Human Resource Planning Unit 2 Contd Human Resource Planning

Human Resource Planning It is the process of forecasting a firm’s future demand for and the supply of the right type of people in the right number It is also called as strategic manpower planning or employment planning

Objectives To recruit and retain employees of the right quality and quantity To forsee employee turnover To meet the needs of expansion, diversification, shut down To forsee the impact of technology on work and the existing employees To assess the surplus or shortage of work To estimate the cost of Human Resource

Need for HRP Basis of all HR Functions Meet the future personnel need Increasing investments in Human Resource Formulation of International Strategies

Factors Affecting HRP Nature and Type of Organisation Stage of Growth of the Organisation Political Uncertainities Labour market Level of Technology Time Horizons

HRP Process Environmental Scanning Organisational Objectives and Policies HR Demand Forecast HR Supply Forecast HR Programming HR Implementation Control and Evaluation Surplus Shortage

Environmental Scanning:- Systematically monitoring the external forces influencing the organisation. Political and legislative issues including laws and administrative rulings Economic factors including inflation, recession, boom etc Social concerns including child care and educational facilities Technological changes including automation 2. Organisational Objectives and Policies:- Once the organisational objectives are specified, communicated the HR dept must specify its objectives with regard to HR utilisation in the organisation. The foll questions should be addressed:-

Are the vacancies to be filled by promotions from within or outside? What union constraints are encountered in HRP? How to allign the process with Expansion/Diversification/Shut Down? How to ensure continuous availability of adaptive and flexible work force? 3. HR Demand Forecast It is the process of estimating the future quantity and quality of people required. The basis of the forecast is the budget and long term corporate plan. Methods:- a). Managerial Judgement In this the managers sit together and decide. It may be Top-Down or Bottom-Up approach

Num Of Production Units(P) b). Ratio Trend Analysis: Eg: Year Num Of Production Units(P) Num of inspectors(I) I:P -3 1500 150 1:10 -2 1800 180 Last Year 2000 1:11 Current Year 2200 ???? Therefore, P/I=1/11 2200/I=1/11 I=200

c). Work Study Technique:- This method can be used when it is possible to calculate the length of operations and the amount of labour required. Eg:- Planned output for next year = 20,000 units(Given) Standard hours per unit= 5(Given) Hence, Planned hours for the year = 20,000 x 5 =1,00,000 3. Productive hours per man/year = 2,000(Given) 4. Number of workers required = 1,00,000/2,000=50 d). Delphi Method:- Group of experts not related to the Company conducts surveys based on the details provided by the Company and gives their feed back

4. HR Supply Forecast a). Inflows and Outflows Eg: Current Strength Inflows Outflows 250 Operators Transfers in = 5 Resignations=2 Promotions In= 5 Dismissal=3 Total Inflows=10 Retirement=3 Total Outflows=8 Hence supply Forecast= 250+10-8=252

It is another simple method of forecasting internal supply b). Turn Over Rate:- It is another simple method of forecasting internal supply Turnover Rate= Number of separations during 1 year X 100 Average no of employees during the year c). Movement Among Jobs:- d). Conditions of work and absenteeism Changes in conditions of work such as normal weekly hours, overtime policies, the length and timings of holidays, retirement policy, policy for employing part timers and shift systems need to be assessed

5. HR Programming: Once an organisations personnel demand and supply forecast are completed, the two must be reconciled so that the vacancies can be filled by the right employees at the right time. 6. HR Plan Implementation: Implementation requires converting an HR plan into action. 7. Control and evaluation:

Barriers to HRP Resistance from Employees and Managers Time Consuming and Costly Accuracy of data