Human Resource

Planning
HUMAN RESOURCE PLANNING
Right number of people with right skills at
right place at right time to implement
organizational strategies in order to achieve
organizational objectives

In light of the organizations objectives,
corporate and business level strategies, HRP
is the process of analyzing an organizations
human resource needs and developing plans,
policies, and systems to satisfy those needs.
HUMAN RESOURCE PLANNING
Ensuring HR
resource supply
meets human
resource
demands
Setting human
resource
objectives and
deciding how to
meet them
Think
Does any organization face problems which
can be sorted with HRP?
Is HRP a part of any organization, department,
functional stream in an organization?
Does HRP have any role in entrepreneurial
venture?
HRP Types
Hard
Quantitative analysis in
order to ensure that the
right number and right
sort of people are
available.
Soft
Ensuring the availability of
people with right type of
attitude and motivation
who are committed to the
organization and engaged
in work as well as behave
properly.
Soft
Forecasting Define where the
company is now
Analysis
Monitoring and
review
Define where it wants to
be in the future
Analysing the external
environment, influences
and trends
Formulating plans to
implement necessary
changes
Hard
Macro HRP Population planning and
control, literacy and education, health and
medical care, housing.

Micro HRP
Dimension of HDI
A long and Healthy life
Knowledge
A decent standard of living
HDI
Composite measure of the three dimensions:
Life expectancy
Adult literacy
Standard of living of human development
Aim of HRP
Attract and retain competent employees
Anticipate the problems of potential surpluses
or deficit of people.
Develop a well trained and flexible workforce.
Reduces dependence on external recruitment
when key skills are in shortage.
Improve the utilization of people by
introducing more flexible systems of work
The HR Planning Cycle has
four general stages:
1. Forecasting future demand of HR
2. Forecasting future internal supply
of HR
3. Forecasting future external supply
of HR
4. Formulating responses to the
forecasts
Resourcing
Strategy
Scenario
Planning
Labour
Turnover
Analysis
Demand /
Supply
forecasting
Business
Strategic
Plans
Human Resource
Plan
Work environment
analysis
Operational
effectiveness
analysis
Resourcing Retention Flexibility Productivity
Work
Environment
HRP Process
Stage 1: Forecasting Future Demand (2)
Techniques Used to Forecast Demand:
1 Systematic Techniques
Time series or ratio trend analysis
Work-study approach
Productivity trend analysis
2 Managerial Judgement
3 Working back from costs

Stage 2: Forecasting Internal Supply
Involves identifying/acknowledging the
existing staff employed by an organisation
department by department
grade by grade
Involves:
Skills Audit
Predicting Staff Turnover
Internal promotion analysis
Stage 3: Forecasting External Supply
Filling the GAP using the external labour market:
Local
National
International

HR Planners must gain an understanding of the
dynamics of the Labour Market to update plans
as trends change and develop accordingly.




Stage 3: Forecasting External
Supply / Dynamics of the Labour Market
The following statistics can be most useful
General population density
Population movements
Age distribution
Social class
Unemployment rates
School leavers
Proportion with higher education
Skill levels
Skills shortages

Sources of Info include: Labour Market Trends, Labour
Market Quarterly, Annual Social Trends survey, Chamber of
Commerce, Training and Enterprise Councils

Stage 4: Formulating Responses to
the Forecasts/Action Planning
Forecasting should identify any potential
mismatch between future demand and supply
If demand exceeds supply develop plans to
match the shortfall
If supply is likely to exceed demand develop
plans to reduce the surplus
(Taylor, 2002; Beardwell and Claydon, 2007)
Labour Turnover
(Number of leavers in a specific period (usually 1
year) * 100)/ Average no. of employee during
the same period
Stability Index
(No. with 1 years service or more *100)/
Number employed 1 year ago
Alternatives to Deal with Employee Shortages and Surpluses
Rightsizing

To reduce (as a workforce) to an optimal size



Thank You