1. Human Resource Planning
Unit 2 Contd
Human Resource Planning

2. 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

3. 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

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

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

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

7. 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:-

8. 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

9. 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

10. 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

11. 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= =252

12. 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

13. 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:

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