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Human Resource Planning

• In simple words , HRP is a process of striking balance between human resources

required and acquired in an organization.

• HRP is a process by which an organization determines how it should acquire its

desired manpower to achieve the organizational goal


“Human Resource Planning is the process- including forecasting, developing, and

controlling - by which a firm ensures that it has the right number of people and right kind
of people, at the right place, at the right time, doing things for which they are
economically most useful”.

HRP as a Process

 Forecasting
 Inventorying
 Anticipating Manpower Problems
 Planning

 Forecasting future personnel requirements, either in terms of mathematical

projections, or of judgment and estimates based upon specific future plans of the

 Inventorying, presents manpower resources and analyzing the degree to which

these resources are employed optimally.

 Anticipating Manpower Problems by projecting present resources into the future

and comparing them with the forecast of requirements , to determine their
adequacy, both quantitatively and qualitatively.

 Planning the necessary programmes of requirement, selection, training,

employment, utilization, transfer , promotion, development, motivation and
compensation so that the future manpower requirements will be duly met.

Need / Importance of Human Resources Planning (HRP)

• To ensure optimum use of manpower and capitalize on the strength of Human


• To forecast future requirements.

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• To face the challenges the business is facing due to turbulent and hostile
environmental forces.

• To face Rapid Technological Changes.

• To face Organizational Changes.

• To determine recruitment/induction levels.

• To know the cost of manpower.

• To assess accommodation requirements.

Objectives of HRP

• To link HRP with organizational planning.

• To ensure the optimum use of human resources currently employed.

• To access or forecast future skills requirements

• To provide control measures to ensure that necessary recourses are made available
as and when required.

• To determine recruitment levels.

• To anticipate redundancies and avoid unnecessary dismissals.

• To determine optimum training levels.

• To provide a basis for management development programmes.

• To deploy the manpower in new projects.

• To decide whether certain activities need to be subcontracted.

Summary of objectives

• Forecasting Human Resources Requirements: HRP is essential to determine the

future needs of HR in an organization. In the absence of this plan it is very difficult to
provide the right kind of people at the right time.

• Effective Management of Change: Proper planning is required to cope with changes

in the different aspects which affect the organization. These change needs
continuation of allocation/ reallocation and effective utilization of HR in

• Realizing the Organizational Goals: In order to meet the expansion and other
organizational activities the organizational HR planning is essential.

• Promoting Employees: HRP gives the feedback in the form of employee data which
can be used in decision-making in promotional opportunities to be made available
for the organization.

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• Effective Utilization of HR: The data base will provide the useful information in
identifying surplus and deficiency in human resources.

Factors which affects HRP

 Government Influence
 Social Factors
 Economic Factors
 Technological Changes ...... Refer HRM by Subba Rao

Five Phases of HRP

1. Analyzing: What are the key human resources information needed/

2. Forecasting: Demand versus supply analysis.
3. Planning: Identification of strategy.
4. Implementing: Implementing the strategy.
5. Evaluating: Feedback on effective of outcomes.

The Human Resource Planning Process

(1) Forecasting Future Human Resources Needs:

(2) Projecting Human Resources Supply:

(3) Comparing Forecast Needs with

Projection Supply:

(4) Planning Policies and Programs :

(5) Evaluating HRP Effectiveness:

Human Resource Forecasting Techniques

1. Demand Forecast : External Factor & Internal factor

2. Supply Forecast : Supply forecasting measures the number of people likely to be
available from within and outside an organization
3. Judgment & Experience :
4. Raito-trend Analysis :
5. Work Standard Data : Comprehensive sets of data for man-hours or units to
perform various productivity tasks are being set as work standard by
6. Delphi Technique:

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Job Description

• Job description is an organized, factual statement of duties and responsibilities of a

specific job. It involves classifying and summarizing data according to specific duties,
task related behavior, personnel requirements, and other descriptive characteristics
of the job.

• Job description defines the scope of job activities, major responsibilities, and
positioning of the job in the organization.

Components of Job Description

1. Job Identification : It include the job title, alternative title, department, division,
plant and code number of the job. The job title identifies and designates the job

2. Job Summary: First, it provides a short definition which is useful as identification

information when job title is not adequate. Second, it gives the reader ‘quick capsule
explanation’ of the content of job.

3. Job Duties: It give us a comprehensive list of duties with the indication of the
frequency of the occurrence or percentage of time devoted to each major duty.

