Human Resources Planning

= Resources
Definition :
Process by which an organisation ensures that it has
the right number & kind of people at the right place and at
the right time, capable of effectively and efficiently
completing those tasks that help the organisation achieve its
overall objectives.
Process by which management determines how an
organization should move from its current manpower
position to desired manpower position.
Process of forecasting a firms future demand for, and
supply of, the right type of people in the right number.
Characteristics of HRP
Forward looking/ future oriented
On going and continuous process
Integral part of corporate planning
Basic purpose is to make optimum utilization of
organizations current and future manpower
Both quantitative and qualitative approach
A system approach
Long term as well as short term
Two phase process: demand analysis and supply
analysis
Includes study of manpower environment
Importance
1) Future Personnel needs
2) Part of strategic planning
3) Creating highly talented personnel
4) International strategies
5) Foundation for personnel functions
6) Increasing investments in human resources
7) Resistance to change and move
8) Unite the perspective of line and staff managers
9) Other Benefits (cost, time etc.)
Factors affecting HRP
Type and strategy of organization
Organization growth cycle and planning
Environmental uncertainties
Time horizons
Type and quality of information
Nature of jobs being filled
Outsourcing


HRP Process - Determination of Quantity of Personnel
Organisational analysis
HR Programming
HR Needs Forecast HR Supply Forecast
HRP Implementation
Control & Evaluation
Surplus - Restricted Hiring,
Lay Off, VRS, Reduced Hours
Shortage - Recruitment &
Selection
Environment
Forecasting Techniques
Managerial Judgement - Managers discuss and arrive
at a figure of inflows & outflows which would cater to
future labour demand. (Bottom-up and top down approach)
Ratio-Trend Analysis - Studying past ratios, ie No. of
Workers Vs Volume of Sales, forecasting future ratios
and adjusting for future changes in the organisation..
Work-Study Technique - Used when length of
operations and amount of labour required can be
calculated.
Delphi Technique - From a group of experts the
personnel needs are estimated.
Ratio Trend Analysis
No. of Employees Ratio


Actual
Year Production: Inspector Inspector: Production
-3 1500 150 1:10
-2 1800....180 1:10
Last Year 2000....180 1:11

Forecast
Next Year 2200200 1:11
+2 2500210 1:12
+3 2750230 1:12
Work Study Method
Planned output for next year 20000units
Standard hours per unit 5
Planned hours for the year 100000
Productive hours per man/year
(allowing normal overtime, absenteeism, and idle time) 2,000
Number of workers required 50
HR Supply Forecast
Process of estimating future quantity and quality of
manpower available internally & externally to an
organisation.

Supply Analysis
Existing Human Resources
Internal Sources of Supply
External Sources of Supply

Internal Supply
Inflows & Outflows - The number of losses & gains of staff
is estimated.
Turnover Rate - refers to rate of employees leaving.
Absenteeism - unauthorised absence from work.

Productivity Level: Change in productivity affects no.
of persons per unit of output.
Movement among Jobs - internal source of
recruitment, selection and placement
Internal Supply
Sources of No. of Source of No. of
Inflow People Outflows People
Resignations 13
Current Discharges 2
Transfers 12 Personnel level Demotions 4
Promotions 10 250 operators retirements 10
promotions 13

Total inflows 22 total outflows 42

Current personnel level - outflows + inflows = internal supply
(250-42+22=230)
Current personnel
level 250
External Supply
External recruitment, selection & placement -
Advertisements, Manpower Consultants, Campus
Recruitment, Unsolicited Applications, Employee Referrals
Yield ratios - are estimated in the process of hiring
applications.
Hiring Process Ratio
Ad generates 2000 applications. 200 are potential 10:1
Out of 200, 40 attend interview 5:1
Out of 40, 30 were offered jobs 4:3
Out of 30, 20 accepted 3:2
Overall Yield Ratio (2000:20) 100:1
Shortcomings with HRP
Inaccuracy
Resistance
Uncertainties
Inefficient information
Lack of top mgt support
Time and expense
Unbalanced focus