PRESENTATION ON

HUMAN RESOURCE PLANNING

GROUP I
 BETTY MATHEW
 SHRADHA GARG
 VISHAL VATS
 PREMLATA TUTI
 DAKSH AGRAWAL
 ASHUTOSH SHARMA
 NEHA MARWAH
 MANSI SHARMA
 RAVI ROSHAN DUNGDUNG
 JUDE SINGH
 PREETI ABHILASHA MINZ
 ANKITA KEVIN NATAL
 PARIMAL PARAG
Human Resource Planning is the process of forecasting a
firm’s future demand for, and supply of, the right type of
people in the right number.

HRP is the process by which management determines how

the organization should move from its current manpower
position to its desired manpower position.
 ACTIVITIES REQUIRED FOR HRP

Manpower planning consists of a series of

activities:
• Forecasting future manpower requirements
• Preparing an inventory of present manpower
• Anticipating problems of manpower
• Meeting manpower requirements
 FACTORS AFFECTING HRP
Organizational Environmental
growth cycles uncertainties
and planning.

Type and
strategy of HRP Outsourcing
organization

Labor
Time horizons market
 Prevent Overstaffing and Understaffing
 Ensure the organization has the right employees with the right
skills in the right place at the right times.
 Ensure the organization is responsive to changes in its
environment.
 Provide direction and coherence to all HR activities and
systems.
 Unite the perspectives of line and staff managers
 To forecast economic and business
environment
 To estimate future demand of
numbers and types of skills by
various industries
 To ensure more effective
utilization of HR
 To make labor supply projections
for the future
 To ensure effective labor supply to
different industries through
activities such as interacting with
educational institutions.
MACRO HRP
 To prevent overstaffing and
understaffing
 To ensure employee availability
 To ensure that the firm is
responsive to the environment
 To provide direction to al HR
activities
 To build line and staff
partnerships
MICRO HRP
It AssistsHuman Resource Managers to
Strategies Development Plans.

Its Importance.
 It
captures different talent
pools.

 It
captures career plans and
grooms right number of
individuals.
 Competitive Growth of
Business services
Environment economy

Government
Legislations
and Technological
Regulations Significance Advancement
of HRP

Labour Knowledge
Market economy
changes and
Increase in knowledge
Productivity workers
 Pressure to increase revenue and cut down costs.
 Firms starting to become lean.
 Poaching increasingly challenges employee retention.
 Increased attrition and employee turnover in industries.
 E.g. Increased contractual or part time hiring.
 Jobs increasing in service sector than in manufacturing.
 For e.g. shifting focus from production, chemical or civil
industry to IT, Telecom or banking.
 Shift of focus from Employee skills to employee competency
and talent.
 Occupational shift from manufacturing sector to knowledge
sector.
 Technologies are rapidly changing and so are their production
processes and other supporting functions.
 Result is changing job specifications and descriptions.
 Increased need to recruit suitable human resource at the right
time.
• Several industrial sectors including manufacturing , are
becoming knowledge and skill intensive, with new
innovation resulting in quality improvements and cost
reductions.
• The numbers of jobs in manual and skilled categories are
going down in the knowledge economy.
 Competition has contributed to rising productivity. Labour
productivity in Indian industries has increased steadily since
the mid –nineties and number of workers has been declining
steadily.
 The transformation of the labour market in recent years is
another factor that has implications for HRP.
 A labour market is a geographical region where the supply
and demand of labour interact.
 Government policies and regulations relating to employment
influence HRP.
 Affirmative action requires firms to hire women, members of
minority groups, and disabled people. The reservation of jobs
and seats in educational institutions limits both supply and
demand.
 External Environment
Internal Environment
Strategic Planning

Human Resource Planning

Forecasting Comparing Forecasting

Human Resource Requirements Human Resource
Requirements and Availability Availability

