Human Resource Planning Chapter 6

Human Resource Planning Meaning – Assessment of Human Resource requirements and time and stages of requirement. Right person ---At Right place ---At Right time. Definition – HRP is defined as the process by which management determines how an organization should move from its current manpower position to its desired manpower position. HRP is also called manpower planning, personnel planning or employment planning.

Objectives of HRP To ensure optimum use of existing HR. To forecast future requirement for HR. To provide control measures to ensure that necessary HR are available as and when required. To asses the surplus and shortage of HR. (Downsizing).

Objectives of HRP – Contd. To anticipate the impact of technology on jobs and HR. To determine the level of Recruitment and Training. To estimate the cost of HR and Housing needs of employees. To meet the needs of expansion and diversification programmes.

Importance of HRP Future Personnel needs Creating highly talented personnel – upgrade Foundation of personnel function – recruitment, selection, promotions Resistance to change and move – anywhere, anytime Increasing investment in human resources – Foreign Assignments

Factors Affecting HRP

The type of organization determines the production process, type of staff, (supervisor and manager). And the strategy plan of the organization defines its HR needs. Organizational growth cycle and planning – start up, growth, maturity, decline Environmental uncertainty – political, social and economical change affect all organizations. Outsourcing – the process by which employees transfer routine or peripheral work to the another organizations.

Nature of job – job vacancies, promotions and expansion strategies. Type and quality of forecasting information - organizational structure, budgets, production. Time horizons – long term plans and short term plans, the greater the uncertainty the shorter the plan.

Org objectives and policies HRP Process Environment Org objectives and policies HR Supply Forecast

HRP Process Environment - : Economic factors Technological Changes Demographic changes Political and legislative issues Social concerns

HRP Process (Contd.) Organizational objectives and policies-: HR plans need to be based on organizational objectives. Specifics requirements in terms of numbers and characteristics of employees must be derived from organizational objectives.

HRP Process (Contd.) HR need or demand forecast-: The process of estimating the future quantity and quality of people required. The basis of forecast will be annual budget and long term corporate plans. Demand forecasting must consider several factors like Internal (Budget constraints, employee separations, production level etc.) External (Competition, laws, change in technology).

HRP Process (Contd.) HR Supply forecasting-: It determines weather the HR department will be able to acquire the required number of workers. Specifically supply forecasting measures the number of people likely to be available from within and outside an organization.

HRP Process HR Programming-: Once the Organization’s HR need and supply are forecast, Then vacancies can be filled by the right employee at the right time. HR Plan Implementation-: Implementation requires converting an HR plans into action. (Recruitment, Training, etc.)

Control and evaluation :- Surplus – restricts hiring, reduced hours (VRS, lay off etc) Shortage – recruitment and selection