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HUMAN RESOURCE

PLANNING
HR PLANNING
• Process by which organization ensures that it
has the right number and kinds of people, at the
right place, at the right time.
REASONS FOR THE NEED OF
HUMAN RESOURCE PLANNING
1. Despite growing unemployment, there has
been shortage of human resources with
required skills, qualification and capabilities to
carry on works.
2. Large numbers of employees, who retire, die,
leave organizations, or become incapacitated
because of physical or mental ailments, need to
be replaced by new employees.
3. It is essential in the face of marked rise in
workforce turnover which is unavoidable and
even beneficial.
4. Technological changes and globalization usher
in change in the method of products and
distribution of production and services and in
management techniques.
5. Is also needed in order to meet the needs of
expansion and diversification programmes of
an organization.
6. Is also felt in order to identify areas of surplus
personnel or areas in which there is shortage of
personnel.
HR PLANNING IS IMPORTANT
BECAUSE…
1. It meets the organization need for the right type
of people in right number at right times.
2. It makes optimum use of human resources, on
the one hand, and reduces labor cost
substantially, on the other.
3. Careful consideration of likely future events,
through HR Planning might lead to the discovery
of better means for managing human resources.
4. Manpower shortfalls and surpluses may be
avoided, to a large extent.
5. It helps the organization create and develop
training and succession planning for employees
and managers.
6. It also provides multiple gains to the
employees by way of promotion, increase in
emoluments and other perquisites and fringe
benefits.
7. Some of the problems of managing change
may be foreseen and their consequences
mitigated. Consultations with affected groups
and individuals can take place at an early stage
in the change process.
OBJECTIVES OF HR PLANNING
1. Ensure adequate supply of manpower as and when
required.
2. Ensure proper use of existing human resources in the
organization.
3. Forecast future requirements of human resources with
different level of skills.
4. Assess surplus or shortage, if any, of human resources
available over a specified period of time.
5. Anticipate the impact of technology on jobs and
requirements for human resources.
6. Control the human resources already deployed in the
organization.
7. Provide lead time available to select and train the required
additional human resource over a specified time period.
HR Planning Process
External Environment Affecting Labor
Supply
HR PLANNING PROCESS
STEP 1: Scanning the External Environment
1. Government Influences
2. Economic Conditions
3. Geographic and Competitive Concerns
a. Other employers in the area
b. Employees resistance
c. Direct competitors and international
competition
STEP 2: An Internal Analysis of Jobs and People
1. Auditing Jobs
a. What jobs now exist?
b. How many individuas are performing each
job?
c. What are the reporting relationships of jobs?
d. How essential is each job?
e. What jobs will be needed to implement the
organizational strategy?
f. What are the characteristics of anticipated
jobs?
2. Auditing Skills
3. Creating an Employee Skills Inventory
4. Drawing Aggregate Workforce Profiles
STEP 3: Forecasting
• Demand Forecasting
 Judgemental Approaches:
1. Estimates
2. Rules of Thumb
3. The Delphi Technique
4. The Nominal
 Mathematical and/or Statistical Techniques
1. Trend Analysis
2. Scatter Plot
3. Statistical Regression Analysis
4. Simulation Models
5. Productivity Ratios
6. Staffing Ratios
• Forecasting Supply
1. External Supply
a. Net migration in & out of are.
b. Individuals entering/leaving the workforce.
c. Individuals graduating from schools and
universities.
d. Changing workforce composition and
patterns.
e. Economic forecasts for the next few years.
f. Technological developments and shifts.
g. Actions of competitors.
h. Government regulations and pressures.
2. Internal Supply
Estimating Internal Labor Supply
Employee Replacement Chart
STEP 4: Establishing Objectives

STEP 5: Designing and Implementing Action Plans:


Making Workforce Adjustments
1. Downsizing
2. Attrition and Hiring Freeze
3. Early Retirement/Buyouts
4. Layoffs
5. Outplacement
STEP 6: Controlling and Evaluating HR Programs
1. Actual staffing level against established staffing
requirements
2. Productivity levels against established goals
3. Actual personnel flow rates against desired rates
4. Programmes implemented against action plans
5. Program results against expected outcomes
6. Labor and program costs against budgets
7. Ratios of program result to program cost
HRP & STRATEGIC ORGANIZATIONAL
PLANNING
1. Assuring Adequate Staff Levels
2. Matching Skills to Current Organizational Needs
3. Building an Ethical Business Culture
4. Finding Team Players
5. Identifying Employees Ready for Advancement

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