2human resource planning

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Human ResourcePlanning


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Relationship between Job requirements& HRM functions

Job analysis Job Design


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Meaning & Definition

HRP is the process of forecasting anorganizations future demand for, and supply of,the right type of people in the right number.

HRP is the process by which an organizationensures that it has the right number and kind ofpeople, at the right place, at the right time,capable of effectively and efficiently completing

those tasks that will help the organizationachieve its overall objectives.


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Strategic Direction The HR Linkage

Vision &MissionCreation

Objectives &

Goals: 5- 20 yrbroad objectives

StrategyGap analysis,

SWOT

HR linkageJob Analysis


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Employment Planning

Assessing Current Human Resources Developing profile of organizations current employees Internal analysis includes information about workers and skills they

possess, education, training, prior employment, current position,performance ratings, salary level, languages spoken, capabilities,specialized skills etc.

Need to retain & retrain if required

Human Resource Information System / HRMS HRIS is developed to assist in HR inventory management. Database system that keeps important information about employees in

central & accessible location. Data used for facilitating employment planning decisions.

Succession Planning Consists of a Replacement Chart covers middle to upper level

management positions. Objective Ensuring that another individual is ready to move into a

position of higher responsibility It highlights positions that may become vacant due to retirements,

promotions, transfers, resignations, or death of incumbent etc. Employee morale increases by 25% where succession planning occurs.


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Employment Planning

Determining demand for labour Projection of future human resource needs by performing a year-by-

year analysis for every significant job level & type. Focus on skills, knowledge & abilities required rather than only

number of employees required. Predicting Supply

Sources New hires, transfers, individuals returning from long leaves Decrease in internal supply Retirements, dismissals, transfers-out

of unit, layoffs, voluntary quits, prolonged illness or death. Finding manpower

Colleges, websites, technical training institutes, placement agenciesetc

Matching demand & supply

Pinpoint shortages in number & skills Highlight areas where overstaffing may exist Keep abreast of opportunities existing in the labour market to hire

qualified employees in order to satisfy current needs or stock pilepotential candidates for future


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HR Planning Process

OrganizationalObj & Policies

HR Supply

Forecast

HR Demand

Forecast

HR Programming

HR Implementation

Control & Eval of Prgm

ShortageRecruitment &

Selection

SurplusRestricted hiring,Reduced hoursVRS, lay off etc

Environment


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HR Demand Forecast

Demand Forecasting is the process ofestimating future quantity & quality of peoplerequired.

Basis Annual budget & long term corporateplan translated into activity levels for eachfunction & department.

Sales Budget

Production Plan No. & type of products to beproduced in each period

Number of hours by skilled workmen

Quality & Quantity of personnel


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HR Supply Forecast

This process determines whether the organization will beable to procure the required number of personnel andsources for demand given.

Supply forecasting measures the number of people likely

to be available from within & outside of an organization,after making allowance for absenteeism, internalmovements & promotions, wastage & change in hours,and other conditions of work.

The supply analysis covers:

Existing human Resources Internal sources of supply

External sources of supply


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Supply Analysis Existing human

resources Facilitated by HR Audits Audit of non-managers called skills inventory & those of management is

called Management inventory Skills inventory:

Personal data age, gender, marital status Skills education, job experience, training

Special qualifications professional body membership, specialachievements Salary & job history Capacity of individual scores on psychological tests, health info etc Special preference of individual geographic location, type of job etc.

Management inventory Work history Strengths & Weaknesses Promotion potential Career goals Personal data Number of teams managed Total budget managed Previous management duties


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Supply Analysis Internal Supply

Techniques used for Internal supply analysis:

Inflows & Outflows:

Current personnel level outflows + inflows = internalsupply of personnel in fiscal yr / given time period

Outflows = Resignations, discharges, demotions,retirements, promotions.

Inflows = Transfers, promotions

Turnover rate :

Number of separations during one year 100

Avg number of employees during one year

Conditions of work & Absenteeism


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Supply Analysis External Supply

New blood & personnel available

Need to replenish lost personnel

Organizational growth & diversification creates need

Sources vary recruitment agencies, competitors, labour

market, references etc.


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HR Programming & HR PlanImplementation

HR Programme : Reconciliation of organizations personnel

demand & supply forecast.

HR Plan implementation Converting programme into action.

For Shortage of employees following actions

Recruitment, Selection & Placement Identify source, searchfor suitable candidate.

Training & Development internal staff / new hires to be trainedappropriately

Retraining & Redeployment

Retention Plan Compensation plan, performance appraisal,

provide better career opportunities, encourage good workenvironment, induction procedures, unsuitable recruits.

For Surplus employees following actions

Downsizing plan Redeployment, VRS, lay off, reduce workhours & reduce pay for all.


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Control & Evaluation Phase

Establishment of reporting procedures which will enableachievements to be monitored against plan.

Numbers employed against plan, employment costsagainst budget, trends in employment & wastage ratios

etc.

2human resource planning

Documents