2. Human Resource Planning Process (HRP)
Demand forecasting method-
Managerial Judgment,
Work Study,
Ratio-trend analysis
Delphi technique
Supply forecasting methods-
Management Inventory,
Skill Inventory,
Inflows & Outflows,
turnover rate,
conditions of work and absenteeism
3. In simple words, HRP is understood as the
process of forecasting an organization's
future demand for, and supply of, the right
type of people in the right number.
After this only the HRM department can
initiate the recruitment and selection
process
Its called by manpower planning, personal
planning or employment planning
4. • Basically it’s the process by which an
organization ensures that it has the rightthe right
number & kind of people, at the right place, atnumber & kind of people, at the right place, at
the right time,the right time, capable of effectively &
efficiently completing those tasks that will help
the organization achieve its overall objectives.
5. ENVIRONMENT
ORGANISATIONAL
OBJECTIVES AND POLICIES
HR NEEDS FORECAST HR SUPPLY FORECAST
HR PROGRAMMING
HRP IMPLEMENTATATION
CONTROL AND
EVALUATION OF PROGRAMME
SURPLUS SHORTAGE
RESTRICTED HIRING RECRUITMENT
REDUCED HOURS AND SELECTION
VRS, LAY OFF, etc
THE HRP PROCESS
6. HR plans need to be based on Organizational Objectives.
The role of HRP is to subserve the overall objectives by
ensuring availability and utilization of Human Resources.
In developing these objectives, specific policies need to be
formulated to address the following questions:
Are vacancies to be filled from promotions from within or
hiring from outside?
How do training and development objectives interfere with the
HRP objectives?
What union constraints are encountered in HRP and what
policies are needed to handle these constraints?
How to improve employees job? Should the routine and boring
jobs continue or be eliminated?
How to downsize the organization to make it more
competitive?
7. Demand forecasting is the process of
estimating the future quantity and quality of
people required.
The basis of the forecast must be the annual
budget and long-term corporate plan,
translated into activity levels for each
function and department
8. Demand forecasting must consider several
factors both internal and external.
Among external factors are competition(foreign
and domestic), economic climate, laws and
regulatory bodies, changes in technology and
social factors.
Internal factors include budget constraints,
production levels, new products and services,
organizational structure and employee
separation.
9. Demand forecasting helps to :
Quantify the jobs necessary for producing a given
number of goods
Prevent shortage of people where and when they are
needed most
Determine what staff-mix is desirable in the future
Monitor compliance with legal requirements with
regard to reservation of jobs
Asses appropriate staffing levels in different parts of
the organization so as to avoid unnecessary costs
10. Managerial judgment
Ratio-trend analysis
Work study techniques
Delphi technique
Flow modelsFlow models
Other techniquesOther techniques
11. In this all managers sit together, discuss and
arrive at a figure which would be the future
demand for labour.
This technique may involve a ‘bottom-up’ or
‘top-down’ approach. A combination of both
could yield positive results.
12. This is the quickest forecasting technique.
This technique involves studying past ratios,
say, between the number of workers and
sales in an organization and forecasting
future ratios, making some allowance for
changes in the organization or its method.
13. Work study techniques can be used when it is
possible to apply work measurement to
calculate the length of operations and the
amount of labour required.
14. • This technique is the method of forecasting
personnel needs.
• It estimates of personnel needs from a group
of experts, usually managers.
• The HRP experts act as intermediaries,
summarize the various responses and report
the findings back to the experts.
• Summaries and surveys are repeated until
the experts opinion begin to agree.
15. Supply forecasting measures the no of
people likely to be available from within and
outside an organization, after making
allowance for absenteeism, internal
movements and promotions, wastage and
changes in hours and other conditions of
work.
16. Quantify no of people and positions expected
in near future.
Clarify the staff mixes.
Prevent shortage of people
Asses present staffing levels in different
parts of organization.
17. Existing human resources
Internal sources of supply
External sources of supply
18. • Skill inventories – info about non-managers.
1. Personal data
2. Skills
3. Special qualifications
4. Salary and job history
5. Company data
6. Capacity of individual
7. Special preference of individual
19. • Management inventories
1. Work history
2. Strengths
3. Weakness
4. Promotion potential
5. Career goals
6. Personal data
7. Number and types of employees supervised
8. Total budget managed
9. Previous management duties.
20. HR planning and analysis
Equal employment
Staffing
HR development
Compensation and benefits
Health,saftey and security
Employee and labor relations
21. Inflows and outflows
IS= current supply – outflow + inflow
Turnover rate
No. of separations during one year × 100
Avg. no of employees during the year
22. Conditions of work and absenteeism.
Absenteeism is given by
no of persons – days lost ×100
Avg no of persons × no of working days
23. After personal demand and supply are
forecast the vacancies should be filled at
right time with right employees.
24. Converting HR plan into action.
Action programmes are..
Recruitment
Selection & placement
Training and development
Retraining & redeployment
The retention plan
The succession plan
25. Recruitment
Selection & placement
If Shortage of employees
- Do-
Hire new full-time employees
Offer incentives for postponing retirement
Re-hire retired employees on part-time basis
Attempt to reduce turnover
Bring in over-time for present employees
Subcontract work to another company
Hire temporary employees
Re-engineer to reduce needs
26. It covers no. of trainees required
It necessary for existing staff
Identification of resource personal for
conducting development programmes
Frequency of training and development
programmes
Budget allocation
27. Retraining and redeployment:
New skill should be imported to existing
employee
Retention plan:
Compensation plan
Performance appraisal
Employees leaving in search of green pastures
The induction criss
Shortages
Unstable recruits
28. Who is to be unneeded and where and when
Plans for re-development or re-training
Steps to be taken to help unneeded
employees finding new jobs
Policy for declaring redundancies
Programme for consulting with unions or
staff associations
29. Analysis of demand
Audit of existing executives
Planning of individual career path
Career counseling
Accelerated promotions
Performance related training and
development
Planned strategic recruitment
Filling the openings
30. Establish the reporting procedures
Identifying who are in post and those who
are in pipe line
It should report employment costs against
budget and trends in wastage and
employment ratios
31. Institute of Applied Manpower Research
Requisites for successful HRP
Recognize of corporate planning
Backing of top management for HRP
HRP responsibilities should be centralized
Personnel record must be complete, up-date and
readily available
The time horizon of plan should be long for remedial
action
The techniques of planning should be best suit
Plans should be prepared by skill level
Data collection, analysis, techniques of planning
should be constantly revised
32. People question the importance of making HR
practices future oriented and role assigned to HR
practitioners in formulation of organizational
strategies
HR practitioners are perceived as expert in handling
personnel matters, but are not experts in managing
business.
HR information often is incompatible with the
information used in strategy formulation.
Conflicts may exist between short term and long term
HR needs.
Conflicts between quantitative and qualitative
approaches to HRP.
Non-involvement of operating managers renders HRP
ineffective.