HUMAN RESOURCE PLANNING

PRESENTED BY
G.BHUVANESWARI
CH.S.V.A.S.R.SANDILYA
U.HANEESH
 What is HR ?

• Any practice that deals with enhancing competencies,

commitment and culture building can be considered as a
HR practice.

• The practice could be a rule, a system, a process, an

activity, an accepted or expected way of doing things.
What Company Expects from HR?

rc es
e Fo
l an c
Ba
 according to“D.K Bhattacharya” Human resource
planning involves getting the right number of
qualified people into the right jobs at the right time.
Human Resource Planning
• Human Resource (HR) Planning
 The process of analyzing and identifying the need for and
availability of human resources so that the organization
can meet its objectives.
 HUMAN RESOURCE PLANNING

• Setting human resource objectives and

deciding how to meet them

• Ensuring HR resource supply meets

human resource demands

 Purpose of HR Planning
• Enable organization to anticipate their future
HRM needs

– Identify practices that will help them meet those

needs

– HR planning is “the thread that ties all other HR

activities and integrates these with the rest of the
organization
 Objectives of HRP
• To ensure optimum
use of existing HR.

• To forecast future
requirement for HR.

• To ensure cost minimization.

 Objectives of HRP – Contd.

• To estimate the cost of HR.

• To provide control measures to ensure

that necessary HR are available as &when
required
 Significance of HR Planning

Uncertainties can be managed through planning.

Helps the organization develop action plan for achievement

of company’s objective for future.

For strategic implementation.

Focuses on short & long term people requirements.

 Human Resource Planning

Human Resource (HR) Planning

The process of analyzing and identifying the need
for availability of human resources so that the
organization can meet its objectives.
HR Planning Process
HR Planning Process
• HR Strategies
– The means used to anticipate and manage the
supply of and demand for human resources.
• Provide overall direction for the way in which HR
activities will be developed and managed.

Overall
Strategic Plan

Human Resources
Strategic Plan

HR Activities
Scanning the External Environment

• Environmental Scanning
– The process of studying the environment of the
organization to pinpoint opportunities and threats.

• Environmental Changes Impacting HR

– Governmental influences
– Economic conditions
– Geographic and competition issues
– Workforce composition
Assessing the Internal Workforce
• Jobs and Skills Audit
– What jobs exist now?
– How many individuals are performing each job?
– What are the reporting relationships of jobs?
– How essential is each job?
– What jobs will be needed to implement future
organizational strategies?
– What are the characteristics of anticipated jobs?
 Assessing the Internal Workforce (cont’d)

• Organizational Capabilities Inventory

– HR databases—sources of information about
employees’ knowledge, skills, and abilities (KSAs)
– Uses of KSA inventories
• Recruiting
• Selection
• HR development
• Capabilities of future workforce
Forecasting HR Supply and Demand

• Forecasting
– The use of information from the past and present
to identify expected future conditions.

• Forecasting Periods
– Short-range: six months to one year
– Intermediate-range: up to five years
– Long-range: more than five years
HR Forecasting
Forecasting HR Supply and Demand (cont’d)

• Forecasting the Demand for Human Resources

– Organization-wide estimate for total HR demand
• Top-down forecast of specific opening likely to occur
due to promotions, transfers and terminations

• Forecasting the Supply of Human Resources

– External Supply
– Internal Supply
Factors Affecting External HR Supply
Net migration for an area
Individuals entering and leaving the workforce
Individuals graduating from schools and colleges
Changing workforce composition and patterns
Economic forecasts
Technological developments and shifts
Actions of competing employers
Government regulations and pressures
Other circumstances affecting the workforce
 Techniques of human resource
planning and manpower supply
 Forecasting techniques

 Moving average method:

Average of the combined employment level data for the recent past is
considered as the forecasted employment level for the next period with a
time period moving average.

 Exponential smoothing:

This method smoothens random errors by giving exponentially decreasing

weights to historical data . Such weight factor is indicated by alpha.
fm = ft – α(At-1 - Ft-1)
 DELPHI TECHNIQUE
 To start with, it requires selection of a coordinator and a panel of
experts both with in and outside the organization.
 The coordinator then circulates questions in writing to each expert.
 The experts then write their observations.
 The coordinator then edits those observations and
summarizes,without,however disclosing the majority opinion.
 On the basis of his summary, the coordinator then develops a new
set of questionnaire and circulates those among experts.
 Experts then answer the new set of questions.
 The coordinator repeats the process till such time he is able to
synthesis from the opinion of experts.
NOMINAL GROUP METHOD

 Experts are given the opportunity to discuss among

themselves
 The coordinator assumes the role as a facilitator, allowing
the experts to sit together and discuss their ideas and
records of such discussions are made on a flip chart.
 Round table discussions on ideas to rank their ideas
according to their perceived priority .
 Manpower supply
• Wastage analysis :
– Methods:
1) Labour turnover index

• This index indicates the number of leavers as

percentage to average number of employees

• Average number of employees employed in given time

period is decided by adding the employees at the
beginning and end and then dividing the same by 2.
 Cohort analysis
• It means homogenous groups and takes into
account the length of the service .therefore
eliminates the defect of labour turnover index
• However, changing social and economic
conditions can invalidate this analysis.
 CENSUS ANALYSIS
• Census analysis can eliminate this problem ,
taking into account a cross-section of the
organization.
• It requires 3 sets of data
1) The no. of employees at he beginning
2) The no. of employees at the end
3) The number of leavers
Thank You