HUMAN RESOURCE PLANNING

OVERVIEW

What is Planning

What is Human Resource Planning

Need for HRP

Objectives of HRP

HRP Process

Who does HRP

WHAT IS PLANNING?

Is a predetermined course of action

A scheme / program / method worked

out before hand for the

accomplishment desired objectives.

WHAT IS HUMAN RESOURCE PLANNING?

Human Resource Planning is the process by

which an organisation ensures that it has the

right number and kinds of people, at the right

places, at the right time, capable of effectively

and efficiently completing those tasks that will

help the organisation achieve its overall

objectives.

WHAT IS HUMAN RESOURCE PLANNING?

Human Resource Planning is the process that is

used to determine the number and types of

employees to be recruited into the organisation or

phased out of it.

WHAT IS HUMAN RESOURCE PLANNING ?

Human Resource Planning is a process by

which the management of an organisation

determines its future HR requirements and

plans as to how the existing HR can be utilised

to fulfill these requirements.

OBJECTIVES OF HRP

Forecasting human resource requirements.

Effective management of change.

Realising organisational goals.

Promoting Employees

Effective utilisation of human resource.

PROCESS OF HRP

1. Link organisational strategy to

employment planning

2. Forecast human resource requirements for

a future time period

3. Conduct gap analysis to reconcile demand

and supply forecast of human resource.

4. Implement HRP through action

programmes.

Strategic DecisionsTechno forecastEco. forecastMarket forecastOrg. planningInvestment planningAnn. operating plans

Human Resource DemandAnnual employee requirement:Numbers, Skills,Occupational Categories

Human Resource SupplyExt. employee Inventory after applying exp. loss+Attrition Rates

DecisionsSurplusLayoffs, RetirementVRS, etc

ShortageOvertimeRecruitmentPromotion

Compared with

WHO DOES HRP?

Traditionally HR planning is usually initiated

by the HR department

Since information is needed from all parts

of the organization, line managers should

be involved in the HR planning process.

HOW TO FORECAST PERSONNEL NEEDS

Trend analysis identifies historical trends within the company to help predict future needs

Ratio analysis forecasts data based on the ratio between causal factors and the number of employees required

HOW TO FORECAST PERSONNEL NEEDS Scatter plots show graphically how two

variables are related

Size of Hospital Number of (Number of Beds) Registered Nurses

200 240

300 260

400 470

500 500

600 620

700 660

800 820

900 860

DETERMINING THE RELATIONSHIP BETWEEN HOSPITAL SIZE AND NUMBER OF NURSES

THE ROLE OF MANAGERIAL JUDGMENT

– Managerial judgment considers the following factors that may influence forecasts: Projected turnover

Quality and skills of employees

Strategic decisions to upgrade quality or enter new markets

Technological and other changes resulting in increased productivity

Financial resources available to the department

THE ROLE OF MANAGERIAL JUDGMENT, CONT.

FORECASTING SUPPLY OF CANDIDATES Forecasting external candidates

requires general economic analysis and expected unemployment rates

A low rate of unemployment indicates a low labor supply increasing recruiting difficulty

Local labor market conditions should be considered

Availability of potential job candidates for a specific occupation

Forecasting internal candidates requires demographic analysis as well as information on employee turnover

Qualifications inventories can facilitate internal candidate forecasting by providing data like performance records, educational background, ages, and promotability either manually or in a computerized information system

FORECASTING SUPPLY OF CANDIDATES, CONT.

Personnel replacement charts show present performance and promotability for each potential replacement for important positions

FORECASTING SUPPLY OF CANDIDATES, CONT.

Succession Planning details the company’s long-range plan to fill its most key positions by making sure a qualified supply of successors exist and employee careers can be optimally managed

THE CHANGING ROLE OF HR Effective HRM selection, training, pay

and employee fairness practices are crucial to capitalizing on technology and remaining competitive

HR departments must move away from a housekeeping focus to strategic maneuvering – HRM must evolve to remain dynamic

THE NEW HR MANAGER Provides efficient operational services

including outsourcing service when necessary

Supports top management’s strategic planning efforts

Acts as the company’s “internal consultant” for identifying and institutionalizing changes that enhance employees skills allowing them to contribute to the company’s success