3. Human Resource an important corporate asset and the
overall performance of companies depends upon the
way it is put to use
Globally Major issues in organizations are skill
shortages, competency gaps, downsizing & rightsizing.
Introduction
4. Causes of the issues are Inadequate Business
Planning, Job Descriptions, inadequate Training &
Development Programmes
In order to realize company objectives, human
resource planning (HRP) is essentially the process
of getting the right number of qualified people into
the right job at the right time so that an organization
can meet its objectives
Introduction
5. • Process of forecasting an organisation’s future demand, and
supply/availability of, right type of people in right number
• Process that identifies current and future human resources
needs for an organization to achieve its goals.
• HRM Department can initiate recruitment & selection process
only after HRP
• Also called manpower/personnel/ employment planning
• Improper HRP – Over staffing or Understaffing
HRP : Definition
6. Anticipate the impact of technology on job and
requirements of human resources.
Analyse Current Workforce
Effective Management of Change – To cope up with
mkt conditions , technology products and govt
regulations effectively
Effective utilisation of existing human resources.
Forecast requirements of human resources with
different levels of skills.
Objectives of HRP
7. Assess surplus or shortage, if any, human resources
available
Ensure adequate supply of manpower as and when
required.
To relate future human resources to future enterprise
needs
Provide lead time available to select and train the
required additional human resource over a specified
time period.
Objectives of HRP
8. Part of Strategic Planning
International Business Expansion Strategies
Creating highly skilled personnel with necessary
qualifications, skills, knowledge, experience &
aptitude (L&T, ITI)
Foundation for Personnel Functions – Provides
info for Recruitment , Selection, Transfer, Layoffs
etc
Importance of HRP
9. Cater to Future Personnel Needs
Surplus or deficiency of labour - 75% of organisations are
overstaffed. Redeployment of staff to other units.
Manpower Shortages due to Turnover
Needs of expansion / downsizing
Lead Time Long lead time necessary for selection,
Training and development of employees.
Importance of HRP
11. Organizational
objectives and policies
HR Demand forecast HR Supply forecast
Estimating Manpower Gap/
HR Programming
Control and Evaluation
Restricted Hiring
Reduced Hours
VRS,Lay off etc
Recruitment,
Postpone
retirement/Rehire/
hire temp
employees
Overtime
Environmental Scanning
Action Planning /
HR Plan Implementation
•Recruitment & Selection
•Training & Development
•Promotion
•Retention
•Retrenchment
Outcome
Outcome
Process
ShortageSurplus
12. 12
Systematic process of studying & monitoring the internal
& external environment of the organization in order to
pinpoint opportunities & threats
Environment Scanning
External Factors
Labour Market Trends
Current & Projected
Economic Conditions
Changes in Legislations
Technological
Advancements
Social Concerns
Internal Factors
Workforce composition
(profile, skills)
Changes in
organizational structure
Financial Health
13. Downsizing / Expansion
Acquisition / Merger / Sell-out
Technology upgradation / Automation
New Markets & New Products
External Vs Internal hiring
Training & Re-training
Organization Objectives & Policies
14. process of estimating future quantity and quality of
manpower required for an organisation.
• External Factors. Competition, laws & regulation,
changes in technology and social factors
• Internal Factors - Budget constraints, production
levels, new products & services & organisational
structure
HR Demand Forecast
15. Purpose
To quantify the jobs necessary for producing a
given no of goods
Determine staff mix desirable in future
Assess appropriate staffing level at different
levels of organisation
Prevent shortage of people
Monitor compliance with legal requirements
HR Demand Forecast
16. Managerial Judgement Managers discuss and arrive at a
figure that would be future labour demand. Top-Down or
Bottom-Up approach
Ratio - Trend Analysis Studies past ratios between two
variables ie no of workers & sales in an organisation and
forecasting future ratios making allowances for changes in
organisation etc.
Regression Analysis Same as trend analysis
Forecasting Techniques
17. Work-Study Technique Based on Volume operations &
work efficiency of personnel. Volume of Operation derived
from organisation plan of documents & increase/decrease
measured.
H required for planned output
Standard h /person/year
Delphi Technique Experts independently develop forecasts
that are shared with each other, but in this approach the
experts never actually meet. Each of the members refines
his or her forecasts until a group consensus is reached.
Forecasting Techniques
18. process of estimating future quantity and quality of
manpower available internally & externally to an
organisation.
Supply Analysis Covers
• Existing Human Resources
• Internal Sources of Supply
• External Sources of Supply
HR Supply Forecast
19. HR Supply Techniques
Existing Human Resources
Skill Inventories
Consolidated information about non Managers in the
organisation – Personal Data,Skills,Special Qualifications,
Preference etc
Provide information for transfer & promotion decision
Management Inventories Consolidated information about
Managers in the organisation- Work History, Strengths,
Weaknesses, Career Goals etc
20. HR Supply Techniques
Internal Supply
Infows & outflow
Inflows - Transfers in and promotion in
outflows - Resignation,Discharge, retirement promotions etc
Turnover Rate
No of employees left job in one year X 100
Average no of employees in year
21. HR Supply Techniques
Internal Supply
Replacement Planning Short-term technique
Records indicating which employees are currently ready
for promotion to a specific position.
When needs forecasted for particular job, replacement
charts provide data about internal candidates to fill the
openings
Succession Planning Long term technique
Focus on development of Leaders to replace leaders as
they retire from organisation.
22. External Supply
Resorted to
When cost of procuring workforce from within the organisation
more & present staff cannot be spared
Organisation Growth & Diversification.
Replenish lost personnel
Economic and workforce development agencies
typically can provide data on the labour supply
availability.
HR Supply Techniques
23. • Essential to monitor effectiveness of HRP & ensure
continuous improvements.
• Evaluation & Control required to:-
Identify deviations or deficiencies
Make modification to plans wrt changing requirements
Determine the extent to which HR objectives have been met.
Address new workforce issues that may arise
Evaluation & Control