HUMAN RESOURCE PLANNING

Daw Myat Thu Zar

Associate Professor (Retired)
Institute of Economics
Human Resource Planning
 The Assessment Of Future Requirements
(Demand)
 estimating the quantity and quality of human resources needed to meet the objectives of the
organization.

 Several methods of forecasting are in regular use, some of them simple and non-technical,
others sophisticated and involving specialist statistical knowledge and skills.

 These include:

 ■ estimates based on managers’ experience, opinions and calculations

 ■ statistical methods

 ■ work-study methods

 ■ forecasts based on measures of productivity.

 The Assessment Of Future Requirements
(Demand)
 1 Estimates made by management:
 provided from two main sources:
 the estimates submitted by individual line managers and
 the estimates produced by senior management, advised by the HR department.
 Since these forecasts rely entirely on personal judgments
 obvious potential weakness of subjectivity. However, this can be mitigated in the following
ways:
 first, in submitting assessments, managers should include explanations and reasons to support
their claims;
 second, these assessments ‘from the bottom up’, should be compared with those prepared by
senior management, perhaps by an ad hoc staffing committee with the purpose of discussing and
reconciling discrepancies.
 2 Statistical methods:

 a number of statistical techniques are now used for forecasting, which vary in their
degree of sophistication.

 the techniques most often used are:

 simple extrapolation, attempts to predict growth or decline of a variable or set of

variables for a period of time;

 regression analysis, econometric models, in which past statistical data are studied
on the assumption that relationships between a number of variables will continue
in the future.
 3 Work-study methods:
 a systematic analysis of working methods, covering the people, skills, materials
and machines, and in particular the work hours needed per output unit to achieve
maximum productivity.
 used to forecast productivity, for detailed production schedules for specific periods
of time within the plan
 to estimate the total numbers needed to achieve production targets within a
specific period.
 The production schedules may comprise the following details:
 product quantities; production methods; machinery needed and available; times
for individual operations; and quantity and quality of labour needed and available.
 Work-study techniques are particularly appropriate for estimating human resource
requirements for work that is directed towards end products.
 4 Where the product mix and the forecast changes --------too complex to use this
approach, a simple added value method can be adopted (Example 6.1).
 Assessment of current resources and availability of resources in the future
(supply)

 Current resources
 As a basis for estimating the future supply of people,
 a detailed and accurate account of the current situation is needed.
 the quantity and quality of information it needs, but some broad bases can be
established for analysing existing resources,
 namely, operational functions, occupations, status and skill levels, and other
specific categories (e.g. qualifications, trainees, age distribution).
 Understanding the potential effects of retirements can be enhanced by age
profiles.
 However, age discrimination legislation  decisions based purely on age are no
longer legally acceptable.
 Operational functions
 An initial tally of all employees is made, based on divisions into functional units (e.g. sales
department, store’s branch, repair workshop, etc.).

 Occupations
 Employees are categorized according to occupational groups.

 related to strategically significant occupations and anticipated recruitment problems.

 certain key occupations detailed and specific categorizations may well be needed.

 The broad groupings conventionally used for occupational analysis are managers,
supervisors, professional staff, technical staff, clerical staff, manual and other staff
(skilled, semi-skilled and unskilled).
 Status And Skill Levels

 To a certain extent, the categorization of employees by occupation also implies a categorization

by status and level of skills.

 necessary to make a further distinction between top, middle and trainee managers, top and
trainee clerical staff, administrative and technical supervisors, etc.

 the task of producing data for planning succession ->relevant to senior levels.

 Other specific categories

 necessary to produce other types of information, especially for critical groups and occupations,
such as the qualifications of employees, and records of employees under training.

 need to have detailed records, usually computerized, of its employees, showing their
qualifications, experience, particular skills and aptitudes, which are relevant to its functions
and objectives.
 Other specific categories cont’d

 To assess the strengths and weaknesses in its general pools of skills and
experience and in particular areas, and to plan for recruitment and selection,
transfer or promotion, training, retirements, etc.

 other important areas such as job analysis, recruitment and selection and
performance appraisal.

 Training is potentially costly and time-consuming and must be taken into

account when the supply of staff is being analysed.

 the analysis will project the flow of numbers of employees passing through all
forms of training programmes, both internal and external.
 Labour Turnover=

 As human resource planning is an exercise in projecting likely future situations

based on past trends,
 the task of human resource planning is unforeseen wastage.
 Labour turnover is one flow which management cannot always control or forecast.
 In making forecasts over a future period it is a fairly straightforward task to allow
for employees whose termination dates are known.
 always be unplanned losses of employees for a variety of reasons.
 The most significant source of loss is through voluntary wastage, i.e. when
employees leave of their own accord.
 necessary to include transfers or promotion of staff across divisions, departments
or branches in these calculations.
 External Factors
 external factors also need to be taken into account
 macro- (national) or micro- (local) influences.
 At the macro level the commonly significant factors are:
 1 The intervention by the State in the field of employment as a user and
protector of the labour force in the form of employment legislation, regional
development schemes, and governmental and related agencies.
 2 National trends affecting the working population (a) the higher percentage of
older people (b) the percentage of people pursuing courses of higher education,
and the types of degree or diploma courses (c) the variety of contractual
arrangements available (part time, job sharing, etc.) is a reflection of the need for
part time and flexible working arrangements.
 3 International recruitment possibilities (e.g. the recruitment of nurses for
hospitals in the UK from the Philippines and from mainland European countries).
 The Important Factors At Micro Level Are:

 1 The nature of the local population:

 numbers, growth or decrease, reserves of skills, availability of part-time
labour, etc.
 2 The level of unemployment and its location.
 3 The competition from other employers.
 4 Costs of labour, local premiums, and the ease of travel to the locations.
 5 The degree of development of the area, accessibility and transport facilities.
 6 Plans of central and local government and other organizations that may
significantly affect the area.
 7 The reputation of the organization, and how this is sustained.
 The possible influences of these factors can never be easily assessed.
 should be aware of possible effects
The Planning Stage

 The last stage, in which the plan is produced, is based on the information that the
preceding stages have provided.

 This involves:

 ■ matching the forecasts for supply and demand

 ■ identifying key areas essential to the achievement of objectives

 ■ making plans to minimize the effects of possible shortages or excesses of staffing

 ■ considering whether the best use is currently being made of the organization’s
human resources.
 The Strength Of The Organization’s Capabilities

 The most important benefits from HR planning are that any staffing restrictions on
future operations can be avoided, and

 the strength of the organization’s capabilities can be taken into account in the
strategy (Figure 6.3).

 regular review at various periods throughout the life span of the plan.

 Be incorporated into an annual general review of corporate objectives,

achievement, budget planning, etc., in accordance with the system for a running,
overlapping plan,