Human Resource Planning

Human Resource Planning

Human resource planning involves getting the right number of qualified people into the right jobs at the right time so that an organization can meet its objectives. It is the system of matching the supply of people with the openings the organization expects over a given time frame.

Objectives of HRP
HR planning must be

linked to the organizations overall strategy to

compete domestically and globally

translated into the number and types of workers

needed

senior HR Staff need to lead top management in

planning for HRM issues

Linking Organizational Strategy to HR Planning

STRATEGIC DIRECTION HR LINKAGE

mission

determining organizations business setting goals and objectives determining how to attain goals and objectives determining what jobs need to be done and by whom matching skills, knowledge, and abilities to required jobs

objectives and goals

strategy

structure

people

Planning and Forecasting

Employment or Personnel Planning

The process of deciding what positions the firm will have to fill, and how to fill them. The process of deciding how to fill the companys most important executive jobs. Overall personnel needs The supply of inside candidates

Succession Planning

What to Forecast?

The supply of outside candidates

The Process of HRP

Forecasting the Demand for Human Resources

Demand forecasting is the process of estimating the quantity and quality of people required to meet future needs of the organization. Demand forecasting must consider several factors.

Forecasting Techniques

Ratio Trend Analysis Regression Analysis Computerized Forecasts

Ratio Trend Analysis

It involves studying past ratios and forecasting future ratios making some allowances for the change in the organization or its methods.

Regression Analysis
It involves plotting a graph to help identify the relationship between two variables.
Size of Hospital (Number of Beds) 200 300 400 500 600 700 800 900 Number of Registered Nurses 240 260 470 500 620 660 820 860

Scatter plot

Determining the Relationship Between Hospital Size and Number of Nurses

Computerized Forecasts

The use of software packages to determine of future staff needs by projecting sales, volume of production, and personnel required to maintain a volume of output.

Preparing Manpower Inventory

( Supply Forecasting )
Supply forecast determines whether the HR department will be able to procure the required number of personnel. Specifically, supply forecast measures the number of people likely to be available from within and outside an organization.

Internal Supply
Some of the important forecasting techniques include: Staffing Table Skills Inventory Replacement Chart

Staffing Table
Flex Regular Regular On Full Time Part Time Call 5 3 2 2 5 3 9 10 4 TOTAL TOTAL (peak(off-peak) season) 7 8 5 16 18 9

Department

Mainten ance Pro Shop

Food & Beverage

Administ ration TOTAL

4
14

3
13

6
29

7
27

13
56

Skills Inventory

Replacement Chart

External Supply
Factors affecting the Supply of Outside Candidates

General economic conditions Expected unemployment rate Periodic forecasts in business publications Online economic projections

Sources of Information

Sources of external supply vary from industry to industry, organization to organization and also from one geographical location to another.

Determining Manpower Gaps

The existing number of personnel and their skills are compared with the forecasted manpower needs to determine the qualitative and quantitative gaps in the workforce. A reconciliation of of demand and supply forecasts will give the number of people to be recruited or made redundant as the case may be. This forms the basis for preparing the HR plan.

Formulating HR Plans

The HR requirements thus identified need to be translated into concrete plans backed up by detailed policies, programs and strategies. These plans include Recruitment plan Redeployment plan Redundancy plan Training plan

Productivity plan
Retention plan

Linking Organizational Strategy to HR Planning

demand for labor demand exceeds supply

Outcomes

define organization mission

establish corporate goals and objectives

assess current human resources -- - - - - - - - - - - - HRMS: job analysis

recruitment

compare demand for and supply of human resources

supply exceeds demand

supply of human resources

decruitment