Demand = Supply Surplus of Shortage

workers of workers

No Action Restricted hiring, Recruitment

Reduced hours,
Early retirement,
Selection
layoff,
downsizing
 Estimating the future quantity & quality of people required.
The basis of forecast depends upon the sales plan & the annual
budget.
 HR demand forecasting considers 2 factors:
◦ Internal
◦ external
 o Demand forecasting helps in :
a) Quantifying the jobs necessary for producing a given number
of goods & providing necessary services.
b) It helps to determine what staff mix is desirable in future.
c) Assess appropriate staffing levels to avoid unnecessary cost.
d) Prevent shortages of people where & when they are needed
most.
e) Helps the company to monitor legal compliance with regard
to reservation of jobs.
 • Qualitative methods
a) Estimation-people in position estimate the number of people the firm
will require in the next year.
b) Expert opinion-panel of experts forecast HR requirements for
particular future business scenarios.
 Delphi-experts go through several rounds of estimates. No face-face
meetings.
 Group brain storming-face-to-face discussion based on multiple
assumptions about future business direction.
 Nominal group technique-face-to-face discussion
 Simple averaging-simple averaging of viewpoints
c) Sales force estimates-used when new products are introduced by a
firm. Sales personnel estimates the number of employees needed based
on their estimate of demand of product.
 • Quantitative methods.
 Trend analysis and projection-based on past relationship between
a business factor related to employment and employment level itself
a) Simple long run trend analysis-extrapolates past relationship
between volume of business activity and the employment levels into the
future.
b) Regression analysis-regresses employment needs onto key variables.
 Simulation models-uses probabilities of future events to estimate
future employment levels
 Workload analysis-based on actual content of work
 Markov analysis-probabilistic based on past relationship between
business factor related to employment and employment level itself.
 Supply forecasting – measures the number of people likely to
be available from within & outside the organization.
Reasons for supply forecasting:
• Helps to quantify number of people & positions expected to be
available in future to help the organization realize its plans
• Helps to clarify staff mixes that will exist in the future.
• Prevents shortage of people where & when they are most needed.
• Assess existing staffing levels in different parts of the organization.
• Monitors expected future compliance with legal requirements of
job reservations.
 Supply forecasting can be done through :
 Existing human resources
 Internal sources
 External sources
 Present employees- Analysis is facilitated by HR Audits.
The audits of non managers are called skill inventories &
those of the management are called management inventories.
 With technological advancements HR inventories have
become computerized. The Human Resource Information
System(HRIS) is a computerized inventory.
Name : A.K. Sen Date printed : 1-4-2004
Number : 429 Department : 41

Key words Work experience

Word Description Activity From To
Accounting Tax Supervision 1998 2000 Tax clerk ABC Company
and analysis
Book Keeping Ledger Supervision 2000 2002 Accountant XYZ Co.
Auditing Computer Analysis 2002 2003 Chief Accounts TT Bank
records Officer

Education Special Qualifications M em be rsh ips

Degree Major Year Course Date 1. AIMA

MBA Finance 1998 DBF 1996 2. ISTD

B.Com Accounts 1995 Risk Management 1999 3. ICA

Computer Languages Position Location Hobbies

Literacy preference choice

 Tally French Accounting Kolkata Chess

 Banking Auditing Delhi Football
Software Bangalore Boating

Employees Signature __________ HR Department________

Date _______________________ Date ________________
 Turnover rate- number of separations during the year/
average number of employees during the year*100
 Condition of work & absenteeism-
Number of persons – days lost * 100
avg no. of persons * no. of working days
 Productivity level
 Movement among jobs
 Inflows & outflows- Determination of the number of losses &
gains is made.
Sources of Inflows The Firm Projected Outflows

 Promotions

 Transfers  Quits
Current Staffing
 Promotions Level  Terminations
Employees In Employees Out
 New Recruits  Retirements

 Recalls  Deaths

 Layoffs

Current Projected Projected Firm’s internal

staffing – outflows + inflows = supply for this
level this year this year time next year
 External hires need to be contacted when suitable internal
replacements are not available. A growing number of firms
are now using computerized Human Resource Information
Systems to track the qualifications of hundreds or thousands
of employees.
 Several agencies make projections of external labor market
conditions & estimates of the supply of labor to be available
in different skill categories.
 The Institute of Applied Manpower Research(IAMR)
publishes the Manpower Profile- India Yearbook.
 Why 80- 90% organizations fail to achieve their organizational long
term objectives ?
Ans. Wrong implementation of strategies.
 Recruit new permanent
employees
 Rehire retirees part time
 Work current staff overtime
 Subcontract work out
 Hire temporary employees
 Redesign Job processes so that
fewer employees are needed.
MANAGING SHORTAGES
 Hiring Freezes
 Do not replace those who
leave
 Offer early retirement
incentives
 Reduce work hours layoffs
 Reduce outsourced work
 Employee Training
 Expand Operations
MANAGING SURPLUS
 Business Strategy is the determination of the long term goals and
objectives of an organization, and allocation of resources necessary
for carrying out these goals.
 HR strategy should be aligned to business strategy to bring about
competitive advantage for the firm. The attributes, motivation,
development, priorities and performance should directly support
the company’s strategic goals. It can be done by:
 People recognized as critical to business
 Strategic Human Capital Management such as innovative
approaches to every link in the HR Value Chain- Recruitment,
Development, Motivation, Performance Management and Reward.
 Prepare business and its people to meet future demand for talent
and competition for best human resource.
 Classification by Porter(1985)
Business Strategy HR Strategy HRP Activities
Focus
Cost Leadership • Job and Employee • Internal Promotions
• Cost Control specializations • Emphasis on
• Stable Business • Employee efficiency Training
Environment • Long HR planning • Hiring and Training
• Efficiency and horizon for specific
Quality capabilities
Differentiation • Shorter HR Planning • External Staffing
• Long term focus Horizon • Hire and Train for
• Growth • Hire the HR broad competencies
• Creative Job capabilities required
behavior • Flexible jobs and
• Decentralization employees
 Classification by Miles and Snow (1984)
Business Strategy HR Strategy HRP
Defender • Bureaucratic Approach • Build HR
• Finds change • Planned and regularly • Likely to emphasize
threatening maintained policies to Training Programs and
• Favors strategies which provide for lean HR Promotion
encourage continuity and
security
Prospector • Creative and flexible • Acquire HR
• Thrives on change management style • Likely to emphasize
• Favors Strategies of • Have high quality HR recruitment, selection
product and/or market • Emphasize and performance based
development redeployment and compensation
flexibility of HR
• Little opportunity for
long term HRP
Analyser • Emphasize HR planning • ‘Buy’ as well as ‘make’
• Seeks to match new key human resources
ventures with the present
business set-up
• Launches ventures new
to the firm but not new
to the market
 Involves identifying key management positions that the organization
cannot afford to have vacant.

