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Human Resource Planning

Environment

Organizational objective and policies HR Needs Forecast HR programming HR supply forecast

HR Implementation

Control and Evaluation of program

surplus

shortage

HRP involves:
forecasting personnel, assessing personnel supply, and matching demand and supply factors through personnel

related programs.

Two important factors:


organizational objectives and environment of business.

Estimating the future quantity and quality of

people required. Based on annual budget and long term corporate plan Translated into activity for each function and department

Factors affecting demand forecast:


External factors: competition, economic climate, laws and

regulatory bodies, social factors and technology changes


Internal factors: budget constraints, production levels, new

products and services, organizational structure

It helps in
Quantifying the jobs necessary for producing a given number of

goods or offering a given amount of services Determine staff mix desirable in the future Assess appropriate staffing levels in different parts of organization to avoid unnecessary costs Prevent shortage of people when needed the most Monitor compliance with legal requirements

Managerial judgment:
top down-bottom up Used in smaller organizations

Ratio-trend analysis:
studying past ratios between number of workers and sales in the organization Forecasting future ratios Making allowances for change in the organization or its methods

Category of staff Staff members and movements

year No. of staff to be provided remarks

No. of staff at unit A 75

----

Age group Under 25 25-34 35 to 44 45 and Above

30 30 10 5

Expecting retirements
Recruitments planned

5
2

Staff required next year 85 10 Present staff 75

Regression analysis: Work-study techniques: E.g.


forecast on the basis of relationship between sales volume and employee size
work measurement to calculate the length of work and amount of labor required Planned output for next year Standard hours per unit Planned hours for the year Productive hours per man/year Number of direct workers required 20000 units 5 100,000 2000 50

Delphi technique:
named after Greek oracle at the city of Delphi, it solicits estimates of personnel needs from group of experts,

usually managers. They do its individually with no interaction among themselves. The HRP experts act as intermediaries, collect responses from the group of experts, report them back to experts. Experts receive the feedback and are surveyed again after this feedback. This is done until their opinions begin to match. The agreement reached is the forecast.

Why supply forecast:


Helps quantify number of people and positions expected to be available in future to help the organization realize its plans and meet its objectives Helps clarify likely staff mixes that will exist in the future Assess existing staff levels in different parts of the organization Prevent shortage of people as and when required Comply with legal requirements of job reservations

The supply analysis covers


Existing human resources Internal sources of supply External sources of supply

Existing human resources:


HR auditssummarizes employees skills and abilities

under the name of inventories Non-managers it is called skill inventories Managers: management inventories Used to decide on transfers and promotions

Skill inventories include: personal data; skill-job experience, training, benefit plans data, retirement information and so on Information kept under human resource information system

Management inventories:
Work history Strengths and weaknesses Career goals Number and types of employees managed Total budget managed Current job performance Educational background

Internal supply techniques to understand internal supply:


Inflows and out flows Turnover rate:
number of separation during one year/Average number of employees during the year x 100

conditions of work and absenteeism Productivity level Movement among jobs

External sources To get new blood Replenish lost personnel HR programming : reconcile the demand and supply forecast to fill up right people at the right time HRP implementation through recruitment, selection, placement, retention programmes etc. Control and evaluation: budgets, targets, who should do what for implementationresponsibility, reporting, etc

Markov Analysis: attempts to project into the future, what the current workforce would look like if the current mobility flow continues with no changes. Looks at flow of people entering and exiting the system.

Succession planning: With the help of skill and management inventories- talent inventories- used for replacement charts-possible replacements Succession planning is the process of identifying, developing, and tracking key individuals so that they may eventually assume top level positions.

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