Human Resource Planning It is the process of forecasting an organizations future demand for and supply of right type of people in right number. HRP is the process by which an organization move from its current manpower position to its desired position.

HRP is the process of determining manpower requirements and the means for meeting these requirements in order to carry out integrated plans of the organization. HRP facilitates realization of corporate objectives by providing right type of people in right number.

Process of HRP Analyzing organizational plans and objectives. Analyzing objectives of HRP Forecasting demand for human resource Forecasting supply of human resources Matching demand and supply Monitoring and control

Analyzing organizational plans and objectives : Analysis of business plans into sub-sectional and functional plan such as technology, production, finance, marketing, expansion and diversification provides for assessing HR requirements for each activity.

Analyzing objectives of HRP : What will be the sources of recruitment? What will be the selection procedure? How will provisions for training and development made? How to restructure job position?

Forecasting demand for HR Demand for HR vary from time to time depending upon external and internal factors. External factors : Competition, economical and political climate, technological changes and government policy. Internal factors : Growth and expansion, design and structural changes, management philosophy, change in leadership style, employees resignation, retirement, termination etc.

Forecasting supply of HR It gives the quantity and quality of people available from internal and external sources of manpower supply

Matching demand and supply Reconciliation of demand and supply. Shortage – recruitment, transfer, promotion, training and development, retention etc. Surplus – redeployment, retrenchment, voluntary retirement scheme (VRS) etc.

Strategic Planning The process by which top management determines overall organizational purposes and objectives and how they are to be achieved

Human Resource Planning The process of systematically reviewing HR requirements to ensure that the required number of employees, with the required skills, are available when they are needed

Human Resource Planning Human Resource Planning Process External Environment Internal Environment Strategic Planning Human Resource Planning Forecasting Human Resource Requirements Comparing Requirements and Availability Forecasting Human Resource Availability Demand = Supply Surplus of Workers Shortage of Workers Restricted Hiring, Reduced Hours, Early Retirement, Layoff, Downsizing Recruitment No Action Selection

HR Forecasting Techniques Projecting Demand : Trend Analysis Ratio Analysis Delphi Technique Normal group technique Managerial judgment Bottom up approach-Decentralised style Top down approach-Centralised

Work study technique Zero Base forecasting Simulation model

Simulation Method – Projecting demand for skilled workforce is based on input output analysis. Helps to gain insight into particular problems before making n actual decision. HR planner keeps questioning : What if the workforce get overtime Or is shift a better option How can there be an optimal utilization of resources? etc

HR Forecasting Techniques Projecting Supply : Internal Supply of employees through replacement charts Turnover rate HRIS Productivity level Overtime & absenteeism Succession planning

Human Resource Information Systems (HRIS) Virtually all HR management functions can be enhanced through the use of an HRIS – any organized approach for obtaining relevant and time information on which to base HR decisions

HUMAN RESOURCE INFORMATION SYSTEM Goal: Integrate Core Processes into Seamless System Input Data Types Job Analysis Recruitment Selection/Job Posting/ Employee Referral T&D Performance Appraisal Compensation Benefits Safety Health Labor Relations Employee Relations Output Data Uses* Employee Tracking Diversity Programs Hiring Decisions Training Programs/E-learning/Management Succession Compensation Programs Benefit Programs (e.g., prescription drug programs) Health Programs (e.g., Employee Assistance Programs) Bargaining Strategies Employee Services Contribute Toward Achievement of: Human Resource Information System Organizational Strategic Plans Human Resource Management Plans *Certain data are available to employees at work or at home. Examples: supervisors might access just-in-time training for conducting performance appraisal reviews. Operative employees might enter time and labor data. All employees may be able to review 401(k) balances, transfer funds, make benefit elections, set annual performance goals, update personnel data.

Forecasting HR Requirements Estimate of numbers and kinds of employees the organization will need at future dates Demand for firm’s goods or services must be forecast Forecast is then converted into people requirements

Forecasting HR Availability Determining whether the firm will be able to secure employees with the necessary skills, and from what sources these individuals may be obtained Show whether the needed employees may be obtained from within the company, from outside the organization, or from a combination of the two sources

Surplus of Employees Restricted hiring – employees who leave are not replaced Reduced hours Early retirement Layoffs

Shortage of Workers Forecasted Creative recruiting Compensation incentives – premium pay is one method Training programs – prepare previously unemployable people for positions Different selection standards – alter current criteria