HUMAN RESOURCE

PLANNING

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 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 place, at the right time,
capable of effectively and efficiently completing those
tasks that will help the organisation achieve its overall
objectives. Human resource planning translates the
organisation’s objectives and plans into the number of
worker needed to meet those objectives. Without a
clear cut planning, estimation of an organisation’s
human resource need is reduced to mere guesswork.
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- David A. Decenzo and Stephen P. Robbins

 HUMAN RESOURCE PLANNING
(HRP)
➢Manpower planning is the process of reviewing an
organization's employee or manpower needs and
then selecting the best people for certain jobs.
➢Human Resource planning includes the estimation
of how many qualified people are necessary to
carry out the assigned activities, how many
people will be available, and what, if anything, must
be done to ensure that personnel supply equals
personnel demand at the appropriate point in the 3

future.
 Human Resource Planning
(HRP)
➢Manpower planning typically falls under the Human
Resources Department and it's not something that
occurs quickly. Instead, it is a process that requires
careful analysis and consideration to achieve the
desired outcome.
➢The end goal of successful manpower planning is
a smoothly running operation, and the long-term
result of manpower planning is a company able to
achieve its goals, because its employees fill the
right places within the organization. 4
ORGANIZATIONAL STRATEGY LINKED TO
HUMAN RESOURCE PLANNING
➢HRP is the process by which an organization ensures that
it has the right number and kinds of people at the right
place at the right time capable of effectively and
efficiently completing those tasks that will help the
organization achieve its overall strategic objectives.
➢HRP gets directly linked to the organization’s overall
Mission and Strategy and its overall Plan and Objectives
to succeed in competitive business environment.
➢Overall Plan and Objectives must be translated into the
number, types and skills of workers and structure needed
to achieve overall organisational objective.
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ORGANIZATIONAL STRATEGY LINKED TO
HUMAN RESOURCE PLANNING

MISSION

STRATEGY

STRUCTURE

PEOPLE
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HUMAN RESOURCE PLANNING
PROCESS
Analysing Organisational
Objectives

Create/ Maintain Inventory of

Present Human Resources

Forecasting Future Demand &

Supply of Human Resource

Estimating Manpower Gaps

Formulating Final Human

Resource Action Plan

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Monitoring, Control and
Feedback
 Human Resource Planning Process
Example

Categories/ Skills Present Future Forecast Gap

Inventory

Sales Executives 20 30 10

Finance - Assistant 10 15 5
Manager
IT Assistant 5 10 5

Operator 6 3 -3

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Co-ordinator 4 10 6
 CURRENT ASSESSMENT – CREATING HR
INVENTORY
➢ Human Resource Inventory - a review of the current make-up of
the organization’s current resource status
➢ Job Analysis - an assessment that defines a job and the
behaviors necessary to perform the job
✓ Knowledge, skills and abilities
✓ Requires conducting interviews, engaging in direct
observation and collecting the self-reports of employees and
their managers.
➢ Job Description - a written statement of what the job holder
does, how it is done, and why it is done.
➢ Job Specification - a written statement of the minimum
qualifications that a person must possess to perform a given
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job successfully.
WATCH THIS VIDEO….

https://www.youtube.com/watch?v=ZHZVwTdUHIA

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 STEPS IN MANPOWER PLANNING
➢Analysing the current manpower inventory- Before a
manager makes forecast of future manpower, the current
manpower status has to be analysed. For this the following
things have to be noted-
✓ Type of organization
✓ Number of departments
✓ Number and quantity of such departments
✓ Employees in these work units
➢Once these factors are registered by a manager, he goes for
the future forecasting
➢Making future manpower forecasts- Once the factors
affecting the future manpower forecasts are known, planning
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can be done for the future manpower requirements in several

work units
 STEPS IN MANPOWER PLANNING
➢Developing Employment Programmes- Once the
current inventory is compared with future forecasts, the
employment programmes can be framed and developed
accordingly, which will include recruitment, selection
procedures and placement plans.
➢Design Training Programmes- These will be based
upon extent of diversification, expansion plans,
development programmes, etc. Training programmes
depend upon the extent of improvement in technology
and advancement to take place. It is also done to improve
upon the skills, capabilities, knowledge of the workers.
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 HR DEMAND FORECAST

