Submitted to Submitted By

Rashmi Bhatia Ma’am Sumit

[ Faculty of HRM] Sandeep
Saurabh
Siddhartha
Tarun
Definition: E = Resources

process by which an organization ensures

that it has the right number & kind of people
at the right place and at the right time,
capable of effectively and efficiently
completing those tasks that help the
organization achieve its overall objectives..
Importance
 Each Organization needs personnel with necessary
qualifications, skills, knowledge, experience &
aptitude .
 Need for Replacement of Personnel
 Meet manpower shortages due to labor turnover
 Meet needs of expansion/downsizing programmes
Contd…..
Cater to Future Personnel Needs - Avoid surplus
or deficiency of labor.

Nature of present workforce in relation with

Changing Environment - helps to cope with
changes in competitive forces, markets, technology,
products and government regulations.
Other uses….
quantify job for producing product / service
quantify people & positions required
assess staffing levels to avoid unnecessary costs
reduce delays in procuring staff
prevent shortage / excess of staff
Next part will be delivered by Sandeep
HUMAN RESOURCE
PLANNING PROCESS
The Process of Human resource
planning can be considered as
one of the strategic steps for
building the strong
foundation of an efficient
workforce in an organization.
 Organizational
objectives &
strategies

Scan external Analyze internal

environmental
changes affecting
labour supply
factors

Forecasting

H R Plans &

strategies
Organizational objectives &strategies :
The first step of human resource planning process is to
study & analyze the objective and strategies.
Scanning the External Environment for
changes affecting labor supply
The factors like Economic Development, Political,
Legal, Social, Technological changes and Competition
have a great impact on the H.R.Planning.
Analyze the internal factors :
Determining the manpower gap.
Budget of the Organization.
Workforce planning :
Retirement
Resignation
Terminates
Deaths
Forecasting AND Formation of
HR Plans & strategies :
Next part will be delivered by Saurabh
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
Forecasting Techniques
Managerial Judgement - Managers discuss and arrive at a
figure of inflows & outflows which would cater to future
labor demand. #
 Ratio-Trend Analysis - Studying past ratios, ie No. of Workers Vs
Volume of Sales, forecasting future ratios and adjusting for future changes
in the organisation..

 Work-Study Technique - Used when length of operations and amount of

labour required can be calculated. #

 Delphi Technique - From a group of experts the personnel needs are

estimated.
HR Supply Forecast
process of estimating future quantity and quality of
manpower available internally & externally to an
organisation.

Supply Analysis
 Existing Human Resources
 Internal Sources of Supply
 External Sources of Supply
 Existing Human Resources
Capability / Skills Inventory using HR Information System
G e n e r a l In fo rm a tio n -
Nam e: P re s e n t A d d re s s : D e p a r tm e n t :
S e x: D e s ig n a t io n :
DOB: D O J:
M a r it a l S a la r y :
S ta tu s : P e rm a n e n t A d d re s s : G ra d e :

Q u a lif ic a t io n -
D e g r e e / D ip lo m a I n s t it u t io n C la s s Year of Pass

E x p e r ie n c e /S k ills -
J o b T it le / O r g a n is a t io n B r ie f S k i ll/
A p p o in t m e n t R e s p o n s ib ilit ie s S p e c ia lis a t io n

O u ts ta n d in g A c h ie v e m e n t / A d d itio n a l In fo r m a tio n -
A w a rd s P e r fo r m a n c e D is c ip lin a r y A c t io n
P r o m o tio n s M e r it R a t in g A b s e n t e e is m
A c h ie v e m e n ts
C a r e e r P la n s :
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 - unauthorised 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
 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


Next part will be delivered by Siddhartha
Factors affecting HRP
Type and strategy of organisation.
Organisational growth cycle and planning
Type and quality of Information
Nature of jobs being field
Outsourcing.
Barriers
Barriers to effective human resource planning

Dynamic and complex enviornment

Rapid change, Technological innovation, intense
competition.

Reluctance to establish goals

Reason for this reluctance may be lack of
confidence or fear of failure.
Contd………

Constraints
a lack of human resources, a lack of financial
resources, government restrictions, strong competitions
and lack of information.

Time and expense

effective planning takes hours and hours of time,
enormous energy.
To overcome the barriers

Start at the top

Top management must take the lead to
overcome the barriers.

Communication
not only must planning be initiated at
the top, but it must also be communicated to
others in the organization.
Contd….
 Recognize the limits to planning
Managers should recognize that good planning
does not necessarily ensure success.

 Revision and updating

A manager should recognize that planning is a
dynamic process in which plans are frequently
revised and updated.
 Case study
On
HUMAN RESOURCE
PLANNING
 Introduction
British Gas is part of the Centrica Group. It is the UK’s
largest energy supplier. It operates in both the UK and
Europe. The UK energy market is highly dynamic. In
2007, 900,000 customers switched energy providers.
British Gas not only supplies gas but also deals with the
installation and maintenance of domestic central heating
and appliances. To provide these services, British Gas
needs the right staff, with the right skills.
 Human Resource

One of the most important resources a

business uses is the people they employ. Much of British
Gas’ work is in direct contact with the public. Customers
expect top class service. Therefore its engineers need both
technical skills and good people skills. British Gas has a
clear plan for acquiring and keeping this workforce. Its
process is to recruit, select and train staff. It also works to
keep its staff, as this is cheaper than finding new people.
 HR Planning

HR Planning is the process of

assessing a company’s current and future labor needs.
This assessment must consider not just overall employee
numbers but also the skills that will be required within the
business. HR planning also involves managing any
training and recruitment process to ensure the organization
has the right staff in place.
Contd…

BGS makes detailed forecasts of its

demand for engineering personnel for one year in advance
and makes more general estimates for a further two years
into the future. Demand is driven by two key sets of
customers:
• those with service contracts
• those who call for assistance with one-off problems.
Demand for both these services has grown, so British Gas
had to recruit more staff. Training is also vital to keep
engineers updated on technical changes.
Conclusion
British Gas needs to plan for its
future staffing needs to ensure it
always has the right number of
people with relevant skills. With
its focus on training, customers
can be sure that its engineers
have the right levels of skill to
do the job
Questions
1.What is the main purpose of HR Planning in
BGS ?

2.To what extent is HR planning important in

helping BGS achieve its aim ?