Human Resource Planning

Human Resource Planning

 

 

5-2

DEFINE It is process by which an organisation should move from its current manpower position to its desired manpower position. Though planning management strives to have the right number and right kind of people at the right place at the right time.  

 

Define Strategy: It is unified , comprehensive and integrated plan that relates the strategic advantages of the firm to the challenges of the environment

 

 

Objective

The basic purpose of HRP is to decide what positions the organisation will have to fill and how to fill them. Objectives of human resource planning Forecast personnel requirements Cope with changes Use existing manpower productively Promote employees in a systematic way  

 

Objectives of Human Resource Planning  To recruit and retain the HR of required quantity and quality. To foresee the employee turnover and make the arrangement for minimising turnover and filling up of consequent vacancies. 

 

 

To meet the needs of the programmes of expansion, diversification etc.



To assess the surplus or shortage of HR



and take measures accordingly Estimate the cost of human resource



 

 

Importance Organisations use HRP to meet future challenges, cut costs, and achieve greater effectiveness

Importance of human resource planning

 



Create a talent pool



Prepare people for future



Cope with organisational changes



Cut costs



Help succession planning  

The Process Of HRP The HRP is a four step process: demand forecasting, supply forecasting, estimating manpower gaps and formulating HR plans. The demand for human resources is influenced by several factors

Forecasting resources

the

demand

for

human

External challenges Economic developments Political, legal, social, technological changes Competition



Organisational decisions



 

Workforce factors



 

The Process Of HRP The HRP is a four step process: demand forecasting, supply forecasting, estimating manpower gaps and formulating HR plans. The demand for human resources is influenced by several factors

 

 

FACTORS Of HRP External Challenges: Liberalisation, privatisation and globalisation (LPG era) have created huge demand for people in software, finance marketing, and manufacturing fields. Organisational Decisions: Decisions such as expansion, diversification, and relocation leading to demand for people possessing requisite skills Workforce Factors: Such as retirement, resignation, and termination etc creating manpower gaps.  

 

Forecasting Techniques

HR forecasts are an attempt to find out an organisation's future demand for employees Forecasting techniques Expert forecasts



Trend analysis



Workforce analysis



Workload analysis



 

 

Forecasting techniques Expert Forecasts: These are based on the judgements of those who possess good knowledge of future human resource needs 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 past trends.

An example of trend analysis

2001-02

Production of Units

:

5,000

2002-03

No. of Workers

:

100

Ratio5000/100

:

50

2003-04

Estimated Production :

8,000

8000 1/500 0 = 160 5 0 0 0 If supervisors have a span of 20 workers, 8 supervisorsare also needed in 2003-04. No. of Workers required

 

:

 

Forecasting techniques

Workforce Analysis: All relevant factors in planning manpower flows in a firm such as transfers, promotions, new recruitments, retirement, resignation, into account while estimating HR needs

 

 

etc are taken

Manpower flows in a bank TRANSFER OUT/PROMOTION OUT

TRANSFERS IN

RETIREMENT VRS

RECRUITMENT IN

TERMINATION RESIGNATION

PROMOTION IN

 

 

Forecasting techniques Workload analysis: Based on the planned output, a firm tires to calculate the number of persons required for various jobs. An example of workload analysis Planned output for the year

10,000 pieces

Standard hours per piece Planned hours required

3 hours 30,000 hours

Productive hours per person per year basis)

1,000 hours (estimated on annual

(allowing for absenteeism, turnover, idle time etc.) No. of workers required

30

If span of control in the unit is 10 per officer, then 3 officers are also required.  

 

5-11

Supply Forecasting A) Internal labour supply: a manpower inventory in terms of

the

available

(their

size and quality of personnel age,

sex,

education,

experience, job performance, etc) is prepared by HR departments.

 

 

training, usually

5-12

Estimated internal labour supply for a given firm S

o

u

r c e

s

o

f

I n

f l o

w

s

T

h e

F

ir m

P

r o

j e

 P  T

r a

n

 P

r o m

 N

e

w

 R

e

c a

s f e o

r s

t io n s E m p lo y e e s R e c r u i t s

u

r r e n t S L e v e l

t a E

I n

m

ll s

C u r r e n t s t a f f i n–g le v e l

 

C

P r o je c t e d o u t f l o w s t h is y e a r

P r o je c t e d i n f l o w s + t h is y e a r

 

f f i n g p l o y e

c t e r o

 Q

m

d

O

o t io n

D



L

s

u i t s

 T e r m i n a e s O u t  R e t ir e m 

u

e

a t h

t i o n e n

s

a y o f f s

F i r m ’s in t e r n a l s u p p l y f o r t h i s t i m e n e x t y e a r

t

5-15

Supply Forecasting

Skills inventory: It is a summary of the skills and abilities of non managerial employees used in forecasting supply.

