1. Human Resource
Planning

2. Definition of HRP
Human resource planning can be defined
as the process of ensuring the right number
of qualified people,into the right job at the
right time to deliver the results in an
efficient and effective manner.

3. Human Resource Planning (HRP)
Is the first component of HRM strategy
All other functional HR activities are derived from and
flow out of the HRP process.
Has its basis in considerations of future HR
requirements in light of present HR capabilities and
capacities.
Is proactive in anticipating and preparing flexible
responses to changing HR requirements.
Has both an internal and external focus.
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4. HRP and Strategic Planning
Strategic Analysis
 What human resources are needed and what are
available?
Strategic Formulation
 What is required and necessary in support of human
resources?
Strategic Implementation
 How will the human resources be allocated?
Human Resource
Human Resource Strategic
Strategic
Planning
Planning Planning
Planning
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5. Influence of Strategic Planning on HRP
Strategy HRP requirement
Expansion: Additional HR of existing categories
Diversification: Additional HR of diff. categories
M&A: Reduction of HR of managerial positions.
Retrenchment: Reduction of HR of almost all the
categories through VRS and other means.
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6. HR Planning Issues
Staffing Questions:
How do we manage staffing in times of
recession or expansion?
What impact does technology change, mergers
or relocation have on staffing issues?
Do we always have the right people in the right
jobs at the right time?
How do we get our human resources: buy
them or make them or both?
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7. Major Objectives of HRP
Preventing understaffing and overstaffing
Ensure the organisation has the right employees
with the right skills at the right place at the right
time
Ensure the organisation is responsive to
changes in its environment
Provide direction and coherence to all HR
activities and systems
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8. HRP process
1)Forecasting (future requirements/
2)Inventorying(present strength/ supply)
3)Anticipating(comparison of present and
4)Planning(necessary programme to meet

9. Human Resource Planning Model
FORECASTING DEMAND
FORECASTING DEMAND BALANCING
BALANCING
Considerations Techniques SUPPLY AND
SUPPLY AND
Considerations Techniques DEMAND
••Technology •• Trend analysis DEMAND
Technology Trend analysis
••Financial resources
Financial resources •• Managerial
Managerial
(Shortage)
(Shortage)
••Organizational growth estimates
Organizational growth estimates
Recruitment
Recruitment
••Mgmt. philosophy •• Delphi technique
Delphi technique Full-time //Part-time
Full-time Part-time
Mgmt. philosophy
Techniques External
External
Techniques (Surplus)
(Surplus)
Considerations
Considerations
••HR inventories Reductions
Reductions
HR inventories ••Wkforce changes
Wkforce changes ••Layoffs
••Replacement charts Layoffs
Replacement charts ••Mobility
Mobility ••Terminations
Terminations
••Succession Planning ••Govt policies
Succession Planning Govt policies ••Demotions
••Unemployment Demotions
Unemployment ••Retirements
Retirements
FORECASTING SUPPLY
FORECASTING SUPPLY 9

10. Forecasting Demand for
Employees
Quantitative
Quantitative
Methods
Methods
Forecasting Demand
Forecasting Demand
Qualitative Methods
Qualitative Methods
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11. Quantitative Approach: Trend Analysis
Example of Trend Analysis of HR Demand
BUSINESS ÷ LABOR = HR
FACTOR PRODTY DEMAND
YEAR (SALES IN ‘000) (SALES/EMPLOYEE) (NO. OF EMPLOYEES)
2003 Rs. 3,613 11.12 325
2004 Rs. 3,748 11.12 337
2005 Rs. 3,880 12.52 310
2006 Rs. 4,095 12.52 327
2007 Rs. 4,283 12.52 342
2008 Rs. 4,446 12.52 355
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12. Qualitative Approaches to
Demand Forecasting
Management Forecasts
 The opinions (judgments) of supervisors, department
managers, experts, or others knowledgeable about the
organization’s future employment needs.
Delphi Technique
 An attempt to decrease the subjectivity of forecasts by
soliciting and summarizing the judgments of a
preselected group of individuals.
 The final forecast represents a composite group
judgment.
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13. Forecasting Supply of Employees:
Internal Labor Supply
Staffing Tables
Replacement Charts
Succession Planning
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14. Forecasting Internal Labor Supply
Staffing Tables
 Graphic representations of all organizational jobs, along
with the numbers of employees currently occupying
those jobs and future (monthly or yearly) employment
requirements.
Replacement Charts
 Listings of current jobholders and persons who are
potential replacements if an opening occurs.
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15. An Executive Replacement Chart
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16. Existing inventory at a future date is calculated as
follows:
Future supply of HR=present inventory as on today +
Potential additions – Potential losses.
Note:
Potential additions: includes transfers, promotions in ,
demotion in & new hires.
Potential losses: includes VRS,death,dismissals,retirement.
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17. HRP Considerations
Balancing supply
and demand
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18. Dealing with surplus Manpower.
Retrenchment
Outplacement
Lay-Offs
Leave of absence without pay
Loaning
Work Sharing
Reduced work hours
Early/ Voluntary retirement
Attrition
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19. Requisites for Successful HRP
 HRP must be seen as equally vital as business planning
 Top-management support
 Periodic review and revision of the forecasting techniques and
the forecasts
 Without long range planning concentration becomes focussed
on short-term needs resulting in “crisis management” reactions
 An excellent and up-to-date HRIS
 Active involvement of line managers and co-ordination between
line mgrs and HR function
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