Human Resource Planning

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Human Resource Planning

Human Resource Planning systematically forecasts an organizations future demand for and supply of employees and matches supply with demand. By estimating the number and types of employees that will be needed, the personnel department can better plan its recruitment, selection, training, career planning, and other activities.
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Human Resource Planning

Assessing Current Human Resources Assessing Future Human Resource Needs
Developing a Program to Meet Needs

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At last we can say that Human resource planning is a process by which an organization ensures that It has the right number and kinds of people at the right place at the right time Capable of effectively and efficiently completing those tasks that will help the organization achieve its overall strategic objectives.
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The HR planning process

In light of the organizations objectives, corporate and business level strategies, HRP is the process of analyzing an organizations human resource needs and developing plans, policies, and systems to satisfy those needs
HR Planning Process
HR Planning Process
Interfacing with strategic planning and scanning the environment Taking an inventory of the companys current human resources Forecasting demand for human resources Forecasting the supply of HR from within the organization and in the external labor market
HRP process Cont.

Comparing forecasts of demand and supply Planning the actions needed to deal with anticipated shortage or overages Feeding back such information into the strategic planning process.
So HRP is the process by which management determines how the organization should move from its current manpower position to its desired position. Through planning, management strives to have the right number and the right kinds of people, at the right places, at the right time, doing things which result in both the organization and the individual receiving maximum long-run benefits.
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Benefits of HRP
Improves the utilization of human resources, Matches personnel activities and future organizational activities efficiently. Helps in achieving economy in hiring new workers, Expands the personnel management information base to assist other personnel activities and other organizational units, Makes major demands on local lab our markets successfully. Coordinates different personnel management programs and hiring needs efficiently.
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Benefits of HRP
Focuses the activities on organizational and human resource goals. Assists in the integration of external environmental influences, organizational and human resource conditions. Helps in ensuring that HR activities are proactive by anticipating and adopting to changes in the external and internal environment.
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Why Do Workforce Planning?

The "why" of workforce planning is grounded in the benefits to managers? Workforce planning provides managers with a strategic basis for making human resource decisions. It allows managers to anticipate change rather than being surprised by events, as well as providing strategic methods for addressing present and anticipated workforce issues.
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Some components of workforce planning, such as workforce demographics, retirement projections, and succession planning, are familiar to managers. Workforce planning provides focus to these components, providing more refined information on changes to be anticipated, the competencies that retirements and other uncontrollable actions will take from the workforce and key positions that may need to be filled. This in turn allows managers to plan replacements and changes in workforce competencies.
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Organizational success depends on having the right employees with the right competencies at the right time. Workforce planning provides managers the means of identifying the competencies needed in the workforce not only in the present but also in the future and then selecting and developing that workforce. Finally, workforce planning allows organizations to address systematically issues that are driving workforce change.
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Factor Influencing the demand and supply for labor

Factor Influencing the demand for labor 1. Organizations strategy and objectives 2. Demand for goods and services 3. Types of technology used 4. Rate of production by each employee
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Factor Influencing the supply for labor

Organizations policies- selection, recruitment, staffing levels, retirement. Attractiveness of jobs available in the organization. Available skills within the labor market Cost of living in the area Demographic profile of potential recruitment area National legislation-Employment law.
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Example of the Basic Human Resource Planning Model

Open new product line Open new factory and distribution system
Develop staffing for new installation Production workers Supervisors Technical staff Other managers
Recruit skilled workers Develop technical training programs Transfer managers from other facilities
Recruiting and training programs feasible
Transfers infeasible because of lack of managers with right skills
Develop new objectives and plans
Recruit managers 6 Too costly to hire from outside from outside

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Causes of Demand for Human Resources

Several factors affect the demand for human resources. They are broadly categorized as External, Organizational, and Work fore factors. External Environment Organizational decisions. Work force factors
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External Environment
Some external environment such as social, economics, cultural, political, legal, technological, may affect the futures HR demands in the organizations
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Organizational decisions
Some of the organizational activities especially the detail budget, long range plans of sales and production forecasts, new-venture of the reorganizing the organization, redesigning the job of the organization may either increase the demands for or decrease the demands for HR for the organization.
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Work force factors

Demands are modified by the employees actions such as retirements, terminations, death of the employees, long leave of absence of the employees. These factors may increase or decrease of demands of HR resource.
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HR demand and supply forecasting
HR Demand Forecasting: Demand refers to the number and characteristics (e.g., skills, abilities, pay levels, or experience) of people needed for particular jobs at a given point in time and a particular place. HR demand forecasting is the process of estimating the future quantity and quality of people required. Demand forecasting must consider several factorsboth external as well as internal. The major external factors include- competition (both national and international), economic climate, laws and regulatory bodies changes in technology and social & cultural factors.
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Demand forecasting must consider several factors-both External as well as Internal. The major external factors include- competition (both national and international), economic climate, laws and regulatory bodies changes in technology and social & cultural factors. The internal factors include budget and budget constraints production levels, new products and services, organization structure policies and strategies employee separation etc.
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Demand and supply forecasting
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HR supply Forecasting
Supply refers to both the number and characteristics of people available for those particular jobs. HR supply forecasting measures the number of people likely to be available from within and outside the organization after making provisions for absenteeism internal movement and promotions wastage and changes in hours and other conditions of work. The supply analysis covers. Existing human resources Internal source of supply and External source of supply
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Techniques of demand forecasting

