INTRODUCTION:

 HRP is important because the performance of the

organization depends upon how well the human
resources are put in use.
 It is a deliberate strategy for acquisition, improvement
and preservation of enterprise’s human resources.
 A managerial function that aims at coordinating the
requirements, for and availability of different type of
employees.
 A forward looking function and a organizational tool
to identify skill and competency gaps and develop
plans for development of deficient skills and
competencies in human resources to remain
competitive.
 Identifies the core competencies required by the
organization to achieve its goals.
As Quinn Mills indicates, HRP is a decision making
process that combines three important activities.
 1.) Identifying and acquiring right number of people
with proper skills.
 2.) motivating them to achieve high performance, and
 3.)creating interactive links between business
objectives and resource planning activities.
IMPORTANCE OF HR PLANNING
 Develops the strategies for matching the size and skills
of the workforce that an organization needs.
 Ensures that people are available to provide the
continued smooth operation of an organization.
 Assures the future availability of manpower to carry on
the organizational activities.
PROCESS OF HUMAN RESOURCE PLANNING
 1.) Analyzing the corporate level strategies.
 - HRP should start with analyzing corporate level
strategies which include expansion, diversification,
mergers, acquisitions, reduction in operation,
technology to be used and method of production.
 2.) Demand forecasting
 - a field of predictive analytics which tries to
understand and predict customers demand to
optimize supply decisions by corporate supply chain
and business management.
Forecasting of quality of human resources like skills, knowledge,
values and capabilities needed in addition to quantity of human
resources is done through the following methods:
 a.) Executive or managerial judgment
 - here the managers decide the number of employees
in the future. The concerned supervisors send their
proposals to the top officials who compare these with
organizational plans, make adjustments and finalize
them.
 B.) Top- Down Approach
 -the management prepares the requirements and
sends information downwards to the supervisory level
who finalizes the draft and approves it.
 C.) Participative approach
 -here the supervisors and the management sit together
and projections are made after joint consultations.
 D.) Drawbacks
 - the chief drawback of these methods is that
estimation of manpower is made using guesswork.
 E.) Statistical Techniques
 -it uses statistical methods and mathematical
techniques to forecast and predict the supply and
demand of human resources in the future.
 F.) Work study method
 -suitable to study the correlation between volume of
work and labor. It is more appropriate for repetitive
and manual jobs when it is possible to measure work
and set standards.
 G.) Delphi Technique
 -the views of different experts related to industry are
taken into consideration and then a consensus about
human resource requirement is arrived at. Usually
used to assess long-term needs of human resource.
 3.) Analyzing human resource supply
 - internal and external are the sources of supply of
human resources. Audit is necessary in judging the
internal supply of human resources in the future.
Once the future internal supply is estimated, supply of
external human resources is analyzed.
 4.) Estimating manpower gaps
 -manpower gaps can be identified by comparing
demand and supply forecasts and such comparison
will reveal either deficit or surplus of human resources
in the future. Deficit indicates the number of persons
to be recruited while surplus implies redundant
employees to be re-employed or terminated.
 5.) Action planning
 - once the manpower gaps are identified, plans are
prepared to bridge these gaps. Plans to meet the
surplus manpower may be redeployment in other
departments and deficit can be met through
recruitment, selection, transfer and promotion.
 6.) modify the organizational plans
 - if the supply of human resources form all external
resources is estimated to be inadequate or less than
the requirement, the manpower planner has to suggest
to the management regarding the alterations or
modifications in the organizational plans.
 7.) controlling and review
 -after action plans are implemented, human resource
structure and the processes should be controlled and
reviewed with a view to keep them in accordance with
action plans.
Barriers to HRP
 HR practitioners are perceived as experts in handling
personnel matters but are not experts in managing
business.
 People questions the importance and the role assigned
to HR practitioners in formulation of organizational
strategies.
 HR information is often incompatible with other
information used in strategy formulation.
 Conflict may exist between short term and long term
HR needs.
 There is conflict between quantitative and qualitative
approaches to HRP.
 Non-involvement of operating managers renders HRP
ineffective.
Strategies for HR planning
 Manpower planners should collect, maintain and
interpret relevant information regarding HR.
 They should periodically report manpower objectives,
requirements and existing employment and allied
features of manpower.
 They should develop procedures and techniques to
determine the requirements of different types of
manpower over a period of time from standpoint of
organization’s goals.
 They should develop measures of manpower
utilization as components of forecasts of manpower
requirement along with the independent validation.
 They should employ suitable techniques leading to
effective allocation of work with a view to improving
manpower utilization.
 They should conduct research to determine factors
hampering the contribution of individuals and groups
to the organization with a view to modifying or
removing these handicaps.
 They should develop and employ methods of
economic assessment of HR reflecting HR planning,
recruitment, it’s features as income-generators and
cost, and accordingly improving the quality of
selection, placement and induction decisions affecting
manpower.
 They should evaluate the procurement, promotion and
retention of the effective HR; and
 They should analyze the dynamic process of
recruitment, promotion and loss to the organization
and control them with a view to maximizing
individual and group performance at minimum cost.
ADVANTAGES OF HR PLANNING
PROGRAMS
 Improvement of labor productivity
 Recruitment of qualified HR
 Adjusting with rapid technological changes
 Reducing labor turnover
 Control over recruitment and training costs
 Mobility of labor
 Facilitating expansion programmes
 To treat manpower like corporate assets
LIMITATIONS OF HR PLANNING
 1.) Inaccuracy
 2.)uncertainties
 3.)lack of support
 4.) Numbers’ game
 5.) employees resistance
 6.) employers resistance
 7.) lack of purpose
 8.)time and expense
Guidelines for making HR planning
effective
 1.) Objectives
 2.) Top management support
 3.) Appropriate time horizon
 4.) manpower inventory
 5.) HR information system
 6.) adequate organization and coordination
Responsibility for HR planning
 To assist, counsel and pressurize the operating
management to plan and establish objectives.
 To collect and summarize data in total organizational
terms and to ensure consistency with long-range
objectives and other elements of total business plan.
 To monitor and measure performance against the plan
and keep the top management informed about it.
 To provide the research necessary for effective
manpower and organizational planning.
TECHNIQUES OF HR DEMAND FORECASTING
 (QUANTITATIVE APPROACH)
 1.) Select an appropriate business factor.
 2.) we have to plot the historical trend of business
factor in relation to the number of employees.
 3.)compute the productivity ration for at least past five
years.
 4.) calculate the HR demand by multiplying the
business factor by the productivity ratio.
 5.) project the human resources demand out the target
year.
Techniques of HR supply forecasting
1.) Staffing table
 - a graphic representation of all jobs in the
organization along with the number of employees
currently occupying those jobs and future employment
requirements.
2.) Marko analysis
 - a method for tracking the pattern of employee
movements through various jobs.
 3.)talent inventories
 -Skill inventories can be prepared to include the
employee’s education, past work experience,
vocational interests, specific abilities and skill and job
tenure.
 4.) Replacement chart
 -it provides information on the current job
performance and promo ability of possible
replacements.
 5.) succession planning
 -a process of identifying, developing and tracking key
individuals for executive positions.
Balancing supply and demand for
human resources
 Organizations strive for a proper balance between
demand and supply considerations in their human
resource planning.
Methods used by the company to
reduce their work force:
 1.) organizational downsizing- a reduction in
organizational size and operating costs implemented
by management in order to improve organizational
efficiency, productivity and its competitiveness.
 2.)lay off- a temporary suspension or permanent
termination of employment of an employee for
business reasons.
THANK YOU !!!