1. HUMAN RESOURCE PLANNING
Definition
Objectives
Need & importance
Process

2. Human Resource Planning offers an accurate estimate of the number of employees required with matching skill requirements to meet organizational objectives. HRP is a forward looking function as human resource estimates are made well in advance. It is, of course, subject to revision.
HRP is the process by which an organization ensures that it has the rt. no. & kind of people at the rt. places, at the rt. time, capable of

3. effectively & efficiently completing those tasks that will help the organisation achieve its overall objectives. HRP ,then translates the organisation’s objectives & places into the no. of workers needed to meet their objectives.
The process by which mgmt. determines how an org. should move from its current manpower position to its desired manpower position , thru planning mgmt. strives to have the rt. no. & rt. kind of people at the rt. places, at the rt. time, doing things which result in both the org. & the individual receiving maximum long run benefit.

4. Therefore we can understand HRP as`
forward looking \future oriented.
not static but an on-going continuous process.
an integral part of corporate planning.
its basic purpose is to make optimum utilization of an org.’s current & future human resources.
has both quantitative & qualitative aspects.

5. is the primary responsibility of mgmt.
is a systems approach to mgmt.
can be long terms or short terms.
Need for HRP
future HR needs
technological change
Organizational changes—the changes in org. design and structure
Demographic changes—changing profile of work force.

6. Skill shortages--To meet shortages.
Labor laws
Govt. policies in respect to reservation, child labor
Pressure from trade unions
The involvement of lead time in manning the job with most suitable capabilities
International strategies
Is foundation for HR functions

7. HRP at diff. Levels
National level
sectoral level eg.agricultural sector , industrial sector
industry level eg. Cement, textile, chemical
unit level—org. or Co. based on its corporate\ business plan.
Departmental level
Job level

8. Strategic Planning and Human Resources
Procedures for making decisions about the organization’s long-term goals and strategies
Human Resources Planning (HRP)
Process of anticipating and making provision for the movement (flow) of people into, within, and out of an organization.

9. Strategic Planning and HR Planning
Strategic Human Resources Management (SHRM)
The pattern of human resources deployments and activities that enable an organization to achieve its strategic goals
Strategy formulation—providing input as to what is possible given the types and numbers of people available.
Strategy implementation—making primary resource allocation decisions about structure, processes, and human resources.

10. Human Resources Planning
Strategic Analysis
What human resources are needed and what are available?
Strategic Formulation
What is required and necessary in support of human resources?
Strategic Implementation
How will the human resources be allocated?
Human Resources Planning
Strategic Planning

11. Objectives of human resource planning
The basic purpose of HRP is to decide what positions the organisation will have to fill and how to fill them.
Objectives of human resource planning
Forecast future HR requirements
Cope with changes
Use existing manpower productively
Promote employees in a systematic way

12. To provide control measures to ensure that necessary human resources are available as & when required.
To link HRP with organizational planning.
To assess the surplus & shortage of human resources.
To anticipate the impact of technology.
To determine levels of recruitment & training.
To estimate the cost of HR & housing needs.
Basis for mgmt. dev. prgms

13. Facilitate productivity bargaining.
To meet the needs of expansion & diversification prgms.
Factors affecting HRP
Type & strategy of organisation
merger etc
environmental uncertainties

14. Org. growth cycles & planning. time horizon
Short plan
Long range plan
Type & quality of forecasting information
nature of jobs being filled
off-loading the work

15. Importance of human resource planning
Organisations use HRP to meet future challenges, cut costs, and achieve greater effectiveness
Importance of human resource planning
Create a talent pool
Prepare people for future
Cope with organisational changes
Cut costs
Help succession planning

16. skillwise ,knowledgewise
Adjust or Modify the Organisational Plan
Analysing org.al
objectives, plans
& prgms.
Control & review
mechanisms
(1)
Present
prgms
(3)
(4)
(2)
DEMAND FORECAST
Resourse requirement
skillwise ,knowledgewise
etc.
Net human resources requiremnets for futures (skill , knowledge,values etc)
SUPPLY FORECAST Present inventory of Human Resources + additions – losses (skillwise knowledgewise etc.)
Minus
(9)
Forecast the future supply human resources in all sources if supply is inadequate
(7)
Surplus of future of available human resources within the organization
Shortage of future available human resource within the Organization
(5)
Plan for
(6)
Plan for
(8)
Retrenchment/
Redundancy
Employment Training Development Internal mobility
Redeployment

17. The Process Of HRP
1)Analyzing the organisational plan –into production plan ,plans for expansion diversification etc.
Each plan can be further analysed into sub units

18. 2)Forecasting the overall human resource requirements.

