HRP is a Process of Analyzing an Organization's, HR needs

under changing conditions

HRP is a strategic plan of
1. What Position
2. How to fill
3. Who
HRP has three components
A. Resource Planning
B. Career Development
C. Succession Planning
 Methods of predicting HR Needs
1. Trend Analysis
2. Ratio Analysis – Eg. Ratio of Sales/Employees
3. Scatter Plot- Shows how 2 Variables Eg. Total
Business Activity and Staffing levels are related Eg.
Size of beds in a hospital of the nurses.
4. Computerized Forecast – SDLH, AOP, Daily/Sales
min, Maxi probable
5. Managerial Judgment – Any Historical Trend/Ratio
will rarely continue in reality Eg, Banks operation
loans Brokers, Investment Brokers,
Forecasting The Supply of Inside Candidates

 HR Replacement Charts
Skill inventory – Work Exp, Product, Knowledge,
Employee inventory / Organization Inventory
Succession plan
Effectiveness of HRP is Measured by how
well the existing HR is used.
HRP is 1) An Integration Process
2) An Analysis Process

The Integrative HR – Individuals given to be meshed with

organization goal. There is a need to balance organization
needs with Industrial needs and societal Transparencies in
HRP.
Need Forecasting – Work Analysis
Employee Surplus Vs Employee Shortage
Business Strategy need HR Strategy
HRP is crucial
 Factors to be considered in HRP
1. Co.’s Overall objectives/Business Objective
2. Technology
3. Corporate / Strategic Planning
4. Market Forecast
5. Production Objectives
6. Financial Plan
7. HR Demand Forecast
8. HR Supply Forecast
9. Organizational Capability Projected
10. Kind of edge / Leverage Needed
11. Organization Culture
 Forecasting HR Needs

1. Demand for the Product – No.s

2. Capacity
3. Quality
4. Make or Buy
5. In-house or Outsource
.
/
Forecasting HR Needs

1. Projected Turnover
2. SKA Needs
3. Technology
4. Technological Changes Foreseen
5. Financial Abilities
BUSINESS CONTEXT-
LRP
• Horizon-3/4/5 years
• Foreseeing Change-1. Industry,
Competition, Ext. forces
• Kind of business strategies to be
implemented
• Changes in Technology and
Functional areas
• Impact of planned business
changes on MGMT
• What kind of people are required to
achieve both the current and future
Objectives
 IMPACT OF SBP/LRP ON STAFFING

SBP Drives the Competency levels/SKA

Staffing also depends on how radically
future departs from the present
SBP drives total work load
SBP drives the total people and the type
of people
IDENTIFYING FACTORS
THAT DRIVE STAFFING
Changing production volumes/mix
New products
Capital Expenditure
Acquisitions/divest ions
New Technology
Environmental Demands
Need for increased flexibility
LINK BETWEEN SBP &
HRP
SBP HELPS IN EFFECTIVE HRP
SBP HELPS IN LONG RANGE CAREER DEVT.
PLAN AND LONG HR UTILISATION PLAN
SBP HELPS IN PROACATIVE SOURCING
ORGN CAN ACHIVE SBP THRU’ HRP
BROADENING OF MANAGERIAL
PERSPECTIVE
IMPROVED UNDERSTANDING OF HR COSTS
IMPACT OF TECH. ON
HRP

SKILL IMPLICATIONS i.e., HIGHER

SKA FOR NEW TECH e.g.. CNC
REDUNDANCY FACTOR
RE ENGINEERING
INNOVATIVE SKILLS
GAINING COMPETITIVE EDGE
TECH. MGMT IMPLIES PRODUCING
EFFICIENTLY & ECONOMICALLY
 OBJECTIVES OF HRP
TO SOURCE & RETAIN THE REQUIRED QTY AND
QLY OF HR
PROVIDE FOR ATTRITION
MEET EXPANSION NEEDS
FUTURE HR NEEDS BASED ON TECHNOLOGICAL
CHANGES
FREQUENT RIGHT SIZING
OPTIMUM UTILISTION OF HR
MINIMISE IMBALANCE DUE TO HR SHORTAGE
IMPROVE THE ORGANISATIONAL CAPABILITY
ESTIMATE STAFF COST/HR COST
 BENEFITS OF HRP
IT OFFSETS UNCERTAINITIES
SUCCESSION PLANING
CAREER DEVELOPMENT
HELPS ANTICIPATE HR COST
ENABLES RIGHTSIZING
ENABLES HRD PROCESS
ENABLES PLANNING OF OTHER
FACILITIES;CANTEEN, SCHOOL ETC
PLAN CHANGE AND CULTURE INFUSION
FACILITIES CONTROL
FACTORS AFFECTING
HRP-EXTERNAL
GOVT. POLICIES
DEMOGRAPHIC FACTORS
LEVEL OF ECONOMIC DEVT.
LEGAL FACTORS
TECHNOLOGICAL LEVELS
TRAINING SKILL DEVT. FACILITIES
FACTORS AFFECTING
HRP-INTERNAL
OVERALL CORPORATE STRATEGY
HR POLICIES AND STRATEGIES
JOB DESIGN
VOLUME
TECHNOLOGY
BPO STRATEGIES
 PROCESS OF HRP
ANALYSE ORGANISATIONAL PLANS
DD FORECASTING
SS FORECASTING
ESTIMATE NET HR REQUIREMENTS
CONSIDER REDPLOYMENT PLAN
RIGHTSIZE/RETRENCHMENT PLANS
PLAN FOR DEFICITS
PLAN RECRUITMENT-CURRENT AND FUTURE
REVIEW AND RECAST
 PROBLEMS IN HRP
UNCERTAINITIES
INADQUACY OF INFORMATION
UNFORESEEN AND UNEXPECTED
EVENTS
CHANGE IN MARKET CONDITIONS
CHANGE IN TECHNOLOGY
RESISTANCE BY EMPLOYEES