HUMAN RESOURCE PLANNING

Definition Objectives Need & importance Process

Human Resource Planning offers an accurate estimate of the number of employees required with matching skill requirements to meet organizational objectives.

HRP is a forward looking function as human resource estimates are made well in advance.

HRP is the process by which an organization ensures that it has the rt. no. & kind of people at the rt. places, at the rt. time, capable of

effectively & efficiently completing those tasks that will help the organization achieve its overall objectives.

HRP ,then translates the organization's objectives & places into the no. of workers needed to meet their objectives.

Need for HRP • future HR needs • technological change •Organizational changes—the changes in org. design and structure •Demographic changes—changing profile of work force.

•Skill shortages--To meet shortages.

•Labor laws •Govt. policies in respect to reservation, child labor •Pressure from trade unions •The involvement of lead time in manning the job with most suitable capabilities •International strategies •Is foundation for HR functions

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HRP at diff. Levels

National level • sectoral level eg.agricultural sector , industrial sector • industry level eg. Cement, textile, chemical • unit level—org. or Co. based on its corporate\ business plan.

• Departmental level • Job level

Factors affecting HRP

• Type & strategy of organisation merger etc • environmental uncertainties

•Org. growth cycles & planning.

Short plan • time horizon Long range plan •Type & quality of forecasting information • nature of jobs being filled • off-loading the work

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

Analysing org.al

objectives, plans & prgms.

(1) Adjust or Modify the Organisational Plan Present prgms Control & review mechanisms (3) (2)

DEMAND FORECAST

Resourse requirement skillwise ,knowledgewise etc.

Minus

SUPPLY FORECAST

Present inventory of Human Resources + additions – losses (skillwise knowledgewise etc.) Surplus of future of available human resources within the organization (5) (4) Net human resources requiremnets for futures (skill , knowledge,values etc) (7) Shortage of future available human resource within the Organization (9) Forecast the future supply human resources in all sources if supply is inadequate Plan for (6) Plan for (8) Redeployment Retrenchment/ Redundancy Employment Training Development Internal mobility

The Process Of HRP

1)Analyzing the organisational plan

–

into production plan diversification etc.

,plans for expansion Each plan can be further analysed into sub units

2)Forecasting the overall human resource requirements.

Forecasting Techniques

Forecasting demand

Expert Forecasts:

These are based on the judgments of those who possess good knowledge of future human resource needs --by supervisors --by top mgmt.

Best approach is participative

Statistical techniques 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.

Ratios are calculated Eg –decline in physical stamina of employees change in values in extra & social activities are also calculated Econometric model By analyzing the past statistical data & by bringing relationships among variables

Delphi Technique

 An attempt to decrease the subjectivity of forecasts by soliciting and summarizing the judgments of a preselected group of individuals.

 The final forecast represents a composite group judgment.

Existing inventory

• Heads counts regarding total, deptt. wise,sex wise, designation-wise, skill wise • Job family inventory eg clerks, cashiers • age inventory—balance of young & old is preferred

•Inventory of qualifications & training including minute qualifications & training received • Inventory of salary grades—pay wise,allowances wise • Inventory of past performance & future potentialities • local & non--local wise inventory

Potential losses Potential additions

Permanent total Permanent Partial Temporary total ADDITION New hires Promotions in Transfer in Demotions in Deptt.

Or Sub unit Present HR Acquiring new skills,knowledge,val ues aptitude etc.by the existing employees Deputations in Temporary partial Consultancy or advice LOSS Voluntary quits Death Retrenchment Dismissals Retirement Promotions out Demotions out Transfers out Loss of some skills, capabilities etc.due to ill health or accident Permanent total Permanent partial Loss of values,aptitudes etc.,due to change in the attitude of existing employees towards job,deptt & org Absenteeism (temporary loss) Deputations out Lay off Consultancy or advice Temporary total Temporary partial

3) Analyzing sources of supply A)Internal labour supply:

Supply Forecasting

B) External Labour supply:

Local National HRIS can provide managers with a candidates with required listing of qualifications after scanning the data base.

4)Estimating the net human resource requirement 5)Action plan for redeployment , redundancy, retrenchment If surplus in job —redeployment in form of transfers.

Org. should plan for trg. or re-orientation before re-deployment.

6)Forecast future supply from all the sources if supply is inadequate 7) Action plan for recruitment ,development etc.

8) Modify the org. plan If future supply of HR from all external sources is estimated to be inadequate or less than the requirement, the manpower planner has to suggest the mgmt. to alter or modify the org.al plan.

9) Retention plan For retention of the existing employees by improving QWL.

10) Control & review mechanism

Responsibility For Human Resource Planning

HRP is a top management job. HR plans are usually made by the HR division in consultation with other corporate heads.

Limitations \Barriers Of Human Resource Planning

•Uncertainties • People question the importance of HRP .They

say offer attractive packages & u get or can quit people.

No need This view is also held by top mgmt. ie. lack of top mgmt. Support • HR plan may not adjust with org.al plan

• HR information not readily available.

• Conflict between short term & long term HR needs.

• Time & expense.

• Conflict between quantitative & qualitative approaches to HRP.

• Non-involvement of other mgrs.eg.mkting, production mgr. not concerned much about it.

The Top Ten Measures Of Human Capital

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7.

Your most important issues Human capital value added Human capital ROI Separation cost Voluntary separation rate Total labor-cost/revenue percentage Total compensation/revenue percentage 8.

Training investment factor 9.

Time to start 10.

Revenue factor