HUMAN RESOURCE PLANNING

Primary HR Activities
Hiring Training Termination Benefit
Recruiting Administration
Development

The Firm

Potential
Employees Retired
Employees
Employees

Data Management
 Human Resource Planning
I. What is it?
II. Why is it important?
III. Need of HRP
IV. Benefits of HRP
V. Where is it done?
VI. How is it done?
VII. Is it really done?
What is it?
Systematic process of matching
internal and external supply of
people with job openings
anticipated in the organization
over a specified period of time.

Human resource planning

involves getting the right number
of qualified people into the right
jobs at the right time.
 Requisites for Successful HRP
Integral
Back up
Centralized
Records Updating
Long term period
Suitable Technique
Expert Plans
Constant Revision
 Why is it important
To meet future challenges
Achieve greater effectiveness
Create a talent pool
Prepare people for future
Cope with organizational changes
Cut costs
Help succession planning
Reasons for Current Interest in HRP
Employment – Unemployment Situation
Technological Changes
Organizational Changes
Demographic Changes
Skill Shortages
Government Influences
Impact of Pressure Groups
 Need of HRP
Organization needs personnel with necessary
qualifications, skills, knowledge, work experience.
Replacement of old, retiring employees.
To fill gaps created due to labour turnover.
To meet the needs in case of expansions.
To avoid unexpected shortages or surpluses.
 The identification of training needs to avoid skill
shortages.
 More effective and efficient use of resources for
increased productivity.
 BENEFITS OF HRP
Lower HR costs through better HR management.
Foundation for Personnel Functions.
More timely recruitment for anticipate HR needs.
Upper management has a better view of the
human resource dimensions.
Better opportunities exist to include women and
minority groups in future growth plans.
Better planning of assignments to develop
managers.
Inorganic Growth Strategies.
HRP is followed at various levels:
 National Level
 Sectoral Level
 Industry Level
 Unit Level
 Departmental Level
 Job Level
 How is it done?
 The planning process is influenced by overall
organizational objectives and the environment of
business.

 HRP essentially involved forecasting human resource

needs, assessing human resource supply and
matching demand supply factors through human
resource related programmes.
HR Planning Process
The Basic Elements of HRP

(5)
(5)Develop
Develop
Action
ActionPlans
Plans
HRP: Internal Environmental Scanning
Internal issues refer to events or trends within the
organization, such as
 Business strategy
 Organizations Structure
 Company Profitability
 Trade Unions
It involves
1) Informal discussions with key managers
2) Conducting employee attitude surveys
3) Monitoring key indicators
 Employee performance, Absenteeism, Turnover, Accidents
4) Identifying nagging personnel problems
5) Assessing managerial attitudes regarding HR
HRP: External Environmental Scanning
External issues are events or trends outside of the
organization, such as:
 Government Policies
 Work force demographics
 Technology
 Economic Development
 Global Environment

It involves
1) Tracking trends and developments in external environment,
2) Documenting implications for management of human
resources, and
3) Ensuring implications receive attention
 HRP Components
I. DEMAND
Demand arises from organizations activities, strategy,
routine turnover of employees.

Labour Turnover Rate: No. of Employees in a Year_______ x 100

Average No. of Employees in a Year

 Very Low Turnover Rates

 High Turnover Rates
 High Labour Stability
 Low Labour Stability
 HRP Components
Managing Future Demand
 Recruitment
 Permanent
 Temporary (Contract Labour)
 Outsourcing

Managing Future Surplus

 Retrenchment
 Lay Offs
 Outplacement
 Leave of Absence without pay
 Loaning
 VRS
 Reduced work hours
 Work Sharing
 HRP Components
II. SUPPLY

Factors in Manpower Supply

 Geography
 Economic Situations
 Occupational Types
 Competitive Position of Organizations
 Role of HRP Professionals
A. Administrative role
Managing the organizational resources
Employees welfare activities.
B. Strategic role
Formulating HR strategies
Managing relationships with managers.
C. Specialized role
Collecting and analyzing data
Designing and applying forecasting systems
Managing career development.
 Responsibility For HRP

HRP is a top management job.

HR plans are usually made by the HR division in
consultation with other corporate heads.
Any deviations from the formulated plans and
their causes must be looked into, from time to
time in order to assess whether the plans require
revision or modification.
 Effective HRP
HR plans must fit in with overall objectives of a
firm.
They must get consistent support from top
management.
Computerized human resource information
systems must be used for applicant tracking,
succession planning, building skills inventories
etc.
The whole exercise must be carried out in
coordination with operating managers.
 Types of HRP
I. Short Term Manpower Planning
Weak Incumbent
 Improving the Man
 Changing the contents of the Job

 Changing the Job and the Man

 Removal of the Incumbent

Strong Incumbent
 Assigning additional duties
 Assigning some special problems

 Advice

 Change in the Job

Unexpected Vacancy
 Types of HRP
II. Long Term Manpower Planning

Projecting Manpower Requirements

Taking Stock of Existing Manpower
Recruitment & Selection
Manpower Development
Does anybody really do this stuff?
Implementation of Human Resource Planning

A. Nkomo (1987) survey of Fortune 500

organizations

(N = 264 responses)
• 46% reported no formal HR planning
• 39% reported some (incomplete) HR planning
• 15% reported fully integrated HR planning
 THANK YOU!!!!! 
They say…

“If you’re planning for one year,

grow rice.

If you’re planning for 20 years,

grow trees.

If you’re planning for centuries,

grow human resource.”
-Ancient Chinese Proverb