Human Resource Planning

HUMAN RESOURCE PLANNING

INTRODUCTIONDEFINITION OF HRP

IMPORTANCE OF HRPPROCESS OF HRP

FACTORS AFFECTING HRPBARRIERS TO HRP

INTRODUCTION

Planning for human resources is more important than planning for any other resources because the demand of latter depends on size and structure of the former whether it is in country or in an Industry. Management of human resource hardly begins from human resource planning.

DEFINITION OF HRP

“A process by which an organisation should move from its current manpower position to desired manpower position. Through planning the management strives to have the right number, right kind of people at right place and at right time, doing things which results both organisation and individual receiving maximum long run benefits.”

- E.W. Vetter

IMPORTANCE OF HRP

Future Personnel Needs-Planning is significant as it helps determine future needs i.e. VRS

Coping with change-HRP enables an enterprise to cope with changes in competitive forces , markets, technology, products and government regulations

Creating Highly Talented Personnel-Creation of highly specialized Workforce leading to frequent shortages in the organization

Protection of Weaker Sections-A well conceived personnel planning programme would protect the interest of special class of Personnel i.e. SC/ST/PH

Labour Laws-To cope with labour laws we need HRP.

BENEFITS OF HRP

Top management has a better view of the HR Dimensions of business decision

Cost saving as the management can anticipate imbalances before they become unmanageable and expensive

Time available to locate talentHelps to take steps to improve human

resource contribution.

Helps to foresee changes in values and attitude of human resources

Helps to foresee the need for redundancy and to provide alternative employment in consultation with trade unions.

It provide the scope for advancement and development of employees through training.

Benefits cont….Benefits cont….

HRP PROCESS

ORGANISATIONAL OBJECTIVES&POLICIES

HR SUPPLY FORECAST

HR NEEDS FORECAST

HR PROGRAMMING

HRP IMPLEMENTATION

CONTROL&EVALUATION OF PROGRAMME

SURPLUS-RES.HIRING,REDUC.LAYOFF

SHORTAGE-RECRUITMENT SELECTION

FORECASTING TECHNIQUES

MANAGERIAL JUDGEMENTWORKSTUDY TECHNIQUESSTATISTICAL TECHNIQUE DELPHI TECHNIQUE

In this technique the managers sit together, discuss and arrive at a figure which would be the future demand for labour.The technique may involve ‘bottom-up’ or ‘ top down’ approach’

MANAGERIAL JUDGEMENT

This technique can be used when it is possible to apply work measurement to calculate the length of operations and the amount of labour required.

Planned output for Next year- 50,000 Units Standard hours per unit - 2 Planned hours required 50,000*2=1,00,000 Productive hours per worker in the year=2,000 Number of workers required= 1,00,000/2,000=50

Work study Technique

RATIO TREND ANALYSIS

Example-:level of production in present yr = 2000 unitPresent no. of employees = 50Ratio is 1:40Estimated production for next yr = 3000 unitEmployees required relative to present ratio = 3000 / 50No. of employees = 60

DELPHI TECHNIQUE

It seek estimates of personnel needs from a group of experts. The HRP experts act as intermediaries, summarize the various responses and report the findings back to the experts. Summaries and surveys are repeated until the experts opinion begin to agree. the agreement reached is the forecast of the personnel needs. No Interaction among experts

HR SUPPLY FORECAST

Supply forecasting measures the number of people likely to be available from within an outside an organization, after making allowance for absenteeism, internal movements and promotions, wastage and change in hours and other conditions of work. The supply analysis covers:

(1) Existing Human Resources(2) Internal sources of supply(3) External sources of supply

Analysis of present employees is greatly facilitated by HR audits. HR audits summarizes each employee’s skills and abilities. The audits of non-managers are called skill Inventories and those of the management are called management Inventories.

Existing Human Resources

Existing HR Cont….

a) Skills Inventories- Information about non-managers. They are : Personal Data-Age, sex, marital status Skills-Education, job experience, training Special Qualifications-membership in

professional bodies, special achievements. Company Data-Benefit plan data, retirement

information, seniority Capacity of an individual-psychological test

score, health

Existing HR Cont…

b) Management InventoriesThese include: Work History Strengths Weaknesses Promotion potential Career goals Personal data Number and types of employees supervised ,total

budget managed Previous management duties

INTERNAL SUPPLY

Inflows and outflows

Turnover rate: Number of separations during one year/ Avg

Number of Emp during the year*100

Conditions of work and Absenteeism-Working hours, overtime, timing of holidays, shift system

Continu…..

Absenteeism –

man days lost due to absenteeism

man days worked +man days lost

Productivity level-any change in productivity would affect the number of persons required per unit of output

Movement among jobs

EXTERNAL SUPPLY

Colleges and UniversitiesConsultantsAdvertisements-applications

HR Programming &Implementation

Recruitment, selection& placementTraining & DevelopmentRetraining and DevelopmentRetention plan-compensation plan,

performance appraisal, conflict resolution, induction crisis, shortages, unstable recruits

Downsizing plan- Laying OffManagerial succession planning-

CONTROL AND EVALUATION

Personnel budgetAuditing human resourceJob satisfaction of employeesPeriodic reports

BARRIERS TO HRP

Time ConsumingFinancial forecasting takes precedence

over HRPUncertaintiesNon-involvement of operating managersInadequate Information systemTrade unionsEmployers

conclusion

Human resource planning is a vital sub activity of employment function. In fact employment process begins with human resource planning but it never ends with this function.

THANKS