HND in Business

Management
Module: Human Resource Management Unit
21
Lesson: HR Planning
Lecturer:
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Human Resource Planning

A Strategy for the acquisition,
utilization, improvement and
retention f the human resource
required by the enterprise in pursuit
of its objectives

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The Relationship Between

Corporate Strategic Plan And
HR Plan

HR
Plan
Othe
r
plan
s
Othe
r
plan
s
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Man Power Planning vs. HRP

Man Power Planning
Rely on calculation the number
of employees.
No relationship with other key
HRM factors.

Human Resource Planning

More focus on skills,
competences, productivity &
individual value.
Integrated with motivation and
Productivity, Organizational
culture & systems, Job &
organizational design.

Matching People with job

Focus on trainability

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Process of HRP
Situational Analysis
Forecasting Demand
Forecasting
supply
Closing the GAP
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Information Required for HRP

Stage of the Human
Resource Planning
Process

Explanation

Information Required

Identifying the present

situation
of
the
organization and the
Situation Analysis
issues related to human
resources.

Identifying the labour

requirement to fulfill the
Forecasting
the
quantity of products or
Demand
services the consumers
are willing to purchase

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Employee composition and the

distribution for each department
Wages of employees
Laws and policies relevant to
employees
Rate of Labor Turn Over
Poverty of employees
SWOT and PESTEL
Reservation Records
Sales records
Capacity of work allocated per
person
Organizational Objectives
Staff Utilization
The cost of labour
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Stage of the
Human
Resource
Planning
Process

Forecasting
Supply

Explanation

Information Required

The avaible supply of

labour to be used at the
maximum capacity to
produce products and
services that could be
supplied
by
the
organization.

When the demand ad

supply are forecasted, we
can identify whether a
gap exist between the
demand and supply of
Closing the gap HR.

Negative Gap = Internal

or external recruitments
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Positive
Gap
=
Bandara

The capacity, skills, trainability of existing

staff
The structure of employees in terms of
age, skills hours of work and rates to pay .
Labour turnover, resignations, transfers,
promotions, absenteeism.
Organizational changes.
External labour Market (Skills availability
&
changes,
competitor
activity,
demographic changes ages & salary rates)

The forecasted demand

The forecasted supply

How To Manage Shortfalls Of

HR?

Internal transfers & promotions

Training & developments
Extension of temporary contracts or about to retire
Reducing labour turnover
Use temporary or freelance staff
Outsourcing
Flexible working methods
Increase the productivity by encouraging overtime ,
offering bonus etc..
Use new technology
Adjustments of objectives
External recruitments
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How To Manage Surpluses Of

HR?

Encouraging labour turnover

Create barriers to promotion or transfers
Restricting recruitment
Early retirement incentives
Short contract and flexible hours
Eliminating overtime
Retraining or redeployment of staff to the
areas
Redundancies ( Voluntary and Involuntary )
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Importance of HR Planning
Identify shortfalls
& surpluses in
Human resource capacity
Right people to the right job at right
time
Response to anticipated threads &
opportunities
Risk managing & the competitive
advantage
Response to opportunities & threads
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Why Human Resource Planning

is needed

Some jobs require experience and skills which

cannot easily be found
E.g.: Birds watching tour guides
Employment protection legislations
E.g.: Compensation rules & regulations
Trainability of people
E.g.: Management Trainees
Rapid technological changes leads for high skill
manpower
E.g.: New medical equipment controlling
New trends - Emergence of trade unions ,
globalization , e-commerce
E.g.: Online working people

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Aims of HRP
To attract and the retain the best
Anticipate
&
adjust
potential
surpluses & shortfalls
Develop well trained & flexible
workforce
Reduce
depend
on
external
recruitments as a retention and
development strategy
Improve the utilization of people
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The Human Resource Plan

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13

Activity
Some people argue that Human
Resource Planning is a waste of time
& money for small to medium size
business. Critically evaluate .

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Labour Turnover
This is the number of employees
leaving an organization and being
replaced.
Number of leavers in a period
Average number of people
employed in the period

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x 100 = % turnover

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Couse Of Labour Turnover

Inability to preform in the job due to
illness or accident.
A move from personal reasons
Retirement
Career change
Bad working environment
Job dissatisfaction
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Potential Advantages Of
Labour Turnover
Inject new blood to the organization
Balance work structure
Create opportunity for promotion and
succession
Reduce involuntary redundancy

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Potential Disadvantages Of
Labour Turnover
Broken
the
continuity
organization culture
Moral problems
Cost to the organization
Replacement cost
Preventive cost

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of

the

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