Human Resource Planning

HR Planning

HR Planning is the process of examining an organizations’ future human resource need.

It involves: Identifying and acquiring the right number of people with the proper skills Motivating them to achieve high performance Creating interactive links between business objectives and resource

planning activities

Human Resource Planning (HR Planning) is both a process and a set of plans.

It is how organizations assess the future supply of and demand for human resources.

An effective HR plan also provides mechanisms to eliminate any gaps that may exist between supply and demand. Thus, HR planning determines the number and types of employees to be recruited into the organization or phased out of it.

Dynamic by nature, the HR planning process often requires periodic readjustments as labor market conditions change.

Human Resource Planning

Technological forecastsEconomic forecastsMarket forecastsOrganizational planningInvestment planningAnnual operating plans

Technological forecastsEconomic forecastsMarket forecastsOrganizational planningInvestment planningAnnual operating plans

Annual employment requirements

NumbersSkillsOccupational categories

Annual employment requirements

NumbersSkillsOccupational categories

Existing employment inventory

After application of expected loss and attrition rates

Existing employment inventory

After application of expected loss and attrition rates

VariancesVariances EndEnd

If surplusIf surplus If shortageIf shortage

Decisions

Layoff,retirement,

etc.

Decisions

Layoff,retirement,

etc.

Decisions

Overtime,recruitment,

etc.

Decisions

Overtime,recruitment,

etc.

EndEnd EndEnd

Strategic Planning Human Resource Demand Human Resource Supply

Compared

with

If none

ActionDecisions

HRP Process

All effective HR planning shares certain features. It is generally agreed that HR planning involves four distinct phases or stages:

Situation analysis or environmental scanningSituation analysis or environmental scanning

Forecasting demand for human resourcesForecasting demand for human resources

Analysis of the supply of human resourcesAnalysis of the supply of human resources

Development of plans for actionDevelopment of plans for action

The HRP Process

Why is HRP important ?

Even an imperfect forecast is better than none at all Anticipating needs – prepare for the future gives you an edge Address potential problems – avoid skill deficiencies

What is HRP?

HRP is a sub-system of total organizational planning. HRP facilitates the realization of the company’s objectives for

the future by providing the right type and number of personnel HRP is also called Manpower planning, Personnel planning or

Employment planning

HRP ensures that the organization has: Right Number Right Kind Right Place Right Time

Benefits of HRP

Create reservoir of talent Prepares people for future Expand or Contract Cut Costs Succession Planning

Forecasting Techniques

Managerial Judgment Ratio trend analysis Work Study Techniques Delphi Technique Flow Models Others

Factors in Demand forecasting

Social factors – Working conditions, Govt. regulations, environmental conditions, religious, cultural.

Technological Factors Political Factors – Trade restrictions, War etc. Economic Factors Demand generation Growth Employee Turnover

Routine HR Functions

Manpower planning Recruitment and Selection Training & Development Appraisals – Performance Management Transfers / Promotions Compensation and Benefits

HR Process Mapping

Business Planning

HR Policy HR Planning

Recruitment Selection

Performance Management

Compensation Management

TalentManagement

Training Development

HR Systems Data Mgmt

EmployeeRelations

OccupationalHealth and Safety

Manpower Planning

Business Needs Financial Feasibility Future Plans Brand Name

Manpower Planning

Why does the position exist? Temporary Replacement Permanent Replacement Creation of new position

Manpower Planning

Do we need to review the position? Current and Ongoing need Sufficient budget Is the position description current Appropriate current level Is a full time employee required?

Manpower Planning

What about existing staff? Do we have a succession plan for the replacement? Does the vacancy create career development

opportunities for existing people?

Recruitment and Selection process

Business Plan Related HR Plan

Competencies People

Compensation and Benefits Numbers

Current : Budgeted and Actual Future : Short Term and Long Term

Three Conditions Current = Future Current > Future

Redundancy Planning Current < Future

Recruitment Plan

Thank you