1Indore Indira Business School Human Resource Planning Introduction Prof.Akhilesh Dubey

2 Chapter Learning Objectives After this session/class you should be able to: Define HRP. Characteristics of HRP. Objectives of HRP. Essentials of HRP. Importance of HR Planning. Levels of HR Planning. Indore Indira Business School

3 HRP Defined……. Human Resource Planning has been defined as– “The process by which management determines how the organization should move from its current manpower position to its desired manpower position.Through planning the management strives to have the right number and the right kinds of people at the right places, at the right time doing things which result in both the organization and individual receiving the maximum long-run benefit.” -Vatter Indore Indira Business School

HRP Continues….. In other words “HRP is a process of determining and assuming that the organization will have an adequate number of qualified persons, available at the proper times, performing jobs which meet the needs of the enterprise and which provide satisfaction for the individuals involved.” 4Indore Indira Business School Personnel Planning- The process of deciding what positions the firm will have to fill, and how to fill them.

5 Characteristics of HRP 1.HRP is a forward looking or future oriented. 2.HRP is a ongoing or continuous process. 3.HRP is a integrated part of corporate planning. 4.The basic purpose of HRP is to make optimum utilization of an organization’s current and future HR. 5.HRP has both qualitative and quantitative aspects. 6.HRP is primary responsibility of Management. 7.HRP can be long term or short term. Indore Indira Business School

6 Characteristics…… 8. HRP is a two phased process involving calculation about the demand for and supply of human resources, so as to secure an equilibrium between the two. A manpower plan consists of two sub-plans; (a) a manpower demand plan (b) a manpower supply plan. 9. HRP should not be rigid, it should be flexible.

7 Objectives of HR Planning Indore Indira Business School To ensure optimum use of existing human resource. To forecast future requirements for HR. To link HR planning with organizational planning. To provide control measures to ensure that necessary human resources are available as and when required. To assess the surplus and shortage of human resources. To determine the levels of recruitment and training. To meet the needs of expansion and diversification programmes.

8 Need and Importance of HRP HRP identifies gap in existing manpower in terms of their quantity and talent. Suitable training and other steps can be taken in time to fill these gaps. There is need to replace employees who retire, die, resign and become incapacitated due to injury. Provision for replacing of personnel can be made through HRP. HRP facilitates the expansion and diversification of organization. In the absence of HR plans, the required human resource will not be available to execute expansion and diversification plans at the right time. Indore Indira Business School

9 Need and Importance conti…. Indore Indira Business School HRP helps in planning for physical facilities like canteen, staff quarters dispensary and school for staff and their children. HRP helps in career and succession planning in the organization. It provides enough lead time for internal succession of employees to higher positions through promotions.

Levels of HR Planning National Level Sectorial Level Industry Level Unit Level 10Indore Indira Business School

Process of HRP HRP PROCESS Organizational Objectives & Policies: - The objectives of HR plan must be derived from organizational objectives like specific requirements of numbers and characteristics of employees etc. HRP needs to sub-serve the overall objectives by ensuring availability and utilization of human resources. Specific policies need to be formulated to address the following decisions. 11Indore Indira Business School.

Internal Hiring or External Hiring? Training & Development plans Union Constraints Job enrichment issues Rightsizing organization Automation needs Continuous availability of adaptive and flexible workforce 12Indore Indira Business School

Manpower Demand Forecasting: - It is the process of estimating the future quantity and quality of people required. The basis should be annual budget and long term corporate plans Demand forecasting should be based on following factors. 13Indore Indira Business School

Internal Factors: - Budget constraints Production levels New products and services Organizational structure Employee separation 14Indore Indira Business School

External Factors: - Competition environment Economic climate Laws and regulatory bodies Technology changes Social Factors 15IIBS- Akhilesh

Reasons for Manpower Demand Forecasting: - To quantify jobs To determine the Staff-mix To assess staffing levels and avoid unnecessary costs Prevent shortages of people Monitor compliances of legal requirements with regards to reservations 16IIBS -Akhilesh

Manpower Forecasting Techniques: - Management Judgment: In this techniques managers across all the levels decide the forecast on their own judgment. This can be bottom-up or top-down approach and judgments can be reviewed across departments, divisions and top management can conclude on final numbers of manpower required. 17(c) 2009 by Nelson Education Limited.

Techniques…. Ration-Trend Analysis: This technique involves studying past ratios, and forecasting future ratios making some allowance for changes in the organization or its methods. Work Study Techniques: It is possible when work measurement to calculate the length of operations and the amount of manpower required. The starting point can be production budget, followed by standard hours, output per hour; man-hours required etc could be computed. 18IIBS- Akhilesh

Delphi Techniques: This technique solicits estimates from a group of experts, and HRP experts normally act as intermediaries, summarizes various responses and report the findings back to experts. 19