HUMAN RESOURCE PLANNING

Human resource planning In simple words, HRP is understood as the process of forecasting an organization's future demand for, and supply of, the right type of people in the right number. After this only the HRM department can initiate the recruitment and selection process Its called by manpower planning, personal planning or employment planning

IMPORTANCE OF HRP FUTURE PERSONNEL NEEDS Surplus or deficiency in staff strength Results in the anomaly of surplus labour with the lack of top executives COPING WITH CHANGE Enables an enterprise to cope with changes in competitive forces, markets, technology, products & government regulations CREATING HIGHLY TALENTED PERSONNEL HR manager must use his/her ingenuity to attract & retain qualified & skilled personnel Succession planning PROTECTION OF WEAKER SECTIONS physically handicapped, children of the socially disabled & physically oppressed and backward class citizens.

IMPORTANCE OF HRP 5. INTERNATIONAL STRATEGIES Fill key jobs with foreign nationals and re-assignment of employees from within or across national borders 6. FOUNDATION FOR PERSONNEL FUNCTIONS Provides information for designing & implementing recruiting, selection, personnel movement(transfers, promotions, layoffs) & training & development 7. INCREASING INVESTMENTS IN HUMAN RESOURCES Human assets increase in value 8. RESISTANCE TO CHANGE AND MOVE Proper planning is required to do this

IMPORTANCE OF HRP 9. OTHER BENEFITS Upper management has a better view of the HR dimensions of business decision More time is provided to locate talent Better opportunities exist to include women & minority groups in future growth plans Better planning of assignments to develop managers can be done

FACTORS AFFECTING HRP TYPE & STRATEGY OF ORGANIZATION Internal growth Growth through M & A Informal Formal Reactive Proactive Inflexible Flexible

FACTORS AFFECTING HRP II. ORGANIZATIONAL GROWTH CYCLES & PLANNING Embryonic stage – No personnel planning Growth stage – HR forecasting is essential Maturity stage – Planning more formalized & less flexible Declining stage – Planning for layoff, retrenchment & retirement III. ENVIRONMENTAL UNCERTAINITIES Government Factors Job mobility factors Population shift Economic cycles and conditions Geographical concerns Educational level of workers Technological changes Changes in social values Political changes International events

FACTORS AFFECTING HRP Short-term & Long-term plans IV. TIME HORIZONS Short-term & Long-term plans V. TYPE & QUALITY OF FORECASTING INFORMATION Type of information which should be used in making forecasts VI. NATURE OF JOBS BEING FILLED Difference in employing a shop-floor worker & a managerial personnel VII. OFF-LOADING THE WORK

Forecasting Techniques Managerial judgement Ratio-trend analysis Work study techniques Delphi technique Flow models Other techniques

Managerial Judgement In this all managers sit together, discuss and arrive at a figure which would be the future demand for labor. This technique may involve a ‘bottom-up’ or ‘top-down’ approach. A combination of both could yield positive results.

Ratio-trend analysis This is the quickest forecasting technique. This technique involves studying past ratios, say, between the number of workers and sales in an organization and forecasting future ratios, making some allowance for changes in the organization or its method.

Work-study techniques Work study techniques can be used when it is possible to apply work measurement to calculate the length of operations and the amount of labour required.

Delphi technique This technique is the method of forecasting personnel needs. It solicits estimates of personnel needs from a group of experts, usually managers. The HRP experts act as intermediaries, summarize the various responses and report the findings back to the experts. Summaries and surveys are repeated until the experts opinion begin to agree.

HR SUPPLY FORECAST Supply forecasting measures the no of people likely to be available from within and outside an organization,after making allowance for absenteeism, internal movements and promotions, wastage and changes in hours and other conditions of work.

Need for supply forecast Quantify no of people and positions expected in near future. Clarify the staff mixes. Prevent shortage of people Asses present staffing levels in different parts of organization.

Supply Analysis Existing human resources Internal sources of supply External sources of supply

Existing human resources Skill inventories – info about non-managers. 1. Personal data 2. Skills 3. Special qualifications 4. Salary and job history 5. Company data 6. Capacity of individual 7. Special preference of individual

Management inventories Contd.. Management inventories 1. Work history 2. Strengths 3. Weakness 4. Promotion potential 5. Career goals 6. Personal data 7. Number and types of employees supervised 8. Total budget managed 9. Previous management duties.

Internal supply and techniques Inflows and outflows IS= current supply – outflow + inflow Turnover rate No of seperations during one year × 100 Average no. of employees during the year

Contd… Conditions of work and absenteeism. Absenteeism is given by no. of persons – days lost x100 Average no. of persons × no of working days Productivity level Movement among jobs

External supply New blood and new experience To replenish old personnel Organizational growth and diversification

HR programming After personal demand and supply are forecast the vacancies should be filled at right time with right employees.

HR Plan implementation Converting HR plan into action. Action programs are.. Recruitment Selection & placement Training and development Retraining & redeployment The retention plan The redundancy plan The succession plan

Planning Human Resource Program HR Planner is confronted with: shortage or surplus Planning Human Resource Program Planning shortage Recruit from external source Postpone retirement Rehire Subcontract Reduce employee turnover Hiring temporary workers 2. Planning surplus Adapt attrition policy Offer early retirement Transfer to other units Train during slack period lay off