Dr Biswal Hrp Lot 2

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HUMAN RESOURCE

PLANNINGDr B.N.BISWAL

Professor, HRMIISWBM ,KOLKATA



DEFINITION OF PLANNING:

Quinn Mills (1983) indicates humanresource planning is “a decision makingprocess that combines three important

activities”.

According to Bulla and Scott (1994) it

is „the process for ensuring that thehuman resource requirements of anorganization are identified and plansare made for satisfying thoserequirements‟.



According to Gary Dessler (2004) HRplanning is the process of deciding whatpositions the firm will have to fill and

how to fill them

In the words of Colman (1970)

“Manpower Planning is the process of determining manpower requirement andthe means of meeting thoserequirements in order to carry out the

integral plan of the organization



The following points emergeafter the analysis of various

definitions: HR planning aims at ascertaining themanpower needs of the organizationboth in number and kind.

HRP presents an inventory of existingmanpower of the organization.Analysis of this resource helps inascertaining the status of the availablepersonnel and to discover untappedtalent presently available with the

organization. HRP helps in determining the shortfall

or surplus of the resource bycomparing the total resource needswith the present supply. It also helpsin projecting future HR needs.



HRP is concerned with the initiation of various organization programs dependingupon the demand and supply of humanresources.

Effective manpower planning mustencompass the acquisition, utilization,improvement and preservation of theorganization’s human resources.

Human resource planning cannot be rigidor static. It is amenable to modification,review and adjustments in accordancewith the needs of the organization or thechanging circumstances.



OBJECTIVES OF HRP

The main objectives of HRP in anorganization is to

ensure optimum use of human resourcescurrently employed;

avoid imbalances in the distribution andallocation of human resources;

assess or forecast future skill

requirements of the organization’soverall objectives;

provide control measures to ensureavailability of necessary resources when

required;



Control the cost aspect of humanresources ;

Formulate transfer and promotion

policies; foresee employee turnover and make

arrangements for minimizingturnover and filling up of consequentvacancies;

meet the needs of the programmes of expansion, diversification etc;

foresee the impact of technology onwork;

improve the standards, skill,



LIMITATIONS / SCOPE OF HRP

Listing of current human resources Assessing the context in which the

current manpower is being utilized tothe advantage of the organization.

Planning out the surplus human

resource, if any, Analyzing the requirements of

manpower in future in the light of expansion plans, retirement of personnel etc.

Forecasting Human Resourcerequirements.

Designing training program fordifferent categories of humanresources.



NEED FOR HRP

HRP helps in proper recruitment andselection so that right types of peopleare available to man various positions

in the organization. ii) HRP also facilitates designing of

training program for the employees todevelop the required skills in them.

iii) HRP provides lead time forprocuring personnel as the lead timegiven is a time-consuming process.



BENEFITS OF HRP:HRP is an integral part of HRM and it helps in the

following ways:

HRP results in reduced labor costs as it helpsthe management to anticipate shortagesand/or surpluses or HR, and correct theseimbalances before they become

unmanageable and expensive. HRP is the scientific way for planningemployee development that is designed tomake optimum use of workers’ skill within theorganization.

More time is provided to local talent

HRP leads to improvement in the overall “Business Strategy Planning” process.

The organizational Succession Planning process derived its driving force from HRP(ref. Diagram 3). HRP helps in formulating

managerial succession plan as a part of thereplacement planning process.



HRP leads to a greater awareness of the importance of sound manpowermanagement throughout theorganization.

HRP serves as a tool to evaluate theeffect of alternative manpower actionsand policies.

HRP offers better opportunity toinclude women and minority groups infuture growth plans.

HRP enables identification of gaps inskill and number of existingmanpower so that corrective training

would be impaired



HRP AT DIFFERENTLEVELS:-

At Corporate Level :

At Divisional Level At Plant Level:



FACTORS AFFECTING HRP:

Type and Strategy of Organization

Organizational Growth Cycles

Planning Environmental Uncertainties

Time Horizons

Type and Quality of Forecasting information

Nature of Jobs being filled

Off-loading the work.



