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HUMAN RESOURCEPLANNING

SUNITA

SHUKLA

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STRATEGIC PLANNING

T H E P R O C E S S B Y W H I C H T O P

M A N A G E M E N T D E T E R M I N E S O V E R A L L

O R G A N I Z A T I O N A L P U R P O S E S A N D

O B J E C T I V E S A N D H O W T H E Y A R E T O

B E A C H I E V E D

2

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DEFINITION :

process by which an organization

ensures that it has the right number &

kind of people at the right place and at

the right time, capable of effectively and

efficiently completing those tasks that

help the organization achieve its overall

objectives.

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This process involves the estimate of the future manpower needs of

an organization and meeting them through the labour forceavailable with it

HRP is the first step in the process of Recruitment and selection

after job analysis has been completed

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From a broad organizational perspective, HR planning intends to

achieve better customer satisfaction, quality enhancement andimproved employee motivation

From a functional perspective, it aims at enhancing the employees

motivation and commitment, team spirit, mutual trust and

creativity

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The three basic objectives of any HRP are:

Attracting, developing and retaining an efficient workforce

Evaluating rewarding its performance

Inventing and controlling HR plans and programs to optimize the HR

cost

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IMPORTANCE

1) Each Organization needs personnel with necessary

qualifications, skills, knowledge, experience & aptitude .

2)Need for Replacement of Personnel - Replacing old, retired or

disabled personnel.

3)Meet manpower shortages due to labour turnover -

4) Meet needs of expansion / downsizing programmes - As a

result of expansion of IT companies the demand for IT professionals are

increasing. PSUs offering VRS to employees to retrench staff and labourcosts. DOT.COMs firing staff.

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5) Cater to Future Personnel Needs - Avoid surplus ordeficiency of labour.

75% of organizations are overstaffed. Redeployment of staff to other units.

6) Nature of present workforce in relation with ChangingEnvironment - helps to cope with changes in competitiveforces, markets, technology, products and government

regulations. Shift in demand from ERP to internet programming has increased internet

programmers demand at Wipro, Infosys etc. ITI retrained its existing workforce

in the new electronic telephone system.

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OTHER USES

i) quantify job for producing product / service

ii) quantify people & positions required

- determine future staff-mixiii) assess staffing levels to avoid unnecessary

costs

iv) reduce delays in procuring staff

v) prevent shortage / excess of staff

vi) comply with legal requirements

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HUMAN RESOURCE PLANNING PROCESSEXTERNAL ENVIRONMENT

INTERNAL ENVIRONMENT

10

Strategic Planning

Human Resource Planning

ForecastingHuman

ResourceRequirements

ComparingRequirementsand Availability

ForecastingHuman Resource

Availability

Surplus ofWorkers

Demand =Supply

No Action Restricted Hiring,Reduced Hours,Early Retirement,Layoff, Downsizing

Shortage ofWorkers

Recruitment

Selection

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HR DEMAND FORECAST

process of estimating future quantity and quality of manpower requiredfor an organization.

External factors competition (foreign &

domestic), laws & regulation, economic climate,changes in technology and social factors

Internal factors - budget constraints,production levels, new products & services,

organizational structure & employee separations

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FORECASTING TECHNIQUES

Managerial Judgement - Managers discuss and arriveat a figure of inflows & outflows which would cater tofuture labour demand.

Ratio-Trend Analysis - Studying past ratios, i.e. No. of

Workers Vs Volume of Sales, forecasting future ratios andadjusting for future changes in the organization.

Work-Study Technique - Used when length ofoperations and amount of labour required can be

calculated.

Delphi Technique - From a group of experts thepersonnel needs are estimated.

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HR SUPPLY FORECAST

process of estimating future quantity and quality of manpower

available internally & externally to an organization.

Supply Analysis Existing Human Resources

Internal Sources of Supply External Sources of Supply

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EXISTING HUMAN RESOURCES

Capability / Skills Inventory using HR Information System

General Information -Name: Present Address: Department:Sex: Designation:DOB: DOJ:Marital Salary:Status: Permanent Address: Grade:

Qualification -Degree/Diploma Institution Class Year of Pass

Experience/Skills -Job Title/ Organisation Brief Skill/

Appointment Responsibilities Specialisation

Outstanding Achievement / Additional Information -Awards Performance Disciplinary ActionPromotions Merit Rating AbsenteeismAchievementsCareer Plans:

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ANALYSIS OF INTERNAL SUPPLY

Inflows & Outflows - The number of losses & gains ofstaff is estimated.

Turnover Rate - refers to rate of employees leaving.

= ( No. of separations in a year / Avg no. of

employees during the year ) x 100

Absenteeism - unauthorized absence from work.= ( total absentees in a year / Avg no. of employees

x No. of working days) x 100

Productivity Level - = Output / Input. Change inproductivity affects no. of persons per unit of output.

Movement among Jobs - internal source of recruitment,selection and placement

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EXTERNAL SUPPLY

External recruitment, selection & placement -

Advertisements, Manpower Consultants, Campus

Recruitment, Unsolicited Applications, Employee

Referrals

External Sources are important for specific reasons:

New blood and new experience will be available

Organization needs to replenish lost personnel

Organizational growth and diversification create theneeds to use external sources to obtain additional

number and type of employees

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HR PROGRAMMING

Balancing Demand and Supply

Vacancies filled in by the right employee at the

right time

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HR PLAN IMPLEMENTATION

Recruitment, Selection & Placement

Training & Development

Retraining & Redeployment

Retention Plan

Downsizing Plan

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CONTROL & EVALUATION

The HR plan should include budgets,targets and standards. It should also clarify

responsibilities for implementation and

control, and establish reporting procedureswhich will enable achievements to be

monitored against the plan

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PROBLEMS IN HUMAN

RESOURCE PLANNING

Resistance by employer

Resistance by employees

Resistance by trade unions

Uncertainties

Inadequacies of Information system

Identify crisis

Slow and gradual process

Lack of co-ordination with other management

functions

Integration with organizational plans

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