Human Resource Planning
HUMAN RESOURCE PLANNING
DEFINITION OF HRP
“A process by which an organisation should move from its current manpower position to desired manpower position. Through planning the management strives to have the right number, right kind of people at right place and at right time, doing things which results both organisation and individual receiving maximum long run benefits.” - E.W. Vetter
“Human resource planning is a process of determining and assuming that the organization will have an adequate number of qualified persons, available at the proper times, performing jobs which meet the needs of the enterprise and which provide satisfaction for the individuals involved”. - Beach
IMPORTANCE OF HRP
Future Personnel Needs-Planning is significant as it helps determine future needs i.e. VRS
Coping with change-HRP enables an enterprise to cope with changes in competitive forces , markets, technology, products and government regulations
Creating Highly Talented Personnel-Creation of highly specialized Workforce leading to frequent shortages in the organization
Protection of Weaker Sections-A well conceived personnel planning programme would protect the interest of special class of Personnel i.e. SC/ST/PH
Labour Laws-To cope with labour laws we need HRP.
OBJECTIVES OF HRP
To ensure optimum use of existing H R
To forecast future requirements of H R
To provide control measures for demand and supply
To link HRP with organizational planning
To identify the gap between ,the existing HR and required HR and fulfill that GAP
To anticipate the impact of technology on jobs & HR
To determine the level of recruitment and training to meet the needs of expansion and diversification programs
BENEFITS OF HRP
Top management has a better view of the HR Dimensions of business decision
Cost saving as the management can anticipate imbalances before they become unmanageable and expensive
Time available to locate talent
Helps to take steps to improve human resource contribution.
Helps to foresee changes in values and attitude of human resources
Helps to foresee the need for redundancy and to provide alternative employment in consultation with trade unions.
It provide the scope for advancement and development of employees through training.
FORECASTING TECHNIQUES
- MANAGERIAL JUDGEMENT
- WORKSTUDY TECHNIQUES
- STATISTICAL TECHNIQUE
- DELPHI TECHNIQUE
- Managerial Judgment
In this technique the managers sit together, discuss and arrive at a figure which would be the future demand for labour.The technique may involve ‘bottom-up’ or ‘ top down’ approach’
- Work study Technique
This technique can be used when it is possible to apply work measurement to calculate the length of operations and the amount of labour required.
Planned output for Next year- 50,000 Units
Standard hours per unit -2
Planned hours required 50,000*2=1,00,000
Productive hours per worker in the year=2,000
Number of workers required= 1,00,000/2,000=50
- Ratio Trend Analysis
Example-:
Level of production in present yr = 2000 unit
Present no. of employees = 50
Ratio is 1:40
Estimated production for next yr = 3000 unit
Employees required relative to present ratio
= 3000 / 50
No. of employees = 1/40 * 3000
- Delphi Technique
It seeks estimates of personnel needs from a group of experts. The HRP experts act as intermediaries, summarize the various responses and report the findings back to the experts. Summaries and surveys are repeated until the experts opinion begin to agree. the agreement reached is the forecast of the personnel needs. No Interaction among experts
HR SUPPLY FORECAST
Supply forecasting measures the number of people likely to be available from within an outside an organization, after making allowance for absenteeism, internal movements and promotions, wastage and change in hours and other conditions of work. The supply analysis covers:
(1) Existing Human Resources
(2) Internal sources of supply
(3) External sources of supply
(1)Existing Human Resources
Analysis of present employees is greatly facilitated by HR audits. HR audits summarizes each employee’s skills and abilities. The audits of non-managers are called skill Inventories and those of the management are called management Inventories.
Skills Inventories-
Information about non-managers. They are :
Personal Data-Age, sex, marital status
Skills-Education, job experience, training
Special Qualifications-membership in professional bodies, special achievements.
Company Data-Benefit plan data, retirement information, seniority
Capacity of an individual-psychological test score, health
Management Inventories
These include:
Work History
Strengths
Weaknesses
Promotion potential
Career goals
Personal data
Number and types of employees supervised ,total budget managed
Previous management duties
(2)INTERNAL SUPPLY
Inflows and outflows
Turnover rate:
Number of separations during one year/ Average Number of Employee during the year*100
Conditions of work and Absenteeism-Working hours, overtime, timing of holidays, shift system
Absenteeism
man days lost due to absenteeism
man days worked +man days lost
Productivity level-any change in productivity would affect the number of persons required per unit of output
Movement among jobs
(3)EXTERNAL SUPPLY
Colleges and Universities
Consultants
Advertisements-applications
BARRIERS TO HRP
Time Consuming
Financial forecasting takes precedence over HRP
Uncertainties
Non-involvement of operating managers
Inadequate Information system
Trade unions
Employers
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