➢Demand Forecasting - is the process of estimating

the quantity and quality of people required to meet
future needs of the organisation.
➢Demand Forecasting Techniques
✓ Ratio trends analysis
✓ Regression analysis
✓ Work study techniques
✓ Delphi techniques
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✓ Managerial judgments
 HR SUPPLY FORECAST
➢Supply forecast determines whether the HR
department will be able to procure the required
number of personnel. Specifically, supply forecast
measures the number of people likely to be available
from within and outside an organisation.
➢Supply Forecast Techniques
✓ Existing human resources
✓ Internal source of supply
✓ External source of supply 14
 BRIDGING DEMAND AND SUPPLY GAP
➢Matching Manpower Demand and Supply
✓ Employment planning compares forecasts for demand and
supply of workers.
✓ Special attention should be paid to current and future shortages
and overstaffing.
✓ Recruitment or downsizing may be used to reduce supply and
balance demand.
✓ Right-sizing involves linking staffing levels to organizational
goals.
SUPPLY DEMAND
OF FOR
EMPLOYEES EMPLOYEES

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BALANCING
 INFLUENCE OF MANAGEMENT STRATEGY ON
HR PLANNING

Strategy Human Resources Plan

Requirement
Corporate Level

Expansion Additional Human Resources of

Existing Categories

Diversification Additional Human Resources of

Different Categories

Acquisition and Reduction of Human Resources of

Mergers Managerial Positions

Reduction of Reduction of Human Resources 16

Operations through VRS and Other Means

 WHY HUMAN RESOURCE PLANNING IS
IMPORTANT ?

Minimizing the risk of losing: -

By forecasting the needs of technical and other
human resources it can minimize the future risk of
losing. Delay in recognizing human resources
might be costly and expensive in the future.
Example: -
Nationalized banks are compelled to upgrade
own staff by providing latest skills and
knowledge to them to compete with other fast
growing private banks. 17
 WHY HUMAN RESOURCE PLANNING
IS IMPORTANT ?
HRP needs for HRD : -
HRP is important for planning the investment in
the development and utilization of human
resources. Any investment in the HR activities is
considered an investment for the future growth
and development of the organization.
Example: -
When curriculum has to be changed, required
knowledge and skills of teachers/instructors
should be developed prior to implement the new
curriculum. So, educational institutions have to be
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aware of that.
 WHY HUMAN RESOURCE PLANNING
IS IMPORTANT ?
HRP is pro-active, not reactive:
➢ For solving any sort of future HR problem HRP is pro-
active rather than re-active.
For Instance:- HRP might be helpful to accommodate
government legislation regarding inclusion,
qualification, possible future demand of trade unions.
➢ HRP is not in isolation: -
HRP recognizes that there must be an explicit link
between planning function of human resources and
other organizational functions, such as strategic
planning and market forecasting.
➢ HRP promotes awareness: -
HRP promotes the awareness that human resource
activities are equally important at every level of the19
organization.
 WATCH THIS VIDEO CASE STUDY
CAREFULLY AND DISCUSS……

https://www.youtube.com/watch?v=ejw9Coycfcw

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 BENEFITS OF MANPOWER PLANNING
➢Anticipating Shortage of Workers
➢Ensuring Sufficient Skill Pool
➢Employee Career Development
➢Boost Human Capacity Utilization
➢Development of Effective Attraction & Retention Systems
➢Build Up Highly Skilled And Flexible Workforce
➢Managing Short & Long Term Requirements
➢Avoidance of Wrong-sizing and/or Redundancy of Workforce
➢Facilitate Formulation of Budgets by Anticipating HR Costs
➢Purposeful Competitiveness in Human Capital 21
 BARRIERS IN HRP
➢Resistance by Employers and Employees
✓ Increased Cost due to Trade Unions
demands
✓ Abundance of workforce
✓ Increase of workload
✓ Outsourcing
➢Uncertainties
✓ Technological change and market conditions
➢Inadequacies of information system
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 REQUISITES FOR SUCCESSFUL HUMAN
RESOURCE PLANNING
➢HR Planning to be recognized as an Integral part of
Corporate planning. The Planner must be aware of
Corporate Objectives.
➢Support from Top Management
➢Records of Departments must be Collated,
Updated and readily Available.
➢Time Horizon of the plan must be long enough for
allowing solutions
➢Data collection, Analysis, Techniques of Planning
and the Plan itself need to be constantly reviewed 23

and improved in light of experience

 IMPORTANT & SHORT CASES………

1. The HR Manager of ABC Pvt Ltd. is finding it difficult to retain talent as all
the top positions are held by owners' relatives. What should be done?
2. Ms. D, subordinate to Mr. P, the production head, is always asking when he
is getting promoted, but Mr. P feels, Ms. D is not fit for promotion. What can
Mr. P do to prevent Ms. D from pestering?
3. How is the intellectual capital of your class or organisation? How is it
evaluated?
4. A five year old firm finally broke even in the fifth year of its existence. For
the sixth year business plan, the management wants to double the firm’s
headcount to meet the business goals. What do you suggest?
5. PQR Ltd decides to outsource majority of its HR activities. What to do with
the present HR staff?
Source: - Chapter 4 HRM Text and Cases – K Aswathappa 24