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HUMAN RESOURCE PLANNING

SUNITA SHUKLA

STRATEGIC PLANNING
THE PROCESS BY WHICH TOP MANAGEMENT DETERMINES OVERALL O R G A N I Z AT I O N A L P U R P O S E S A N D OBJECTIVES AND HOW THEY ARE TO BE ACHIEVED

DEFINITION :
process by which an organization ensures that it has the right number & kind of people at the right place and at the right time, capable of effectively and efficiently completing those tasks that help the organization achieve its overall objectives.

This process involves the estimate of the future manpower needs of an organization and meeting them through the labour force available with it

HRP is the first step in the process of Recruitment and selection after job analysis has been completed

From a broad organizational perspective, HR planning intends to achieve better customer satisfaction, quality enhancement and improved employee motivation

From a functional perspective, it aims at enhancing the employees motivation and commitment, team spirit, mutual trust and creativity

The three basic objectives of any HRP are: Attracting, developing and retaining an efficient workforce Evaluating rewarding its performance Inventing and controlling HR plans and programs to optimize the HR cost

IMPORTANCE
1) Each Organization needs personnel with necessary qualifications, skills, knowledge, experience & aptitude . 2)Need for Replacement of Personnel disabled personnel. Replacing old, retired or

3)Meet manpower shortages due to labour turnover 4) Meet needs of expansion / downsizing programmes - As a
result of expansion of IT companies the demand for IT professionals are increasing. PSUs offering VRS to employees to retrench staff and labour costs. DOT.COMs firing staff.

5) Cater to Future Personnel Needs - Avoid surplus or


deficiency of labour.
75% of organizations are overstaffed. Redeployment of staff to other units.

6) Nature of present workforce in relation with Changing Environment - helps to cope with changes in competitive
forces, markets, technology, products and government regulations.
Shift in demand from ERP to internet programming has increased internet
programmers demand at Wipro, Infosys etc. ITI retrained its existing workforce in the new electronic telephone system.

OTHER USES
i) quantify job for producing product / service ii) quantify people & positions required - determine future staff-mix iii) assess staffing levels to avoid unnecessary costs iv) reduce delays in procuring staff v) prevent shortage / excess of staff vi) comply with legal requirements

HUMAN RESOURCE PLANNING PROCESS


EXTERNAL ENVIRONMENT INTERNAL ENVIRONMENT
Strategic Planning Human Resource Planning
Forecasting Human Resource Requirements

Comparing Requirements and Availability Surplus of Workers

Forecasting Human Resource Availability Shortage of Workers

Demand = Supply

No Action

Restricted Hiring, Reduced Hours, Early Retirement, Layoff, Downsizing

Recruitment
Selection
10

HR DEMAND FORECAST
process of estimating future quantity and quality of manpower required for an organization.

External factors competition (foreign & domestic), laws & regulation, economic climate, changes in technology and social factors

Internal factors - budget constraints, production levels, new products & services, organizational structure & employee separations

FORECASTING TECHNIQUES
Managerial Judgement - Managers discuss and arrive at a figure of inflows & outflows which would cater to future labour demand. Ratio-Trend Analysis - Studying past ratios, i.e. No. of Workers Vs Volume of Sales, forecasting future ratios and adjusting for future changes in the organization.

Work-Study Technique - Used when length of operations and amount of labour required can be calculated.

Delphi Technique - From a group of experts the personnel needs are estimated.

HR SUPPLY FORECAST
process of estimating future quantity and quality of manpower available internally & externally to an organization.

Supply Analysis Existing Human Resources Internal Sources of Supply External Sources of Supply

EXISTING HUMAN RESOURCES


Capability / Skills Inventory using HR Information System
General Information Name: Present Address: Sex: DOB: Marital Status: Permanent Address: Qualification Degree/Diploma Department: Designation: DOJ: Salary: Grade:

Institution

Class

Year of Pass

Experience/Skills Job Title/ Organisation Brief Skill/ Appointment Responsibilities Specialisation Outstanding Achievement / Additional Information Awards Performance Disciplinary Action Promotions Merit Rating Absenteeism Achievements Career Plans:

ANALYSIS OF INTERNAL SUPPLY


Inflows & Outflows - The number of losses & gains of staff is estimated.

Turnover Rate - refers to rate of employees leaving. = ( No. of separations in a year / Avg no. of employees during the year ) x 100

Absenteeism - unauthorized absence from work. = ( total absentees in a year / Avg no. of employees x No. of working days) x 100
Productivity

Level - = Output / Input. Change in productivity affects no. of persons per unit of output. Movement among Jobs - internal source of recruitment, selection and placement

EXTERNAL SUPPLY
External recruitment, selection & placement Advertisements, Manpower Consultants, Campus Recruitment, Unsolicited Applications, Employee Referrals External Sources are important for specific reasons: New blood and new experience will be available Organization needs to replenish lost personnel Organizational growth and diversification create the needs to use external sources to obtain additional number and type of employees

HR PROGRAMMING
Balancing Demand and Supply

Vacancies filled in by the right employee at the right time

HR PLAN IMPLEMENTATION

Recruitment, Selection & Placement

Training & Development


Retraining & Redeployment

Retention Plan
Downsizing Plan

CONTROL & EVALUATION

The HR plan should include budgets,


targets and standards. It should also clarify responsibilities for implementation and control, and establish reporting procedures

which will enable achievements to be


monitored against the plan

PROBLEMS IN HUMAN RESOURCE PLANNING


Resistance by employer

Resistance by employees
Resistance by trade unions Uncertainties

Inadequacies of Information system


Identify crisis Slow and gradual process

Lack of co-ordination with other management functions


Integration with organizational plans