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HUMAN RESOURCE PLANNING

Also known as workforce planning or personnel planning.

Definition The process of determining the human resource needs of an organization and ensuring that the organization has the right number of qualified people in the right jobs at the right time.

Explanation of the definition


Matching the supply of people with those to be hired Process of determination of HR needs For a certain period of time Systematic assessment of future HR requirement Right people at right place (examples: absence of a manager, workload in a particular dept, due to a talented marketing manager demand increases but..)

Relation with Organizational Planning


HRP derived from organizational and operational plan of the Orgn. What to do? Be familiar with the business strategy Research the HR implications on business Identifying human resource issues that affect obj

Steps of HRP

Determining Orgn Objectives Determining the skills and expertise required Determining additional HR Requirements Developing Action Plans

Determining Orgn Objectives


Objectives should be stated in terms of expected results (long term and short term) Involving all levels of Mgnt in the planning process Environmental Factors affecting HR needs Govt influence General Economic Conditions The Competition Changes in the workforce

Determining Skills and Expertise


After determining objectives skills and expertise required to meet their respective objectives to be determined Not to look at the present employees but future Examples: 10% increase of production Reviewing the current Job descriptions Determine the number of HR needs

Methods of forecasting HR needs


Several methods, but should not be taken as absolutes rather approximations It is Judgmental or mathematical Judgmental More used than mathemetical Managerial estimates Delphi Technique Scenario analysis

Managerial Estimates: Managers determine future needs based on past experience, it could be top-down, bottom up or combined. Delphi Technique: a panel of experts individually and independently estimates future demand. An intermediary then presents and asks to readjust or continues until consensus emerges. Scenario Analysis: It encourages open and out of the box thinking, a scenario developed of the future HR needs based on key point changes.

Mathematical Techniques

With the increased technical development the use of M technique increased off late.. Statistical methods Statistical data are historical data to project future...

Statistical Modeling
Time Series Analysis: Past staffing levels are examined; retrenchment (seasonal), calculate moving average and project Personnel Ratio: personnel data are examined to determine historical relationships among the number of employees in various jobs. Productivity Ratio: Workload P= ------------------------Number of People

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Regression Analysis: Past levels of various workload indicators; sales, production etc. are examined for statistical relationships with staffing levels. Where sufficiently strong relationships are found, a regression model is derived. Benchmarking Models are also used in determining skills and expertise required for the organization.

Determining Additional HR Requirements


Once a manager has determined the types and number of employees required, HRM analyzes these estimates in light of the current and anticipated human requires of the orgn. Skill Inventory: Personal data: age, sex, marital status Skills: edu, job exp, training Special qualification: membership, achievements Salary and job history: Company data: benefit, seniority, retirement Capacity of individual Special preference of the individual: location

Managerial Inventory: It differs from individual assessments; In addition to bio data assessment of others like past performances, strengths, weaknesses and potential for advancement. Anticipating changes in personnel: some changes can be predicted; retirement, transfer, promotion but some changes are difficult to project; death, resignations and discharges but past records can provide useful info