Human Resource Planning

- Prof. Hema Kapoor

Overview

Human Resource Planning

Process of Human Resource Planning

Techniques of HR Planning
HR Planning

Process by which the company identifies
the number of jobs vacant, whether
there is excess staff or shortage of staff
& to deal with this excess or shortage

Process of analyzing & identifying the

need for and availability of human
resources so that the organization can
meet its objectives
HR Planning process
External Supply
External Supply Defined
Government

Government regulations & pressures
influences
Economic

Economic forecasts for next few years
conditions

Net migration into and out of the area
Geographic &
Individuals entering/ leaving
Competitive workforce- Factors affecting persons
Concerns entering & leaving

Actions of competing employers

Workforce
composition &
Working patterns and arrangements
work patterns
?
Internal Supply

Ensures that people are available to
meet requirements set during strategic
planning

Assessing current human resources
 Human resources inventory report
summarizes information on current workers
& their skills
HR Information System (HRIS)

HRIS are computerized databases that
contain important information about
employees
 PAN number
 Date of birth/ joining
 Information about dependents
 Educational background
 Past experience
 ...
 ...
Internal Supply: Factors

Promotions, lateral moves & terminations

Training & development programs

HR policies

Succession Planning
 Replacement charts

Organizational capabilities inventory data

Transition matrix or Markov matrix
 Model using probabilities
Internal Supply
HR Planning
Corporate Analysis
• Objective and Strategies
Manpower objectives
• Company organization Plans
& policies • Market forecasts & budgets
• Financial plans
• Production targets

Demand Forecast Manpower Gaps Supply Forecast

• Numbers • Surplus of numbers • Manpower inventory
• Job Categories & skills • Losses & additions
• Skill Requirements • Shortages • External supply

Manpower Plans
• Recruitment & selection
• Training & development
• Retrenchment
• Productivity

Modify organizational
Monitoring & Control plans
Techniques of HR Planning

Approaches to
HR Demand Forecasting

Quantitative Qualitative

Trend analysis Expert forecasts

Mathematical models Delphi technique

Nominal group technique

Techniques of HR Planning

Quantitative Techniques:

 Trend Analysis – forecasts employment

requirements on the basis of some
organizational index. Example:
compensation, sales)
 Mathematical Models – like statistical
regression analysis, simulation model
Techniques of HR Planning

Qualitative Techniques:
 Expert forecasts – managers estimate future HR
requirements based on their experiences & judgments
 Delphi technique – uses input from a group of
experts
• The experts opinions are sought using separate
questionnaires on what forecasted situations will be
• These expert opinions are then combined & returned to
the experts for a second anonymous opinion
• The process continues through several rounds until the
experts essentially agree on a judgment
 Nominal group technique – unlike the Delphi
technique, requires experts to meet face to face
• Their ideas are usually generated independently at first,
discussed as a group & then compiled as a report
“Plan Ahead: It wasn’t raining when Noah built the
ark.”

- Anonymous