Human resource planning

CHAPTER I

Human resource planning

Systematically forecasts an organizations future demand for and supply of employees Process for determining and assuring that the organization will have an adequate number of qualified persons available at the proper time, performing jobs which meet the needs of the enterprise and which provide satisfaction for the individuals involved If the organization is not staffed with the right number and type of people, strategic, operational and functional goals may go unmet

Human resource planning

There is no single right approach to HR planning, nor it is static An ongoing process Management assume that it could always obtain the personnel it required whenever it needed them, for the most part firms did not engage in formal human resource planning Formal personnel planning is essential for corporations

Reasons for HR Planning

1.

2.

3.
4.

Future personnel needs Coping with change: competitive forces, markets, technology, products and government regulation etc changes and generate changes in job content, skill demands , number and types of personnel High talent personnel Strategic planning: modern companies engage with the strategic planning, and HR planning is an essential component for strategic planning

Reasons for HR Planning

5.

6.

Equal employment opportunity Foundation for personnel function: personnel planning provide essential information for designing and implementing personnel activates such as recruitment, selection, transfers, promotions, layoffs and training

Human Resource Planning Process

External Environment Internal Environment

Strategic Planning

Human Resource Planning

Forecasting Human Resource Requirements Comparing Requirements and Availability Surplus of Workers Restricted Hiring, Reduced Hours, Early Retirement, Layoff, Downsizing Forecasting Human Resource Availability Shortage of Workers Recruitment Selection

Demand = Supply
No Action

HR Planning process

1. 2. 3. 4. 5.

HR planning should be tied with the long range planning of the organization Goals and plans of organization Current human resource situation Human resource forecasting Implementation programs Audit and adjustment

Goals and plans of organization

HR staff cannot make useful plans, unless they have data on possible corporate expansion, new products, new plants, new markets and so on Analyze and evaluate environmental influences Strategic planning, public policy, social trends, economic conditions, technology, markets conditions, strengths and weaknesses of organization, projected outputs for planning periods

Current Human Resource Situation

Preparing an inventory called skill inventory or a manpower information system Skill inventory consists of up to date information regarding the qualification of selected categories of personnel Skill inventory: number of people grouped by job, department, organization level, location, age, education in service training completed and performance

Human resource forecasting

Present workforce, project requirement and layoffs, promotions and quits for planning periods Demand for people: translate plans and forecast for organization into demand for employees for planning periods Comparison of demand with supply Generally manpower planners must use a Varity of techniques to project future personnel need

Current personnel date----Managerial Level 5 4 3 2 1 Professiona l Level 4 3 2 1 1 6 34 97 185

Retirem Other ents losses

Total losses

Estimated personnel available

1 1 6 15 20

0 0 1 6 34

1 1 7 21 54

0 5 27 76 131

17 27 46 39

2 4 1 0

1 4 9 10

3 8 10 10

14 19 36 29

Implementation of programs

Recruitment selection and placement: , performance appraisal, career planning, transfer, promotion, layoff, training and development, motivation and compensation

Audit and adjustments

Measure implementation progress, compare with plan, take corrective action. Change human resource plans are altered. Periodically updates skills inventory, forecast, and implementation programs

Recruitment

The process of finding & attracting capable individuals to apply for jobs. The process of recruitment begins with announcement of job & ends when applications are submitted. The result is a pool of candidate from which new employees are selected

HR Planning Alternative to Recruitment

Overtime Outsourcing

Recruitment

Internal sources

Recruitment Process
Application Blanks/forms Recruited Individuals

External Resources

Internal Methods

External Methods