Human Resource Management Chapter 2 HUMAN RESOURCE PLANNING

HUMAN RESOURCE PLANNING It is the process of getting right number of qualified persons into right job at the right time. The function is meant to support and enable the company to attain its business goals

Definition According to Edwin B.Geisler, “Manpower planning is the process by which the firm ensures that it has right number of people and then right kind of people, at the right places, at the right time, doing things for which economically most useful”

OBJECTIVES Forecast Personnel requirements Cope with changes Use of existing manpower productively Promote employees in a systematic way

FEATURES OF HR Planning Well Defined Objectives Determining Personnel Needs Having Manpower Inventory Adjusting Demand and Supply Creating Proper Work Environment Development of Policies Complementary to Organization Planning Dynamic Activity

Reasons for Increasing Focus on HR Planning Employment-Unemployment Situation Technological Change Organisational Change Demographic Change Skill Shortages Government Influences Impact of Pressure Groups

Importance of HR Planning Reservoir of Talent Prepare people for future Expand or Contract Cut Costs Succession Planning

Factors Influencing HRP External Factors: Government Policies Level of Economic Dvpt Business Environment Level of Technology International Factors Internal Factors: Company policies and strategies Human Resource Policies Job Analysis Time Horizons Type & Quality of Information Company’s Production Operational Policy Trade Unions Factors

HRP Process Environment Organizational Objectives and Policies HR Supply Forecast HR Demand Forecast HR Programming HR Implementation Control and Evaluation Shortage, Recruitment Selection Surplus reduced Lay off etc.

Process of HRP 1. Environmental Scanning -- Environmental Factors -- Technological Changes -- Demographic Changes -- Political & Legislative 2. Organizational Objectives and Policies 3. HR Demand Forecast

Factors Determining Forecasting Demand Anticipated Growth of an organization Budget constraints Anticipated turnover in personnel due to Retirement, Death, Transfers, Termination of Service Introduction of New Technology Minority Hiring Goals

Forecasting Techniques Managerial judgment Ratio Analysis Trend Analysis Using Computer Mathematical Methods Delphi Technique Workforce analysis Workload analysis Job analysis

4.HR SUPPLY FORECAST FACTORS DETERMING FORECASTING SUPPLY -- Promotions of Employees within the organization -- Availability of Required Talent in External Labor Market -- Competition of Talent within the Industry -- Population Movement Trends -- Enrolment Trends in Vocational Schools, Colleges and Universities

SOURCES OF SUPPLY Internal Sources -- Staffing Tables -- Markov Analysis -- Skill Inventories -- Replacement and Succession Planning External Sources

Contd., 5. HR Programming 6. HR Plan Implementation Recruitment plan Redeployment plan Training plan Productivity plan Retention plan 7. Control and Evaluation

Effective Human Resource Planning Objectives Top Management Support Employee Skills Inventory Human Resource Information System Coordination