4. Relation to other jobs : It helps to locate the job in organization job hierarchy. It also
gives an idea of the vertical relationship of work flow an procedure.

5. Supervision indicates the number of persons to be supervised along with their job
titles, and the extent of supervision involved- general, intermediate or closed

6. Machine tools and equipments define each major type or trade name of the
machines, tools and raw material used

7. Working conditions usually give the information about the environment in which job
holder must work.

8. Hazards give the nature of risks to life and their possibilities of occurrence. title,

Job Specification

• A job specification is a statement of the minimum acceptable human qualities

necessary to perform a job properly. It translates the job description into terms of
the human qualification which are required for successful performance of a job.

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Components of Job Specification

• Physical characteristics which include health, strength, endurance, age-range,

height, weight, vision, voice, eye, hand, foot co-ordination, motor co-ordination,
colour discrimination.

• Psychological characteristics or special aptitudes which include qualities such as

manual dexterity, mechanical aptitude, ingenuity, judgement, resourcefulness,
analytical ability, mental coordination and alertness.

• Personal characteristics or traits of temperament such as personal appearance,

good manners, emotional ability, aggressiveness or submissiveness, extroversion or
introversion, leadership, co-cooperativeness, initiative and drive, skill in dealing with
others, unusual sensory qualities of sight, hearing, adaptability, conversational ability

• Responsibilities which include supervision of others, responsibility for production,

process and equipment, responsibility for safety of others, responsibility for
generating confidence, responsibility for preventing monetary loss.

• Other features of demographic nature which are age, sex, education, experience
and language ability.

Job Analysis

• Meaning: Job analysis is the process of systematically analyzing the activities of each

• Definition : “Job Analysis is a process of determining, by observation and study, and

reporting pertinent information relating to the nature of a specific job.”

• Job Description: A description of what a job-holder does. Job Specification: Those

personal characteristic a job holder must possess to be successful on the job.

• Job analysis is a systematic exploration of activities within a job. It is basic technical

procedure, used to define duties, responsibilities and accountabilities of a job.

Methods of Job Analysis

• A combination of above approaches is used depending upon the situation and the
organization. The methods of collecting job related data are:

1. Observation Method: Observation of work activities and worker behavior is a

method of job analysis which can be used in combination with other methods of job

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• Direct Observation

• Critical Incident Technique : The Critical Incident Technique ( CIT) is a set of

procedures used for collecting direct observations of human behavior that
have critical significance and meet methodically defined criteria.

2. Interview Technique: Interview technique involves discussion between job analysts

and job occupants or experts. Job analysis data from individual and group interview
with employees are often supplemented by information from supervisors of
employees whose jobs are analyzed .
3. Functional Job Analysis: Functional job analysis is a method of job analysis that uses
precise terminology and structured job analysis schedule to record information
regarding job content and career planning.
4. Questionnaires: Questionnaires can be filled out by employees on an individual basis
or by job analysts for a group of employees. Questionnaires are relatively
inexpensive to administer and data can be collected in a very short time. However,
developing a questionnaire takes time and some degree of familiarity with the job in
5. Job inventories or Checklists: Job inventories or checklists are structured
questionnaires that require a respondent to check or rate behavior and/or worker
character necessary to a particular job or occupation. Job inventories can be either
task oriented (job oriented) or qualification oriented.
6. Technical Conference Method: In this method, services of supervisor who possess
extensive knowledge about a job are used. The analyst initiates discussion which
provides details about the job. This method lacks accuracy because actual job
holders are not involved.
7. Diary Method: This method requires the job holders to record in details their
activities each day. If done faithfully this technique is more accurate and eliminates
error caused by memory lapses the job holders makes while answering
questionnaire and checklists.

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Process of Job Analysis

Step-1Strategic Choices

 The extent of employee involvement in Job analysis

 The level of details of the analysis
 Timing and frequency of analysis:
 Past oriented v/s future oriented job analysis
 Sources of job data

Step 2: Information Gathering

 This step involves decision on three issues: What type of data is to be collected? What
methods are to be employed for data collection? Who should collect the data?

Step 3: Information Processing

 Collected job information is processed for job description & job specification

Step 4: Job Description

 Written statement describing main features of job as well qualification for that position.

Step 5: Developing Job Specification

 Conversion of JD in JS. Mention personal qualities, traits, skills and background is necessary
for getting the job done.

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