Human Resource Planning/Manpower Planning

Date: 18/01/2012

What is HRP?
Human resource planning is the term used to describe how companies ensure that their staff are the right staff to do the jobs.
It includes: planning for staff retention/compensation planning for candidate search training and skills analysis labour employee relation

PURPOSE OF HRP
In simple words HRP is understood as the process of forecasting an organizations future demand for and supply of the right type of people in the right numbers
It is only after HRP is done, that the company can initiate and plan the recruitment and selection process HRP facilitates the realization of the companys objectives by providing right type and right number of personnel HRP is important because without a clear-cut manpower planning, estimation of an organizations human resource need is reduced to mere guesswork.

OBJECTIVES OF HRP
Forecast personnel requirements Use existing manpower productively Promote employees in a systematic manner Creating highly talented personnel Optimizing investment in HR Resistance to change & move

Importance of HRP
Minimizing wastage on excess personnel.
Forecasting future needs and expenses. Scheduling productivity---meeting workflow. Hiring Training

How does HR Planning occur?

We forecast the demand We find whether the sources are available internally or externally. After that we create a plan of action to reconcile supply and demand.

HRP Functions
Organizational development Organizational design & job analysis Talent management Recruitment & retention

Functions Contd.
Strategic HR planning

Company Sponsored Benefit Plans

Change Management

Advantages of HRP
The cooperate pal of the organization regarding expansion,

diversification, technological change, should be backed up by the availability of human resources.

It offsets uncertainty and change.
It provides scope for advancement and development of

employees through training, development etc.

It helps to satisfy the individual needs of the employees for the

promotions transfers, salary enhancement, better benefits etc.

 It causes the development of various sources of

human resources to meet the organizational needs.

It facilitates the control of all functions, operations,

contribution and cost of human resources.

It helps to foresee the need for redundancy and plans

to check of human resources and to change the techniques of management.

HRP Process
Analyzing organizational plans and deciding objectives Forecasting the manpower requirements (Demand forecasting) Preparing manpower inventory (Supply forecasting) Developing employment plans Developing human resource plan

Analyzing organizational plans and deciding objectives:

The short term and long term plans of the firm should be analyzed before setting human resource objective The firm objective stated in the economic terms would incorporate expected economic growth , diversification plans, market opportunities, and government policies e.g. short term objective of a company may be to hire 25 employees in direct sales force and long term objective

Forecasting manpower requirement (demand forecasting) It is a process of estimating the future requirements of manpower, by function and by level of skills

It consist several factor both external as well as internal. External factors are competition( domestic as well as local), laws & regulation etc
Internal factors include budget constraint, production levels, new product & services

Revise Organizational Objectives and Strategies Link

If no feasible HR program can be devised, the organization must revise strategic plans.

Preparing manpower inventory (Supply forecasting)

The basic purpose of preparing manpower inventory is to find out the size and quality of personnel available within the organization to man various positions

Every organization have two major sources of supply of manpower: internal and external

Developing employment plans

The existing number of personnel and their skills ( from human resource inventory) are compared with the forecasted manpower needs( demand forecasting ) to determine the quantitative gaps in the workforce

Developing human resource plan

The surplus of number of employees forecasted or shortage of workers forecasted. The human resource requirement need to be translated into a concrete HR plan, backed up by detailed policies, programmed and strategies ( for recruitment , selection , training , promotion , retirement, replacement etc.)

Determine Feasibility
Requires knowledge of programs, how programs fit

together and external environmental constraints (e.g., labor force, labor unions, technology created skill shortages) and internal environmental constraints (skill shortages within the organization, financial resources, managerial attitudes, culture)
Do the benefits outweigh the costs Difficulty in quantifying costs and benefits

HRP Model
Open new product line Open new factory and distribution system Develop staffing for new installation Production workers Supervisors Technical staff Other managers 4 Develop new objectives and plans 5 Recruit managers from outside Too costly to hire from outside Recruit skilled workers 2 Develop technical training programs Transfer managers from other facilities Recruiting and training 3 programs feasible

Transfers infeasible because of lack of managers with right skills

Thank You!
Always Remember:
Plastic thoughts are past thoughts at the back of our mind , Paper thoughts are present thoughts at present in our mind, Glassy thoughts are heart breaking thoughts , (Aluminum) foiled thoughts are future thoughts might be futile or fruitful , Some thoughts never decompose Let us recycle them with Forgetfulness, forgiveness and Loveliness around us.