 HUMAN RESOURCE PLANNING

HRP

 The key facet of HRP is that it is proactive in

nature. It attempts to plan and what might
happen in the various domains of the
organization and to develop plans to address
these events prior to their actual happening.
HRP

 HRP is the first component of HRM strategy.

 HRP

 HRP goes far beyond simple hiring and firing.

It involves planning for the deployment of the
organization's human capital in the most
effective ways in line with organization
strategy.
HRP
 Objectives of HRP
- Prevent overstaffing and understaffing.
- Ensure that organization has right employee
in the right place at the right times.
- Provide direction to all other HR activities.
- Ensure the organization is responsive to
changes in environment.
HRP

- Unite perspectives of both line and staff

managers.
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 Types of planning.
Planning is done on two different levels.

-Aggregate planning.
- Succession planning
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-Aggregate planning.

Anticipates needs for groups of employees

in specific, usually lower level jobs to ensure
sustained growth.
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 Steps in aggregate planning.
-Step I
- Environmental Scanning
External environment
Internal environment.
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Step II
 - Forecasting the demand for employees.
- Organisation needs to consider its strategic
plan.
- Technological development
- Labor turnover
-Change in the production process, any new
initiatives.
- Promotions and transfers.
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 Most organizations rely more on the
judgment of experienced and knowledgeable
managers in determining employee
requirements.

- Bottom Up Plan
- Top Down Plan
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 Step III
 Supply forecasting
- This process involves estimating the actual number of
employees and skills these employees must have.
-Internal Supply
Availability of people internally for Promotions, transfers
– Skill inventory.
HRP
 External supply
Consists of those individuals in the labor
force who are potential recruits of the firm,
including those working for another firm.

- Level of skill being sought determines the

relevant labor market.
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 Step IV
 HR Programming (Gap analysis)
Reconcile the forecasts of the labor demand
and supply.
This process identifies the potential shortages
or surpluses of employees and the measures
to be taken to ensure that personnel demand
equals personnel supply.
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Step – V – Action programming

Includes converting an HR plan into action.

 HRP
 Step –VI – Control and evaluation.
- Deviations from the plan are identified and
actions are taken.
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 Managing HR Shortage
- In planning for anticipated shortages an
organization needs to consider whether the
shortage is temporary or permanent & then
has to come up the measures.
HRP

 Measure to overcome HR Shortages.

- recruit new permanent employees.
- Offer incentives to postpone retirement
-Rehire retires part-time
- Attempt to reduce turnover
-Overtime
-Outsource the work
-Contract employees
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 Hire temporary employees

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 Strategies for managing Surpluses
- Stop Hiring or recruiting
- Do not replace those who leave.
- Offer early retirement incentive
- Reduce work hours
- Leave of absence
- Lay offs
- Retrenchments
- Reduce outsourcing
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 Succession Planning.
SP involves identifying key management
positions that the organization can not afford
to have vacant.
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 Succession planning serves two purposes

- It facilitates the transition when an employee
leaves.
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- Secondly succession planning identifies

development needs of high potential
employees
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 Traditional Succession Planning utilizes a
relatively simple tool called replacement
chart.
 RC identifies
- key positions
-Possible successors for these positions
- Whether each potential successor has
background to assume the job responsibilities
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- Expected time it will take for the potential

successor to be ready.
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 Some Organisation are much more
systematic about their SP.

 Their replacement chart may contain specific

skills,competencies,and experiences rather
than subjective time readiness.
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VP-Human Resource

SM – Employee
SM - HRD SM-Compensation
Relations
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 Succession Planning helps not only to fill the
key positions but also it identifies the training
and development needs of the managers.
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 Succession planning investment-oriented
approach.
 Though the benefits of a well –developed
succession planning can be siginficant,such
programme can also involve significant cost.
 Employer has to that there is at least one
individual to assume every critical position if
something prevents the incumbent to continue.
HRP
 The more prepared an individual is for a
promotion that he or she does not receive,
the greater the possibility that he might seek
such position elsewhere.
 Result is organization invests on individual
and competitor gets the benefits.
HRP

 Another key issue is to whether or not disclose the

promotion well in advance.
 If we disclose,
-Employees can be motivated and can be retained.
- But he may develop unrealistic expectations.
- If we don’t disclose,
- Allows flexibility as business needs change.
- High performers may leave the organization.
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 HR Policies
 Human resource management policies are vital for
organizations who are serious about resolving HR
issues and finding HR solutions.
 Policies provide guidelines for action for people
management & for the development of HR programs
and practices.
 It provides the clear guidelines to the various HR
strategies.
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 It gives transparency and clarity.
 Avoids lawsuits.
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 Steps involved in the development of policies.
- Identification of needs.
- Goals of the HR policies
- Development of the HR policies
- Review of the policies
- Submit the policy to the management for their review
& support.
- Review of legal implications
- Implementations.
 This deals with how all the other HR activities
implemented.Thus it is a significant SHRM
activity.