Human Resource Planning

HUMAN RESOURCE PLANNING

Human resource planning is the process of anticipating and carrying out the movement of people into, within, and out of the organization. Human resources planning is done to achieve the optimum use of human resources and to have the correct number and types of employees needed to meet organizational goals.

According to Geisler, Manpower planning is the process including forecasting, developing and controlling by which a firm ensures that it hasThe right number of people, The right kind of people, At the right places, At the right time, doing work for which they are economically most useful.

Features of HRP
Forecasting future manpower requirements Making an inventory of present manpower resources and assessing the extent to which these resources are employed optimally. Anticipating manpower problems by projecting present resources into the future Planning the necessary programmes of requirement, selection, training, development, utilization, transfer, promotion, motivation and compensation to ensure that future manpower requirements are properly met.

Factors Affecting HRP

Factors Affecting HRP

External Factors

Internal Factors

External Factors External Factors

nt Policies ment Policies

Level of Economic Level of Economic Development Development including including future supply future supply of HRs of HRs

Business Business Environment Environment

Information Information Technology Technology

Level of Level of Technology Technology

Natural Factors Natural Factors

International International Factors Factors

Internal Factors

Strategies Of the Company

Human Resource Policy of the Company

Formal and Informal Groups

Job Analysis

Time Horizons

Type and Quality of information

Environment

Organizational Objectives and Policies

HR Need Forecast

HR Supply Forecast

HR Programming

HRP Implementation

The Planning Process

Control and Evaluation of Programme

Surplus Restricted Hiring Reduced Hours VRS, Lay off etc

Shortage Recruitment Selection Etc.

Managerial Judgment

Ratio Trend Analysis

Regression Analysis

HR Demand Forecast

Work Study Techniques

Delphi Technique

Techniques of HR Need/ Demand Forecasting

Others

TECHNIQUES OF HR DEMAND FORECAST

Techniques of HR demand forecast are discussed below. a) Managerial Judgment: In this, experienced managers estimate the human resource requirements for their respective departments on the basis of their knowledge of expected future work load and employee efficiency. b) Work-study Method: In this method time and motion study are used to analyze and measure the work being done. c) Ratio-Trend Analysis: Under this method ratios (e.g. total output/no. of workers, direct workers/indirect workers) are calculated on the basis of past data. Future ratios are basing on the past trend. d) Mathematical Models: It expresses the relationship between independent variable (e.g. investment, production, sales, etc.) and dependent variables (e.g.no. of employees required).

FACTORS AFFECTING HR DEMAND FORECASTING

Human Resource Demand Forecasting depends on several factors, some of which are given below. a) Employment trends; b) Replacement needs; c) Productivity; d) Absenteeism; and e) Expansion and growth.

Supply Forecasting Methods

Skills Inventory Replacement Charts Succession Planning Flow Modeling/Markov Analysis Computer Simulations Markov analysis Management inventories

Supply Forecast
Potential Additions Potential Losses

Transfer in(4) Job / Team System Analysts Existing Employees (300)

Voluntary Quits(12)Resignation Deaths(1)

Promotion in (3)

Dismissal(2) VRS(18)

Demotion in (1)

Discharges(4) Retirement(12)

New Hires(12)

Promotions out(8) Demotions(2) Transfers out (18)

Existing Inventory at a Future date= Existing Employees (300)+ Potential additions(20) - Potential losses (77)= (243)

Integrated part of Business Planning

HRP and Strategic Planning

Strategic Analysis
What human resources are needed and what are available?

Strategic Formulation
What is required and necessary in support of human resources?

Strategic Implementation
How will the human resources be allocated?

Human Resources Planning

Strategic Planning

Linking the Processes of HRP and Strategic Planning

Strategic Analysis
Establish the context: Business goals Company strengths/weaknesses External opportunities/threats Source of competitive advantage

Strategy Formulation
Clarify performance expectations and future management method: Values, guiding principles Business mission Objectives and priorities Resource allocations

Strategy Implementation
Implement processes to achieve desired results: Business goals Company strengths/weaknesses External opportunities/threats Source of competitive advantage

Identify people-related business issues

Define HR strategies, objectives, and action plans

Implement HR processes, policies, and practices

Presentation Slide 41 Figure 4.1

PROBLEMS IN HRP PROCESS

The main problems in the process of HRP are as follows: a) Inaccuracy: HRP is entirely dependent on the HR forecasting and supply, which cannot be a cent per cent accurate process. b) Employee resistance: Employees and their unions feel that by HRP, their workload increases so they resist the process. c) Uncertainties: Labour absenteeism, labour turnover, seasonal employment, technological changes and market fluctuations are the uncertainties which HRP process might have to face. d) Inefficient information system: In Indian industries, HRIS is not much strong. In the absence of reliable data it is not possible to develop effective HRP. e) Time and expense: HRP is time consuming and expensive exercise, so industries avoid.

HRP should be:

Done to guide and coordinate all HR activities so they work together to support the overall strategy Responsive to internal and external environment Planning - done in advance

Strategic - linked with higher level planning

GUIDELINES FOR MAKING HRP EFFECTIVE

Few guidelines to improve effectiveness of HRP process are discussed below. a) Tailormade: HRP should be balanced with corporate objectives. b) Appropriate time: The period of HRP process should be appropriate to the needs and circumstances of an organization. c) Adequate organization: HRP process should be adequately/ properly organized. d) Top management support: Before starting the HRP process the support and commitment of top management should be ensured. e) Participation: HRP will be successful if all in an organization are participating. f) Information system: An adequate database should be developed for facilitating HRP. g) Balanced focus: The quantity and quality should be stressed in a balanced manner.