Chapter 2: Human Resource Planning
work, lower production, less job satisfaction, high
Human Resources Planning
 can be defined as the process of determining
manpower requirements and the means for
meeting those requirements in order to carry out
the integrated plan of the organization.
 Is a double-edged weapon. If used properly, it
leads to the maximum utilization of human
resources, reduces excessive labor turnover and
high absenteeism, improves productivity and aids
in achieving the objects of an organization.
Human Resources Planning consists of a series
of activities:
1. Forecasting
2. Making an Inventory
3. Anticipating
4. Planning
Need and Importance of Human Resources
Planning
• HR Planning is the process by which a
management determines how an organization
should move from its current manpower position
to its desired manpower position. Through
planning a management strives to have the right
number and right kinds of people at the right
places, at the right time, to do things which result
in both the organization and the individual
receiving the maximum long-range benefits.
Faultily used, it leads to disruption in the flow of
cost of production and constant headaches for
the management personnel.
Objectives of Human Resource Planning
1. Ensure optimum use of human resources
currently employed;
2. Avoid balances in the distribution and
allocation of human resources;
3. Assess or forecast future skills requirements
of the organization’s overall objectives;
4. Provide control measure to ensure availability
of necessary resources when required;
5. Control the cost of aspect of human
resources;
6. Formulate transfer and promotion policies.
Steps in Human Resource Planning
1. Analysis of Organizational Plans and
Objectives
2. Forecasting Demands for Human Resources
a. To determine and to identify present and
prospective needs of human resource,
b. To discover and recruit the required number
of persons.
c. To select the right number and type from
available people.
d. To hire and place in the positions for
which they are qualified,
 e. To provide information to the selected people
about the nature of work assigned to them,
f. To promote or transfer as per needs and the
performance of employees,
g. To denote the employees are disinterested or
their performance is not up to the mark,
h. To terminate if they are not needed or their
performance is below standard and shows no
hopes of improvements.
3. Forecasting Supply of Human Resources
4. Estimating Manpower Gaps
5. Matching Demands and Supply
Types of Human Resources Planning
In most developing countries the development of
human resources has been regarded as one
amongst many objectives of long-term economic
growth.
As a result even the objectives of economic
planning and the priorities thereof began to be
shifted away from purely growth-oriented
development strategies to those that recognize and
partly remedy the past neglected of such social
sectors like population planning, health, education,
housing, social security and other social services.
The Major Components of Human Resource
Planning based on environmental analysis and
adjustment are:
• Population Planning Employment Planning
•Educational Planning
•Other aspects of Social and Human
Development
The Objectives of Human Resource Planning at
the micro level are to ensure that the
Organization:
1. Obtains and retains the quantity and quality
of human resources it needs at the right time and
places; and
2. Makes optimum utilization of these
resources.
Corporate Planning and Human Resource
Planning Process
HR Planning constitutes an integral part of
corporate plan and serves the organizational
purposes in more ways than one.
1. Capitalize on the strengths of their manpower
2. Determine recruitment levels
3. Anticipate redundancies
4. Determine optimum training levels
 5. Serve as basis for management development
programmes;
6. Cost manpower for new projects;
7. Assist productivity bargaining
8. Assess future requirements
9. Study the cost of overheads and value of
series function; and
10. Decide whether certain activities need to be
subcontracted.
In HR Planning the future can be classified into
three periods:
a) The short-range or immediate future- refers to
current situation and experiences and may even
conern issues such as overtime and replacements.
b) The mid-range has different time span various
companies. It can be as short as a few months or
as long as several years. Most would agree upon 2-
3 years period.
c) The long-range future plan could be 5 years,
while 10-15 years span could be used for
perspective plan.
Human Resource Information System
HRIS is an important element in human
resource development. It is systems that maintain,
collect, and analyze data relating to human
resources of organization. It helps managers in
decision-making in respect of promotion, wage
fixing, recruitment, training and development. HRIS
acts as a decision support system.
Current Interest in HR Planning
Major reasons for the present emphasis on
manpower planning include the ff:
1. Employment-Unemployment Situation
2. Technological Change
3. Organizational Change
4. Demographic Changes
5. Skill Shortage
6. Legislative Controls
7. Impact of the Pressure Group
8. System Concept
9. Systems Approach
10. Lead Time