Human Resource Planning

Sessions 6 and 7
Word: Enumerate
 Mention a number of things one by one;
itemize

 I have enumerated the job skills needed

by an HR Executive
TODAY WE WILL COVER:
 Need and Importance of HRP
 Process of HRP
 Levels and Types of HRP
 Forecasting Demand for employees-
Forecasting supply for employees
 Balancing supply and demand
considerations- HRP Model, Workforce
Composition, HRIS
 Why Plan?
What is HR Planning?
 HR Planning is the process by which an
organisation ensures that it has:
 the right number of people and kinds of
people,
 at the right place
 at the right time
 capable of effectively and efficiently
completing those tasks that will ensure
that goals are met.
 Employment Planning

 Succession Planning
Factors that determine HR plans
 Business Strategy of the organisation
 Culture of the organisation
 Competitive / Financial environment
 Current Organisational situation
 Need for Human Resources: Skill level and
quantity
 Available financial resources

 Decide: Build or Buy approach

Mixed approach
HR Plan and Policy for:
 Recruitment
 Selection
 HR Development
 Compensation
 Performance management
 Staffing adjustments
Process of HR Planning
 Scan external environment for changes
affecting labour supply
 Forecast revenues
 Analyse internal inventory of capabilities
Process of HR Planning
 Forecast size of staff required to support
sales volume
 Consider: up gradations/down gradations
of product
 Productivity changes
 Financial Resources
Scanning the external environment
 Economic conditions: interest rates,
inflation, economic growth, worker
availability,
 Decisions on wages, overtime, hiring ,
layoff based on the economic
environment
 Rate of unemployment
Scanning the external environment
 Geographic conditions: migration
 Reluctance for geographic relocation
 Direct competitors
Workforce composition
 Workers with necessary capabilities
 Availability of part time workers
 Workload fluctuations
 Time bound projects
 Decision on whether to resort to
temping/outsourcing
Trend Analysis
 Variations in organization's employment
levels over the past 5 years or so

 Number of employees in each sub group

 Make an estimate for the future need

based on sales volume and productivity
Developing the HR Plan
 Shifting employees within the organisation
 Laying off
 Retraining existing employees
 Vacancy situation based on retirements,
promotions, transfer, discharge
Ratio Analysis
 Making forecasts based on historical
ratios based on some causal factor e.g.
competitor product and number of sales
people required to counter the effect
 If productivity of the sales people remains
the same, the additional effort will need
more sales people
Scatter Plot
 Shows how 2 variables are related
 Games competitions in the city, hotel
rooms are needed
 Therefore staff is needed
 No of Rooms No of staff
 500 1500
 1000 3000
 Based on historical figures
Computerised forecasts
 Build more variables into the projections
 Program generates average staff levels to
meet demands
 Separate projections for direct labour
( assembly workers), indirect staff ( billing
staff) and exempt staff
 Activity in groups of 3
Draw up a plan
 A.You have been running a CBSE school for
the past 12 years.
 You plan to open a college, offering Science,
Commerce and Arts courses.
Commissioning is expected in April 2017.
You have physical space to accommodate
1200 students.
 Resource allocation for HR for the college is
Rs. 3cr for 2017 – 2018; Rs.25 lakhs for
2016 – 2017.
 Draw up your HR plan for staffing the
college.
 You may make assumptions about the
streams etc.
Supply and Demand
 Year by year analysis for every job level
and type
 Comprehensive human resource
inventories for a heterogeneous mix of
employees
 Qualitative and quantitative assessment
 Must focus on the unit level
Increase in Supply
 New hires
 Transfers in
 Leave returnees (long maternity leave,
sabbatical etc.)
 Extension after retirement
Decrease in supply
 Dismissal
 Transfer
 Retirement
 Lay off
 Prolonged illness
 Death
Changes in external supply
 Example: Increase in MBA graduate
availability due to increase in number of B
schools
 Housewives returning to careers
 Migration into cities/ into a community
 Training to make minor career changes
e.g. journalist with some training
becoming an editor
Matching demand and supply
 Highlight areas of overstaffing
 Avoid shortages by hiring additional nos.
 Start training early
 Assess objectives if shortages cannot be
met
HRIS
 Human Resources Information System
 Technical system which tracks
information about jobs, employees,
training, appraisal compensation
 May track succession planning
 Supports HRP, decision making, co-
ordination, control, analysis
HRIS
 Reduces day to day processing activities:
 Checking leave balances
 Maintaining address/family / dependent
records
 Monitoring employee benefits/distribution
 Facility of self processing
 Improved reporting e.g. no. of employees
with 5 to 7 years service, number of
employees with > 3 dependents
HRIS
 Integration of payroll, record keeping
 PeopleSoft by Oracle
 SAP

 Intranets
How Is HR Using HRIS?
 In a recent BLR® survey, HR professionals
who currently use a Human Resources
Information System (HRIS) in their
workplaces were asked which tasks they
perform via the HRIS.
 Data reporting was the top result, with 78%
of surveyed HRIS users noting that they use
their system to generate reports of strategic
and demographic employee data.
 Payroll management was also a top response,
with 68% of surveyed HRIS users reporting
that their system is used to process payroll
in their businesses.