Planning For Human Resource

HR Planning

• HR Planning is the process of examining an organizations’ future human resource need.

• It involves:– Identifying and acquiring the right number of people with the

proper skills– Motivating them to achieve high performance – Creating interactive links between business objectives and

resource planning activities

Human Resource Planning (HR Planning) is both a process and a set of plans.

It is how organizations assess the future supply of and demand for human resources.

An effective HR plan also provides mechanisms to eliminate any gaps that may exist between supply and demand. Thus, HR planning determines the members and types of employees to be recruited into the organization or phased out of it.

Dynamic by nature, the HR planning process often requires periodic readjustments as labor market conditions change.

Human Resource Planning

Technological forecastsEconomic forecastsMarket forecastsOrganizational planningInvestment planningAnnual operating plans

Technological forecastsEconomic forecastsMarket forecastsOrganizational planningInvestment planningAnnual operating plans

Annual employment requirements

NumbersSkillsOccupational categories

Annual employment requirements

NumbersSkillsOccupational categories

Existing employment inventoryAfter application of expected

loss and attrition rates

Existing employment inventoryAfter application of expected

loss and attrition rates

VariancesVariances EndEnd

If surplusIf surplus If shortageIf shortage

Decisions

Layoff,retirement,

etc.

Decisions

Layoff,retirement,

etc.

Decisions

Overtime,recruitment,

etc.

Decisions

Overtime,recruitment,

etc.

EndEnd EndEnd

Strategic Planning Human Resource Demand Human Resource Supply

Compared

with

If none

ActionDecisions

HRP Process

All effective HR planning shares certain features. It is generally agreed that HR planning involves four distinct phases or stages:

Situation analysis or environmental scanningSituation analysis or environmental scanning

Forecasting demand for human resourcesForecasting demand for human resources

Analysis of the supply of human resourcesAnalysis of the supply of human resources

Development of plans for actionDevelopment of plans for action

The HRP Process

Why is HRP important ?

• Even an imperfect forecast is better than none at all• Anticipating needs – prepare for the future gives you an

edge• Address potential problems – avoid skill deficiencies

What is HRP?

• HRP is a sub-system of total organizational planning.• HRP facilitates the realization of the company’s

objectives for the future by providing the right type and number of personnel

• HRP is also called Manpower planning, Personnel planning or Employment planning

• HRP ensures that the organization has:– Right Number– Right Kind– Right Place– Right Time

Benefits of HRP

• Create reservoir of talent• Prepares people for future• Expand or Contract • Cut Costs• Succession Planning