Human Resource Development

Strategic HR Planning
Strategic HRP Process - Determination of Quantity of Personnel

Organizational Objectives

HR Needs Forecast HR Supply Forecast

Control & Evaluation

Surplus - Restricted Hiring, Lay Off Shortage - Recruitment & Selection

Organizational Objectives & Policies

 Downsizing / Expansion
 Acquisition / Merger / Sell-out
 Technology upgradation / Automation
 New Markets & New Products
 External Vs Internal hiring
 Training & Re-training
 Union Constraints
 Strategic HR planning process

The strategic HR planning process has four steps:

•Assessing the current HR capacity

•Forecasting HR requirements

•Gap analysis

•Developing HR strategies to support organizational strategies

 Strategic HR planning process

Assessing current HR capacity

The knowledge, skills and abilities of your current staff need to be

identified. This can be done by developing a skills inventory for each
employee.

- Skills Inventory
- Education and Knowledge
- Employee's Performance Assessment Form
Capability / Skills Inventory using HR Information System

General Information -
Name: Present Address: Department:
Sex: Designation:
DOB: DOJ:
Marital Salary:
Status: Permanent Address: Grade:

Qualification -
Degree/Diploma Institution Class Year of Pass

Experience/Skills -
Job Title/ Organisation Brief Skill/
Appointment Responsibilities Specialisation

Outstanding Achievement / Additional Information -

Awards Performance Disciplinary Action
Promotions Merit Rating Absenteeism
Achievements
Career Plans:
 Strategic HR planning process

Forecasting HR requirements

Realistic forecasting of human resources involves estimating both demand

and supply.

• What jobs will need to be filled?

• How many staff will be required to achieve the strategic goals of the
organization?
• What skill sets will people need?
• Delphi Technique

To determine external impacts,

• What changes are occurring in the Pakistani labour market?

• How does the current economy affect our work and our ability to attract new
employees?
Strategic HR planning process

Gap Analysis

The gap analysis includes identifying the number of staff and the skills and
abilities required in the future in comparison to the current situation.

• Do our present employees have the required skills?

• Are employees currently in positions that use their strengths?
• Do we have enough managers/supervisors?
• Are current HR management practices adequate for future needs?
• What new skills will be required?
 Strategic HR planning process

Developing HR strategies to support organizational strategies

There are four HR strategies for meeting your organization's needs in the
future:

• Restructuring strategies
• Training and development strategies
• Recruitment strategies
• Outsourcing strategies
The Human Resource Planning Process

4.5
 HR Demand Forecast

process of estimating future quantity and quality of

manpower required for an organization.

 External factors - competition, laws & regulation, economic climate,

changes in technology and social factors

 Internal factors - budget constraints, production levels, new

products & services, organizational structure & employee separations
 HR Supply Forecast

process of estimating future quantity and quality of manpower

available internally & externally to an organization.

Supply Analysis
 Existing Human Resources
 Internal Sources of Supply
 External Sources of Supply
 HR Supply Forecast

Internal Supply

Inflows & Outflows - The number of losses & gains of staff is estimated.

Turnover Rate - refers to rate of employees leaving.

= ( No. of separations in a year / Avg no. of employees during the year ) x 100

 Absenteeism - unauthorized absence from work.

= ( total absentees in a year / Avg no. of employees x No. of working days) x 100

 Productivity Level - = Output / Input.

Change in productivity affects. no. of persons per unit of output.

 Movement among Jobs - internal source of recruitment, selection and

placement
 HR Supply Forecast

External Supply
• External recruitment, selection & placement - Advertisements, Manpower
Consultants, Campus Recruitment, Unsolicited Applications, Employee
Referrals

Yield ratios - are estimated in the process of hiring applications.

Hiring Process Ratio
 Ad generates 2000 applications. 200 are potential 10:1
 Out of 200, 40 attend interview 5:1
Out of 40, 30 were offered jobs 4:3
Out of 30, 20 accepted 3:2
Overall Yield Ratio (2000:20) 100:1