17-08-2019

Human Resources
Planning

REASONS FOR HUMAN RESOURCE PLANNING

 HR Planning reduces overlapping and wasteful activities.
 HR Planning establish a clear statement of the organizations mission
 HR Planning reduces uncertainty toward achieving organization goals.
 HR Planning determine the additional organization human resource needs.
 HR Planning identifies the right number of qualified people into the right job at
the right time.
 HR Planning give direction to employees to effectively & efficiently achieve the
goals or objectives.
 HR Planning determine the skills, expertise and the total number of employees
required to achieve the organizational objectives.

1
 17-08-2019

DEFINITIONS
“Human resources planning is the process by which an organization
ensures that it has the right kind of people, at the right places, at
the right times, capable of effectively and efficiently completing
those tasks that will aid the organization in achieving it’s overall
objectives”.- Pigors and Myers.

According to Sikula “it is a process of determining human resource

requirements and the means of meeting those requirements in
order to carry out the integrated plans of the organization”.

“Human resource planning is a strategy for the acquisition,

improvement and preservation of an enterprise’ human resource”.
M.N. Ridrobwavrai

Human Resources Planning

What is Manpower Planning?

Integrated Approach

The process by which management determines how the

organization should move from its current manpower position
– Through Planning Management strives to have the right
number and the right kind of people at the right places at the
right time, doing things which result in both the organization
and the individual receiving maximum long run benefit.

2
 17-08-2019

Factors Affecting HRP

Organisational
Growth Cycle
and Planning

Type and
Strategy of Environmental
Organisation Uncertainties

HRP
Time
Outsourcing
Horizons

Type and
Quality of Nature of
Forecasting Jobs being
Information Filled

Components of HRP

 Workload analysis
 Workforce analysis
 Absenteeism
 Attrition
 Recruitment & Selection
 Training & development
 Overall assessment & performance

3
 17-08-2019

The
Planning
Process

The HRP Process

The Planning Process (Contd.)

 Environmental Scanning
 Economic factors, including general and regional conditions
 Technological changes, including robotics and automation
 Demographic changes, including age, composition and literacy
 Political and legislative issues, including laws and administrative
rulings
 Social concerns, including child care, and educational facilities and
priorities

4
 17-08-2019

Process of HRP

Step-1
 Analysing the Corporate Level Strategies:

 Human Resource Planning should start with analysing corporate

level strategies which include expansion, diversification,
mergers, acquisitions, reduction in operations, technology to
be used, method of production etc.

 Therefore Human Resource Planning should begin with analysing

the corporate plans of the organization before setting out on
fulfilling its tasks.

The Planning Process (Contd.)

 Organisational Objectives and Policies
 Are vacancies to be filled by promotions from within or hiring from outside?
 How do the training and development objectives interface with the HRP
objectives?
 What union constraints are encountered in HRP and what policies are needed to
handle these constraints?
 How to enrich employee’s job? Should the routine and boring jobs continue or be
eliminated?
 How to downsize the organisation to make it more competitive?
 To what extent production and operations be automated and what can be done
about those displaced?
 How to ensure continuous availability of adaptive and flexible workforce?

5
 17-08-2019

Step-2

Demand forecasting:
 Forecasting the overall human resource requirement
in accordance with the organizational plans is one of
the key aspects of demand forecasting.
 Forecasting of quality of human resources like skills,
knowledge, values and capabilities needed in addition
to quantity of human resources.

Methods of Demand forecasting

 Executive or Managerial Judgment
 Statistical Techniques
 Ratio-Trend analysis
 Work Study method
 Delphi Technique
 Scenario Analysis

Techniques of HR Demand Forecasting

6
 17-08-2019

Methods of Demand forecasting

 Executive or Managerial Judgment:
Here the managers decide the number of employees in the future. They adopt one of
the three approaches mentioned be low

 Bottom-Up approach: Here the concerned supervisors send the proposals to

the top officials who compare these with the organizational plans, make
necessary adjustments and finalize them.
 Top-Down approach: Here the management prepares the requirements and
sends the information downwards to the supervisory level who finalizes the
draft and approves it.
 Participative Approach: Here the supervisors and the management sit together
and projections are made after joint consultations.
drawback of these methods is that estimation of manpower is made using
guesswork.

