Human Resource Planning Part 1

Some facts
HRM= People Dimension in

Management HRM has 4 steps: ATMM (Acquisition, Training and Development, Motivation & Maintenance ) Getting and Keeping good people is critical to the success of every organization whether it be public or

What is HR Planning ?
Human Resource Planning is the process by which an organization ensures that it has the right number and kind of people, at the right places, at the right time, capable of effectively and efficiently completing those tasks that will help the organization achieve its overall objectives.
( Source: Decenzo and Robbins 2000, Personnel/Human Resource Management))

 HR/ Manpower Planning is the process of acquiring and

utilizing human resources in the organization. It ensures that the organization has the right number of employees in the right place at the right time.
(Source: Adhikari, Dev Raj, 2001,Human Resource Management )

Employment planning is the process of formulating plans

to fill future openings based on an analysis of the positions that are exppected to be open and whether these will be filled by inside or outside candidates.
( Source: Dessler, G. 2000,Human Resource Management )

Reasons For Manpower Planning

Projection of corporate objectives unto human

resource objectives Forestalling shortage of workers Ensuring sufficient skill pool Employee career development Succession planning Boost human capacity utilization Development of effective attraction and retention systems

Trends that Influence Manpower Planning

Staff Turnover

Employee Advancement
Business Growth New Skill Requirements

Obsolescence of Current Skills

Labour Costs Technological Changes

National Economy
Demographic Changes

Contemporary Steps in Manpower Planning

Ascertain organizational objectives

Determine impact of organizational objectives on each department, section and unit Deaths, Promotions, Resignations, Transfers, Discharges, Retirements Find out the KSA required to achieve stated objectives

Determine type and number of human resources required to achieve stated objectives Ascertain net manpower requirements (Future manpower requirements at specific time less current manpower level) Establish resourcing action for mitigating against gap Recruitment, Selection, Development Skills inventory

Predictabl e changes

Attrition, Discharge

Components of Skills Inventory

Bio-Data Job History

Work Experience
General Education Professional Qualifications Training History Achievements Skills Future Assignments (Company & Personal

Preferences) Medical History

Managing Human Resources

Human Resource (HR) Planning
The process by which managers ensure that they

have the right number and kinds of people in the right places, and at the right times, who are capable of effectively and efficiently performing their tasks.
Helps avoid sudden talent shortages and surpluses.
Steps in HR planning:
Assessing current human resources

Assessing future needs for human resources

Developing a program to meet those future needs

Current Assessment
Human Resource Inventory
A review of the current make-up of the

organizations current resource status

Job Analysis
An assessment that defines a job and the behaviors

necessary to perform the job

Knowledge, skills, and abilities (KSAs)

Requires conducting interviews, engaging in direct

observation, and collecting the self-reports of employees and their managers.

Current Assessment (contd)

Job Description
A written statement of what the job holder does,

how it is done, and why it is done.

Job Specification
A written statement of the minimum qualifications

that a person must possess to perform a given job successfully.

Meeting Future Human Resource Needs

Supply of Employees Demand for Employees

Factors Affecting Staffing

Strategic Goals Forecast demand for products and services Availability of knowledge, skills, and abilities

Why Human Resource Planning is important ?

Linking business strategy with operational strategy:
HRP is an important process to maintain the link between business strategy and it operation. It follows different procedures including the need to assess the impact of technological changes on new jobs and new skills.

Why Human Resource Planning is important ?

Minimizing the risk of losing:
By forecasting the needs of technical and other human resources it can minimize the future risk of losing. Delay in recognizing human resources might be costly and expensive in the future.
(Example: Government run banks are compelled to upgrade own staff by providing latest skills and knowledge to them to compete with other fast growing banking organizations.)

Why Human Resource Planning is important ?

HRP needs for HRD :
HRP is important for planning the investment in the development and utilization of human resources. Any investment in the HR activities is considered an investment for the future growth and development of the organization.
(Example: When curriculum has to be changed, required knowledge and skills of teachers/instructors should be developed prior to implement the new curriculum. So, educational institutions have to be aware of that)

Why Human Resource Planning is important ?

HRP is pro-active, not reactive :

For solving any sort of future HR problem HRP is pro-active rather than re-active.
(Example: HRP might be helpful to accommodate government legislation regarding inclusion, qualification, possible future demand of trade unions)

Why Human Resource Planning is important ?

HRP is not in isolation :

HRP recognizes that there must be an explicit link between planning function of human resources and other organizational functions, such as strategic planning and market forecasting.

Why Human Resource Planning is important ?

HRP promotes awareness :

HRP promotes the awareness that human resource activities are equally important at every level of the organization. Both lone and staff managers have to be involved in HR planning activities.

Problems in HRP
1. Resistance by Employers and

Employees 2. Uncertainties 3. Inadequacies of information system

Recent Implications
Overstaffing 2. VRS / Golden-handshake 3. Delayering and Downsizing
1.

Recent Trends in HRP

Most of the organizations started to plan for outsourcing human resources rather than HRP in order to: Reduce cost of human resources Avoid the difficulties in human resources management Reduce the negative implications of overstaffing.