HUMAM RESOURCE PLANNING (HRP)AND MANPOWER PLANNING:-

Business Strategic Plans:

Resourcing Strategy

Scenario planning: Demand / supply forecasting

Labour turnover analysis:

Work environment analysis: Operational effectiveness analysis:

f



The process of HRP involves thefollowing steps:HRP PROCESS:

Determination of HRP objectives of HR planning

Current HR inventory Demand Forecasting

Job requirements

Employment plan

Training and Development program



1. Objective of HR Planning:

2. Current HR inventory

3. Demand forecasting:4. Job requirement:

5. Employment Plans

6. Training and DevelopmentProgram:



METHODS TO PREDICT HR NEEDS

Trend Analysis

Ratio Analysis:

The Scatter Plot Computerized Forecast :

Managerial Judgment :

Work study Technique: Statistical techniques:



QUANTITATIVE

ASPECTS OFHRP &

Workforce

Analysis



EXISTING HUMAN

RESOURCES:&

LABOUR WASTAGE:



SUPPLY FORECASTING:

Markov Analysis :

Simulation:

Renewal Analysis:

Goal programming:



LABOUR TURNOVER INDEX:

The traditional formula for measuringwastage is the labour turnover index:

(Number of leaves in a specified periodusually one year / Average number of employees during the same period.) *100



LABOUR STABILITY INDEX;

One measure which is considered by

many to be an improvement is thelabour stability index:

(Number of employees with oneyear‟s service or more / Number of

employees one year go.) * 100



INTERNAL PROMOTION ANDTRANSFERS:

CHOICE OF MEASUREMENT:SURVIVAL RATE

LENGTH OF SERVICEANALYSIS:



COMPUTERISED INFORMATIONSYSTEMS:

Work Experience Code Product knowledge: Industry experience

Formal education: Training Courses: Foreign Language skills Relocation limitation:

Career interest Skills: Performance Appraisals :



EFFECT OF CHANGING WORKCONDITIONS AND ABSENTEEISM:

1}Internal

sources2}Externalsources



Local Factors:

Population density within reach of the

company Current and future competition for labour from

other employers Local unemployment levels The traditional pattern of employment, locally,

and the availability of people with the requiredqualifications and skills.

Output from the local educational systems andGovernment or other training institutes.

The pattern of immigration and exigrationwithin the area

The attractiveness of the area as a place to live The attractiveness of the company as a place to

work in The availability of part time labour such as

married women Local housing, shopping and transport facilities.



National Factors:

Trends in the growth of the workingpopulation

National demands for special categoriesof manpower, graduates, professional

staff, technologists, technicians,craftsmen, secretaries. The output of the universities,

polytechnics and professionalinstitutions.

The effect of changing educationalpatterns - children staying longer atschools or different emphasis inuniversity or school curricula.

The impact of Govt. training schemes

The impact of Govt. employmentregulations



REASONS FOR EMPLOYEESLEAVING THE ORGANIZATION

More pay;

Better prospects (career move );

More security;

More opportunity to develop skills ;

Better working conditions ;

Poor relationship with

manager/team leader ; Poor relationship with colleagues ;

Bullying or harassment



Cost of employees leaving theorganization

Leaving costs – pay roll costs andpersonnel administration of leaves ;

Direct cost of recruitingreplacements (advertising,interviewing, testing etc)

Opportunity cost of time spent byHR and line managers inrecruitment

Direct cost of introducing andreplacements (induction course,cost of induction manual

Direct cost of training replacements

in the necessary skills



Opportunity cost of time spent by linemanagers and other staff in providingtraining.

Loss of the input from those leavingbefore they are replaced in terms of contribution , output, sales, customersatisfaction and support etc ;

Loss arising from reduced input fromnew starters until they are fullytrained.



PROBLEMS IN HRP

Identity crisis

Support of Top Management:

Size of Initial Effort:

Coordination with otherManagement Functions:

Integration with organizational

plans: Involvement of Operation

Managers

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Dr Biswal Hrp Lot 2

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