Module – 2.
1
Human Resource Planning
Dr. Manisha Srivastava
HR Planning Definition
Human Resource planning is the process by
which an organisation ensures that:
It has the right number and kind of people-
At the right places,
At the right time,
Capable of effectively and efficiently
completing those tasks that will help the
organisation achieve its overall strategic
objectives.
The objectives of human resource
planning are as follows:
To forecast the future needs of human
resources.
To ensure fuller and effective utilisation of
existing human resources.
To ensure that necessary manpower is
available as and when required.
To relate human resource planning with the
organisational planning.
To estimate the surplus or shortage of
human resource in the organisation at any
given time.
The objectives of human resource
planning are as follows:
To estimate the surplus or shortage of
human resource in the organisation at any
given time.
To get information about the way the
existing personnel are deployed, the kind of
skills needed for various jobs, and
manpower requirements over a specified
period in relation to the organisational
goals.
Objectives of HRP
Objective # 5. To Forecast Human
Resource Requirements:
HRP to determine the future human resource
needed in an organisation. In the absence of
such a plan, it would be difficult to have the
services of the right kind of people at the right
time.
Objective # 6. Analyse Current Workforce:
HRP volunteers to assist in analysing the
competency of present workforce. It determines
the current workforce strengths and abilities.
Objectives of HRP
To anticipate the impact of technology on jobs
and human resources.
To determine the levels of recruitment and
training.
To estimate the cost of labour force and its
housing requirements.
To provide a basis for management
development programme.
To meet the needs of expansion and
diversification programmes.
To increase the labour productivity and thereby
reduce the labour costs.
Process of HR planning
Review your current organizational
strategic plan
Review the current human resources
situation
Forecast on the future HR needs
( supply and demands)
Planning on meeting HR needs
Implement the plan – recruiting,
selecting, training, downsizing
1. Reviewing the current strategic plan
HR planning goes hand in hand with the
organizational strategic planning
Strategic planning refers to the
organizational decision about how it
wants to accomplish its mission and
strategies
The first stage of HR planning is the
point at which HRM and strategic
planning initially interact.
-What is the future direction of the
company and what are the implications
of HR
- Future direction in terms of technology,
2. Review the current human Resource
situation
This is done by studying HR records to
determine:
How many do we have in what
category? Quality and quantity
Who is leaving the organization and
when ( project turnover as result of
resignation and termination)
3. Forecasting Future Human
Resource Needs
I. Forecast Staff demand
II. Forecast Staff supply
Forecasting demand
How many, what levels and when
The demand is closely tied to the
strategic direction that the
organization has decided to take. –
are we engaged in reengineering?,
technological changes? that will
shrink/change the workforce in the
coming years
Forecasting demand
(cont…)
Consider:
major customer requirements and
hence forecast on revenue and
seasonal fluctuations
Projected staff turnover ( as a result of
resignation or termination or retirement)
Strategic decisions to upgrade the
quality of products or services or enter
new markets
Technological and other changes
resulting in increased productivity
Techniques of forecasting
demand
Experts estimates - provide the
organisation with demand estimates
based on experience, guesses, intuition,
and subjective assessment of available
economic and labour force indicators
Trend Projections - Developing a
forecast based on past relationship
between a factor related to employment
and employment itself
Techniques for forecasting ….
Statistical modeling -Using
sophisticated forecasting and modeling
techniques, using factors such as sales,
GDP, incomes etc and develop
mathematical models for forecasting
Unit demand forecasting - The unit
manager analysis person by person, job
–by-job needs in the present as well as
in the future
Forecasting supply
Internal supply
The main task is to determining which
current employees might be qualified for the
projected openings
This determines how many, and what kind of
employees are currently available in terms of
skills and training necessary for the future.
The major tool used to assess the current
supply of employees is the skills inventory
In some organisations, there will be a
separate inventory just for managers called
a management inventory
Forecasting external supply
From the labour market
Consider: economic indicators –
competition and wage levels, cost
of living, education levels,
unemployment levels
Forecast on the availability of
potential job candidates in specific
occupation e.g. IT, HR, Finance etc
- is there an under or over supply.
