School of Management Studies

Human Resource Planning

Strategy for the acquisition, utilization, improvement and preservation of organizations Human Resources Human Resource Planning is the process by which an organization ensures that it has the right number and kind of people, at the right places, at the right time, capable of effectively and efficiently completing those tasks that will help the organization achieve its overall objectives

School of Management Studies

Human Resource Planning

HRP is forward looking & future oriented

HRP is ongoing & Continuous process

HRP is an integral part of organizations planning HRP is both qualitative & quantative HRP is evaluation of demand and supply HRP can be both long term & short term
HRP is management oriented for effective utilization of resources

School of Management Studies

Human Resource Planning

Significance of Human Resource Planning

To avoid sudden disruption of production

To expand business To reduce wastage To meet the challenges of attrition To fill the gap due to mobility (Promotions, transfers etc.,) To identify right kind of people To design suitable training program/methods To redeploy surplus manpower

School of Management Studies

Human Resource Planning

Need for Human Resource Planning

To meet the shortage of employees

To meet the technology/management changes
(new skills and category of employees)

Demographic changes (profile, Age, Gender, education etc.,)

Govt. policies (social reservations, child labour, working conditions) Labour laws Trade unions, Politicians, sons of soil etc., Introduction of Computers/Auto-machine

School of Management Studies

Human Resource Planning

Factors affecting Human Resource Planning

External Factors
Govt. policies Economic Conditions Business environment Technology

School of Management Studies

Human Resource Planning

Factors affecting Human Resource Planning

Internal Factors
Company policies (Expansion, diversion etc.,) H R Policies (Training & development, compensation etc.,) Job Analysis Production policies (produce or out-source etc.,) Trade unions

School of Management Studies

Human Resource Planning

Process of Human Resource Planning

Analyzing organizational Plans

Production plan Technological plan Marketing plan Financial plan

School of Management Studies

Human Resource Planning

Process of Human Resource Planning Forecasting demand for Human Resources

Managerial judgment
(Experienced management may design manpower needs)

Work study method

(Volume of work is easily measurable, total production in terms of units are estimated)

Statistical techniques
(Ratio trend analysis, Econometric method)

Delphi technique

School of Management Studies

Human Resource Planning

Process of Human Resource Planning Forecasting supply of Human Resources

Internal
External

School of Management Studies

Human Resource Planning

Process of Human Resource Planning Estimating manpower gaps

Physical Human Resources

Gap in knowledge, skills and aptitude (Gap may be deficit or surplus)

School of Management Studies

Human Resource Planning

Process of Human Resource Planning Action plan

Training
Placement

School of Management Studies

Human Resource Planning

Process of Human Resource Planning Modify the organizational plan

Outsource
Contingent employees

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International Human Resource Planning

Why international Human Resource Planning ? Under LPG conditions business expanding as global business

Manufacturing is being shifted to the countries where the resources are available

Advantage in terms of cost, quality, innovation etc.,

Exports and imports has increased by 20 times from 1950 to 2007

School of Management Studies

International Human Resource Planning

Issues of global division of work force New world order MNCs save significantly by shifting the manufacturing activity to countries where human resources are available and at cheep cost Provides value to customers Provides jobs to the host country Income to the host country governments First world countries shall specialize on knowledge based human capital (Education, R&D etc.,) First world countries are loosing the job opportunities in manufacturing sector

School of Management Studies

International Human Resource Planning

Issues of global division of work force Professional categories 75% of the future HR will be in Three professional categories 1. Routine production services - Manufacturing workers (workmen, supervisors, foremen etc.,) - Routine and doesnt need extraordinary skills - Wage and salary has grate influence on such HR 2. In-person services - Job require little training and skills (Sales, Customer care etc.,) - Need to work closely with customers - Jobs are in the location of the customer 3. Symbolic-analytic services - High level skills are required (leadership, decision making, managerial, creative etc.,) - Need not be in particular location - Can be drawn form different parts of the world - High salary and more expensive - Need best skills

School of Management Studies

International Human Resource Planning

Issues of global division of work force Future implications for HR supply Availability of work force in different countries Cost of work force Mobility of work force MNCs strategy to meet workforce needs

School of Management Studies

International Human Resource Planning

External environment scanning

Labor market conditions & characteristics Govt. policies and legal regulations Global competition Cross-national cooperation and conflict Cultural differences