HUMAN RESOURCE

PLANNING
Presented By
ARUN.O
NISHA MATHEW
S2 MBA
IMK ADOOR
HR PLANNING
 HR PLANNING
 HRP is concerned with the flow of people
into, through, and out of an
organization.HR planning involves
forecasting the need for labour and the
supply of labour,then planning the
programmers necessary to ensure that
the organization will have the right mix
of employees and skills when and
where they needed.
 (Fisher Schoenfeldt
Shaw)
 HR PLANNING
 HR Planning is the process of forecasting
a firms future demand for and supply
of,the right type of people in the right
number.

   
 DEFINITION:
  
 Human Resources Planning is the process of
assessing the Organization’s
human resources need in light of
organizational goals and making plans to
ensure that a competent, stable workforce
is employed.

 Who plans????


 For whom it is planned for????



 When is planning done????

 IMPORTANCE OF HRP

 Part of strategic planning.

 Creating highly talented personnel.
 Future personnel needs.International
strategies.
 Foundation for personnel functions.
 Increasing invest in human resources.

Basic Requisite Of HR Planning
 HRP must be recognized as an integral
part of corporate planning. The
planner of human resources must
therefore, be aware of the corporate
objectives.


 Backing of top management for HRP is

absolutely essential.
 


  HRP responsibilities should be centralized

in order to co-ordinate consultation
between different managerial levels.
 Personnel records must be complete, up-
to-date and readily available.
 The time horizon, if the plan must be long
enough to permit any remedial action.
 The techniques of planning should be
those best suited to the data available
and the degree of accuracy required.
  Plans should be prepared by skill levels
rather than by aggregates.
 Data collection, analysis, techniques of
planning and the plans themselves
need to be constantly revised and
improved n the light of experience.

Factors Affecting HR
Planning
Organisational
growth cycle and
planning

Type and strategy

of organisation Environmental
uncertainties

HRP
Time horizons outsourcing

Type and quality

of forecasting Nature of jobs
information being filled
 Type and strategy of
organisation
It determines


 Production Process Involved

 Number of staff retained

 the supervisory and the managerial personnel

required.

 Organisational growth cycles
and planning
 Small organizations in the embryonic stage . may
not have personnel planning.



Need for planning is felt when the

organization enters the growth stage

. Internal
development of people also begins
to receive attention in order to keep up with
the growth.
 Environmental
uncertainties
 Political ,social and economic changes affect all
organizations.
 Personnel planners deal with environmental
uncertainties.
 So they carefully formulating
recruitment,selection,and training and
development policies and programmes.
 Time horizons
 There are short term(6-12 months) &long term (3-12
years)


 The exact time span ,however depends on the degree

of uncertainty prevailing in an organization's
environment.
 Type and quality of
information
 A major issue in personal planning is the type of
information which should be used in making
forecasts. The type and levels of forecasting
information useful to personnel planners are:

Nature of jobs being filled
 Job vacancies arise because of separations,
promotions and expansion strategies.


Its very easy in the case of Shop floor workers


But difficult in the case of managerial personals.

 So HR Planning is very essential to anticipate

vacancies, as far in advance as possible, to
provide sufficient lead time to ensure that suitable
candidates are recruited.
 Outsourcing
 Out sourcing is done in the form of Sub-contracting
 It’s a regular feature in both public &private
companies.
 In the case of outsourcing the regular employees
may sit idle
 HRP is rarely required in such circumstances.
PLANNING PROCESS
 Environ
ment
Organizational
objectives&polic
ies

HR Needs forecast HR Supply forecast

HR Programming

HRP Implementation

Control&Evaluation
Of Programme

Surplus Shortage
Restricted hiring
Recruitment
Reduced hours
VRS Lay off ,etc Selection
 STEPS OF HR PLANNING
Environmental scanning


 Economic factors, technological changes

,demographic changes, political legislative issues,
social concerns.

Organizational objectives &
policies
 Specific requirements in terms of no: &
characteristics of employees should be derived
from organizational objectives.
 It is defined by top management .
 The role of HRP is to subserve the overall objectives
by ensuring availability & utilization of human
resources
 HR Demand Forecast
 Demand forecasting is the process of estimating the
quantity & quality of people required to meet
future needs of the organization.
 Consider several factors-external & internal
 External- competition, economic climate, laws &
regulatory bodies, changes in technology & social
factors
 Internal- budget constraints, production levels, new
products & services,organizational structure &
employee separations.

 Forecasting Techniques
 Managerial judgments
 Ratio-trend analysis
 Regression analysis
 Work study techniques
 Delphi technique
 Flow models

Forecasting Techniques

Managerial Ratio Trend Regression

Judgement Analysis Analysis

HR DEMAND
FORECAST

Work Study Delphi

Flow Models
Techniques Technique
 Managerial judgement
 Managers sit together, discuss and arrive at a figure
which would be the future demand for labour.
 Two approaches – Bottom up & Top down
 A combination of these two could yield positive
results- a committee comprising departmental
managers and HR managers will review the two
sets of forecasts, arrive at unanimity ,which is
then presented to top managers for approval
 Ratio Trend Analysis

n Quickest forecasting technique

n Studies past ratios ,between the no: of workers and
sales in an organization and forecasting future
ratios

 Regression Analysis

 Forecast is based on sales volume and employee size


Employees number

sales
 Work study Techniques

 Used when it is possible to apply work measurement

to calculate the length of operations and the
amount of labour required
 Work study Techniques for direct workers can
be combined with ratio-trend analysis to forecast
indirect workers



 Delphi Technique
 Solicits estimates of personnel needs from a group
of experts , usually managers
 HRP experts acts as intermediaries, summarize the
various response and report the findings back to
the experts
 But there is absence of interaction among experts.



 Delphi Technique
 Solicits estimates of personnel needs from a group
of experts , usually managers
 HRP experts acts as intermediaries, summarize the
various response and report the findings back to
the experts
 But there is absence of interaction among experts.

 Flow Models
 The simplest one is called the Markov
model
 The steps in this model are
1. Determine the time that should be covered
2. Establishes categories, also called states, to
which employees are assigned
3. Count annual movements among states
-absorbing & non absorbing ,for several
time periods
4. Estimate the probability of transition from one
state to another based on past trends

 HR Supply Forecast
It determines whether the HR department will be able
to procure the required number of personnel.
The supply analysis covers
Existing HRs
Internal sources of supply,&
External sources of supply.
 Present employees

 Facilitated by HR audits.
 It summarize each employee’s skills and abilities.
 The audit of those of non managers are called skills
inventories and those of the management is called
management inventories

 Internal supply
 Turnover rate
 Conditions of work & absenteeism
 Productivity level
 Inflows & outflows
 Movement among jobs

 External supply
 New blood & new supply
 To replenish lost personnel &
 Due to growth & diversification additional number
& type of employees are needed

 HR Programming

 After personnel demand &supply are forecast .two

must be reconciled or balanced in order that
vacancies can be filled by the right employee at
the right time

 HR Plan Implementation
 HRA series of action programmes are initiated like
 Recruitment
 Selection & placement
 Training & development
 Retraining & development
 The retention plan
 The succession plan etc.
 Plan Implementation
 Control & Evaluation
 Control & Evaluation includes budgets, targets and
standards
 It clarifies responsibilities for implementation and
control
 Establishes reporting procedures which will enable
achievements to be monitored against the plan.

THANKS