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Dr. N. Srividya PDF

Human resource planning is the process by which a company determines how to transition from its current workforce to its desired workforce. It involves forecasting future human resource needs based on factors like organizational objectives, expected retirements and turnover, and anticipated changes in business needs. The forecasts are used to develop action plans for acquiring, training, and retaining personnel. Effective human resource planning requires collaboration between HR managers and operating managers at all levels of the organization and alignment with the company's overall business strategy.

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62 views39 pages

Dr. N. Srividya PDF

Human resource planning is the process by which a company determines how to transition from its current workforce to its desired workforce. It involves forecasting future human resource needs based on factors like organizational objectives, expected retirements and turnover, and anticipated changes in business needs. The forecasts are used to develop action plans for acquiring, training, and retaining personnel. Effective human resource planning requires collaboration between HR managers and operating managers at all levels of the organization and alignment with the company's overall business strategy.

Uploaded by

Aindrila Bera
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Dr. N.

Srividya PDF
 Processby which a company decides how an
organisation should move from its current
manpower position to its desired manpower
position.
 To carry on work
 People need to be replaced
 People leave the organisation
 Companies expand
 Changing needs that cannot be met by old
labour force
 To rightsize the company
 Organization’s business or strategic planning
process is the first planning process done by
the company
 The organisational strategy should :
- A clear statement of the company’s mission
- A clear statement of the company’s purpose,
plans
- An action plan based on the available
resources
 Human resource planning depends on the
organizational strategy or plan
 Contributes a lot to the main organizational
strategic plan
 Should be aware of business strategy

 Seethat human resource programs


satisfy the top management

 Convert business objectives into HR


objectives
 HRP is not the responsibility of HR managers
only
 Has to be do done together with operating
managers
-a close working relationship
 Hr managers provide with the structure and
support
 Top Management support should be there
 Short term : (0-2) years

 Intermediate : (2-5) years

 Long Range :(beyond 5 years)


 Demand:
 Individuals leave,
Number and Kinds of
 lay-offs, employees needed

 technological expansion,
 new regulations
 Supply:
 Departmental
 Expected Promotions
 Demand
 Needs from plans and budgets
 Any expansion or adjustment of plan
 Supply
 HR vacancies expected
 Managerial and supervisor development plan

NUMBER OF WORKERS
KINDS OF WORKERS
DATES WHEN NEEDED
LEVELS OF NEEDS
 More focus on long term Environmental
changes (technology or culture )

 Management expectations of changing


characteristics of employees and future
available human resources
1. Determining organizational Objectives

2. Determining the skills and required

3. Determining Additional(Net) Human


Resource Requirements

4. Developing Action Plans


 The main organizational objectives needs to
be taken in making human resource
requirements
 Mission- goals and objectives of the
organization needs to be determined
 There are both long term and short term
objectives
 Long term objectives are based on the
company’s mission statement
 Short term objectives are based on Long
term objectives
 Short term objectives have a time frame and
are expressed in quantities (in money or
capacity like tons )
Objective-setting process
made in such a manner so
that all levels of management
is involved in the
organizational planning
process
STATEMENT OF
ORGANIZATION’S TOP MANAGEMENT
MISSION

LONG RANGE
TOP MANAGEMENT
OBJECTIVES

SHORT RANGE MIDDLE


OBJECTIVES MANAGEMENT

DIVISION OR DEPARTMENT
OBJECTIVES
SUPERVISION

SUBUNIT OBJECTIVES
 Upward as well as downward flow of
information
 Objectives are communicated at all levels
 Objectives are coordinated at all levels
 Government influences
 General economic conditions
 Competition
 Changes in work force
Futurehuman resource needs can be
determined by some methods
Forecasts are mathematical or
judgemental
1. Managerial estimates:
-future staffing needs based on past
experience
-made by top level management or middle
level and lower level together
2. Delphi technique:
-panel of experts
-each expert independently estimates future
demand
-a mediator presents each expert’s forecast to
the others
-experts can revise their comments
-process continues till agreement between all
experts
 Scenario Analysis:
-scenarios are developed in brainstorming
sessions (by operating and HR managers)
-5 or more years scenario is done

 Benchmarking:
- Deeply examines the company’s internal
practices and processes and measures them
against successful company practices
 Time-series analysis:
-past staffing levels indicate future
requirements
(moving average, exponential smoothing or
regression technique)
 Regression analysis:
-past study of work load indicators like sales,
production levels are studied
-linked with staffing levels
 Productivity ratios:
Historical or past data are used to examine
past levels of productivity index
P= Workload/ No. of People
 Analysisof present employees
 Forecast of employees required in future

Done through
 Skills inventory
 Management Inventory
 Expecting changes of people
 Complete information about the
organization’s basic information on all
employees
 Information about:
a) Personal data: age, sex, marital status
b) Skills: education, job experience, training
c) Special qualifications: membership in
professional groups, achievements
d) Salary and job history: present and past
salary, dates of raises, different jobs held
e) Company data: benefit plan data,
seniority, retirement information
f) Capacity of individual: test scores on
psychological and other tests, health
information
g) Special preferences of the individual :
geographic location, type of job
 Specialized and expanded form of skills
inventory
 Only for managerial employees
 Contains details of manager’s past
performance, strengths, weaknesses
 Potential for growth and advancement
 Some changes can be forecasted easily
- Retirements
- Other changes like transfers and promotions
(from how long in the job, the need of the
company)
 Changes difficult to forecast
-death, resignations and discharges

•PAST EXPERIENCE
•HISTORICAL RECORDS
 Done after the actual or net human resources
requirements is found it
 Factors which affect the planning are:

ADDITION
-whether the requirement is permanent
-availability of the qualified recruits
-contingency hires
-outsourcing
REDUCING :
Downsizing
-lay-offs
-terminations
-early retirement incentives
-voluntary retirement inducement

Other approaches:- that do not result in


employees leaving the organization
-reclassification
-transfer
-work sharing
 Succession planning

 Commitment manpower planning

 Ratio analysis
 Identifiesspecific people to fill key positions
 Organizational replacement chart is used
- Shows incumbents
- Shows potential replacements
- Replacement charts needs to be updated
from time to time
 Systematicapproach
 Managers and subordinates get involved in
HRP
 Measures the organization’s human resource vitality
- People with potential who can be promoted
 Measures organization’s stagnancy
-people who are not promotable and needs to be
replaced
END PRODUCT OF RATIO ANALYSIS IS ORGANIZATIONAL VITALITY INDEX (OVI)

- Ratio analysis is another useful technique to


indicate potential problems by converting raw data
regarding promotability of employees into
Organizational Vitality Ratios (OVR) which generate
an overall Organizational Vitality Index (OVI).
 Nissan, which has developed a HR concept it
calls ‘kaizen’.
 Kaizen empowers the Nissan workforce to
continually improve the way a job is done.
 This is coupled with an emphasis on providing
managers with the autonomy to recruit and
build their own teams.
 Alliance Boots (parent company of the Boots
chain) also shines for its promotion of
community outreach programs for
employees.
 In fact, Alliance Boots was the first
organization of its kind that offered formal
accreditation to employees for their work in
the community.
 BT, a juggernaut of a telecoms company,
which even during the economic crash
continued to retain, train and redeploy its
existing staff.
 Its focus on its employees has earned it a
reputation for loyalty that is matched by its
employees.
 Mayo Clinic, which consistently features on
Forbes 100 Best Companies to Work For, has
worked to create a dynamic team.
 This is supported by strong
management, consistent internal
communications and ongoing training and
development.

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