Human Resource Planning

HR Planning
HR Planning is the process of examining an organizations
future human resource need.
It involves:
Identifying and acquiring the right number of people with the proper skills
Motivating them to achieve high performance
Creating interactive links between business objectives and resource
planning activities
Human Resource Planning (HR Planning) is both a process and a set of plans.
It is how organizations assess the future supply of and demand for human
resources.
An effective HR plan also provides mechanisms to eliminate any gaps that may
exist between supply and demand. Thus, HR planning determines the number
and types of employees to be recruited into the organization or phased out of it.
Dynamic by nature, the HR planning process often requires periodic
readjustments as labor market conditions change.
Human Resource Planning
Technological forecasts
Economic forecasts
Market forecasts
Organizational planning
Investment planning
Annual operating plans
Annual employment
requirements
Numbers
Skills
Occupational categories
Existing employment
inventory
After application of expected
loss and attrition rates
Variances End
If surplus If shortage
Decisions

Layoff,
retirement,
etc.
Decisions

Overtime,
recruitment,
etc.
End End
Strategic Planning Human Resource Demand Human Resource Supply
Compared
with
If none
Action
Decisions
HRP Process
All effective HR planning shares certain features. It is generally agreed that HR
planning involves four distinct phases or stages:
Situation analysis or environmental scanning
Forecasting demand for human resources
Analysis of the supply of human resources
Development of plans for action
The HRP Process
Why is HRP important ?
Even an imperfect forecast is better than none at all
Anticipating needs prepare for the future gives you an edge
Address potential problems avoid skill deficiencies
What is HRP?
HRP is a sub-system of total organizational planning.
HRP facilitates the realization of the companys objectives for
the future by providing the right type and number of personnel
HRP is also called Manpower planning, Personnel planning or
Employment planning
HRP ensures that the organization has:
Right Number
Right Kind
Right Place
Right Time
Benefits of HRP
Create reservoir of talent
Prepares people for future
Expand or Contract
Cut Costs
Succession Planning
Forecasting Techniques
Managerial Judgment
Ratio trend analysis
Work Study Techniques
Delphi Technique
Flow Models
Others
Factors in Demand forecasting
Social factors Working conditions, Govt. regulations,
environmental conditions, religious, cultural.
Technological Factors
Political Factors Trade restrictions, War etc.
Economic Factors
Demand generation
Growth
Employee Turnover
Routine HR Functions
Manpower planning
Recruitment and Selection
Training & Development
Appraisals Performance Management
Transfers / Promotions
Compensation and Benefits
HR Process Mapping
Business
Planning
HR Policy HR
Planning
Recruitment
Selection
Performance
Management
Compensation
Management
Talent
Management
Training
Development
HR Systems
Data Mgmt
Employee
Relations
Occupational
Health and Safety
Manpower Planning
Business Needs
Financial Feasibility
Future Plans
Brand Name
Manpower Planning
Why does the position exist?
Temporary Replacement
Permanent Replacement
Creation of new position
Manpower Planning
Do we need to review the position?
Current and Ongoing need
Sufficient budget
Is the position description current
Appropriate current level
Is a full time employee required?
Manpower Planning
What about existing staff?
Do we have a succession plan for the replacement?
Does the vacancy create career development
opportunities for existing people?


Recruitment and Selection process
Business Plan
Related HR Plan
Competencies
People
Compensation and Benefits
Numbers
Current : Budgeted and Actual
Future : Short Term and Long Term
Three Conditions
Current = Future
Current > Future
Redundancy Planning
Current < Future
Recruitment Plan

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