Human Resource

Planning
2
Contents…

Meaning Need Process

2
Manpower Planning

Meaning

• The process of getting the right number of

qualified people into the right job at the right
time so that an organization can meet its
objectives
• Also called as Employment/Personnel
planning/ Workforce Planning/ Human
Resource Planning

3
 Key Questions in HRP?

1. How many employees do we need ----- in terms of numbers?

2. What are we looking for in terms of skills, knowledge,
experience, abilities etc… in terms of quality?
3. Where do we need the employees – the location, the division,
the department?
4. When do we need the employees – immediately, in the next 3
months, 6 months etc…?
5. How long do we need them – for a limited period or for a long
period?

4
 HRP Process
1 Situation analysis or environmental scanning

2 Forecasting demand for human resources

3 Analysis of the supply of human resources

4 Determining manpower gaps

5 Development of Action plans

6
The Human Resource Planning Process
1 2 3
Strategic planning Human Resource Demand Human Resource supply

• Technological forecasts • Annual employment • Existing employment

Compared
• Economic Forecasts requirements with
category
• Market forecasts • Numbers • After application of
• Organizational planning • Skills expected loss and attrition
• Investment planning • Occupation categories rates
• Annual operating plans

4 Variances
If none
End

If surplus If shortage

Decisions – layoff, Decisions – overtime,

5 recruitment etc
retirement etc

End End

7
 Stage I
Situational Analysis
Environmental scanning
Strategy analysis

Technological forecasts
Economic Forecasts
Market forecasts
Organizational planning
Investment planning
Annual operating plans
8
 Stage II –
Demand Analysis

Trend Ratio
Analysis analysis
Methods
The scatter Computerized
plot forecasting

9
 Forecasting Personnel Needs
(Labor demand)
• 1 Trend analysis
• The study of a firm’s past employment needs over a
period of years to predict future needs.
• 2 Ratio analysis
• A forecasting technique for determining future staff
needs by using ratios between a causal factor and the
number of employees needed.
• Assumes that the relationship between the causal factor
and staffing needs is constant

10
Trend analysis

11
 The Scatter Plot

• 3 Scatter plot
• A graphical method used to help identify the relationship
between two variables.
Size of Hospital Number of
(Number of Beds) Registered Nurses
200 240
300 260
400 470
500 500
600 620
700 660
800 820
900 860
12
Determining the Relationship Between
Hospital Size and Number of Nurses

Figure 5–3
13
 Using Computers to Forecast
Personnel Requirements
• 4 Computerized forecasts
• The use software packages to determine future staff
needs by projecting sales, volume of production, and
personnel required to maintain a volume of output.
• Generates figures on average staff levels required to meet
product demands, as well as forecasts for direct labor, indirect
staff, and exempt staff.
• Typical metrics: direct labor hours required to produce one
unit of product (a measure of productivity), and three sales
projections—minimum, maximum, and probable.

14
 Stage III
Forecasting supply of candidates

Supply of internal Supply of external

candidates candidates
Skills inventories (manual &
computerized)

Replacement charts/cards Labor market analysis

Markov Analysis

15
Forecasting supply of candidates….

Skills • It is an assessment of the knowledge, skills,

abilities, experience and career aspirations of
Inventory each of the current employees (Ref. Slides 17-19)

Replacement • It is a visual representation of who will

replace whom in the event of a job
Chart opening. (Slide 20)

Markov • Uses historical information from personnel

movements of the internal labor supply to
analysis predict what will happen in the future (Slide 21)

16
SKILLS INVENTORY EXAMPLE - Manual

17
Skills inventory - Computerized

Data summarizing Data summarizing

the employee’s status of present
past skills

Data that focus on

the future

18
 • Titles and brief job descriptions held in the last 2-5 yrs
Data summarizing • Critical skills needed or developed while in these positions –
(manual; cognitive; creative)
the employee’s • Educational achievements (major; minor; job relevant courses)
past • Significant special projects accomplished in the last three years
(this and previous organization)

Data summarizing • Skill-related highlights: last three performance appraisals

status of present • Employee’s perception of what is done well on present job
• Same data as above from employee’s supervisor
skills

• Personal career goals – 1 yr/ 3 yrs

Data that focus on • View of the individual’s present superior as to what the employee
could be prepared to become
the future • Specific training to motivate – (on-the-job; off-the-job; classroom;
experiential)

19
Replacement charts

Management Replacement
Chart Showing Development
Needs of Future Divisional Vice
President

20
Markov analysis
A hypothetical retail company

21
 Stage IV
Determining Manpower Gaps……

22
 Stage V
Developing Action plan /
Formulating HR Plans

Recruitment Redeployment Redundancy

plan plan plan

Productivity
Training plan Retention plan
plan

Control points
23
Summary

• HRP - Right person at the right job at the right time

• HRP Process
1. Strategic analysis
2. Demand Analysis
3. Supply analysis
4. Gap Analysis
5. Action Plan

24