MANPOWER PLANNING OR HUMAN RESOURCE PLANNING

HRP-DEFINITION
Strategy for

acquisition,utilization,improvement and preservation of human resources of an enterprise

Objective of HRP

Provide right personnel for the right work and optimum utilization of existing human resources

Major activities of HRP

Forecasting(Future requirements) Inventorying(Present strength) Anticipating (Comparison of present and future requirements) Planning( Necessary program to meet future requirements)

1.Corporate Analysis
a. b. c. d. e. Objectives and Strategies Company organization plans Market forecasts and budgets Financial plans Production targets

HRP PROCESS 2.Demand Forecast

3.Supply Forecast a. Numbers b. Job Categories c. Skill requirements a. Manpower inventory b. Losses and additions c. External Supply

4. Manpower gaps a. Surplus of numbers and skills b. Shortages

5. Manpower plans
a.Recruitment and selection b.Training and Development C.Redeployment and d.Retrenchment Redundancy e.Retention and internal mobility f.Productivity

FORECASTING PERSONNEL NEEDS

Revenues and size of the personnel intake Projected turnover Decisions to upgrade or downgrade products and services Technological changes Departments financial resources

Tools for projecting personnel needs

Trend analysis Ratio analysis The Scatter plot Computerized forecasts

TREND ANALYSIS
What is a trend? Studying variations in the firms employment levels in over the last few years Complete or department wise Provides initial estimate of future staffing needs

RATIO ANALYSIS
Making forecasts based on the historical ratio between causal factor and number of employees required Ex:Sales volume and sales personnel

Exercise-Differentiate between trend analysis and ratio analysis

SCATTER PLOT
Graphic representation of the relation between two variables Sales and staffing needs-predictability

COMPUTERIZED FORECASTS
Including more variables into personnel projections Direct labour hours and three sales projectionsmax,min and probable Input-Program generates average staff levels required to meet product demands Automated computerized employee forecasting systems

What does ultimately matter?

MANAGERIAL JUDGEMENT

FORECASTING SUPPLY OF INSIDE CANDIDATES

Determining which current employee suits the projected opening Know their qualifications and skill sets Qualifications inventories:
Performance records Educational background Promotability

Manual systems and Replacement charts

Department managers Personnel inventory or Development record: Education-Company sponsored courses-Career and development interests-Languages-Desired assignments and skills Personnel replacement charts: Top positions-Present performance and promotability for each positions potential replacement

Personnel Replacement chart

PRESENT PERFORMANCE OUTSTADNING SATISFACTORY NEEDS IMPROVEMENT PROMOTION POTENTIAL READY NOW NEEDS FURTHER TRAINING QUESTIONNABLE

Computerized information systems

Hundreds of employees-How to track? Computerized skills inventory data:
Work experience codes Product knowledge Level of familiarity with product lines or services Industry experiences Formal education

FORECASTING THE SUPPLY OF OUTSIDE CANDIDATES

Online and print format URLs Business week Fortune magazine Monthly forecast for the coming year

HR DEMAND FORECAST
Process of estimating the future quantity and quality of people required Basis-Translate annual budget and corporate plan into activity levels for each function and department External factors: Competition- economic climatelaws and regulatory bodies- changes in technologysocial factors Internal factors: Budget constraints, production levels-new products and services-org structureemployee separations

Why conduct demand forecasting?

Quantify the jobs Determining the desirable staff-mix for future Assess appropriate staffing levels to avoid cost Prevent shortage of people Monitor compliance with legal requirements with regard to reservation of jobs

DEMAND FORECASTING TECHNIQUES

Managerial judgment Ratio-trend analysis Regression Analysis Work Study techniques Delphi Technique

Managerial judgment
Managers sit together, discuss and arrive at a number-Demand for future labor Bottom up or Top down Ideal- a combination of both Departmental managers and HR managersUnanimity

Ratio-Trend Analysis
Take home exercise

Regression Analysis
What is regression? Sales volume and employee size No of employees reqd at each volume of sales Graph-Centre line

Work Study Techniques

Do you remember time and motion study? Work measurement-Length of operationsAmount of labour required

Delphi Technique
Did you study this before? If yes in what context? Soliciting estimates of personnel needs from a group of experts-Gen-Managers HRP experts act as intermediaries-IterationAbsence of interaction among experts

MARKOV MODEL
Find out -what is it Requisites for successful HRP Barriers to HRP

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