Human Resource Planning

Human Resource Planning

 It is the process for ensuring that

the human resource requirements
of an organization are identified
and plans are made for satisfying
those requirements. Bulla & Scott
(1994)
Human resource planning
 Right no. of people
 In the right place
 At the right time
 To deliver the organization Strategic
plan
PURPOSE:

 Attract & Retain sufficient staff with

appropriate skills.
 Fully Utilization of staff employed.
 Meeting future Human Resource
Requirement.
 Equal opportunities for promotion &
Development. ( women, members of ethnic
minorities & disabled)
 Control of HR costs ( staffing costs of any
new initiatives)
Problems:

 People Unpredictable
 Individual differences.
 Need for careful & sensitive handling
 More Environmental conditions---office,
car parks, canteen etc.
 Heterogeneous Reqd . Of Organization.
Planning Process

Human resource planning is said to consists

of these simple steps

 DEMAND FORECASTING---- Future

staffing reqd.in terms of No.

 SUPPLY FORECASTING---future labour

supply within org.as well as outside org.
Demand Forecasting
 Managerial judgment : Small organization
involves Managers deciding future activities
from Top- Down or Bottom -Up.
 Problem: Not effective outside Managers
Experience.
 Advantage: Relatively straightforward and
can implemented Quickly.
 Ratio Trend analysis: Reviewing the ratios
between different groups of workers &
Projecting the change for different levels of
output.
 Quick & easy to apply but rely on having
accurate records & on accurate prediction of
future workloads.
 Work Study: Measures the time taken to
complete the tasks.
 Helps in calculating how many employees
will be needed for achieving reqd. levels of
productivity taking account of
Absenteeism, & other factors.
 Modeling : Simulation of a real – life
situation built.
 By feeding Personnel information into the
model.
 Like No & types of staff in various job categories
 Grades, pay range of various job.
 Ages and length of service employees.
 Assumption about future development.
SUPPLY FORECASTING

 Supply of employees to the organization

need no. of factors.
 Existing staff levels categorized by
function, department, job type &
pay/grade.
 Job reqd. ---Knowledge, qualification,
skills & experience.
 Attributes of individual post holders—age,
length of service, qualification,traning etc.
 Recruitment & retention rates, wastage
rates & absence levels.
 Promotion rates
 Potential changes in working methods.
 Although demand and supply forecasting describe
the planning process but with very fast changes
taking place in global market and every day
changing technology has made the process of
planning a complex one.

 Henery(1995) suggests, it to be a circular rather than

linear, with the process starting anywhere in the
cycle
 Business strategic
planning

Resourcing strategy

Demand /Supply Labour turnover

Scenario planning forcasting analysis

Work environment Operational

Human Resource effectiveness
analysis Plans analysis

Resourcing retention Flexibility Productivity

Work environment

The process of human resource planning

Planning process
 Business strategic planning: defining future activity levels
and initiative demanding new skills
 Resourcing strategy: planning to achieve competitive
advantage by developing intellectual capital
 Scenario planning: assessing in broad terms where the
organization is going in its environment and the implications
for human resource requirements
 Demand / supply forecasting: estimating the future demands
for people, and assessing the number of people likely to be
available from within and outside organization
 Labour turnover analysis: analyzing actual labour
turnover figures and trends as an input to supply
forecasts.
 Work environment analysis: analyzing the
environment in which people work in terms of the
scope it provides for them to use and develop their
skills and achieve job satisfaction
 Operational effectiveness analysis: analyzing
productivity, the utilization of people and the scope
for increasing flexibility to respond to new and
changing demands
Measure for staff turnover & wastage.

 Turnover index: No. of leaves in

year/average no of staff in post during year
X100 = % wastage.

 Stability index: Measures the degree of

continuity in org.
No. of staff with at least 1 yr service/No. of
staff employed 1 yr ago x 100 = % stability.
 Length of service analysis:
 Length of service in months over 2 yrs of all
current staff added together/length of service in
months over 2yrs of a full complement of staff
added together x 100 = % stability.
 Cohort or Survival analysis: Keeping tract of a
homogenous group within the org. to determine
how many of that group remain after a certain
period.
 Not only recruitment & retention rates.
 Changes in working methods and practices.
 More flexible pattern of work.
 Introduction of new system of work ----
Technology.
 Changing Org .structure
 Encouragement of home working & Tele
working.
 Changing org. cultures, working hrs. overtime
,shift & Management training & Development.