The following techniques are followed in forecasting HR demand: Trend analysis Ratio analysis Scatter plot Computerized forecast Managerial judgment
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Trend analysis: Trends analysis means studying variations in firms employment levels over the last few years. In another way, study of a firms past employment needs over a period of years to predict future needs.
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Ratio analysis: Ratio analysis means forecasting techniques for determining future staff needs by using ratio between two variables. For example: sales volume and number of employees needed Scatter plot: A graphical method used to help identify the relationship between two variables. For example: Measure of business activity and firms staffing level levels-are related.
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Computerized forecast: Determination of future staff needs by projecting sales, volume of production, and personnel required to maintain this volume of output, using software packages. Managerial Judgment: Whichever forecasting approach you use, managerial judgment will play big role. Its rate that any historical trend, ratio or relationship will continue unchanged into the future. Judgment is thus needed to modify the forecast based on factors you believe will change in the future.
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Sources of supply of Human Resource

There are two source of supply of human resources:
Internal source and External source Internal: Promotion, transfer, demotion, replacement, skills inventories etc. External: Society, Education and training institutions, employment exchanges labor market conditions community attitude and tradition demography (population pyramid) etc.
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Human Resource Inventory

Organizations maintain a Human Resource Inventory for the purpose of assessing the current human resource conditions. The HR inventory system maintains information about employees. The information includes the names, education, training, experience, skill, prior employment, current position, performance ratings, salary level, languages spoken, capabilities, references etc. The HR
inventory is also called skill inventory. Generally seven broad cater gores of information are included in each skill inventory. They are:
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Personal data: name, age, gender, marital status Skills: education, experience, training. Special qualifications: membership in professional bodys special achievements. Salary and job history: present and past salary, dates of pay raises, various jobs held Company data: Plan data, retirement information, and seniority. Capacity of individual: Sores of psychological and other tests, performance rating, health information. Special preference of individual: geographic location, type of job.
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The inputs of the inventory are generated from forms completed by employees and then checked by supervisors and personnel department. The profile of human resource inventory can provide crucial information for identifying current and future threats to the organizations
ability to perform.
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Strategies to face Surplus and Shortage situations:

When the internal supply of human resources exceeds the firms demand, human resource surplus exists. In case of such surplus one of the following measures are taken by the employers. Attrition : Attrition is a process whereby as incumbents leave their jobs for any reason (voluntary retirement transfer, resignation, etc), these jobs will not be filled.
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Usually accompanying the process of attrition is a hiring freeze. Most employers respond to the surplus situation with a hiring freeze. This freeze stops the personnel department from filling the job openings with external supplies. The hiring freeze dictates that no recruiting will take place for jobs that will eventually be eliminated.
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Layoffs: Layoffs are temporary loss of employment to workers: layoffs are used in case of short-range surplus. Shortage of raw materials, decrease in demand, machine breakdown, shortage of power, etc, are the reasons for layoff.
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Loaning: Loaning of valuable resources to other organization is a means of keeping the loaned employees (normally, managers) on organizations payroll and bringing them back after the crisis is over. The parent organization pays reduced salary to the loaned employees, with the difference usually paid by the new employer.
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Work sharing: like two people working one-half time, together constituting one full- time employee If the surplus is expected to persist for longer periods, employers often encourage an early retirement on a voluntary basis (golden handshake).
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If the internal supply can not fulfill the organizations needs, a human resource shortage exists, In case of shortage; employers may take a number of measures. Recruitment from within (promotion, transfer, etc) and from outside ( hiring new workers). Sub-contracting Double shifting Assigning additional tasks Over timing system Eliminating less important jobs etc
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What is Succession Planning?

Succession Planning is the long-term Human Relations Strategy of building and holding on to top talent. Important for several reasons:
The work force as a whole is shrinking Many of our top people are retiring Skilled talent in our industry is getting more and more scarce.
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What is Succession Management?

Succession management is a specific aspect of human resources management that ensures that senior or particularly valuable employees are replaced quickly without loss of effectiveness Succession Management takes succession planning one step further- that is, it is more encompassing and active.
A deliberate and systematic effort by the organization to encourage individual advancement and ensure continuity in key positions.
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A good succession management program encompasses the following:

Opportunities for employees to have new challenges Providing employees a chance to have a stake in the organization and share in the organizations success Creating a systematic approach to identifying succession candidates
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A good succession management program encompasses the following:

Developing cross-departmental sharing of people and
information Working toward a Leadership that rewards managers for promoting top employees rather than keeping them for themselves Designing career paths that are both vertical and horizontal Having a diverse workforce that is representative of the public it serves
Building a career development plan for all managers and professional employees
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Philosophy behind a Succession Management Program

Proactive, strategic human resources planning for the future
Leadership competencies are key to future success
Personal responsibility and Strategic corporate perspective
Commitment to people Development, ensuring Internal development and Promotion whenever possible
Integration with performance management and other key HR systems
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Thanks All
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Human Resource Planning

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Human Resource Planning

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Well come to session on Human Resource Planning

Human Resource Planning

Human Resource Planning

Developing a Program to Meet Needs

The HR planning process

HRP process Cont.

Why Do Workforce Planning?

Factor Influencing the demand and supply for labor

Factor Influencing the supply for labor

Example of the Basic Human Resource Planning Model

Recruiting and training programs feasible

Transfers infeasible because of lack of managers with right skills

Develop new objectives and plans

Recruit managers 6 Too costly to hire from outside from outside

Causes of Demand for Human Resources

Work force factors

HR demand and supply forecasting

Demand and supply forecasting

Techniques of demand forecasting

Sources of supply of Human Resource

Human Resource Inventory

Strategies to face Surplus and Shortage situations:

What is Succession Planning?

What is Succession Management?

A good succession management program encompasses the following:

A good succession management program encompasses the following:

Philosophy behind a Succession Management Program

Leadership competencies are key to future success

Personal responsibility and Strategic corporate perspective

Integration with performance management and other key HR systems

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