HUMAN RESOURCE PLANNING LECTURE 3

Lecturer: Amnah Imtiaz Kinnaird College for Women

HUMAN RESOURCE PLANNING

Human resource planning is the process of systematically forecasting the future demand and supply for employees and the deployment of their skills within the strategic objectives of the organization.

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HUMAN RESOURCE PLANNING

It addresses human resource needs both in quantitative and qualitative terms. This means answering two basic questions:
i. ii.

How many people? What sort of people?

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HUMAN RESOURCE PLANNING

Another definition: a process by which an organisation ensures that it has the right number and kinds of people, at the right place, at the right time, capable of effectively and efficiently completing those tasks that will help the organisation achieve its overall strategic objectives

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LINK TO BUSINESS
Human resource planning should be an integral part of business planning. It defines the core competences the organisation needs to achieve its goals. It interprets the plans in terms of people requirements. But it may influence the business by drawing attention to ways in which people could be developed more effectively to further the achievement of business goals, as well as focussing on any problems that might have to be resolved in order to ensure that the people required will be available and will be capable of making necessary 5 contribution.

Human Resource Management Instructor: Amnah Imtiaz

HUMAN RESOURCE PLANNING ACTIVITIES

HR planning is basically a decision-making process that combines three important activities:
1)

2) 3)

Identifying and acquiring the right number of people with the proper skills Motivating them to achieve high performance and Creating interactive links between business objectives and people-planning activities.

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STRATEGIC PLANNING
What is Strategic Planning?

Strategic planning is a process of setting major organisational objectives and developing comprehensive plans to achieve them.
It involves deciding on major directions of the organisation, including its structure, strategies, policies and the contributions of its various resources.
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INTEGRATING HR & STRATEGIC PLANNING

Why is it important to integrate HR and Strategic Planning? Since, an important part of the strategic planning process is the determination of necessary labour requirements and the prediction of likely resources, there is a need to integrate both Strategic Planning and HR Planning

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THE FACTORS INFLUENCING THE INTEGRATION OF HR AND STRATEGIC PLANNING The nature of organisational environments (rapidly changing organisations- technological changes) Organizational Size larger co. are most likely to use strategic HR plans History, culture and philosophy- co. with dynamic, people oriented, and fwd thinking cultures recognise the need for st. Hr plans The nature of business strategies-aggressive co. operating in dynamic env. Location and level of HR function- co. who recognise hr as their valuable asset Values and skills of HR managers- the role of HR specialists have a positive impact on these integrations Human Resource Management
Instructor: Amnah Imtiaz

COMPONENTS OF HUMAN RESOURCE PLANNING

Human resource planning involves three sequential steps: 1) Forecasting demand for manpower i.e. Estimating organisations future human resource supply.
2)

Analysing human resource supply

Matching the human resource requirements with its availability, thereby perceiving excess or shortfalls and initiating required manpower policies or strategies.
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3)

1-Forecasting Manpower Demand

i- Executive Judgement ii- Statistical Analysis

2- Analysing Human Resource Supply

Internal External

3- Matching HR requirements with availability

i- Human Resource Audit ii- Potential Losses iii- HR Information System
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Human Resource Management Components of Human Resource Planning Instructor: Amnah Imtiaz

1- FORECASTING DEMAND FOR MANPOWER

It is the starting point of HR planning process. The corporate plan and its various components such as Finance, Marketing, Production or Service plan can be used as the basis for developing the man-power planning model. Analysis of the organisational plans helps in forecasting the demand for human resources since it provides a clear indications as to the quantum of future work activity.

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FACTORS THAT INFLUENCE LIKELY DEMAND FOR MANPOWER

Introduction of new products Expansion plans Technological Changes Agreement with Unions Changes in organisational structures (centralisation/ decentralisation)

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WHAT METHODS DO THE FIRMS ADOPT TO FORECAST MANPOWER DEMAND?

There are two most-widely used methods which are as under:
I. II.

Executive Judgement Statistical Analysis

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i. EXECUTIVE JUDGEMENT
The simplest, quickest and easiest way to get across. Most small and medium as well as the firms in unorganised sectors, who do not have data banks, adopt this method. Individual managers state their manpower requirements for some future date and the results then are pieced together and assessed or aggregated for the whole enterprise. Three approaches can be adopted here: 1. Bottom-up concerned supervisors send their proposals to the top officials 2. Top-down- mgt prepares the requirements and send down. 15 3. Participative (combo) they both consult- better results

II- STATISTICAL ANALYSIS

There are three types of approaches that can be employed here:
1. 2.

3.

Ratio-trend Analysis (on the basis of past data) Econometric Model (Manning tables, Delphi techniques, replacement charts) Work-study Techniques (man-hour techniques, only used under favourable situations)

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3- MATCHING HR REQUIREMENTS WITH AVAILABILITY

This third component of HR planning has three further steps: I. Human Resource Audit II. Potential Losses III. Human Resource Information System

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2- ANALYSING HUMAN RESOURCE SUPPLY

Internal Analysis (suggested)- can act as powerful incentives when qualifications, experience, capacities of the internal employees match- lums example mobilink example External Analysis (brings variety) but expensive and uncertain

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I- HUMAN RESOURCE AUDIT

Once the future human resource needs are estimated, the next step is to determine the present supply of manpower resources. This task is accomplished by undertaking a total audit of the existing personnel which takes into account several factors and gives an accurate and clear indication of the gaps that exist and need to be filled either from within or by external recruitment. The process of auditing involves the continual questioning of the existing methods of working as well as present achievement. Information collected reveals the present realities related 19 to the existing human resource utilisation of the firm.

Human Resource Management Instructor: Amnah Imtiaz

IN WHAT WAYS, THE INFORMATION GATHERED VIA HR AUDIT IS UTILISED?

The information gathered helps set up two kinds of formats

Skill inventory contains data about each employees skills, abilities, work performance etc. Succession Planning/Replacement charts- shows the position in the organisation, present incumbents in those positions, likely future candidate for those posts and the readiness of those candidates to take over those positions OR positions that may become vacant in the 20 near future and individuals who may fill the vacancies. Human Resource Management
Instructor: Amnah Imtiaz

II- POTENTIAL LOSSES

Potential losses or manpower wastage takes a major toll of the existing stock of manpower and a major consideration for HR planning.

Potential losses to the organisation include: voluntary quits, deaths, retirements, dismissals, lay-offs, prolonged illness, sabbaticals etc. Potential losses to the department include: promotions, transfers, demotions etc.

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III- HUMAN RESOURCE INFORMATION SYSTEM

Is a method by which an organisation collects, maintains, analyses and reports information on people and jobs. It is database that keeps important information about employees in a central and accessible place. An information system must necessarily be an integral part of HR Planning. Benefits of HRIS: a) facilitate employment planning decisions b) track most information about employees and jobs c) competitive edge tool

Human Resource Management Instructor: Amnah Imtiaz

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