Human Resource Planning

HUMAN RESOURCE PLANNING• Right number of people with right skills at

right place at right time to implement organizational strategies in order to achieve organizational objectives

• In light of the organization’s objectives, corporate and business level strategies, HRP is the process of analyzing an organization’s human resource needs and developing plans, policies, and systems to satisfy those needs.

HUMAN RESOURCE PLANNING

Ensuring HR resource

supply meets human

resource demands

Setting human resource

objectives and deciding how to

meet them

Think• Does any organization face problems which

can be sorted with HRP? • Is HRP a part of any organization, department,

functional stream in an organization?• Does HRP have any role in entrepreneurial

venture?

HRP Types

HardQuantitative analysis

in order to ensure that the right number and

right sort of people are available.

SoftEnsuring the availability

of people with right type of attitude and motivation who are committed to the organization and

engaged in work as well as behave properly.

Soft

ForecastingForecasting Define where the Define where the company is nowcompany is now

AnalysisAnalysisMonitoring and Monitoring and

reviewreview

Define where it wants to Define where it wants to be in the futurebe in the future

Analysing the external Analysing the external environment, influences environment, influences and trendsand trends

Formulating plans to Formulating plans to implement necessary implement necessary changeschanges

Hard

• Macro – HRP – Population planning and control, literacy and education, health and medical care, housing.

• Micro – HRP• Dimension of HDI• A long and Healthy life• Knowledge • A decent standard of living

HDI

Composite measure of the three dimensions:• Life expectancy• Adult literacy• Standard of living of human development

Aim of HRP

• Attract and retain competent employees• Anticipate the problems of potential surpluses

or deficit of people. • Develop a well trained and flexible workforce. • Reduces dependence on external recruitment

when key skills are in shortage.• Improve the utilization of people by

introducing more flexible systems of work

The HR Planning Cycle has four general stages:

1. Forecasting future demand of HR2. Forecasting future internal supply

of HR3. Forecasting future external supply

of HR4. Formulating responses to the

forecasts

Resourcing Strategy

Scenario Planning

Labour Turnover Analysis

Demand / Supply

forecasting

Business Strategic

Plans

Human Resource Plan

Work environment analysis

Operational effectiveness

analysis

Resourcing Retention Flexibility Productivity

Work Environment

HRP Process

Stage 1: Forecasting Future Demand (2)

Techniques Used to Forecast Demand:1 Systematic Techniques– Time series or ratio trend analysis– Work-study approach– Productivity trend analysis

2 Managerial Judgement3 Working back from costs

Stage 2: Forecasting Internal Supply

• Involves identifying/acknowledging theexisting staff employed by an organisation– department by department– grade by grade

• Involves:– Skills Audit– Predicting Staff Turnover– Internal promotion analysis

Stage 3: Forecasting External Supply

• Filling the GAP using the external labour market:– Local – National – International

• HR Planners must gain an understanding of the dynamics of the Labour Market to update plans as trends change and develop accordingly.

Stage 3: Forecasting External Supply / Dynamics of the Labour Market

• The following statistics can be most useful– General population density– Population movements – Age distribution– Social class– Unemployment rates– School leavers– Proportion with higher education– Skill levels – Skills shortages

• Sources of Info include: ‘Labour Market Trends’, Labour Market Quarterly, Annual Social Trends survey, Chamber of Commerce, Training and Enterprise Councils

Stage 4: Formulating Responses to the Forecasts/Action Planning

• Forecasting should identify any potential mismatch between future demand and supply

• If demand exceeds supply – develop plans to match the shortfall

• If supply is likely to exceed demand – develop plans to reduce the surplus

(Taylor, 2002; Beardwell and Claydon, 2007)

• Labour Turnover (Number of leavers in a specific period (usually 1

year) * 100)/ Average no. of employee during the same period

• Stability Index(No. with 1 year’s service or more *100)/

Number employed 1 year ago

Alternatives to Deal with Employee Shortages and Surpluses

Rightsizing

To reduce (as a workforce) to an optimal size

Thank You…