Human resource planning.l 3.

Human Resource Planning

Definition

• It is the process of getting the right number of qualified people into the right job at time so that an organization can meet its objectives.

• The process of analyzing and identifying the need for and availability of human resources so that the organization can meet its objective

• HRP is a forward looking process –short term as well as long term

• It tries to assess human resource requirements in advance keeping the production schedules, market fluctuations, demand forecast in the background

• It is subject to revision, in tune to the requirements of an organisation from time to time

• It is an integral part of overall corporate plan.

Optimum HRP therefore, aims at

• Balancing demand , supply, distribution and allocation of manpower

• Controlling cost of human resource

• Formulation policies on transfer, succession, relocation of manpower.

Importance / Benefits of HRP

• Reservoir of talent

• Prepare people for future

• Expand or Contract

• Cut cost

• Succession planning

Objectives • Forecast personnel requirements • Cope with changes • Use existing manpower productively• Promote employees in a systematic manner • Achieve efficiency of work in all spheres of

corporate body• Ensure cost minimization • Eliminate all types of wastage including waste of

time

Factors that Effect HRP

• Lack of skilled resource

• Change in organization

• Changes within the organization like promotions – succession planning, policies

• Change in policies/regulations

Process of Human Resource Planning

• Forecasting the Demand for Human Resources

a)External challenges

Economic developments

Political, legal, social and technical changes

Competition

b) Organisational decision

c) Workforce factors

d) Forecasting techniques

Qualitative:

• Delphi Technique

• Nominal Group Technique

Quantitative: methods are based on the assumption that future can be extrapolated from the past

• Trend Analysis

Delphi

• There is a Mediator.• Individuals give the projection to the

mediator.• The mediator than passes the projection to

the Individuals.• Others get an opportunity to view the

projection of others. • The process is on until consensus is

reached

• Advantages

• Less interpersonal problems

• Experts make revision independently

• Disadvantages

• Time consuming

• At times does not include pass data

Nominal

• Members sit face to face and share their opinions to come to conclusion.

• There is a person who writes on the board.

• It facilitates group thinking and exchange of ideas

• Trend Analysis• Determine the appropriate business factor

that relates to the size of the workforce.• Identify the historical record of that in

relation to the size of the work force • Calculate the productivity ratio • Determine the trend • Make necessary adjustments in the

trends, past and future• Project to the target year

2009-10: Units of Production: 10,000

2009-10: No. of workers: 100

Ratio : 100: 10,000

2011-12 Estimated production 12,000

No. of workers required 12,000* 100 = 120

10,000

Preparing Manpower Inventory ( Supply Forecasting)

a)Internal labour Supply

Skills inventory

Replacement chart

b) External labour supply projections are based on skill levels in the Market. Factors that determine external labour supply are

Education levels

Demographic changes in population.

Technological development

• Population mobility

• Demand for specific skills etc.

3) Gap Analysis : The existing number of personnel and their skills are compared with the forecasted human resource needs to determine the qualitative and quantitative gaps in the workforce.

Implementation Plans

Recruitment and retention plans

Selection and promotion plans

Training plans

Appraisal plans

Redeployment plans

Downsizing plans

Limitations

• Problem of Accuracy

• Emphasis on qualitative aspects- moral, career goals etc are ignored.

• Time consuming

• Resistance from both employer and employee

When faced with a shortage

• 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

When Faced with a surplus

• Do not replace employees who leaves

• Offer incentives for early retirement

• Transfer or re-assign excess staff

• Use slack time for employees training or equipment maintenance

• Reduce work hours

• Lay off employees

• Freeze hiring