Human Resources Planning

E= Resources

Sanjiv Kumar MahajanCareer Points University Kota

Preview

Introduction Definition & Meaning of HRP Objectives of HRP Importance of HRP HRP Process Conclusion

Human Resource an important corporate asset and the overall performance of companies depends upon the way it is put to use

Globally Major issues in organizations are skill shortages, competency gaps, downsizing & rightsizing.

Introduction

Causes of the issues are Inadequate Business Planning, Job Descriptions, inadequate Training & Development Programmes

In order to realize company objectives, human resource planning (HRP) is essentially the process of getting the right number of qualified people into the right job at the right time so that an organization can meet its objectives

Introduction

• Process of forecasting an organisation’s future demand, and supply/availability of, right type of people in right number

• Process that identifies current and future human resources needs for an organization to achieve its goals.

• HRM Department can initiate recruitment & selection process only after HRP

• Also called manpower/personnel/ employment planning

• Improper HRP – Over staffing or Understaffing

HRP : Definition

Anticipate the impact of technology on job and requirements of human resources.

Analyse Current Workforce Effective Management of Change – To cope up with

mkt conditions , technology products and govt regulations effectively

Effective utilisation of existing human resources. Forecast requirements of human resources with

different levels of skills.

Objectives of HRP

Assess surplus or shortage, if any, human resources available

Ensure adequate supply of manpower as and when required.

To relate future human resources to future enterprise needs

Provide lead time available to select and train the required additional human resource over a specified time period.

Objectives of HRP

Part of Strategic Planning International Business Expansion Strategies

Creating highly skilled personnel with necessary qualifications, skills, knowledge, experience & aptitude (L&T, ITI)

Foundation for Personnel Functions – Provides info for Recruitment , Selection, Transfer,

Layoffs etc

Importance of HRP

Cater to Future Personnel Needs

Surplus or deficiency of labour - 75% of organisations are overstaffed. Redeployment of staff to other units.

Manpower Shortages due to Turnover

Needs of expansion / downsizing

Lead Time Long lead time necessary for selection, Training and development of employees.

Importance of HRP

HRP Process

Organizational objectives and policies

HR Demand forecast HR Supply forecast

Estimating Manpower Gap/ HR Programming

Control and Evaluation

Restricted HiringReduced HoursVRS,Lay off etc

Recruitment, Postpone

retirement/Rehire/hire temp

employeesOvertime

Environmental Scanning

Action Planning / HR Plan Implementation

•Recruitment & Selection•Training & Development•Promotion•Retention•Retrenchment

Outcome

Outcome

Process

ShortageSurplus

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Systematic process of studying & monitoring the internal & external environment of the organization in order to pinpoint opportunities & threats

Environment Scanning

External Factors

Labour Market Trends Current & Projected

Economic Conditions Changes in Legislations Technological

Advancements Social Concerns

Internal Factors

Workforce composition (profile, skills) Changes in organizational structure Financial Health

Downsizing / Expansion Acquisition / Merger / Sell-out Technology upgradation / Automation New Markets & New Products External Vs Internal hiring Training & Re-training

Organization Objectives & Policies

process of estimating future quantity and quality of manpower required for an organisation.

• External Factors. Competition, laws & regulation, changes in technology and social factors

• Internal Factors - Budget constraints, production levels, new products & services & organisational structure

HR Demand Forecast

Purpose

To quantify the jobs necessary for producing a given no of goods Determine staff mix desirable in future Assess appropriate staffing level at different levels of organisation Prevent shortage of people Monitor compliance with legal requirements

HR Demand Forecast

Managerial Judgement Managers discuss and arrive at a figure that would be future labour demand. Top-Down or Bottom-Up approach

Ratio - Trend Analysis Studies past ratios between two variables ie no of workers & sales in an organisation and forecasting future ratios making allowances for changes in organisation etc.

Regression Analysis Same as trend analysis

Forecasting Techniques

Work-Study Technique Based on Volume operations & work efficiency of personnel. Volume of Operation derived from organisation plan of documents & increase/decrease measured.

H required for planned outputStandard h /person/year

Delphi Technique Experts independently develop forecasts that are shared with each other, but in this approach the experts never actually meet. Each of the members refines his or her forecasts until a group consensus is reached.

Forecasting Techniques

Most Common Technique??

process of estimating future quantity and quality of manpower available internally & externally to an

organisation.

Supply Analysis Covers• Existing Human Resources• Internal Sources of Supply• External Sources of Supply

HR Supply Forecast

HR Supply Techniques

Existing Human Resources

Skill Inventories

Consolidated information about non Managers in the organisation – Personal Data,Skills,Special Qualifications, Preference etc Provide information for transfer & promotion decision

Management Inventories Consolidated information about Managers in the organisation- Work History, Strengths, Weaknesses, Career Goals etc

HR Supply Techniques

Internal Supply

Infows & outflow Inflows - Transfers in and promotion in outflows - Resignation,Discharge, retirement promotions etc

Turnover Rate No of employees left job in one year X 100

Average no of employees in year

HR Supply Techniques

Internal Supply

Replacement Planning Short-term technique Records indicating which employees are currently ready for promotion to a specific position. When needs forecasted for particular job, replacement charts provide data about internal candidates to fill the openings

Succession Planning Long term technique Focus on development of Leaders to replace leaders as they retire from organisation.

External Supply Resorted to

When cost of procuring workforce from within the organisation more & present staff cannot be spared

Organisation Growth & Diversification. Replenish lost personnel

Economic and workforce development agencies typically can provide data on the labour supply availability.

HR Supply Techniques

• Essential to monitor effectiveness of HRP & ensure

continuous improvements.• Evaluation & Control required to:-

Identify deviations or deficiencies Make modification to plans wrt changing requirements Determine the extent to which HR objectives have been met. Address new workforce issues that may arise

Evaluation & Control

Thank You