HR Planning

Meaning
HRP or Manpower Planning is essentially the process of getting the right number of qualified people into the right job at the right time. It is a system of matching the supply of people (existing employees and those to be hired or searched for) with openings the organization expects over a given time frame. forward looking function.

Objectives
Forecast personnel requirements Cope with changes Use existing manpower productively Promote employees in a systematic manner

Importance
If used properly HRP offers following benefits: Reservoir of talent available at any point of time Prepare People for Future they can be trained, motivated and developed inn advance to meet future needs Expand or Contract Cut Costs no shortage/excess in HR and enablement of advance planning of physical facilities Succession Planning

Factors affecting HRP

Organizational Growth Cycle and Planning

Type and strategy or Organization

HRP

Environmental Uncertainties

Time Horizons

Outsourcing

Type and quality of forecasting information

Labour Market

Techniques of HR Demand Forecasting

Managerial Judgement

Work study Techniques

HRP

Ratio Trend Analysis

Others

Regression Analysis

Delphi Technique

Flow Models

The Process of HRP

FORECASTING THE DEMAND OF HR The process of HRP, usually followed in large organization, consists of the following steps: (a) External Challenges: These arise from 3 sources: * Economic developments * Political, social and technical changes * Competition (b) Organizational decisions: (c) Workforce factors wastages, leave and absenteeism

(d) Forecasting Techniques: * Expert forecasts * Trend Analysis 2006-07 Production of Units 5000 2006-07 No. of workers 100 Ratio 100:5000 2007-08 Estimated Prodn 8000 No of workers reqd 8000 x 100/5000=160 If Supervisors have a span of 20 workers, 8 supervisors are also needed in 2007-08

(e) Other Methods: several mathematical models, with the aid of computer e.g. regression, optimization models, budget & planning analysis To proceed systematically HR professionals generally follow 3 steps: * Workforce Analysis * Workload Analysis Planned output for the year 10,000 pcs Std hrs per piece 3 hrs Planned hrs reqd 30,000 hrs Productive hrs per person/yr 1,000 hrs No of workers reqd 30 If span of control in the units is 10 per officer, then 3 officers also reqd. *Job Analysis

PREPARING MANPOWER INVENTORY (SUPPLY FORECASTING) The basic purpose of preparing inventory is to find out the size and quality of personnel available within the orgn to man various positions Internal Sources demographic profile of employees, their experience, job level, past performance & future potential to be kept ready External Sources to the extent an orgn is able to anticipate its outside recruitment needs.

Factors Assisting/Influencing Internal and External Forecast Internal Supply Forecast Manning Table shows no. of employees in each job tries to classify employees on the basis of age, sex, position, category, experience, qualification, skill, etc. a study of this will indicate whether the current MP is properly utilized or not Replacement Chart shows the profiles of job holders, dept-wise and reveals those who could be used as replacements when need arises Skill Inventory reveals the routine & strategic skills of an employee before or since joining the orgn.

External Supply Forecast Labour Market Conditions local employment trends of relevant categories of employees, competition for such skills, availability of part time labour, migration trends of labour, housing facilities available, transport needs, etc. Macro Level Factors non-availability of a certain category of jobs to outsiders; cultural factors, customs and social norms; training schemes of government, etc.

DETERMINING GAPS The existing number of personnel and their skills (from manpower inventory) are compared with the forecasted manpower needs (demand forecasting) to determine the quantitative and qualitative gaps in the workforce. A reconciliation of demand and supply forecasts will give us the number of people to be recruited or made redundant as the case may be.

Determining Manpower Needs Year 1 2 3 1. 2. 3. 4. 5. 6. 7. 8. No. required at beginning of year Changes to requirements forecast DEMAND Total requirements at the end of yr (1+2)------No available at beginning of yr Additions (transfers, promotions) SUPPLY Separations Total available at end of yr (4+5+6) ----------Deficit or Surplus (3 7) RECONCILIATION OF THE ABOVE 9. Losses of those recruited during yr 10. Additional no needed during yr (8+9) MP NEEDED

FORMULATING MANPOWER PLANS Changes in product mix, union agreements, competitive actions are some of the important things that need special attention Guidelines to avoid in HRP 1. Objectives to be made very clear 2. Top Management support 3. Manpower inventory 4. Human Resource Information System 5. Coordination a separate wing to coordinate HRP