lecture 1 -introduction to hrp -2010

7/29/2019 Lecture 1 -Introduction to HRP -2010

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Human ResourcePlanning


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HUMAN RESOURCE PLANNING

Human resource planning is the process of

anticipating and carrying out the movement of

people into, within, and out of the organization.

Human resources planning is done to achieve

the optimum use of human resources and to

have the correct number and types of

employees needed to meet organizational goals.


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According to Geisler, Manpower planning is the

process including forecasting, developing andcontrolling by which a firm ensures that it has-

The right number of people,

The right kind of people,

At the right places,

At the right time, doing work for which they are

economically most useful.


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Features of HRP

Forecasting future manpower requirements

Making an inventory of present manpower resourcesand assessing the extent to which these resourcesare employed optimally.

Anticipating manpower problems by projectingpresent resources into the future

Planning the necessary programmes of requirement,selection, training, development, utilization, transfer,

promotion, motivation and compensation to ensurethat future manpower requirements are properlymet.


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Factors Affecting HRP

Factors

Affecting HRP

External Factors Internal Factors


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External Factors

t Policies

Level of Economic

Development

including

future supply

of HRs

Business

Environment

Information

Technology

Level of

TechnologyNatural Factors

International

Factors

External Factors

ent Policies

Level of Economic

Development

including

future supply

of HRs

Business

Environment

Information

Technology

Level of

TechnologyNatural Factors

International

Factors


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Internal Factors

Strategies Of

the Company

Human Resource

Policy of the

Company

Formal and

Informal GroupsJob Analysis Time Horizons

Type and

Quality of

information


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The PlanningProcess

HR SupplyForecast

HR NeedForecast

Organizational Objectives and Policies

HR

Programming

HRP

Implementation

Control and Evaluation of

Programme

Shortage

Recruitment

Selection Etc.

Surplus

Restricted Hiring

Reduced Hours

VRS, Lay off etc

Environment


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Techniques

of HR Need/Demand

Forecasting

Managerial

JudgmentRatio Trend

Analysis

Regression

Analysis

HR Demand

Forecast

Delphi

Technique

Work Study

Techniques

Others


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TECHNIQUES OF HR DEMAND

FORECAST

Techniques of HR demand forecast are discussed below.a)Managerial Judgment: In this, experienced managers estimate

the human resource requirements for their respectivedepartments on the basis of their knowledge of expected futurework load and employee efficiency.

b) Work-study Method: In this method time and motion study areused to analyze and measure the work being done.

c)Ratio-Trend Analysis: Under this method ratios (e.g. totaloutput/no. of workers, direct workers/indirect workers) arecalculated on the basis of past data. Future ratios are basing on

the past trend.d)Mathematical Models: It expresses the relationship betweenindependent variable (e.g. investment, production, sales, etc.)and dependent variables (e.g.no. of employees required).


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FACTORS AFFECTING HR DEMAND

FORECASTING

Human Resource Demand Forecasting depends

on several factors, some of which are given

below.

a) Employment trends;

b) Replacement needs;

c) Productivity;d) Absenteeism; and

e) Expansion and growth.


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Supply Forecasting Methods

Skills InventoryReplacement Charts

Succession Planning

Flow Modeling/Markov AnalysisComputer SimulationsMarkov analysis

Management inventories


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Supply Forecast

Potential Additions Potential Losses

Transfer in(4) Voluntary Quits(12)Resignation

Deaths(1)

Promotion in (3) Dismissal(2)

VRS(18)

Demotion in (1) Discharges(4)

Retirement(12)

New Hires(12) Promotions out(8)

Demotions(2)

Transfers out (18)

Existing Inventory at a Future date= Existing Employees (300)+ Potential

additions(20) - Potential losses (77)= (243)

Job / Team SystemAnalysts Existing

Employees (300)


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Integrated part of Business Planning


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HRP and Strategic Planning

Strategic Analysis

What human resources are needed and what are

available?

Strategic Formulation

What is required and necessary in support of human

resources?

Strategic Implementation

How will the human resources be allocated?

Human Resources

Planning

Strategic

Planning


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Linking the Processes of HRP and Strategic

Planning

Figure 4.1

Presentation Slide 41

StrategicAnalysis

Establish the context:

Business goals

Company

strengths/weaknesses

Externalopportunities/threats

Source of competitiveadvantage

StrategyFormulation

Clarify performanceexpectations and futuremanagement method:

Values, guidingprinciples

Business mission

Objectives and priorities

Resource allocations

StrategyImplementation

Implement processes toachieve desired results:

Business goals

Companystrengths/weaknesses

Externalopportunities/threats

Source of competitiveadvantage

Identify people-relatedbusiness issues

Define HR strategies,objectives, and action plans

Implement HR processes,policies, and practices


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PROBLEMS IN HRP PROCESSThe main problems in the process of HRP are as follows:

a)Inaccuracy: HRP is entirely dependent on the HR forecasting andsupply, which cannot be a cent per cent accurate process.

b) Employee resistance: Employees and their unions feel that by

HRP, their workload increases so they resist the process.

c) Uncertainties: Labour absenteeism, labour turnover, seasonalemployment, technological changes and market fluctuations are the

uncertainties which HRP process might have to face.

d)Inefficient information system: In Indian industries, HRIS is not

much strong. In the absence of reliable data it is not possible to

develop effective HRP.

e) Time and expense: HRP is time consuming and expensive

exercise, so industries avoid.


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HRP should be:

Done to guide and coordinate all HR activities so

they work together to support the overall

strategy

Responsive to internal and external environment

Planning - done in advance

Strategic - linked with higher level planning


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GUIDELINES FOR MAKING HRP

EFFECTIVEFew guidelines to improve effectiveness of HRP process are

discussed below.a) Tailormade: HRP should be balanced with corporate objectives.

b) Appropriate time: The period of HRP process should beappropriate to the needs and circumstances of an organization.

c) Adequate organization: HRP process should be adequately/properly organized.

d) Top management support: Before starting the HRP process thesupport and commitment of top management should be ensured.

e)Participation: HRP will be successful if all in an organization areparticipating.

f) Information system: An adequate database should be developedfor facilitating HRP.

g) Balanced focus: The quantity and quality should be stressed in a

balanced manner.

lecture 1 -introduction to hrp -2010

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