2Human 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
3effectively & 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.
4Therefore 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.
5is the primary responsibility of mgmt. is a systems approach to mgmt.can be long terms or short terms.Need for HRPfuture HR needstechnological changeOrganizational changes—the changes in org. design and structureDemographic changes—changing profile of work force.
6Skill shortages--To meet shortages. Labor lawsGovt. policies in respect to reservation, child laborPressure from trade unionsThe involvement of lead time in manning the job with most suitable capabilitiesInternational strategiesIs foundation for HR functions
7HRP at diff. LevelsNational levelsectoral level eg.agricultural sector , industrial sectorindustry level eg. Cement, textile, chemicalunit level—org. or Co. based on its corporate\ business plan.Departmental levelJob level
8Strategic Planning and Human Resources Procedures for making decisions about the organization’s long-term goals and strategiesHuman Resources Planning (HRP)Process of anticipating and making provision for the movement (flow) of people into, within, and out of an organization.
9Strategic 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 goalsStrategy 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.
10Human Resources Planning Strategic AnalysisWhat human resources are needed and what are available?Strategic FormulationWhat is required and necessary in support of human resources?Strategic ImplementationHow will the human resources be allocated?Human Resources PlanningStrategic Planning
11Objectives 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 planningForecast future HR requirementsCope with changesUse existing manpower productivelyPromote employees in a systematic way
12To 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
13Facilitate productivity bargaining. To meet the needs of expansion & diversification prgms.Factors affecting HRPType & strategy of organisationmerger etcenvironmental uncertainties
14Org. growth cycles & planning. time horizon Short planLong range planType & quality of forecasting informationnature of jobs being filledoff-loading the work
15Importance of human resource planning Organisations use HRP to meet future challenges, cut costs, and achieve greater effectivenessImportance of human resource planningCreate a talent poolPrepare people for futureCope with organisational changesCut costsHelp succession planning
16skillwise ,knowledgewise Adjust or Modify the Organisational PlanAnalysing org.alobjectives, plans& prgms.Control & reviewmechanisms(1)Presentprgms(3)(4)(2)DEMAND FORECASTResourse requirementskillwise ,knowledgewiseetc.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 organizationShortage of future available human resource within the Organization(5)Plan for(6)Plan for(8)Retrenchment/RedundancyEmployment Training Development Internal mobilityRedeployment
17The Process Of HRP1)Analyzing the organisational plan –into production plan ,plans for expansion diversification etc.Each plan can be further analysed into sub units
182)Forecasting the overall human resource requirements.
19Cultural AuditsAudits 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?
20Composition: The Human Capital Architecture Core knowledge workersEmployees who have firm-specific skills that are directly linked to the company’s strategy.Example: Senior software programmerTraditional job-based employeesEmployees with skills to perform a predefined job that are quite valuable to a company, but not unique.Example: Security guard
21Contract labor Alliance/partners Employees whose skills are of less strategic value and generally available to all firms.Example: General electricianAlliance/partnersIndividuals and groups with unique skills, but those skills are not directly related to a company’s core strategy.Example: Independent product label designer
22Forecasting: A Critical Element of Planning Forecasting involves:forecasting the demand for laborforecasting the supply of laborbalancing supply and demand considerations.
23Model of HR Forecasting FORECASTING DEMANDConsiderationsProduct/service demandTechnologyFinancial resourcesAbsenteeism/turnoverOrganizational growthManagement philosophyTechniquesExpert forecastsStatistical techniquesWorkforce analysisWorkload analysisHistorical record of productionExisting practices in other organizationsEstimation based on various lawsJob analysisDelphi techniqueBALANCING SUPPLY AND DEMAND(Shortage) RecruitmentFull-timePart-timeRecallsTechniquesStaffing tablesSkills inventoriesManagement inventoriesReplacement chartsSuccession planningExternal ConsiderationsDemographic changesEducation of the workforceLabor mobilityGovernment policiesUnemployment rate(Surplus) ReductionsLayoffsTerminationsDemotionsRetirementsFORECASTING SUPPLY
24Forecasting Techniques Forecasting demandExpert 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
25Statistical 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 calculatedEg –decline in physical stamina of employeeschange in valuesin extra & social activities are also calculatedEconometric modelBy analyzing the past statistical data & by bringing relationships among variables
26Workforce 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 needsManpower flows in a bank
27An 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 analysisPlanned output for the year 10,000 piecesStandard hours per piece hoursPlanned hours required 30,000 hoursProductive hours per person per year 1,000 hours (estimated on annual basis)(allowing for absenteeism, turnover, idle time etc.)No. of workers requiredIf span of control in the unit is 10 per officer, then 3 officers are also required.
