HUMAN RESOURCES PLANNING

MADAN MOHAN SIDDHANTHI

CONTENTS• WHAT IS HRP?

• WHY HRP?

• OBJECTIVES

• HRP DEFINED

• STEPS IN HRP

• ADVANTAGES

• DEMAND FORECASTING

• STRTEGIC HUMAN RESOURCES MANAGEMENT

• HRP – INFLUENCINF FACTOR

- External factor

• PROCESS/STEPS IN HRP

ISSUES

• Un-certainties of business environment • Availability of qualified and competent candidates• People being asked to leave on the basis of competency

deficiency after joining in the job• Growth in economy• Too many people chasing few jobs – unemployment and

the related problem including crime • Problem of under employment and over employment• Government policies • Population explosion

Poor planning of national level and new colleges on political pressure Generally the competency levels are dropping

WHAT IS PLANNING ?

Simply put, as envisaging future, now ,so that all actions are listed in advance FOR EXECUTION..

Not to plan is the surest way to disaster .

Planning is like the nervous system .

Human Resources planning is a process by which the management of an organization determines its future HR requirements and plans how the existing HR can be utilized to fulfill these requirements.

E W vetter - HRP “ a process by which an orgnaisation should move from its current manpower position to its desired manpower position .

Right numbers ,Right kind Quality , Right time , and at the Right place .

At Right cost.

WHY HRP

• NEW START UP

• ATTRITION – PEOPLE CHANGING JOB, RETIREMENT , DEATH

• GROWTH OR EXPANSION

• NEW AVENUES OF BUSINESS

• NEW LOCATIONS –NATIONAL AND INTERNATIONAL

• TECHNOLOGICAL CHANGES

• GOVERNMENT POLIES

OBJECTIVES

• Ensure availability of right type of people as per requirements.

• Recruit and retain Human Resources.• Foresee the employee turn over and plan for retaining

/replacement• To align HR planning with organization vision ,mission

and strategies.• To plan, develop HR to meet the changing technologies.• To plan and ensure Value addition of HR.• To plan and maintain the cost of HR as per Budgets

OBJECTIVES –(Continued)

• To meet h challenges of changes in Technology on work and plan for the training and development of employees to improve knowledge ,skills and abilities

• To plan &execute appropriate actions for Surplus and shortage of Manpower.

• Maintain a Highly motivated workforce.• To reduce the lead-time in recruitment.• All unplanned actions will lead to tension, mistakes and additional

costs.

HRP - DEFINED

• HRP – a Process by which an organization should move from its current manpower position to its desired manpower position- E W Vetter

• An integrated approach to performing the planning aspects of the personnel Function in order to have a sufficient supply of adequately developed and motivated people to perform the duties and tasks required to meet organizational objectives and satisfy the individual needs and goals of the organization.- Leon C Meggison.

HRP DEFINED (CONTINUED)

• As defined by Bulla and Scott (1994), human resource planning is ‘the process for ensuring that the human resource requirements of an organization are identified and plans are made for satisfying those requirements’.

• Reilly (2003) defined workforce planning as: ‘A process in which an organization attempts to estimate the demand for labour and evaluate the size, nature and sources of supply which will be required to meet the demand.’

HRP - DEFINED

• Coleman has defined HRP as the process of determining human resource requirements and the means of meeting the requirements in order to carry out the integrated plan of the organization.

• Stainer defines HRP as a Strategy for the acquisition ,utilization ,improvement and preservation of enterprise's human resources

STEPS INVOVLVED IN HRP

• Forecasting the future requirements .

• Making inventory of the current HR.

• Evaluating the internal resources, developmets , , constraints in terms of supply & demand ,economic environment etc.

• Planning the necessary programs.

ADVANTAGES

• Supports corporate strategies and plans.• Off sets uncertainty and changes.• Scope for development of employees through training• Compensation costs –estimation and budgeting.• Anticipates the obsolescence of skills or requirement of

new skills there by plans for training.• Builds and supports organization culture.• Planning the physical facilities.• Helps in identifying the skills required ,competencies and

there by recruitment methods.

ADVANTAGES (Continued)

• Provides scope for promotion and up gradation of employees and also career planning for the employees.

• Over all improvement in all functions.

DEMAND FORECASTING

• Qualitative • Quantitative

QUALITATIVE- Function wise- Delphi’s Method- Nominal Group

All these are subjective

QUANTITATIVE

• Based on the fact that future can be predicted based on the past.

- Regression Analysis

SUPPLY FORECASTING

STRATEGIC HUMAN RESOURCES MANAGEMENT

• Planned HR developments and activities related to achieve the organisation goals. Accepting HR Function as Strategic partner in both the formulating of the companies strategies ,as well a in the implementation of these activities. strengths and Weaknesses of organisation Resources. Eg. IT industry, Banking ,Car .

• Strategic HR shifts focus on employees .In final analysis people are the organisation’s only sustainable competitive advantage.

• Strategic HR offers three critical outcomes ,Improved performance, enhanced customer and employee satisfaction and increased share holders value.

HRP-FACTOR INFLUENCING

• External Factors• Internal FactorsThe influence of organization on external factors is limited .However external factors like Government laws and

regulations have a bearing.Internal Factors: Company’s strategies with respect to• Expansion , Diversions ,Mergers ,New Ventures • Policies – internal /external resources to take higher

responsibilities.• Information – Job Descriptions ,Person Profiles.

FACTORS INFLUENCING

• Data –Human Resources Inventory – with reference to competencies ,qualifications and experience .

• Internal factors like Unions, Association etc.

Generally the manpower required is based on

Government laws – Boiler attendents ,SHE , Welfare officers etc

Work load - either by work measurement techniques or estimation and guesstimates .Skills required to meet the org.goals.

Position requirements in process industries like chemicals and fertilisers etc.

EXTERNAL FACOTRS

• National policies • Level of economic development• Business environment• Information Technology• International factors• Technology.

Competition ,Availability of the specific skills ,obsolescence of the skills’

PROCESS

• Corporate Vision ,Mission and strategies.• Manpower Forecast – Category ,Skills ,numbers.• Human Resource inventory• Age Analysis , Super Annuation /retirement plans.• Market condition – supply &Demand• Net Requirement on Human Resources – Time

/Schedule.• Plans for Surplus . Redeployment ,Training • Competition to company • Source Selection &Action Plans.