PURPOSE

 Facilitates transition when an employee leaves.

 Identifies development needs of high potential employees and assists

with their career planning

.
Identify key positions and possible successors for each of these positions .
For Example :-
J. Smith
V.P Marketing

S. Anderson
R.Jones C.Williams
Director Marketing
Sales Director Productions Manager
Research
Ready now 15 months
1 year
1. To ensure that key positions remain filled.

2. To identify critical training and development needs of both

individual managers and the organization as a whole .
 Disadvantages Advantages

Do not tell High performers may Allows flexibility as

leave the organization , business needs change
unsure of their future.

Tell
Unrealistic expectations Retention Strategy
and implied contracts
 It is a part of planning process which anticipate the need for
groups of employees in specific , usually lower level jobs( for
ex., number of customer service representatives needed) and
the general skills employees need to ensure sustained high
performance.
  Forecasting the demand for employees
i. Unit forecasting ( Bottom up planning)
ii. Top down forecasting

 Plan for an adequate supply of employees

to meet the current demand.
 In unit forecasting ,each individual unit, department, or branch of
the organization estimates its future needs of the employees. For
example, each branch of a bank might prepare its own forecast
based on the goals and objectives each branch manager has for the
particular office. These estimates are then presented to subsequent
layers of the management, who combine and sum the totals and
present them to senior management for approval. This technique
has the potential for being the most responsive to the needs of the
marketplace because it places responsibility for estimating
employees needs at the “point of contact” in service provision or
product production.
 This involves senior managers allocating a budgeted amount for
employees payroll expenditures and then dividing the pool at
subsequent levels down the hierarchy. Each manager receives
budget from her/his supervisor and then decides how to allocate
these funds down to the next group of managers, this technique is
similar to sales and profit plans in many organization whereby each
unit is assigned a budgeted amount and then required to make
decisions on developing those resources in the manner most
consistent with business objectives. Although this technique may be
efficient , as senior management allocates HR costs within a strict
organization wise budget, there is no guarantee that it will be
responsive to the needs of the market place, Allocations are based
solely on what organization can afford, without regard to input
concerning demand and market place.
 Markov Analysis – It describes the probability of employees
staying with the job category, moving to another job, or
leaving the organization over a given period usually one year.
It uses a transition probability matrix that is established based
on historical trends of mobility.

 For example, we will assume that there are three job

classifications in the restaurant: servers, hosts and buspersons.
Transition probability matrix for a restaurant

One year from Now

Servers Hosts Buspersons Exits
Servers .80 .10 0 .10

Current year Hosts .10 .70 0 .20

Buspersons .15 .05 .40 .40

Analysis of Matrix
Retention levels
Servers 80%

Hosts 70%

Buspersons 40%

Forecasting levels
Incumbents Servers Hosts Buspersons Exits
60 Servers 48 6 6
10 Hosts 1 7 2
20 Buspersons 3 1 8 8

Totals 52 14 8 16
• OUTSOURCING – Serves as a source of HR for a firm.
• Serves as a way for filling the gaps that exist in the HR plan,
or shortage in the workforce
• Decision may be driven by business objectives
 There are 4 stages of the outsourcing process
1. Analysis and Evaluation
2. Contracting and Negotiation
3. Initiation and Transition
4. Stabilization and maintenance of outsourced relationship
 Stage 1 – Analysis and Evaluation
 Retain HR talent
 Do not outsource HRP
 Consider alternatives to outsourcing
 Stage 2 – Contracting and Negotiation
 Evaluate Vendor organization
 Design internal organization
 Stage 3 – Transition
 Employ a phased approach to transition
 Build a transition team
 Stage 4 – Stabilization and Improvement
 Build in continuous improvement and flexibility at the
vendor
THANK YOU