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Introduction

Popularly known as manpower planning


HRP is integrated approach that ensures:
Right number and type of people
Right places
Right time
Effective and efficient performance of tasks
Towards achievement of overall objectives
Optimum utilization of human resources
Assessment: over-staffing, under staffing, cost etc

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In brief - Defining HRP

HRP determines the human resource

requirement of the organization to


achieve its strategic goals.
In absence of HRP
Overstaffing / understaffing
Bottom line / customer satisfaction
Motivation / employee satisfaction

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Importance of HR Planning
Key driver of business strategy
Determine future personnel needs surplus or deficient
Cope with dynamic changing environment
National & International expansion strategies
Minimize Attrition

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The HR Planning Process


Environment
Organizational
Organizational
Objectives and Policies
Objectives and Policies

HR
HRNeeds
NeedsForecast
Forecast

HR Supply Forecast
HR Supply Forecast

HR
HRProgramming
Programming

HRP
HRPImplementation
Implementation

Control
Control&&Evaluation
Evaluation
ofofProgrammes
Programmes
Surplus
Surplus

Shortage
Shortage
Recruitment
Recruitment
& Selection
& Selection

Restricted Hiring
Restricted Hiring
Reduced Hours
Reduced Hours
VRS, Lay Off etc
VRS, Lay Off etc

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The HRP Process

Various steps for effective HRP


Environmental scan
Forecasting demand of manpower
Forecasting supply of manpower
RAG (Required , Available Gap) analysis
Plan of action
Control & assessment
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Contents in Human Resource planning


Forecasting the future manpower requirement
Inventory of present manpower vs future requirement
Anticipating manpower problem
Planning selection /training/ transfer/ promotion/ compensation

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Demand Forecasting

Quantitative

Ratios

Thumb rule

Scatter plot

Trend analysis

Computerized

Judgmental

Managerial
judgment
Top down
Bottom up
Delphi Technique
Zero based
budgeting

forecast

Simulation

Work study

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Supply forecasting
1 Markov Chain Model
GRADES
A

C
03

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Length of service in years

10 +

10

Supply forecasting
2 Replacement charts
3 Skill Inventories
4 Staffing Tables
5 Wastage analysis
6 Succession Planning
7 Scenario Planning

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Barriers to HR Planning
Perception Human resource are experts in planning workforce
Rampant changes Less importance on planning
Conflicts may exist between short-term and long-term HR needs
Conflicts between quantitative and qualitative approaches to HRP
Non-involvement of operating managers renders HRP ineffective

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Factors affecting HR Planning


Type and strategy of organization mergers and acquisitions
Organizational growth cycle and planning
Environmental uncertainties political, social and economic
Time Horizons short-term or long-term plan
Type and quality of information (HRIS)
Nature of jobs being filled vacancies due to promotions etc

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Requisites for Successful HR Planning


Involvement by and backing of top management
Centralized responsibility to co-ordinate consultation
Ready availability of personnel information
Sufficient time horizon of the plan for remedial actions
Accurate selection techniques used
Flexibility to revise the plan with dynamic changes

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