 

 

Skills inventory: an example N

a m

Ae

. K:

.

N

u m

b 4e 2r 9 :

S

e n

K W A

o

r d

D

c c o u

e

n t i n

e

y

w

s c r i p

o

r d

B

o o k

K

A

u d i t i n g

o m

r e E D

e g r e Me

M

B

B

. C

r o

c o

r d

e p a r t m 4e1n t

m

1 9 9 c 8l e r k

u p e r v i sA i oc nc o

u n 2 t 0aX 0nY 0t Z C

S

o m

A 1 c 9 c 9o 5 u

D

i n a n c e

g

u

a

n g

B

t sR e

i s k

A

M

a n a g e m

e n t

p

o m

p

c c o u n t s

L c

n t i n

ec h

o

g

K

o lk a t a

o c a

T

S

o f t w

B

a n g a l o r e B

a r e _ _ _ _ _ _ _ _ _ _

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

 

eu ar sl i fh i c i pa t s i o n 1 .

t i o n

i c e

e lh i

i g n a t u r e

A

Qb

1 9 9 9

D

a t e

c c o u

I M

a n k in g

S

x

o2. 0 0 2

I 1S 9 T 9 D 6

1 9 9 8

s P o s i t i o n p r e f e r e n A

a t e

B

D

r e n c h

F

D



p l o y e e s

C

p Me c e i a m l

T a ll y

m

C

Bh i a e n f k A



E

A T B a Cx

e

O

F

F

r k

s

A

n

2 0 0 0

2 0 0 3

CY eo au r s e

a

o

T o

a l y s i 2s 0 0 2

a jo r

Lr

:

a n a ly s is S

p u teAr n

D

d u c a t io n

C o m p u t e L i t e r a c y

 

F

e Le ep di n g g e r C

p r i n1 t -e 4 d - 2 : 0 0 4

W

TS a u x p e r v i s i o n a n d

a t e

s

At i oc nt i v i t y

g

D

C A

h e s s

uF d o i ot i nt b g a l l o a t in g

Supply Forecasting

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

 

 

5-18

Replacement chart G

P G

A

e n e L . M

t o r a l M a n a g a t h e w s B / 1

e n e V . K

e

r a l . G

M a n a r g A / 2

r

A s s is t a n t G R . K . A r o r a B . K . N e h r u

e n

H C

N M

o r a n L . C . S A . T h a

t h a r i p

e r n R e gC i oe n t g e r M a n a v a t s a v S . PA . / K2 a r R . C P / 4a n

r a l g e u m d e

R

eS g o i uo r A a r B y B

 

e

N c A B C 1 2 r a 3l 4

D iv is io n : D iv i s i o n : & P la n n R M a n a g e rA c c o u n t i n g M a n a g e Ar . N . P . T h a k u r T a x a At i o/ 1 n A . T . R o y K C . /P 2 . D

 

e

a g

K

r a

m

e s g a n d i d a t . P r o m . N e e d . N o t s . S u p e . A b o v M . A a cn c a e g . P o o r

e

y

i v e n e s o t a b in g d u it a b r i o r p e A v e r p t a b l p Ae /r 2f o B / 3

iv is io n : i n g M a n T ea gc he . G u p t a N . RA R a o B

a r e le n e v e l e t e r f e r a e p r m

r e

p

la

o w l o p m o p o s o r m a g e p e e r f o r m a n c e

nr

i c a l A d ./ 1 M u r t h y / 1

v

tn h e r n R e g i o n E M a a s n t ea r g n e Rr e . S u b r a m a n y a M m a n Ba g/ 2 e r A . K/ 1 . M e n o n R . K B r / i 1s h n a / 3

g

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  

 

Limitations Of Human Resource Planning

HR professionals are basically confronted with three problems while preparing and administering HR plans: accuracy, inadequate top management support, lopsided focus on quantitative aspects.