 Statistical Techniques : These methods use statistical methods and

mathematical techniques to forecast and predict the supply and
demand of Human Resources in the future.

 Ratio-Trend analysis: In this method ratios for manpower are

estimated depending on the past data regarding number of
employees in each department and workload level.
Past values are plotted and extrapolated to get fairly accurate future
projections.

 Work Study method: This technique studies the correlation

between volume of work and number of employees i.e. demand
for human resources is estimated based on the workload.
Work study method is more appropriate for repetitive and manual
jobs when it is possible to measure work and set standards.

7
 17-08-2019

 Delphi Technique : In this method, the views of different

experts related to the industry are taken into consideration and
then a consensus about the Human Resource requirement is
arrived at.
Delphi technique is used primarily to assess long-term needs of
human resource.

 Scenario Analysis: Scenario Analysis involves using workforce

environmental scanning data to develop alternative workforce
scenarios.
These scenarios are developed in brainstorming session with line
manager and human resource mangers who forecast what they
think their workforce will look like five or more years into the
future.

8
 17-08-2019

Determine Additional HR Requirements:

 Human Resource Information Systems (HRIS): The HRIS is database
system that keeps important information about employees in an easily
accessible location. When such information is required, the data can be
retrieved and used to facilitate employee planning decision.

 Succession Planning: Succession planning identifies specific people to

fill key positions throughout the organizations. Succession planning
almost always involves the use of replacement chart.

 Replacement Chart: HRM organizational charts indicating positions that

may become vacant in the near future and the availability of individuals
who may fill the vacancies

Supply forecast
Supply fore cast determines whether the HR department will be able
to procure the required number of personnel

Techniques of supply forecast:

Internal supply:
1. Analysis of present employees-HR audit
2. Skill Inventories-HRIS
External Supply:
1. Job portals
2. Competitors

9
 17-08-2019

HR Supply Forecasting
External supply of human resource depends on some factors mentioned
below.
• Supply and demand of jobs.
• Literacy rate of nation.
• Rate of population
• Industry and expected growth rate and levels
• Technological development.
• Compensation system based on education, experience,
skill and age.

Shortage of Human Resources

1. Recruitment and selection
2. Training and development

Surplus of Human Resources

1. Redeployment
2. Restricted hiring
3. VRS and Lay off

Step-6
Control and evaluation of HRP

10
 17-08-2019

Strategic HR Initiatives

Source: Jeffrey A. Mello, Strategic Human Resource

Management, p. 140
Requisites for successful Human Resource Planning

Integration with Period of

organizational manpower
plans planning

Proper Support of top

organization management

Involvement of
operating
executives

11
 17-08-2019

Job Analysis Defined

Job analysis is the process of studying jobs to

gather, analyze, synthesize and report
information about job responsibilities and
requirements and the conditions under which
work is performed.

Modified from Heneman and Judge (2009)

23

12
 17-08-2019

Outcomes of Job Analysis

 Job description:
 Systematic, detailed summary of job
tasks, duties and responsibilities.
 Job specification:
 Detailed summary of qualifications
needed to perform required job tasks.
 Performance standards:
 Establishes the level of satisfactory
performance.

25

Job Analysis
Selecting an appropriate job analysis method depends on the :-
 structure of the organization,
 hierarchical levels,
 nature of job and
 responsibilities and duties involved.

Observation Interview
Job Analysis Methods

Questionnaire

13
 17-08-2019

Growing importance of HRP

Downsizing
 For Indian techies, 2017 was the stuff of nightmares.

 One of the top employment generators until a few years ago, India’s $160 billion IT industry laid
off more than 56,000 employees this year. Some analysts believe this spree was worse than the
one during the 2008 financial crisis. Meanwhile, hiring plummeted, with entry-level openings
having more than halved in 2017, according to experts.

 Tata Consultancy Services (TCS) and Infosys, two of India’s largest IT companies and once
leaders in job creation, reduced their headcounts for the first time ever. Even mid-sized players
like Tech Mahindra retrenched several employees. (However, TCS’s staff addition recovered after
a fall during April-June 2017 and rose 0.8% in the following quarter).

 “Digitisation and automation brought about disruption in traditional roles, which means that
most of the IT firms found themselves reassessing the capability of the talent pool to stay market
relevant,” Arun Paul, vice-president of human resources at Incedo, an IT service management
company, told Quartz.

14
17-08-2019

15