19. Cultural Audits
Audits of the culture and quality of work life in an organization.
How do employees spend their time?
How do they interact with each other?
Are employees empowered?
What is the predominant leadership style of managers?
How do employees advance within the organization?

20. Composition: The Human Capital Architecture
Core knowledge workers
Employees who have firm-specific skills that are directly linked to the company’s strategy.
Example: Senior software programmer
Traditional job-based employees
Employees with skills to perform a predefined job that are quite valuable to a company, but not unique.
Example: Security guard

21. Contract labor Alliance/partners
Employees whose skills are of less strategic value and generally available to all firms.
Example: General electrician
Alliance/partners
Individuals and groups with unique skills, but those skills are not directly related to a company’s core strategy.
Example: Independent product label designer

22. Forecasting: A Critical Element of Planning
Forecasting involves:
forecasting the demand for labor
forecasting the supply of labor
balancing supply and demand considerations.

23. Model of HR Forecasting
FORECASTING DEMAND
Considerations
Product/service demand
Technology
Financial resources
Absenteeism/turnover
Organizational growth
Management philosophy
Techniques
Expert forecasts
Statistical techniques
Workforce analysis
Workload analysis
Historical record of production
Existing practices in other organizations
Estimation based on various laws
Job analysis
Delphi technique
BALANCING SUPPLY AND DEMAND
(Shortage) Recruitment
Full-time
Part-time
Recalls
Techniques
Staffing tables
Skills inventories
Management inventories
Replacement charts
Succession planning
External Considerations
Demographic changes
Education of the workforce
Labor mobility
Government policies
Unemployment rate
(Surplus) Reductions
Layoffs
Terminations
Demotions
Retirements
FORECASTING SUPPLY

24. Forecasting Techniques
Forecasting demand
Expert Forecasts: These are based on the judgments of those who possess good knowledge of future human resource needs
--by supervisors
--by top mgmt.
Best approach is participative

25. Statistical techniques
Trend Analysis: This is based on the assumption that the future is an extrapolation from the past. Human resource needs, as such, can be estimated by examining past trends.
Ratios are calculated
Eg –decline in physical stamina of employees
change in values
in extra & social activities are also calculated
Econometric model
By analyzing the past statistical data & by bringing relationships among variables

26. Workforce Analysis: All relevant factors in planning manpower flows in a firm such as transfers, promotions, new recruitments, retirement, resignation, dismissal etc are taken into account while estimating HR needs
Manpower flows in a bank

27. An example of workload analysis
Workload analysis: Based on the planned output, a firm tires to calculate the number of persons required for various jobs.
An example of workload analysis
Planned output for the year 10,000 pieces
Standard hours per piece hours
Planned hours required 30,000 hours
Productive hours per person per year 1,000 hours (estimated on annual basis)
(allowing for absenteeism, turnover, idle time etc.)
No. of workers required
If span of control in the unit is 10 per officer, then 3 officers are also required.

28. Delphi Technique
An attempt to decrease the subjectivity of forecasts by soliciting and summarizing the judgments of a preselected group of individuals.
The final forecast represents a composite group judgment.

29. Forecasting the Supply of Employees: Internal Labor Supply
Staffing Tables
Skill Inventories
Replacement Charts
Succession Planning

30. Staffing Tables
Graphic representations of all organizational jobs, along with the numbers of employees currently occupying those jobs and future (monthly or yearly) employment requirements.

31. Skill Inventories Replacement Charts Succession Planning
Files of HR education, experience, interests, skills, etc., that allow managers to quickly match job openings with employee backgrounds.
Replacement Charts
Listings of current jobholders and persons who are potential replacements if an opening occurs.
Succession Planning
The process of identifying, developing, and tracking key individuals for executive positions.

