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Requisites for Successful HRP

y I ntegraly Back upy Centralizedy Records Updatingy Long term periody

Suitable Techniquey Expert Plansy Constant Revision

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Why is it important

y To meet future challengesy Achieve greater effectivenessy Create a talent pooly Prepare people for future

y Cope with organizational changesy Cut costsy Help succession planning

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Reasons for Current Interest in HRP

y Employment Unemployment Situationy Technological Changesy Organizational Changesy Demographic Changesy Skill Shortagesy

Government I nfluencesy I mpact of Pressure Groups

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Need of HRPy Organization needs personnel with necessary

qualifications, skills, knowledge, work experience.y Replacement of old, retiring employees.y To fill gaps created due to labour turnover.y To meet the needs in case of expansions.y To avoid unexpected shortages or surpluses.y The identification of training needs to avoid skill

shortages.y More effective and efficient use of resources for

increased productivity.

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BENEFITS OF HRPy Lower HR costs through better HR management.y Foundation for Personnel Functions.y More timely recruitment for anticipate HR needs.y Upper management has a better view of the

human resource dimensions.y Better opportunities exist to include women and

minority groups in future growth plans.y Better planning of assignments to develop

managers.

y I norganic Growth Strategies.

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BENEFITS OF HRP

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Where is it done?HRP is followed at various levels:

N ational Level

Sectoral LevelI ndustry Level

Unit Level

Departmental LevelJob Level

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How is it done?The planning process is influenced by overallorganizational objectives and the environment of business.

HRP essentially involved forecasting human resourceneeds, assessing human resource supply and matchingdemand supply factors through human resource

related programmes.

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HR Planning Process

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The Basic Elements of HRP

(5) Develop Action PlansCompare

(1) Forecast Labor

Requirements

(1) Forecast Labor

Requirements

(2) Forecast Labor Availabilities

(2) Forecast Labor Availabilities

(3) ConductEnvironmental Scans

(3) ConductEnvironmental Scans

(4) DetermineGaps

(4) DetermineGaps

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HRP: Internal Environmental Scanningy I nternal issues refer to events or trends within the

organization, such asy Business strategy y Organizations Structurey

Company Profitability y Trade Unions

y It involves1) I nformal discussionswith key managers2) Conducting employee attitude surveys3) Monitoring key indicators

y Employee performance, Absenteeism, Turnover, Accidents4) Identifying nagging personnel problems5) Assessing managerial attitudes regarding HR

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HRP: External Environmental Scanningy External issues are events or trends outside of the

organization, such as:y Government Policiesy Work force demographicsy

Technology y Economic Developmenty Global Environment

y

It involves1) Tracking trends and developments in external environment,2) Documenting implications for management of human

resources, and3) Ensuring implications receive attention

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HRP Components

I . DEMA N DDemand arises from organizations activities, strategy,routine turnover of employees.

Labour Turnover Rate: N o. of Employees in a Year_______ x 100 Average N o. of Employees in a Year

V ery Low Turnover RatesHigh Turnover RatesHigh Labour Stability Low Labour Stability

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HRP Componentsy Managing Future Demand

y Recruitmenty Permanenty Temporary (Contract Labour)

y Outsourcingy Managing Future Surplus

y Retrenchmenty Lay Offsy Outplacementy Leave of Absence without pay y Loaningy V RSy Reduced work hoursy

Work Sharing

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HRP Components

II . SUPPLY

Factors in Manpower Supply

Geography Economic Situations

Occupational TypesCompetitive Position of Organizations

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Role of HRP Professionals

A. Administrative roleManaging the organizational resources

Employees welfare activities.B. Strategic role

Formulating HR strategiesManaging relationships with managers.

C. Specialized roleCollecting and analyzing dataDesigning and applying forecasting systemsManaging career development.

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Responsibility For HRP

y HRP is a top management job.y

HR plans are usually made by the HR division inconsultation with other corporate heads.y Any deviations from the formulated plans and

their causes must be looked into, from time to

time in order to assess whether the plans requirerevision or modification.

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Effective HRPy HR plans must fit in with overall objectives of a

firm.y They must get consistent support from top

management.y Computerized human resource information

systems must be used for applicant tracking,succession planning, building skills inventoriesetc.

y The whole exercise must be carried out incoordination with operating managers.

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Types of HRPI . Short Term Manpower Planning

y Weak I ncumbenty Improving the Many Changing the contents of the Joby Changing the Job and the Many Removal of the Incumbent

y Strong I ncumbenty Assigning additional dutiesy Assigning some special problemsy Advicey Change in the Job

y Unexpected V acancy

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Types of HRPII . Long Term Manpower Planning

y Projecting Manpower Requirementsy Taking Stock of Existing Manpowery Recruitment & Selectiony Manpower Development

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Does anybody really do this stuff?

A. Nkomo (1987) survey of Fortune 500

organizations

Implementation of Human Resource Planning

(N = 264 responses)

46% reported no formal HR planning

39% reported some (incomplete) HR planning

15% reported fully integrated HR planning

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THANK YOU!!!!!They say

If you re planning for one year, grow rice.

If you re planning for 20 years, grow trees.

If you re planning for centuries, grow human resource.

-Ancient Chinese Proverb