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HRP Process 1

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Sohail Abdul Rehman
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5 views13 pages

HRP Process 1

Uploaded by

Sohail Abdul Rehman
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© © All Rights Reserved
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Human Resource Planning Model


Human Resource Planning Model
The HRP Model / Process
 Organizational Objectives and policies:
The starting point of any activity in an organization is
its objectives. HR plan need to be based on
organisational objectives.
Once the organisational objectives are
defined by the top management, the HR department
must specify its objectives with regard to HR
utilisation in the organisation.
 In developing these objectives, HR department has to
formulate specific policies to address the following
questions:
 1. Are vacancies to be filled by promotions from within
or by hiring from outside?
 2. How do the training and development objectives
interface with the HRP objectives?
 3. What union constraints are encountered in HRP and
what policies are needed to handle these constraints?
 4. How can the employee’s job be enriched?
 5. How can one downsize the organization to make it
more competitive?
 6. How can one ensure continuous availability of
adaptive and flexible workforce?
 7. To what extent production and operations be
automated and what can be done about those
displaced?
 Human Resource Planning:
 Taking direction from organizational objectives and
plans and above policy consideration human resource
plan is prepared. The planning process consists of two
major activities: forecasting needs of human resources
and forecasting supply of human resources.
 Forecasting needs for human resources and
forecasting supply of human resources, both taken
together helps to identify gap between human
resources needed and their availability.
HR Demand Forecasting
 HR demand forecasting is the process of estimating
the quantity and quality of people required to meet the
future needs of the organisation.
 The basis for forecasting must be based on the annual
budget and long-term corporate plan and translated
into activity levels for each function and department.
 For example, in a manufacturing company, the sales
budget would be translated into a production plan
giving the number and type of products to be
produced in each period. From this information the
number of working hours and skills required can be
determined for each period and from which the
required quality and quantity of personnel can be
determined.
HR Supply Forecasting
 HR supply forecasting measures that number of
people likely to be available from within and outside
an organization, after movements and promotions,
wastage and changes in work hours, and other
conditions of work.
 The supply analysis covers:
 1. Existing human resources,
 2. Internal sources of supply, and
 3. External sources of supply.
Identification of Human Resource Gap
 Human resource gap is the difference between human
resources required at a particular point of time and the
human resources being available at that particular
time.
 This gap can be identified on the basis of forecasts for
human resources. Based on the analysis of this gap,
action plans must be developed to overcome this gap.
In the end it may result in reducing the
personnel or increasing and recruiting the personnel
in different categories.
Action Plans
 Various action plans are devised to bridge the human
resource gap. If there is surplus of human resources
either because of improper HRP in the past or because
of change of organisational plan, such as
disinvestment of business or closing down some
businesses because of various reasons, action plans
may be devised to reduce their size through layoff,
voluntary retirement etc. If there is shortage of
human resources, action plans may be devised to
recruit additional personnel.
Short-term Human Long-term Human Resource
Resource Planning Planning
 This may arise due to certain  This is based on projections
immediate vacancies that and long term expansion
have fallen due to sudden programmes. There will be
increased production and sufficient time for deep
large new orders contemplation,
necessitating more programming, recruiting and
personnel. selection. Both quantitative
and qualitative aspects of
human resources could be
taken care of in long – term
planning and proper tuning.

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