Ch 05-Human Resource Planning

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CH-5 Human Resource Planning

Excel Books51Copyright 2010, VSP Rao

Human resource Management (3rdEdition) V S P Rao

Chapter

Human Resource Planning


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Introduction

Human Resource Planning (also called employment or personnel planning)

is essentially the process of getting the right number of qualified people into

the right job at the right time so that an organisation can meet its objectives.


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Features

Forward looking

In sync with organisational needs

In tune with corporate plan

Proactive

Get qualified people at a right time


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Objectives

HR planning is required to meet the following objectives: (Reilly; Overman)

Forecast personnel requirements

Cope with changes

Use existing manpower productively

Promote employees in a systematic manner


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Importance

Reservoir of talent

Prepare people for future

Expand or contract

Cut costs

Succession planning


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The Process of Human Resource PlanningForecasting the Demand for Human Resources

1. External challenges

i.Economic developments(Liberalization, banking sector, online trading

ii. Political, legal, social and technical changes

iii. Competition (thin margin of profit; reduce workforce)

2. Organizational decisions (strategic plans, sales and production

forecasts, new ventures)

3. Workforce factors (retirement, termination, resignation, death)4. Forecasting techniques

i. Judgmental Methods Trend Analysis

ii. Mathematical Model Computer modelCont.


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Preparing Manpower Inventory (Supply Forecasting)

1. Internal labour supply 2.Forecasting Techniques

i. Staffing table (age, sex, position, experience, qualification)

ii. Markov analysis on the basis of past probabilities..predict future)

iii. Skills inventory (knowledge, skills, abilities, experience, career

aspirations of every employee)

iv. Replacement chart (shows a profile of job holders department

wise and offers a snapshot of who will replace whom if there is a job

opening)

3. External labour supply

Cont.


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Formulating HR Plans

Recruitment plan

Redeployment plan(transferring or retaining existing employees for new

jobs

Redundancy plan(who is redundent when and where, plan for re training,

golden handshake, layoffs)

Training plan

Productivity plan (reasons for increase in productivity, job redesign)

Retention plan


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Responsibility for HRP

Assist and counsel operating managers to plan and set objectives.

Collect and summarize manpower data keeping long-run objectives and

broad organisational interests in mind.

Monitor and measure performance against the plan and keep top

management informed about it.

Provide proper research base for effective manpower and organisational

planning.


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Effective Human Resource Planning

1. Objectives

2. Top management support

3. Employee skills inventory

4. Human Resource information system

5. Coordination


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Human resource Management (3rd Edition) V S P Rao

How Companies should Deal with imbalances in labour Supply

When faced with a shortage When Faced with a surplus

Recruit new full time employees

Offer incentives for postponing retirement

Rehire retired employees part time

Attempt to reduce turnover

Work Present staff overtime

Subtract work to another firm

Hire temporary hands

Re-engineer to reduces needs

Out source an entire function

Use technology to improve productivity

Re-allocate people from elsewhere in the

organisation

Re-allocate work tasks among current

employees

Do not replace employees who leaves

Offer incentives for early retirement

Transfer or re-assign excess staff

Use slack time for employees training orequipment maintenance

Reduce work hours

Lay off employees

Freeze hiring

Ch 05-Human Resource Planning

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