IPSAR B-School, Cuttack

Human Resources Planning

InstructorMr. Shyamasundar TripathyManagement Faculty(HR)

HUMAN RESOURCE PLANNING

Definition :Right number of people with right skills at right

place at right time to implement organizational strategies in order to achieve organizational objectives

In light of the organization’s objectives, corporate and business level strategies, HRP is the process of analyzing an organization’s human resource needs and developing plans, policies, and systems to satisfy those needs

Characteristics of HRPIncorporate the human recourses needs into

in the light of organizational goals.Directed towards well-defined objective.The way for an effective motivational process.Periodically review of existing plan. Adequate flexibility must be maintained.

Needs of HRPForecast future personnel needsCope with changeCreating highly talented personnelProtection of weaker sectionsInternational strategiesIncreasing investments in HRResistance to change & move.It reduces the cost of production.

Importance of HRP 1) Each Organisation needs personnel with necessary

qualifications, skills, knowledge, experience & aptitude .

2) Need for Replacement of Personnel

3)Meet manpower shortages due to labour turnover

4) Meet needs of expansion / downsizing programmes.

5) Cater to Future Personnel Needs - Avoid surplus or deficiency of labour.

6) Nature of present workforce in relation with Changing Environment - helps to cope with changes in competitive forces, markets, technology, products and government regulations.

HRP at Different LevelsNational LevelSectoral levelIndustry levelUnit LevelDepartmental level

Process of HRPAnalyzing organizational plan and deciding

objective.Analyzing factors for manpower requirements. 1. Demand forecasting 2. Supply forecasting.Developing employment plan.Developing Human resource plan.

Analyzing organizational plan and deciding objectiveAnalysis of organizational plans and

programme helps in forecasting the demand for human recourses as it provides the quantum of future activity.

It should be directly related to essential nature of the organization

The change of selected factors should be proportional to change in the human recourses required in the organization.

Analyzing factors for manpower requirementsThe existing job design and analysis may

thoroughly be reviewed keeping in view the future capability, knowledge and skills of present employees.

The factor of manpower requirements can be analyzed by two ways.

1. Demand forecasting2. Supply forecasting

Demand forecasting

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 TechniquesManagerial Judgement - Managers discuss

and arrive at a figure of inflows & outflows which would cater to future labour 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 ResourcesCapability / Skills Inventory using HR Information

SystemGeneral 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 ActionPromotions Merit Rating AbsenteeismAchievementsCareer Plans:

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

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

Developing Employment plansAfter determining the number of personnel

for each job in the organization. The human resource department has to determine the nature of job, i.e. Job description and job specification

Developing Employment plans

Job DescriptionA proper definition &

designof work. A statement

containing:

Job TitleLocationJob SummaryDuties & ResponsibilitiesMaterials, Tools &

Equipment usedForms & reports handledSupervision given /

receivedWorking conditionsHazards & Safety

precautions

Job SpecificationA statement of human

qualifications necessary to do the

job containing:

Education & Qualifications Experience & TrainingKnowledge & SkillsCommunication skillsPhysical requirements -

Height, Weight, Age

Personality requirements - Appearance, Judgement,

Initiative, Emotional stability

HRP Process - Determination of Quantity of Personnel

Organisational Objectives

HR Programming

HR Needs Forecast

HR Supply Forecast

HRP Implementation

Control & Evaluation

Surplus - Restricted Hiring, Lay Off, VRS, Reduced Hours

Shortage - Recruitment & Selection

Developing a Human Resource PlanBalancing Demand and SupplyVacancies filled in by the right employee at the

right time

HR Plan Implementation Recruitment, Selection & Placement

Training & Development

Retraining & Redeployment

Retention Plan

Downsizing Plan

Control & Evaluation

Are Budgets, Targets & Standards

met?

Responsibilities for Implementation &

Control

Reports for Monitoring HR Plan

Requisites for successful HRPHRP must be recognised as an integral part

of corporate planning.Backing from top management.Personnel records should be complete, up-to-

date and readily available.Techniques used should be best suited for

data available and degree of accuracy required.

Plan by skill levels rather than by aggregates.

Advantage of HRPImprovement of labour productivityRecruitment of qualified HRAdjusting with the rapid technology changeReducing labour turnoverControl over recruitment and training costMobility of labourTo treat the manpower like real corporate

assets

Limitation of HRPInaccuracyLack of supportEmployees Resistance Lack of purposeTime and expensesInefficient informationNumbers Game

Thank You