MBA, LECTURE-4

HUMAN RESOURCE PLANNING

Introduction: Human Resource Planning is

concerned with the flow of people into, through, and out
of an organisation. HR planning necessarily involves a
focus on employees, changing skill levels and the way in
which those skills match organisational needs.
Definition: (IPD)The systematic and continuing
process of analysing an organisation`s human
resource needs under changing conditions and
developing personnel policies appropriate to
the long term effectiveness of the
organisation. It is an integral part of corporate
planning and budgeting procedures since HR
costs and forecasts both affect and affected by
long-term corporate plans
ROLE OF HUMAN RESOURCE PLANNING

To determine and facilitate the levels

and types of recruitment that may be
required
To assess current levels and attributes
of staffing and determine whether
reductions are necessary
To assess whether redeployment can be
used as an alternative to downsizing
To identify the need for training and
development
To assess current employment costs in
relation to other organisational costs.
 HARD AND SOFT HR PLANNING

HARD HRP SOFT HRP

According to Torrington and Hall
(1991).
Forecasting Define where the
company is now

Analysis Define where it wants to

Monitoring and be in the future
review Analysing the external
environment, influences
and trends
Formulating plans to
implement necessary
changes
 THE PROCESS OF HRP
1. COLLECT INFORMATION & ANALYSIS OF EXISTING
RESOURCES
2. FORECAST DEMAND FOR HUMAN RESOURCES
-SHORET AND LONG TERM
-AGGREGATE OR INDIVIDUAL POSITIONS
3. FORECAST SUPPLY OF HUMAN RESOURCES
-INTERNAL SUPPLY
-EXTERNAL SUPPLY
4. PLAN AND CONDUCT NEEDED PROGRAMS
-Increase or reduce workforce size
-change skill mix
-develop managerial succession plans
-develop career plans
5. MONITORING THE IMPLEMENTATION OF THE PLAN
-Where the forecasts accurate?
-Did the programs meet the needs?
 1. ANALYSIS OF THE WORKFORCE

INVENTORIES OF THE EXISTING WORKFORCE

SUCCESSION PLANS-to determine the type and
calibre of managers available to succeed senior or
middle managers who retire or leave
MOVEMENT OF EMPLOYEES-promotions and transfers
USE OF STAFF-overtime working, Absenteeism,
ineffective or wasted time or efficiency in the use of
labour
LABOUR TURNOVER-an analysis of the rates at which
staff are leaving employment 7 of trends of such
turnover
COSTS-to know at which point recruitment becomes
most cost-effective than increased overtime working.
 2. FORECASTING THE DEMAND FOR HR

Demand forecasting methods can be divided

into two categories
1. JUDGEMENTAL METHOD
2. MATHMATICAL METHODS
JUDGEMENTAL METHODS
-Bottom up or Unit Forecasting
-Top down Forecasting
-Delphi technique
MATHEMATICAL METHODS
-Productivity ratio:
-Direct to Indirect staffing ratio
 3.FORECAST SUPPLY OF HR

1. THE INTERNAL SUPPLY OF LABOUR

2. THE EXTERNAL SUPPLY OF LABOUR
-The external labour market
-demographic change
-labour immobility
-early retirement
-Changing employment patterns(e.g robotics
in car manufacture, computer aided
design/manufacture,JIT, e-commerce)
-Changing patterns of work (e.g part-time
workers, flexible workforce etc)
 4. PLANNINH HR PROGRAMS

1. Staff/skill shortages
-promoting existing staff, Redeployment of staff,
training
-getting more from existing staff, Job design
-External recruitment
2. Staff surpluses
-stopping recruitment
-Natural wastage, transfer, early retirements,
Reducing overtime
-Short-time working, redundancy, reducing
subcontracted work
3. Managerial succession planning
4. Career planning
5. Organisation and structure plans
6. Performance planning
 5. IMPLEMENTATION OF THE PLAN
1. ACQUISITION STRATEGIES: Which define how
the resources required to meet forecast needs
will be obtained
2. RETANTION STRATEGIES: Which indicate how
the organisation intends to keep the people it
wants.
3. DEVELOPMENT STRATEGIES:Training and
development programmes
4. UTILISATION STRATEGIES: which indicate
intentions to improve productivity and cost-
effectiveness.
5. FLEXIBILITY STRATEGIES: How the
organisation can develop more flexible work
arrangements.
6. DOWNSIZING STRATEGIES: Which define what
needs to be done to reduce the numbers
employed