32. Existing inventory
Heads counts regarding total, deptt. wise,sex wise, designation-wise, skill wise
Job family inventory eg clerks, cashiers
age inventory—balance of young & old is preferred

33. Inventory of qualifications & training including minute qualifications & training received
Inventory of salary grades—pay wise,allowances wise
Inventory of past performance & future potentialities
local & non--local wise inventory
Potential losses
Potential additions

34. ADDITION LOSS New hires Promotions in Voluntary quits Deptt. Death
Transfer in
Demotions in
Acquiring new skills,knowledge,values aptitude etc.by the existing employees
Deputations in
Consultancy
or advice
Voluntary quits
Death
Retrenchment
Dismissals
Retirement
Promotions out
Demotions out
Transfers out
Loss of some skills,
capabilities etc.due
to ill health or accident
Loss of values,aptitudes etc.,due to change in the attitude of
existing employees towards job,deptt & org
Absenteeism
(temporary loss)
Deputations out
Lay off
Consultancy
or advice
Deptt. Or
Sub unit
Present HR
Permanent total
Permanent
Partial
Temporary total
Temporary partial
Permanent total
Permanent partial
Temporary total
Temporary partial

35. Analysing sources of supply
A) Internal labour supply:

36. Estimated internal labour supply for a given firm

37. Supply Forecasting B) External Labour supply: Local National
HRIS can provide managers with a listing of candidates with required qualifications after scanning the data base.

38. Important barometers of labour supply
1. Net migration into and out of the area
2. Education levels of workforce
3. Demographic changes in population
4. Technological developments and shifts
5. Population Mobility
6. Demand for specific skills
7. National, regional unemployment rates
8. Actions of competing employers
9. Government policies, regulations, pressures
10. Economic Forecasts for the next few years
11. The attractiveness of an area
12. The attractiveness of an industry in a particular place

39. 4)Estimating the net human resource requirement
5)Action plan for redeployment , redundancy, retrenchment
If surplus in job—redeployment in form of transfers.
Org. should plan for trg. or re-orientation before re-deployment.

40. Balancing demand and supply considerations
Forecasting business activities (trends)
Locating applicants
Organizational downsizing
Reducing “headcount”
Making layoff decisions
Seniority or performance?
Labor agreements

41. 6)Forecast future supply from all the sources if supply is inadequate
7) Action plan for recruitment ,development etc.
8) Modify the org. plan
If future supply of HR from all external sources is estimated to be inadequate or less than the requirement, the manpower planner has to suggest the mgmt. to alter or modify the org.al plan.
9) Retention plan
For retention of the existing employees by improving QWL.
10) Control & review mechanism

42. Evaluation and Assessment Issues
Benchmarking: The process of comparing the organization’s processes and practices with those of other companies
Human capital metrics
Assess aspects of the workforce
HR metrics
Assess the performance of the HR function itself

43. Responsibility For Human Resource Planning
HRP is a top management job. HR plans are usually made by the HR division in consultation with other corporate heads.

44. Limitations \Barriers Of Human Resource Planning
Uncertainties
People question the importance of HRP .They say offer attractive packages & u get or can quit people.
No need
This view is also held by top mgmt. ie. lack of top mgmt. Support
HR plan may not adjust with org.al plan

45. HR information not readily available.
Conflict between short term & long term HR needs.
Time & expense.
Conflict between quantitative & qualitative approaches to HRP.
Non-involvement of other mgrs.eg.mkting, production mgr. not concerned much about it.

46. Effective Human Resource Planning
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. .

47. The whole exercise must be carried out in coordination with operating managers
Appropriate time horizon.

48. The Top Ten Measures Of Human Capital
Your most important issues
Human capital value added
Human capital ROI
Separation cost
Voluntary separation rate
Total labor-cost/revenue percentage
Total compensation/revenue percentage
Training investment factor
Time to start
Revenue factor

49. Measuring Strategic Alignment
Strategy Mapping and the Balanced Scorecard
Balanced Scorecard (BSC)
A measurement framework that helps managers translate strategic goals into operational objectives
financial
customer
processes
learning

50. Ensuring Strategic Flexibility for the Future
Organizational Capability
Capacity of the organization to act and change in pursuit of sustainable competitive advantage.
Coordination flexibility
The ability to rapidly reallocate resources to new or changing needs.
Resource flexibility
Having human resources who can do many different things in different ways.