HUMAN RESOURCES PLANNING

MADAN MOHAN SIDDHANTHI

CONTENTS

WHAT IS HRP?
WHY HRP?
OBJECTIVES
HRP DEFINED
STEPS IN HRP
ADVANTAGES
DEMAND FORECASTING
STRTEGIC HUMAN RESOURCES MANAGEMENT
HRP INFLUENCINF FACTOR
External factor
PROCESS/STEPS IN HRP

ISSUES
Un-certainties of business environment
Availability of qualified and competent candidates
People being asked to leave on the basis of competency
deficiency after joining in the job
Growth in economy
Too many people chasing few jobs unemployment and
the related problem including crime
Problem of under employment and over employment
Government policies
Population explosion

 Poor planning of national level and new colleges on

political pressure
Generally the competency levels are dropping

WHAT IS PLANNING ?
Simply put, as envisaging future, now ,so that all actions
are listed in advance FOR EXECUTION..
Not to plan is the surest way to disaster .
Planning is like the nervous system .
Human Resources planning is a process by which the
management of an organization determines its future
HR requirements and plans how the existing HR can
be utilized to fulfill these requirements.

E W vetter - HRP a process by which an orgnaisation should move

from its current manpower position to its desired manpower position .
Right numbers ,
Right kind Quality ,
Right time ,
and at the Right place .
At Right cost.

WHY HRP

NEW START UP

ATTRITION PEOPLE CHANGING JOB, RETIREMENT , DEATH

GROWTH OR EXPANSION

NEW AVENUES OF BUSINESS

NEW LOCATIONS NATIONAL AND INTERNATIONAL

TECHNOLOGICAL CHANGES

GOVERNMENT POLIES

OBJECTIVES
Ensure availability of right type of people as per
requirements.
Recruit and retain Human Resources.
Foresee the employee turn over and plan for retaining
/replacement
To align HR planning with organization vision ,mission
and strategies.
To plan, develop HR to meet the changing technologies.
To plan and ensure Value addition of HR.
To plan and maintain the cost of HR as per Budgets

OBJECTIVES (Continued)

To meet h challenges of changes in Technology on work and plan

for the training and development of employees to improve
knowledge ,skills and abilities
To plan &execute appropriate actions for Surplus and shortage of
Manpower.
Maintain a Highly motivated workforce.
To reduce the lead-time in recruitment.
All unplanned actions will lead to tension, mistakes and additional
costs.

HRP - DEFINED
HRP a Process by which an organization should move
from its current manpower position to its desired
manpower position- E W Vetter
An integrated approach to performing the planning
aspects of the personnel Function in order to have a
sufficient supply of adequately developed and motivated
people to perform the duties and tasks required to meet
organizational objectives and satisfy the individual needs
and goals of the organization.- Leon C Meggison.

HRP DEFINED (CONTINUED)

As defined by Bulla and Scott (1994), human resource planning is

the process for ensuring that the human resource requirements of
an organization are identified and plans are made for satisfying
those requirements.

Reilly (2003) defined workforce planning as: A process in which an

organization attempts to estimate the demand for labour and
evaluate the size, nature and sources of supply which will be
required to meet the demand.

HRP - DEFINED
Coleman has defined HRP as the process of determining
human resource requirements and the means of meeting
the requirements in order to carry out the integrated plan
of the organization.

Stainer defines HRP as a Strategy for the acquisition

,utilization ,improvement and preservation of enterprise's
human resources

STEPS INVOVLVED IN HRP

Forecasting the future requirements .
Making inventory of the current HR.
Evaluating the internal resources, developmets , ,
constraints in terms of supply & demand ,economic
environment etc.
Planning the necessary programs.

ADVANTAGES

Supports corporate strategies and plans.

Off sets uncertainty and changes.
Scope for development of employees through training
Compensation costs estimation and budgeting.
Anticipates the obsolescence of skills or requirement of
new skills there by plans for training.
Builds and supports organization culture.
Planning the physical facilities.
Helps in identifying the skills required ,competencies and
there by recruitment methods.

ADVANTAGES (Continued)
Provides scope for promotion and up gradation of
employees and also career planning for the employees.
Over all improvement in all functions.

DEMAND FORECASTING
Qualitative
Quantitative
QUALITATIVE
- Function wise
- Delphis Method
- Nominal Group
All these are subjective

QUANTITATIVE

Based on the fact that future can be predicted based on

the past.

- Regression Analysis
SUPPLY FORECASTING

STRATEGIC HUMAN RESOURCES

MANAGEMENT

Planned HR developments and activities related to achieve the

organisation goals. Accepting HR Function as Strategic partner in
both the formulating of the companies strategies ,as well a in the
implementation of these activities. strengths and Weaknesses of
organisation Resources. Eg. IT industry, Banking ,Car .
Strategic HR shifts focus on employees .In final analysis people are
the organisations only sustainable competitive advantage.
Strategic HR offers three critical outcomes ,Improved performance,
enhanced customer and employee satisfaction and increased share
holders value.

HRP-FACTOR INFLUENCING
External Factors
Internal Factors
The influence of organization on external factors is limited .
However external factors like Government laws and
regulations have a bearing.
Internal Factors: Companys strategies with respect to
Expansion , Diversions ,Mergers ,New Ventures
Policies internal /external resources to take higher
responsibilities.
Information Job Descriptions ,Person Profiles.

FACTORS INFLUENCING
Data Human Resources Inventory with reference to
competencies ,qualifications and experience .
Internal factors like Unions, Association etc.
Generally the manpower required is based on
Government laws Boiler attendents ,SHE , Welfare
officers etc
Work load - either by work measurement techniques or
estimation and guesstimates .Skills required to meet the
org.goals.
Position requirements in process industries like chemicals
and fertilisers etc.

EXTERNAL FACOTRS

National policies
Level of economic development
Business environment
Information Technology
International factors
Technology.
Competition ,Availability of the specific skills ,obsolescence
of the skills

PROCESS

Corporate Vision ,Mission and strategies.

Manpower Forecast Category ,Skills ,numbers.
Human Resource inventory
Age Analysis , Super Annuation /retirement plans.
Market condition supply &Demand
Net Requirement on Human Resources Time
/Schedule.
Plans for Surplus . Redeployment ,Training
Competition to company
Source Selection &Action Plans.