HUMAN RESOURCE PLANNING

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HRP Overview
• Refers to a range of tasks designed to ensure that the
organisation has appropriate number of HRs, having
the right skills, doing right activities in the right
place, and at the right time.
• The activities should be planned to benefit both the
employees and the company.
• A dynamic process through which managers monitor
and manage the flow of HRs into, through, and out of
the organisation in order to achieve HR equilibrium.

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HRP Overview Cont’d
The systematic and continuing process of
analysing an organisation`s human resource
needs under changing conditions and
developing personnel policies appropriate to
the long term effectiveness of the organisation.
It is an integral part of corporate planning and
budgeting procedures since HR costs and
forecasts both affect and are affected by long-
term corporate plans.
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HRP Overview Cont’d
HRP is a process whereby an organisation predicts its
future Human Resource needs by looking at the
future supply of labour and future demand of labour
and reconciling the differences between the two
through action plans.

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Overview Cont’d
• Involves assessing the current levels of skills and
utilisation of staff
• Involves analysing the labour market to determine
both demand and supply forces of HRs
• Considers environmental factors both internal and
external like structure of the workforce, productivity,
labour mobility, market forces, technology, available
skills in the labour market, labour laws e.t.c

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Rationale for HRP
• Determine the levels and recruitment needs
• To assess current levels and attributes of staffing and
determine whether reductions are necessary
• Anticipate HR redundancies
• Identify the need for training and development
• Assess future premises requirements
• Determine HR costs
• Determine retirement
• Cope with pressures of competition
• E.t.c
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HRP PROCESS
Define Organisational strategy and
objectives
Environmental Scan
Human Resource forecasting (HR
Demand and supply forecasting)
Action planning
Control / evaluation of the Human
Resource Planning
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Define Organisational strategy and
objectives

The HR plan should be in the

framework of the overall business
plan.
The human resource plan should
be in line with the strategy and
objectives of the organisation.

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Environmental Scan
Both the external and internal
business environment should be
scanned.
In the internal scanning the focus
should be the human resource
audit.

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HR Audit
• Its a human resource inventory
• Review of the current Human Resource status
• HR information comes from both the HR records and
the application forms.
• Info for HRP includes skills, knowledge, experience,
age, status, length of service e.t.c
• Can use job analysis
• One can determine job vacancies, promotional
opportunities, retirement plans e.t.c

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HR Audit cont’d
While analyzing the workforce, one should look into;
o Succession plans
o Movement of employees(promotions and transfers)
o Use of staff (overtime working, absenteeism, inefficient
use of labor)
o Labor turnover

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HR Demand Forecasting
Its a futuristic determination of HR requirements.
Predetermined in terms of number, quality, and
activities.
Done in view of the strategic plan that has the
strategic goals and functional targets
Consider the anticipated growth, budget constraints,
introduction of new technology e.t.c
There are techniques used in forecasting the demand
of employees

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Factors which influence human resource
demand
Expected organization growth
Organization’s budget constraints
New technology
Expected labor turnover
Minority goals of the firm
E.t.c

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Techniques in Hr Demand
Forecasting
Executive judgment
Work study techniques
Time series analysis
Use of regression models
Delphi technique
E.t.c
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A small group of 4-5 people gathers around a table. Leader
identifies judgment issue and gives participants procedural
instructions.

Participants write down all ideas that occur to them, keeping

their lists private at this point. Creativity is encouraged during
this phase.

Leader asks each participant to present ideas and writes them

on a blackboard or flipchart, continuing until all ideas have been
recorded.

Participants discuss each other’s ideas, clarifying, expanding,

and evaluating them as a group.

Participants rank ideas privately in their own personal order and

preference.

The idea that ranks highest among the participants is adopted

as the group’s judgment.
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Leader identifies judgment issues and develops questionnaire.

Prospective participants are identified and asked to cooperate.

Leaders send questionnaire to willing participants, who record

their judgments and recommendations and return the
questionnaire.

Leaders compiles summaries and reproduces participants’

responses.

Leader sends the compiled list of judgment to all participants.

Participants comment on each other’s ideas and propose a final

judgment.

Leader looks
for consensus

Leader accepts consensus judgment as group’s choice.

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HR Supply Forecasting
• Measures the number of people likely to be available
from within and outside the organisation
• Focus is on the internal and external labour markets
• Involves looking at the potential changes in existing
Human Resources i.e. wastage, changing conditions
of work, sources of supply within and outside the
organisation.

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HR Supply Forecasting
• The HR planner should consider;
-Demographic changes
-Labour mobility
-Early retirement
-Changing employment patterns(e.g. robotics in car
manufacture, computer aided design/manufacture,
JIT, e-commerce)
-Changing patterns of work (e.g. Contingent
workers, part-time workers, flexible workforce etc)

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Factors which influence human
resource supply
Availability of talent from the external labor
market
Legal environment (labor laws)
Promotions within the organization
Enrollment of students in vocational / tertiary
institutions
Regional integration
Etc.

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 Action Planning
• Involves reconciling demand and supply of labor
• Shortage of human resources
• Surplus of human resources
HR Shortage
• Recruitment
• Selection
• Training of existing HRs
• Succession planning
• Promotion
• (Job sharing, part time, telecommuting, temps)
• E.t.c
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Action Planning Cont’d
HR Surplus
• Lay off (downsize)
• Job rotation
• Dismissal
• Hiring freezes
• Instituting redundancy schemes
• Retirement schemes
• E.t.c
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Evaluation of HRP
Looks at implementation / completion of
actual plan
Determine the extent to which HR planning
objectives have been achieved
Extent to which HR action plan has been
achieved
Provides inputs to update strategic plans
Continual periodic and systematic review of the
HR Plan.
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Challenges of HRP
Economic conditions and forecasts
Competitive concerns (actions and global)
Lack of top management support
Labor union agitations
Changing workforce composition and patterns
Lack of enough resources (time and finances)
Technological developments and shifts
Conflict with in departments
Governmental regulations and pressures
Etc.
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 Typical Division of HR Responsibilities
in HR Planning

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Thank you for Listening