HUMAN RESOURCE

PLANNING
Presented by
Leejoe Jose Mathews
Jaison Jasi
Praleena P L
 Environment

Organizational
objectives&policies

HR Needs forecast HR Supply forecast

HR Programming

HRP Implementation

Control&Evaluation
Of Programme

Surplus Shortage
Restricted hiring
Recruitment
Reduced hours
VRS Lay off ,etc Selection
STEPS OF HR PLANNING

Environmental scanning
 Economic factors,technological changes
,demographic changes, political&legislative
issues,social concerns.
Organizational objectives & policies

 Specific requirements in terms of no: &

characteristics of employees should be
derived from organizational objectives.
 It is defined by top management .
 The role of HRP is to subserve the overall
objectives by ensuring availability & utilization
of human resources
HR Demand Forecast

 Demand forecasting is the process of estimating the

quantity & quality of people required to meet future
needs of the organization.
 Consider several factors-external & internal
 External- competition,economic climate,laws &
regulatory bodies,changes in technology & social
factors
 Internal- budget constraints,production levels,new
products & services,organizational structure &
employee separations.
Forecasting Techniques

 Managerial judegment
 Ratio-trend analysis
 Regression analysis
 Work study techniques
 Delphi technique
 Flow models
Forecasting Techniques

Managerial Ratio Trend Regression

Judgement Analysis Analysis

HR DEMAND
FORECAST

Work Study Delphi

Flow Models
Techniques Technique
Managerial judgement

 Managers sit together, discuss and arrive at a figure

which would be the future demand for labour.
 Two approaches – Bottom up & Top down
 A combination of these two could yield positive
results- a committee comprising departmental
managers and HR managers will review the two sets
of forecasts, arrive at unanimity ,which is then
presented to top managers for approval .
Ratio Trend Analysis
No: of Ratio
 Quickest forecasting Year Employees
technique Pdn inspector

 Studies past ratios -3 1500 150 1:10

,between the no: of Actual
-2 1800 180
workers and sales in an 1:10
organisation and Last 2000 180 1:11
forecasting future ratios Year
Next
Year 2200 200 1:11
Forecast +2 2500 210 1:12

+3 2750 230 1:12

 Regression Analysis

 Forecast is based on sales volume and

employee size

Employee
size

Sales
Work study Techniques

 Used when it is possible to apply work

measurement to calculate the length of
operations and the amount of labour required
 Work study Techniques for direct workers
can be combined with ratio-trend analysis to
forecast indirect workers
Delphi Technique

 Solicits estimates of personnel needs from a

group of experts , usually managers
 HRP experts acts as intermediaries,
summarize the various response and report
the findings back to the experts
 But there is absence of interaction among
experts.
Flow Models

 The simplest one is called the Markov model

 The steps in this model are
1. Determine the time that should be covered
2. Establishes categories, also called states, to which
employees are assigned
3. Count annual movements among states -absorbing
& non absorbing ,for several time periods
4. Estimate the probability of transition from one state
to another based on past trends
HR Supply Forecast

 It determines whether the HR department will

be able to procure the required number of
personnel.
 The supply analysis covers
 Existing HRs
 Internal sources of supply,&
 External sources of supply.
Present employees

 Facilitated by HR audits.
 It summarise each employee’s skills and
abilities.
 The audit of those of non managers are
called skills inventories and those of the
management is called management
inventories
Internal supply

 Inflows & outflows

 Turnover rate
 Conditions of work & absenteeism
 Productivity level
 Movement among jobs
External supply

 New blood & new supply

 To replenish lost personnel &
 Due to growth & diversification additional
number & type of employees are needed
HR Programming

 After personnel demand &supply are forecast

.two must be reconciled or balanced in order
that vacancies can be filled by the right
employee at the right time
HR Plan Implementation

 A series of action programmes are initiated

like
 Recruitment
 Selection & placement
 Training & development
 Retraining & development
 The retention plan
 The succession plan etc.
Control & Evaluation

 Control & Evaluation includes budgets,

targets and standards
 It clarifies responsibilities for implementation
and control
 Establishes reporting procedures which will
enable achievements to be monitored against
the plan.
Sourced an uploaded by

THOUFEEK. A
tt87@in.com.