HUMAN RESOURCE
PLANNING
OVERVIEW
What is Planning
What is Human Resource Planning
Need for HRP
Objectives of HRP
HRP Process
Who does HRP
WHAT IS PLANNING?
Is a predetermined course of action
A scheme / program / method worked
out before hand for the
accomplishment desired objectives.
WHAT IS HUMAN RESOURCE
PLANNING?
Human Resource Planning is the process by
which an organisation ensures that it has the
right number and kinds 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
objectives.
WHAT IS HUMAN RESOURCE
PLANNING?
Human Resource Planning is the process that is
used to determine the number and types of
employees to be recruited into the organisation or
phased out of it.
WHAT IS HUMAN RESOURCE
PLANNING ?
Human Resource Planning is a process by
which the management of an organisation
determines its future HR requirements and
plans as to how the existing HR can be utilised
to fulfill these requirements.
OBJECTIVES OF HRP
Forecasting human resource requirements.
Effective management of change.
Realising organisational goals.
Promoting Employees
Effective utilisation of human resource.
PROCESS OF HRP
1. Link organisational strategy to
employment planning
2. Forecast human resource requirements for
a future time period
3. Conduct gap analysis to reconcile demand
and supply forecast of human resource.
4. Implement HRP through action
programmes.
Strategic Human Resource Human
Decisions Demand Resource
Techno forecast Annual employee Supply
Eco. forecast requirement: Ext. employee
Market forecast Numbers, Skills, Inventory after
Org. planning Occupational applying exp. loss
Investment Categories +Attrition Rates
planning
Ann. operating Compared with
plans
Decisions
Surplus Shortage
Layoffs, Overtime
Retirement Recruitment
VRS, etc Promotion
WHO DOES HRP?
Traditionally HR planning is usually initiated
by the HR department
Since information is needed from all parts
of the organization, line managers should
be involved in the HR planning process.
HOW TO FORECAST PERSONNEL
NEEDS
Trend analysis identifies historical
trends within the company to help
predict future needs
Ratioanalysis forecasts data based
on the ratio between causal factors
and the number of employees required
HOW TO FORECAST PERSONNEL
NEEDS
Scatter plots show graphically how two
variables are related
Size of Hospital Number of
(Number of Beds) Registered Nurses
200 240
300 260
400 470
500 500
600 620
700 660
800 820
900 860
DETERMINING THE RELATIONSHIP BETWEEN
HOSPITAL SIZE AND NUMBER OF NURSES
THE ROLE OF MANAGERIAL
JUDGMENT
– Managerial judgment considers the
following factors that may influence
forecasts:
Projected turnover
Quality and skills of employees
Strategic
decisions to upgrade quality or enter
new markets
THE ROLE OF MANAGERIAL JUDGMENT,
CONT.
Technologicaland other changes resulting in
increased productivity
Financial resources available to the department
FORECASTING SUPPLY OF
CANDIDATES
Forecastingexternal candidates
requires general economic analysis
and expected unemployment rates
A low rate of unemployment indicates
a low labor supply increasing recruiting
difficulty
Local
labor market conditions should
be considered
Availabilityof potential job candidates
for a specific occupation
FORECASTING SUPPLY OF CANDIDATES,
CONT.
Forecasting
internal candidates requires
demographic analysis as well as information
on employee turnover
Qualifications inventories can facilitate
internal candidate forecasting by providing
data like performance records, educational
background, ages, and promotability either
manually or in a computerized information
system
FORECASTING SUPPLY OF CANDIDATES,
CONT.
Personnel replacement charts show
present performance and promotability for
each potential replacement for important
positions
Succession Planning
details the company’s
long-range plan to fill
its most key positions
by making sure a
qualified supply of
successors exist and
employee careers can
be optimally managed
THE CHANGING ROLE OF HR
EffectiveHRM selection, training, pay
and employee fairness practices are
crucial to capitalizing on technology
and remaining competitive
HRdepartments must move away
from a housekeeping focus to strategic
maneuvering – HRM must evolve to
remain dynamic
THE NEW HR MANAGER
Providesefficient operational services
including outsourcing service when
necessary
Supportstop management’s strategic
planning efforts
Acts as the company’s “internal
consultant” for identifying and
institutionalizing changes that enhance
employees skills allowing them to
contribute to the company’s success
