What is human resource planning?

Human resource planning is the process whereby an organization or industry seeks to ensure it has the right
number and right kind of people, in the right place, at the right time doing the right things for which they are
economically most useful. It ensures the best fit between the employee and the job.

Organization strategy and human resource planning

Organizational
Strategy
Feedback

Retrenching Strategy Growth Strategy

Stability Strategy
Downsizing Mergers
Status quo
Shut Down

Human Resources Planning

Determine the number and types of job to be filled

Match human resource availability with job openings

Importance on human resource planning

It enables appropriate and time action to be taken in regard to developing the training programs, career
development strategies, recruitment drives and so on. It does so by ensuring the organization futures need are
determined and action plans developed on each of these areas to ensure those identified need are able to be
met at the right time.

Method of human resource planning ( Techniques for quantitative approach )

Trend analysis analysis the company record for the past 5 years to predict how many employee
needed in this year.
Ratio analysis compare between the sales volume and the number of salespeople.
The scatter plot graph containing business activity at the horizontal line and staffing levels at the
vertical line.
Using computer to forecast personnel requirement for example key in the projected sales and
volume of production.
Forecasting supply of internal human resource
Need to know the current employees skills sets-their current qualifications.
Data on things like performance, records, educational backgrounds, and promotability.
Helps managers determine which current employees are available for promotion or transfer.
Present employees who can be promoted, transferred, demoted or developed make up the internal
supply.
Methods of internal supply planning
Replacement planning- identify employee that can performed the same job
Succession planning- identify which employee can be promoted
Turnover analysis- identify the reason employee quite the job
Skills inventory- keeping a full record of each employee ability, experience and qualification
Human resource planning process
Human resource planning is a process whereby an organization or industry seeks to ensure it has the right
number and right kind of people, in the right place, at the right time, doing the right things for which they are
economically most useful. It ensures the best fit between the employer and the job.
The human resource planning process can be described as the diagram below:

Determine the number and types of job

Human resource Human resource

demand supply

Number, skills, qualification, Number, skills, qualification,

performance, experience performance, experience

Variance Nil

No action
If surplus If shortage
Stop recruiting Increase overtime
Reduce part time worker Increase part time employment
Start early retirement Postpone retirement
Start retrenching Start retrenching
Reduce working hour Accelerate training

To determine the number and the kind of job, human resource demand refer to the number of worker that
needed by company while human resource supply refer to the number of worker looking for the job at marker
place. To find appropriate worker, human resource look at the number, skill, qualification, performance and
experience of the job seeker.

Human resource demand has two conditions, which include surplus and shortage. These two conditions have
different policies to be implemented for human resource planning.

If surplus, which means the worker is too much, stop recruiting can be implemented, by not hiring new staff into
the company. There is also policy includes reduce part time worker by not hiring part time worker into the
company. Besides, start early retirement, asking the worker to early retire at the age of 50. Then, start
retrenching, expel the unproductive worker to reduce the cost of hiring them. After that, reduce working hour for
the worker in order to save electricity and overtime payment of the company.

If shortage, which when the worker is not enough, increase overtime for the worker can be implemented, asking
the worker to work eight hours a day. Human resource planning also includes increase part time employment, by
hiring more part-timer into the company. Then postpone retirement also can be implemented, by asking the
worker to retire at the age of 58 to 60. When the worker is not enough, the human resource can start to recruit by
hiring new staff and accelerate training. This involves sending employee to attend more courses, so that they
can handle more work to enables the company become more productivity.

On the other hand, if the worker is enough, there is no action to be taken.