HUMAN RESOURCE PLANNING

IMPORTANCE OF HRP Defining future personnel needs Coping with changes Facilitating talent management Increasing investment in human resources Promotion of HRD activities

Human Resource planning process Organizational Objectives Human resource demand forecasting Human resource supply forecasting Identification of human resources gap Action plan undertaken depending on surplus or shortage of human resources

Co. HRP Model Environment Organisational Objectives & Policies Objectives & Policies Organisational Objectives & Policies Objectives & Policies HR Needs Forecast HR Needs Forecast HR Needs Forecast HR Needs Forecast HR Supply Forecast HR Supply Forecast HR Supply Forecast HR Supply Forecast HR Programming HRP Implementation HRP Implementation HRP Implementation HRP Implementation Control & Evaluation Surplus: Transfer to site, Training & Development, Job Rotation Shortage: Transfer from site, Recruitment & Selection

2 Examples of Factors to be considered by an organization while undertaking manpower planning  Availability of Manpower (Different locations)  Proper seating arrangement  Budgeted salary (as per Industry trend)  Adopt to new technology  Use latest software. Eg. Stadd-Pro, Xsteel  Upgrade the versions of existing software  Statutory rules / laws applicable to Man Power  Medical Insurance for the employees.

Examples of Co. Objectives & Policies  Some senior positions to be filled by promotions (Succession Planning)  Training & Development programmes for employees. Technical Training & Soft Skills Training.  Job Rotation (Retraining & Redeployment)

Forecasting needs of human resources- Demand Forecasting techniques Managerial judgment method Delphi technique Work – study technique Ratio – trend analysis Statistical Models- Regression Analysis, Econometric models

Forecasting of human resource supply Human resource flow model- Markov Analysis Human Resource Inventory

Human resource Flow model Determination of periods in which HR flows are measured Establishment of categories or states to which an individual can be assigned Counting the annual flows of individuals among states for several time periods- a state may be absorbing or non– absorbing estimating the probablity of transitions from one state to another based on past trends

Estimation of personnel supply based on flows Sources of inflows- transfers in, promotions in- total in –flows Sources of out- flows- resignations, discharges, retirements, promotions, demotions- total out- flows

Time – Frames for manpower planning Less than a year 1-2 years 2-5 years More than 5 years

Analysis of work load factors Classification of job content by forecasting the number of jobs Converting the projected jobs into man hours Converting man hours into man power requirements

Time – Series Analysis Trend Cyclical Effect Seasonality Random Fluctuations

Wastage Analysis Manpower wastage is an element of labor turnover. Wastage is severance from the organization including retirement, resignations, deaths and dismissals During induction marginal employees leave, during differential transit period an employee learns about the organization and identifies his role in it. While during the period of settled connection the employee decides to stay long.

Wastage decreases with increased skill and age of employees. Different methods of wastage analysis Labor turnover index= Number of employees leaving/ Average number of employees employed % Stability Index- number with more than 1year service now/total employed one year ago%

Cohort Analysis Cohort is a homogenous group cohort analysis takes into account the length of service. Number remaining at a given time/ number engaged at the start % sometimes the number remaining is represented as the survival curve

Census Analysis census analysis can be applied to a cross- section of the organization Data is required under three heads- the number of employees at the beginning of the census, the number of employees at the end of the census and the number of leavers during the census period