HRP- EXPLANATIONS

THE PRACTICE OR ACTIVITY CARRIED ON BY THE

ORGANIZATION WITH THE PRIMARY PURPOSE OF
IDENTIFYING AND ATTRACTING POTENTIAL
EMPLOYEES.
THROUGH HUMAN RESOURCE PLANNING,
MANAGEMENT PREPARES TO HAVE THE RIGHT PEOPLE
AT THE RIGHT PLACE AT THE RIGHT TIME TO FULFILL
BOTH ORGANIZATIONAL AND INDIVIDUALOBJECTIVES.
HRP takes care of natural depletion of work force and the
changing needs of the company as far as quality and nature of
workers are concerned.

REASONS FOR DEMAND

FORCASTING:
1. Quantify the jobs necessary for producing
goods.
2. Determine staff-mix desirable in the future.
3. Assess appropriate staffing levels in different
parts organisation to avoid unnecessary costs.
4. Prevent shortage of people when they are
needed most.
5. Monitor compliance with legal requirements.

Potential benefits

Upper management better aware.

Personnel cost is controlled.
More time to locate talent.
Affirmative Action Plan implemented
Time to develop employees

Activities
Planning & Forecasting
Predict Demand

Tap the sources of Supply

Recruitment/Selection

HUMAN RESOURCE PLANNING PROCESS

Forecast of
labour
demands

Forecasts of
labour supply

Forecasts of
labour surplus
or shortage
Goal setting
and strategic
planning
Program
implementation
and evaluation

Methods Of Forecasting
Trend Analysis
Ratio Analysis
Scatter Plot
Computerized Forecast
Qualification Inventories
Personnel Replacement Charts
Position Replacement Cards

PROGRAMME PLANNING OPTIONS

If
a
shortage
of
employees is expected
.

If a surplus of employees
is expected .

Hire new full-time employees

Offer incentives for postponing retirement
Re-hire retired employees on part-time basis
Attempt to reduce turnover
Bring in overtime for present staff
Subcontract work to another company
Hire temporary employees
Re-engineer to reduce needs.

Do not replace employees who leave

Offer incentives for early retirement
Transfer or re-assign excess employees
Use slack time for employees training or
equipment maintenance
Reduce work hours
Lay-off employees

OPTIONS FOR REDUCING AN

EXPECTED LABOR SURPLUS
Option

Speed

Human Suffering

Downsizing

Fast

High

Pay reductions

Fast

High

Demotions

Fast

High

Transfers

Fast

Moderate

Work sharing

Fast

Moderate

Retirement

Slow

Low

Natural attrition

Slow

Low

Retraining

Slow

Low

OPTIONS FOR AVOIDING AN EXPECTED

LABOR SHORTAGE
Option

Speed

Human Suffering

Overtime

Fast

High

Temporary employees

Fast

High

Outsourcing

Fast

High

Retrained Transfers

Slow

High

Turnover reductions

Slow

Moderate

New external hires

Slow

Low

Technological
innovation

Slow

Low

A HYPOTHETICAL TRANSITIONAL MATRIX

FOR AN AUTO PARTS MANUFACTURER
1993

1996
(1)

Sales manager

.95

Sales
representative

.05

Sales apprentice

(2)

(3)

(4)

(5)

(6)

(7)

(8)
.05

.60
.20

.35
.50

.30

Assistant plant
manager

.90

.05

.05

Production
manager

.10

.75

.15

Production
assembler

.10

.80

Clerical

Not in organization
11/5/2014 11:24 PM

.10
.70

.00

.20

.50

.00

.10

IBP PRESENTATION

.20

.30

.30
10

DOWNSIZING

Planned elimination of large number of

personnel with goal of enhancing the
organizationals competitiveness

DOWNSIZING

Reducing costs
Replacing Labor by
Tech
Mergers &
Acquisitions
Moving to more
economical locations

Loss of talent
Social network
effected
Drop of motivation
Hurt image building
Only as a last resort
Improve forecasting

Other options

Early Retirement Programs

Employing Temporary Workers
Outsourcing
Overtime and Expanded Hours

RECRUITMENT CHANNELS
INTERNAL

EXTERNAL

Job Posting Programs

Walk in interviews

Buy Back

Employee referrals
Advertisement/ E rects

Employment agencies
Private placement
agencies

Educational Institutes
Temporary Help Agencies
Open House

BUSINESS SOLUTIONS

YIELD RATIO
Expresses the relationships of applicants inputs to
output of various decisions points. This is a simple
method to calculate the number of applicants an
employer must generate to hire the required number of
new applicants.
New hire 2 ; 1
Interview 3 : 2

Short list 4 : 3
Applicants 6 : 4

Hypothetical Yield Ratio for Five Different Recruitment Sources

Local
University

Resumes generated

Renowned
University

Employee
Referrals

Newspaper
Ad

Executive
Search
Firms

200

400

50

500

20

Interview offers
accepted

175

100

45

400

20

Yield ratio

87%

25%

90%

80%

100%

Judged acceptable

100

95

40

50

19

Yield radiation

57%

95%

89%

12%

95%

90

10

35

25

15

Yield ratio

90%

11%

88%

50%

79%

Cumulative

90/200

10/400

35/50

25/500

15/20

Yield ratio

45%

3%

70%

5%

75%

$ 30,000

$ 50,000

$ 15,000

$ 20,000

$ 90,000

$333

$ 5,000

$ 425

$ 800

$ 6,000

Accept employment
offers

Cost
Cost per hire

Recruiter
CHARACTERISTICS
Choose experts
Warm and Enthusiastic
Informative
Eye for the man
Provide realistic Job
Preview

DO NOTS
Delay feedback to
candidates
Avoid offensive Behavior
Negative image of company

DOCUMENTATION

Application Blank
Job Postings
Personnel Inventories
Replacements

HRP Audit

Leaving cost or Horizontal mobility

Direct costs: Ads, Interviews, Testing
Cost of time spent by HR people
Orientation and Trg costs

HUMAN RESOURCING:Planning and performance

Fluctuations in demand
High
Average core combined
with Category A overtime
and Category B own-pool
temporaries
Low
Labour
costs
Large core combined
with Category A
part-time

Low
Risk assessment model of flexible working patterns

Small core
workforce (inc.
Category A home
workers and parttimers) and
Category C workers

Average core
combined with
Category A parttimers, shift
workers, home
workers and
Category C agency
and/or subcontracts

High

Self-employment
Peripheral group I Secondary
labour markets Flexibility
through quantitative adjustment

Core group
Primary labour
markets
Flexibility through
utilization
Short term
contracts

Peripheral group II Job

Public
sharing
Delayed
subsidy
recruitment
trainees
Out-sourcing

The flexible firm

Part timers