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Human Resources Planning

Human resources planning is the process by which an organization ensures it has the right number and quality of employees at the right time. It involves forecasting future human resource needs and the available supply, then developing a plan to address any surpluses or shortages. The process determines staffing levels through techniques like ratio analysis, work studies, and managerial judgement to help the organization achieve its objectives.

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Risha Rehan
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45 views

Human Resources Planning

Human resources planning is the process by which an organization ensures it has the right number and quality of employees at the right time. It involves forecasting future human resource needs and the available supply, then developing a plan to address any surpluses or shortages. The process determines staffing levels through techniques like ratio analysis, work studies, and managerial judgement to help the organization achieve its objectives.

Uploaded by

Risha Rehan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Human Resources Planning

Definition :
 process by which an organization
ensures that it has the right number &
kind of people at the right place and at
the right time, capable of effectively and
efficiently completing those tasks that
help the organization achieve its overall
objectives.
Importance
1) Each Organisation needs personnel with necessary
qualifications, skills, knowledge, experience & aptitude .
2) Need for Replacement of Personnel - Replacing old,
retired or disabled personnel.

3) Meet manpower shortages due to labour turnover -


Indian Airlines, Gas Authority of India headless for 10 months.

4) Meet needs of expansion / downsizing programmes


- As a result of expansion of IT companies the demand for IT professionals
are increasing.
-PSU’s offering VRS to employees to retrench staff and labour costs.
-
5) Cater to Future Personnel Needs - Avoid surplus or
deficiency of labour.
75% of organisations are overstaffed. Redeployment of staff to other
units.

6) Nature of present workforce in relation with


Changing Environment - helps to cope with changes in
competitive forces, markets, technology, products and
government regulations.

 Shift in demand from ERP to internet programming has increased internet


programmers demand at Wipro, Infosys etc.
 ITI retrained its existing workforce according to the new technological
upgradation.
Other uses
i) quantify job for producing product / service
ii) quantify people & positions required
- determine future staff-mix
iii) assess staffing levels to avoid unnecessary
costs
iv) reduce delays in procuring staff
v) prevent shortage / excess of staff
vi) comply with legal requirements
HRP Process - Determination of Quantity of Personnel

Organisational Objectives

HR Needs Forecast HR Supply Forecast

HR Programming

HRP Implementation

Control & Evaluation

Surplus - Restricted Hiring, Shortage - Recruitment &


Lay Off, VRS, Reduced Hours Selection
Organisational Objectives & Policies
 Downsizing / Expansion
 Acquisition / Merger / Sell-out
 Technology upgradation / Automation
 New Markets & New Products
 External Vs Internal hiring
 Training & Re-training
 Union Constraints
HR Demand Forecast
process of estimating future quantity and quality of manpower
required for an organisation.

 External factors - competition, laws &


regulation, economic climate, changes in
technology and social factors

 Internal factors - budget constraints,


production levels, new products & services,
organisational structure & employee separations
Forecasting Techniques
Managerial Judgement - Managers discuss and arrive at
a figure of inflows & outflows which would cater to
future labour demand.

 Ratio-Trend Analysis - Studying past ratios, ie No. of


Workers Vs Volume of Sales, forecasting future ratios
and adjusting for future changes in the organisation..

 Work-Study Technique - Used when length of


operations and amount of labour required can be
calculated.

 Delphi Technique - From a group of experts the


personnel needs are estimated.
 Ratio trend analysis (in this we use the past data)
 In this we calculate the ratio (total output/ number of
workers, ratio of sales volume/sales persons) on the
basis of past data.
 Example:-
 Production in the year 2011-12 : 50,000 units
 Number of workers in 2011-12 : 50
 Ratio : 50/50000= 1:1000
 Number of supervisors in 2011-12 : 5
 Ratio per worker : 5/50=1/10
 Estimated production in 2013-14 : 60,000units
 Number of workers required : 60000/1000
 = 60 workers
 Supervisor : 60/10=6
 Work study method:-
 In this time & motion study are used to analyse & measure
the work being done. By this standard time required per
unit of work is decided.
 Example:-
 Planned output for next year : 50000 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 worker required : 1, 00,000/2,000
 = 50
 If 1 supervisor can control 10 workers then 50/10 = 5
supervisors will be required. This method is appropriate
for manual jobs where its possible to measure work & set
standards.
HR Supply Forecast
process of estimating future quantity and quality of
manpower available internally & externally to an
organisation.

Supply Analysis
 Existing Human Resources
 Internal Sources of Supply
 External Sources of Supply
Existing Human Resources
Capability / Skills Inventory using HR Information System
General Information -
Name: Present Address: Department:
Sex: Designation:
DOB: DOJ:
Marital Salary:
Status: Permanent Address: Grade:

Qualification -
Degree/Diploma Institution Class Year of Pass

Experience/Skills -
Job Title/ Organisation Brief Skill/
Appointment Responsibilities Specialisation

Outstanding Achievement / Additional Information -


Awards Performance Disciplinary Action
Promotions Merit Rating Absenteeism
Achievements
Career Plans:
Internal Supply
 Inflows & Outflows - The number of losses & gains of
staff is estimated.

 Turnover Rate - refers to rate of employees leaving.


= ( No. of separations in a year / Avg no. of
employees during the year ) x 100

 Absenteeism - unauthorised absence from work.


= ( total absentees in a year / Avg no. of
employees x No. of working days) x 100

 Productivity Level - = Output / Input. Change in


productivity affects no. of persons per unit of output.

 Movement among Jobs - internal source of


recruitment, selection and placement
Prof.Sujeesha Rao
External Supply
 External recruitment, selection & placement -
Advertisements, Manpower Consultants, Campus
Recruitment, Unsolicited Applications, Employee
Referrals

 Yield ratios - are estimated in the process of hiring


applications.
Hiring Process Ratio
 Ad generates 2000 applications. 200 are potential 10:1
 Out of 200, 40 attend interview 5:1
Out of 40, 30 were offered jobs 4:3
Out of 30, 20 accepted 3:2
Overall Yield Ratio (2000:20) 100:1
HR Programming

 Balancing Demand and Supply

 Vacancies filled in by the right employee at the


right time
 If shortage expected
 Recruit new employees.
 Offer incentives for postponing retirement.
 Rehire retired employees part time
 Work present employees overtime.
 Hire temporary employees.
 Use new technology to improve the productivity

If surplus is expected.
 Don’t replace employees who leave.
 offer incentives for early retirement.
 Transfer excess employees.
 Reduce work hours.
 Freeze hiring.
HR Plan Implementation

 Recruitment, Selection & Placement

 Training & Development

 Retraining & Redeployment

 Retention Plan

 Downsizing Plan
Control & Evaluation
 Are Budgets, Targets & Standards met?
 Responsibilities for Implementation &
Control
 Reports for Monitoring HR Plan
Problems of HRP

 Inaccuracy: calculation of demand & supply.


 Employee and employer’s resistance:- employee thinks
that HRP will increase their workload & regulate them
while employers may resist HRP because it will
increase the cost of manpower.
 Uncertainty:- due to labor turnover, absenteeism.
 Time consuming & expensive.

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