28Delphi TechniqueAn 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.
29Forecasting the Supply of Employees: Internal Labor Supply Staffing TablesSkill InventoriesReplacement ChartsSuccession Planning
30Staffing TablesGraphic representations of all organizational jobs, along with the numbers of employees currently occupying those jobs and future (monthly or yearly) employment requirements.
31Skill 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 ChartsListings of current jobholders and persons who are potential replacements if an opening occurs.Succession PlanningThe process of identifying, developing, and tracking key individuals for executive positions.
32Existing inventoryHeads counts regarding total, deptt. wise,sex wise, designation-wise, skill wiseJob family inventory eg clerks, cashiersage inventory—balance of young & old is preferred
33Inventory of qualifications & training including minute qualifications & training received Inventory of salary grades—pay wise,allowances wiseInventory of past performance & future potentialitieslocal & non--local wise inventoryPotential lossesPotential additions
34ADDITION LOSS New hires Promotions in Voluntary quits Deptt. Death Transfer inDemotions inAcquiring new skills,knowledge,values aptitude etc.by the existing employeesDeputations inConsultancyor adviceVoluntary quitsDeathRetrenchmentDismissalsRetirementPromotions outDemotions outTransfers outLoss of some skills,capabilities etc.dueto ill health or accidentLoss of values,aptitudes etc.,due to change in the attitude ofexisting employees towards job,deptt & orgAbsenteeism(temporary loss)Deputations outLay offConsultancyor adviceDeptt.OrSub unitPresentHRPermanent totalPermanentPartialTemporary totalTemporary partialPermanent totalPermanent partialTemporary totalTemporary partial
35Analysing sources of supply A) Internal labour supply:
36Estimated internal labour supply for a given firm
37Supply Forecasting B) External Labour supply: Local National HRIS can provide managers with a listing of candidates with required qualifications after scanning the data base.
38Important barometers of labour supply 1. Net migration into and out of the area2. Education levels of workforce3. Demographic changes in population4. Technological developments and shifts5. Population Mobility6. Demand for specific skills7. National, regional unemployment rates8. Actions of competing employers9. Government policies, regulations, pressures10. Economic Forecasts for the next few years11. The attractiveness of an area12. The attractiveness of an industry in a particular place
394)Estimating the net human resource requirement 5)Action plan for redeployment , redundancy, retrenchmentIf surplus in job—redeployment in form of transfers.Org. should plan for trg. or re-orientation before re-deployment.
40Balancing demand and supply considerations Forecasting business activities (trends)Locating applicantsOrganizational downsizingReducing “headcount”Making layoff decisionsSeniority or performance?Labor agreements
416)Forecast future supply from all the sources if supply is inadequate 7) Action plan for recruitment ,development etc.8) Modify the org. planIf 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 planFor retention of the existing employees by improving QWL.10) Control & review mechanism
42Evaluation and Assessment Issues Benchmarking: The process of comparing the organization’s processes and practices with those of other companiesHuman capital metricsAssess aspects of the workforceHR metricsAssess the performance of the HR function itself
43Responsibility 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.
44Limitations \Barriers Of Human Resource Planning UncertaintiesPeople question the importance of HRP .They say offer attractive packages & u get or can quit people.No needThis view is also held by top mgmt. ie. lack of top mgmt. SupportHR plan may not adjust with org.al plan
45HR 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.
46Effective 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..
47The whole exercise must be carried out in coordination with operating managers Appropriate time horizon.
48The Top Ten Measures Of Human Capital Your most important issuesHuman capital value addedHuman capital ROISeparation costVoluntary separation rateTotal labor-cost/revenue percentageTotal compensation/revenue percentageTraining investment factorTime to startRevenue factor
49Measuring Strategic Alignment Strategy Mapping and the Balanced ScorecardBalanced Scorecard (BSC)A measurement framework that helps managers translate strategic goals into operational objectivesfinancialcustomerprocesseslearning
50Ensuring Strategic Flexibility for the Future Organizational CapabilityCapacity of the organization to act and change in pursuit of sustainable competitive advantage.Coordination flexibilityThe ability to rapidly reallocate resources to new or changing needs.Resource flexibilityHaving human resources who can do many different things in different ways.