Human Resource Planning

HUMAN RESOURCE PLANNING

Right number of people with right skills at right place at right time to implement organizational strategies in order to achieve organizational objectives In light of the organizations objectives, corporate and business level strategies, HRP is the process of analyzing an organizations human resource needs and developing plans, policies, and systems to satisfy those needs.

HUMAN RESOURCE PLANNING

Setting human resource objectives and deciding how to meet them

Ensuring HR resource supply meets human resource demands

Think
Does any organization face problems which can be sorted with HRP? Is HRP a part of any organization, department, functional stream in an organization? Does HRP have any role in entrepreneurial venture?

HRP Types

Soft
Ensuring the availability of people with right type of attitude and motivation who are committed to the organization and engaged in work as well as behave properly.

Hard
Quantitative analysis in order to ensure that the right number and right sort of people are available.

Hard
Forecasting

Soft
Define where the company is now
Define where it wants to be in the future Analysing the external environment, influences and trends Formulating plans to implement necessary changes

Analysis Monitoring and review

 Macro HRP Population planning and control, literacy and education, health and medical care, housing.

Micro HRP
Dimension of HDI (Human Development Index) A long and Healthy life Knowledge A decent standard of living

HDI
Composite measure of the three dimensions: Life expectancy Adult literacy Standard of living of human development

Aim of HRP
Attract and retain competent employees Anticipate the problems of potential surpluses or deficit of people. Develop a well trained and flexible workforce. Reduces dependence on external recruitment when key skills are in shortage. Improve the utilization of people by introducing more flexible systems of work

The Human Resource Planning Process

Strategic Planning Technology forecasts Economic forecasts Market forecasts Organizational planning Investment planning Annual operating plans HR Demand Annual employment requirements: HR Supply Existing employment inventory: After application of expected loss and attrition rates

numbers
skills occupation categories

Compared with

Variances
If Surplus Layoff Retirement Termination End

If none

End

If Shortage Overtime Recruitment Contractors End

Action decisions

The HR Planning Cycle has four general stages:

1. Forecasting future demand of HR 2. Forecasting future internal supply of HR
3. Forecasting future external supply of HR 4. Development of plans for action

Forecasting future demand of HR

Situation Analysis and Environmental Scanning

Strategic plan must adapt to environmental circumstances HRM is a primary mechanism to be used during the adaptation process e.g., rapid technological changes in the environment demand employees with new skills an effective HR plan that supports recruitment and selection allows the firm to move quickly to remain competitive

Tools for Forecasting Demand for Employees

The Expert Estimate Trend Projection Unit-Demand Forecasting

Analyzing the Current Supply of Employees

Skills Inventory
Data summarizing the employees past Data summarizing status of present skills Data that focus on the future

Management Inventory Maintaining the Skills Inventory

Interview Questionnaire Data storage and maintenance

Action Decisions in Human Resource Planning: Shortage of Employees

Overtime Training and promotions of present employees Recruitment and training of less-skilled employees Recall of employees previously laid off Use of part-time workers Use of contingent workers

Action Decisions in Human Resource Planning:

Surplus of Employees 1. Attrition

2. Early retirements

3. Creation of work

4. Demotions

5. Layoffs

6. Terminations

Human Resource Information Systems (HRIS)

Integrated approach to acquiring, storing, analyzing, and controlling the flow of information about an organization
Useful in nearly all HRM functions Can increase efficiency and response times of labor/time intensive human resource activities

Specialized HRIS applications Integrated HRIS for use by all employees Executive information system (EIS) Succession planning

Safeguarding Privacy in an HRIS (1 of 2)

Review information-gathering practices to determine the best way to collect data Limit the information collected to what is relevant to a specific business decision Inform employees about the types of information kept on file and how that information is used Let employees inspect and (if necessary) correct the information maintained on them

Safeguarding Privacy in an HRIS (2 of 2)

Keep sensitive information separate from other records Limit the internal use of personal information to those activities where it is necessary Disclose personal information about an employee to outsiders only after the employee consents

AT THE END SUMMARY

Summary (1 of 2)
There is no one best method for conducting HR planning Methods and techniques all differ from organization to organization Many companies do not devote enough time and energy to the HR planning process An effective HR plan should work in partnership with a strategic plan Human resource planning can be an integral part of the HRM program

Summary (2 of 2)
It is directly related to: recruitment, selection, training, and promotion By matching supply and demand, the organization can know:
how many people of what type it needs to fill positions from within (by promotion and training) how many people it must acquire from outside (by recruiting and selection)

Thank You, All