Human Resource Planning

HUMAN RESOURCE PLANNING INTRODUCTION DEFINITION

OF HRP  IMPORTANCE OF HRP PROCESS OF HRP FACTORS AFFECTING HRP BARRIERS TO HRP

INTRODUCTION Planning for human resources is more important than planning for any other resources because the demand of latter depends on size and structure of the former whether it is in country or in an Industry. Management of human resource hardly begins from human resource planning.

DEFINITION OF HRP “A process by which an organisation should move from its current manpower position to desired manpower position. Through planning the management strives to have the right number, right kind of people at right place and at right time, doing things which results both organisation and individual receiving maximum long run benefits.” - E.W. Vetter

IMPORTANCE OF HRP  Future

Personnel Needs-Planning is significant as it helps determine future needs i.e. VRS  Coping with change-HRP enables an enterprise to cope with changes in competitive forces , markets, technology, products and government regulations  Creating Highly Talented Personnel-Creation of highly specialized Workforce leading to frequent shortages in the organization  Protection of Weaker Sections-A well conceived personnel planning programme would protect the interest of special class of Personnel i.e. SC/ST/PH

BENEFITS OF HRP  Top

management has a better view of the HR Dimensions of business decision  Cost saving as the management can anticipate imbalances before they become unmanageable and expensive  Time available to locate talent  Helps to take steps to improve human resource contribution.

Benefits cont….  Helps

to foresee changes in values and attitude of human resources  Helps to foresee the need for redundancy and to provide alternative employment in consultation with trade unions.  It provide the scope for advancement and development of employees through training.

HRP PROCESS ORGANISATIONAL OBJECTIVES&POLI CIES HR SUPPLY FORECAST

HR NEEDS FORECAST HR PROGRAMMING

HRP IMPLEMENTATION

SURPLUSRES.HIRING,REDUC. LAYOFF

CONTROL&EVALUATI ON OF PROGRAMME

SHORTAGERECRUITMENT SELECTION

FORECASTING TECHNIQUES  MANAGERIAL

JUDGEMENT  WORKSTUDY TECHNIQUES  STATISTICAL TECHNIQUE  DELPHI TECHNIQUE

MANAGERIAL JUDGEMENT

In this technique the managers sit together, discuss and arrive at a figure which would be the future demand for labour.The technique may involve ‘bottom-up’ or ‘ top down’ approach’

Work study Technique  This

technique can be used when it is possible to apply work measurement to calculate the length of operations and the amount of labour required.  Planned output for Next year- 50,000 Units  Standard hours per unit - 2  Planned hours required 50,000*2=1,00,000  Productive hours per worker in the year=2,000  Number of workers required= 1,00,000/2,000=50

RATIO TREND ANALYSIS Example-: level of production in present yr = 2000 unit Present no. of employees = 50 Ratio is 1:40 Estimated production for next yr = 3000 unit Employees required relative to present ratio = 3000 / 50 No. of employees = 60

DELPHI TECHNIQUE It seek estimates of personnel needs from a group of experts. The HRP experts act as intermediaries, summarize the various responses and report the findings back to the experts. Summaries and surveys are repeated until the experts opinion begin to agree. the agreement reached is the forecast of the personnel needs. No Interaction among experts

HR SUPPLY FORECAST Supply forecasting measures the number of people likely to be available from within an outside an organization, after making allowance for absenteeism, internal movements and promotions, wastage and change in hours and other conditions of work. The supply analysis covers: (1) Existing Human Resources (2) Internal sources of supply (3) External sources of supply

Existing Human Resources

Analysis of present employees is greatly facilitated by HR audits. HR audits summarizes each employee’s skills and abilities. The audits of nonmanagers are called skill Inventories and those of the management are called management Inventories.

Existing HR Cont….  a)

Skills InventoriesInformation about non-managers. They are :  Personal Data-Age, sex, marital status  Skills-Education, job experience, training  Special Qualifications-membership in professional bodies, special achievements.  Company Data-Benefit plan data, retirement information, seniority  Capacity of an individual-psychological test score, health

Existing HR Cont… b) Management Inventories These include:        

Work History Strengths Weaknesses Promotion potential Career goals Personal data Number and types of employees supervised ,total budget managed Previous management duties

INTERNAL SUPPLY  Inflows

and outflows

 Turnover

rate: Number of separations during one year/ Avg Number of Emp during the year*100  Conditions

of work and Absenteeism-Working hours, overtime, timing of holidays, shift system

Continu….. Absenteeism – man days lost due to absenteeism man days worked +man days lost  Productivity

level-any change in productivity would affect the number of persons required per unit of output  Movement among jobs

EXTERNAL SUPPLY  Colleges

and Universities  Consultants  Advertisements-applications

HR Programming &Implementation  Recruitment,

selection& placement  Training & Development  Retraining and Development  Retention plan-compensation plan, performance appraisal, conflict resolution, induction crisis, shortages, unstable recruits  Downsizing plan- Laying Off  Managerial succession planning-

CONTROL AND EVALUATION  Personnel

budget  Auditing human resource  Job satisfaction of employees  Periodic reports

BARRIERS TO HRP  Time

Consuming  Financial forecasting takes precedence over HRP  Uncertainties  Non-involvement of operating managers  Inadequate Information system  Trade unions  Employers

conclusion Human resource planning is a vital sub activity of employment function. In fact employment process begins with human resource planning but it never ends with this function.

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