and supervisor development plan

NUMBER OF WORKERS
KINDS OF WORKERS
DATES WHEN NEEDED
LEVELS OF NEEDS
LONG RANGE
 More focus on long term Environmental
changes (technology or culture )

 Management expectations of changing

characteristics of employees and future
available human resources
PROCESS OF HR- PLANNING
 Process involves following 7 steps:
1. Determination of objectives of manpower
planning
2. Current manpower inventory
3. Demand Forecasting
4. Job Requirements
5. Employment Plans
6. Training and Development Programmes
7. Appraisal of Manpower Planning
DETERMINING ORGANIZATIONAL
OBJECTIVES
 The main organizational objectives needs to
be taken in making human resource
requirements
 Mission- goals and objectives of the
organization needs to be determined
 There are both long term and short term
objectives
 Long term objectives are based on the
company’s mission statement
 Short term objectives are based on Long
term objectives
 Short term objectives have a time frame and
are expressed in quantities ( in money -riyals
or capacity like tonnes )
DEMAND FORECASTING
METHODS
 Demand forecasting begins with performing
comprehensive job analyses and estimating
employee output levels. Factoring in the labor
market and labor supply helps with both HR-
planning and resource management optimization.
 There are both quantitative and qualitative
approaches for forecasting human resource
demands.
 Quantitative methods are heavily reliant on
mathematical and statistical analysis,
 Qualitative forecasts generally depend more on
managerial judgement techniques.
QUALITATIVE APPROACH
1.Analysing Organisational Plans:
 The objectives & strategic plans are analysed
 Plans concerning
technology,productions,marketing, finance,
exansion and diversifications are
analysed.into sub plans & detailed
programmes.
 Organisation structure & job designs are to
be made clear.
 Economic forecast, company’s sales &
expansion forecast need to be done.
QUALITATIVE APPROACH……
2.Manpower Forecasting by Managerial
Judgement & Work Study Method
 On the basis of corporate & functional plans
& future activity levels, future needs are
anticipated.
 The number & skill levels needed in future
are anticipated.
 To make projections for new positions to be
created & the vaccancies arising in current
manpower.
FACTORS AFFECTING
QUALITATIVE APPROACH
 Government influences
 General economic conditions
 Competition
 Changes in work force
DETERMINING THE SKILLS AND
EXPERTISE REQUIRED (DEMAND)
 Future human resource needs can be
determined by Quantitative methods
 Forecasts are done by mathematical or
statistical methods.
 QUANTITATIVE APPROACH
 Work Study Method:
 Time & motion study is used to analyse the
work being done .
 Standard time required per unit of work is
decided.
 Ex-

Planned output for next years- 50,000 units

Standard hours/unit=2
Planned hours required=?
Productive hours /worker/year?
Number of workers required??
QUANTITATIVE APPROACH
2.Ratio-Trend Analysis:
Total output/ Number of workers
Total sales volume/Number of sales persons
Direct workers/Indirect workers
Calculated on the basis of past datas.
Production level in 2016-17= 50,000 units
Numb of workers in 2016-17= 50
Ratio= 5: 50,000 or 1:10,000 (Per year)
Numb of supervisors(2016-17)=5
Ratio= 1:10
Estimated production in 2017-18=60,000
Numb of workers required in 2017-18= ??
Hence, numb of supervisors= ??
 QUANTITATIVE APPROACH…..
 3. Mathematical Models:
 Expresses the relationship btn independent
variables (investment, production , sales etc)
& dependent variables (numb of employees
required ).
Several types of models e.g
regression,optimisation models, probabilistic
models can be used.
QUANTITATIVE APPROACH…….
4.Absenteeism Rate:
Estimating demand for manpower, the
prevailing rate of absenteeism in the
company is considered.
Rate of Absenteeism=Mandays lost due to
absenteeism/ Mandays worked+Mandays lost
* In case of unduly high absenteeism, steps are
taken to reduce it.
QUANTITATIVE APPROACH

5.Workload Analysis:
Total workload of each dept is estimated on
the basis of sales forecast,work
schedules,growth rates,expansion plans
etc.
On the basis of past experience and work
measurement,manpower gap is estimated.
JUDGEMENTAL METHODS
1. Managerial estimates:
-future staffing needs based on past
experience
-made by top level management or middle
level and lower level together
2. Delphi technique:
-panel of experts
-each expert independently estimates future
demand
-a mediator presents each expert’s forecast to
the others
-experts can revise their comments
-process continues till agreement between all
experts
 Scenario Analysis:
-scenarios are developed in brainstorming
sessions (by operating and hr managers)
-5 or more years scenario is done

 Benchmarking:
- Deeply examines the company’s internal
practices and processes and measures them
against successful company practices
DETERMINING ADDITIONAL HUMAN
RESOURCES REQUIREMENT
 Analysis of present employees
 Forecast of employees required in future

Done through
 Skills inventory
 Management Inventory
 Expecting changes of people
SKILLS INVENTORY
 Complete information about the
organization’s basic information on all
employees
 Information are about:

a) Personal data: age, sex, marital status

b) Skills: education, job experience, training
c) Special qualifications: membership in
professional groups, achievements
d) Salary and job history: present and past
salary, dates of raises, different jobs held
 PROBLEMS IN HRP
 Inaccuracy
 Employee Resistance
 Uncertainities
 Ineffecient information system
 Lack of top management support
 Time & Expenses
 Unbalanced focus
 LEVELS OF HRP
 National Level
 Sectoral level
 Industry Level
 Unit Level
 National Level: Central govt plans for human
resources at the national level.It forecasts the
demand for and supply of human resources for
the country as a whole
 Major focus is on employment generation,
poverty alleviation through rural and urban
development programmes, health, education,
training schemes etc
LEVELS OF HRP……
 Sectoral Level: Bot central and state
governments formulate human resource
plans for particular sectors e.g agricultural
sector, industrial sector, small scale
industries sector etc
 Industry Level: Human resource plans for
specific industries like textiles, cement, iron
& steel,petrochemicals ,software etc
 Unit Level: Human resource requirements of
a particular enterprise, department, job
category wise are estimated.
GUIDELINES FOR EFFECTIVE
HRP
 Tailormade
 Apropriate Time Horizon
 Adequate Organisation
 Top management support
 Participation
 Proper Information System
 Balanced Focus
HRP PROCESS SUMMARISED
1
CORPORATE ANALYSIS
a.Objectives & Strategies
b.Company Orgl Plan
c.Market Forecasts &
Budgets
d.Financial Plans
e. Production Targets
2 3
DEMAND
MANPWER SUPPLY
FORECAST
a.Numbers
4
GAPS FORECAST
b.Job categories a.Surplus of a.Manpower Inventory
c.Skill numbers and b.Losses & Additions
Rrequirements skills c.External Supply
b.Starategies

5
MANPOWER- PLANS
 END OF HRP