Human Resource Planning

Presented By:

Mr. Nilesh
Some facts :
HRM = People Dimension in Management
HRM has 4 steps: ATMM (Acquisition, Training and
Development, Motivation & Maintenance )
Getting and Keeping good people is critical to the success
of every organization whether it be public or private.

There is only one constant in the universe. :

There is only one constant in the universe. What is that?
That is…………

“Change”
 Strategy
formulation &
structure

Corporate Net HR
Object Requirement

Human Resource
Planning

Demand & Supply & Market

competitive evaluation
forecast Forecast
 What is HR Planning ?
Human Resource Planning is the process by which an
organization 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 organization achieve its overall
objectives.

( Source: Decenzo and Robbins 2000,

Personnel/Human Resource
Management)
Characteristics of HRP

• Future oriented
• Continuous process
• Current & Future HR
• It’s short term as well as long term
• It’s a part of over all planning process
Trends in Human Resource Management

1) Work Force Diversity Women Participation

2) Racial Composition Example: Inclusion of different race and

communal group

3) Portion of Ageing work force Example: Retirement age,

average life expectancy etc.
Continued……

4) Technological Change Example: Stenograph, Teletype,

Fax, Email, Tele-seminar etc.

5)Globalization/Changing Economy Production

globalization
Example: same product from different countries,
production of different accessories-parts in different
countries

6)International competition of market Example:

automobile, electronics, knowledge industries etc.
 Continued….

. 7) Manufacturing plant in different countries

Example: Sony in Malaysia

8) Job sifting from one place to another

Example: Tendency to use cheaper workforce,
e. g. garments

9) High performance work system

 Other Trends
Changing legal provisions such as equal opportunity
laws are being passed which bars discrimination on
the basis of age, sex, race, religion, disability,
national origin etc. Health and occupational safety
rules are also affect HRM.
 Steps in Manpower planning
1. Predict manpower plans
2. Design job description and the job requirements
3. Find adequate sources of recruitment.
4. Give boost to youngsters by appointment to higher posts.
5. Best motivation for internal promotion.
6. Look after the expected losses due to retirement, transfer
and other issues.
7. See for replacement due to accident, death, dismissals and
promotion.
Why Human Resource Planning is
important ?

• Linking business strategy with operational strategy:

To maintain the link between business strategy and its
operation. It follows different procedures including the
need to assess the impact of technological changes on
new jobs and new skills

Example: Nepal Telecom staff used to operate Wireless

Set before, but at present complex IT equipments must
to handle
• Minimizing the risk of loosing
By forecasting the needs of technical and
other human resources it can minimize the
future risk of loosing. Delay in recognizing
human resources might be costly and expensive
in the future.

Example : Government run banks are

compelled to upgrade own staff by providing
latest skills and knowledge to them to compete
with other fast growing banking organizations.
• 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 aware of that.
• HRP is pro-active, not reactive
For solving any sort of future HR problem HRP is pro-active
rather than re-active.
Example: 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 is promotes awareness

HRP promotes the awareness that human resource

activities are equally important at every level of the
organization. Both lone and staff managers have to
be involved in HR planning activities.
 Advantages of manpower planning
Manpower planning ensures optimum use of available
human resources.
1. It is useful both for organization and nation.
2. It generates facilities to educate people in the
organization.
3. It brings about fast economic developments.
4. It boosts the geographical mobility of labor.
5. It provides smooth working even after expansion of the
organization.
continued…..

6. It opens possibility for workers for future

promotions, thus providing incentive.
7. It creates healthy atmosphere of encouragement
and motivation in the
organization.
8. Training becomes effective.
9. It provides help for career development of the
employees.
Human Resource Information systems
Information is the key to successful HR planning:
•HR information system(HRI’s):-
Integrated way to acquire store analyse & control information
system through an organisation,
•Highly developed HRI’s - increase the efficiency & response
 Tracking applicants
 Skills inventory
carrier planning
Employ service programme
 Human Resource Information systems

• Computer technology :- Integrated multiple HR needs

into single system
 Enrolling the benefits programmes
Processing employee need transactions (pay increase)
Using learning modules
Continued…….

• HRS developed for executives:- Executive

information systems(EISs)
 computerised HRIs allowed organisation
broaden view succession planning.

Factors that make succession planning for

executive level position more important
• Large No. of ageing executives
• Increasingly popular early retirement services