HR P

Human resource planning (HRP) is the first step in the HRM

process. HRP is the process by which an organization ensures
HRP-Meaning that it has the right number and kind of people, at the right
place, at the right time, capable of effectively and efficiently
completing those tasks that will help the organization achieve
its overall objectives.

E.W. Vetter viewed human resource planning as “a process by

which an organisation should move from its current manpower
position to its desired manpower position. Through planning,
management strives to have the right number and right kind of
people at the right places at the right time, doing things which
result in both the organisation and the individual receiving
maximum long-run benefit.”
5 questions in HRP?

➔ How many employees do we need ?-in terms of quantity

➔ What are we looking for in terms of skills, knowledge abilities -in
terms of quality?
➔ Where do we need the employees - dept, locations ,etc?
➔ When do we need them - immediately, 3-6 months, ?
➔ How long we might need them - temporary ,permanet?
Need and 1. Assessing Future Personnel Needs

Importance
2. Foundation for Other HRM Functions

3.To Cope up with change

4. Investment Perspective

5.Needed during expansion and diversifying

6. To know the turnover rate

7. Maintain the talented workforce &

succession planning

8.Conformity with government guidelines

 OBJECTIVES OF HRP
■ To recruit and maintain the HR of requisite quantity and quality.
■ To predict the employee turnover and make the arrangements for minimizing
turnover and filling up of consequent vacancies.
■ To meet the requirements of the programmes of expansion, diversification etc.
■ To anticipate the impact of technology on work, existing employees and future
human resource requirements.
■ To progress the knowledge, skill, standards, ability and discipline etc.
■ To appraise the surplus or shortage of human resources and take actions
accordingly.
■ To maintain pleasant industrial relations by maintaining optimum level and
structure of human resource.
■ To minimize imbalances caused due to non-availability of human resources of
right kind, right number in right time and right place.
■ To make the best use of its human resources; and
■ To estimate the cost of human resources.
 1.Environmental Scanning
Several factors influencing HRP should be monitored first.

➔ Economic factors
➔ Regional conditions
➔ technological changes
➔ Demographics
➔ Political and legal issues and laws

By evaluating these various factors ,managers can anticipate the impact

and make adjustments accordingly.
 2. Organisational Objectives &
Policies
HR Plans must be derived from the organisational objectives.HR objectives are framed
accordingly.

➔ Vacancies to be filled by promotions from within or hiring from outside?

➔ Policies to deal with trade unions
➔ Job enrichment
➔ Trade union demands
➔ Automation of jobs-downsizing

All these questions can be answered based on the philosophy of the organisation.
 3.HR Demand Forecast
The process of estimating the future quantity and quality of people required and the
best way in which to meet this demand .

The basis of the forecast must be the annual budget,long term plans,translated into
activity levels for each function and department. Demand forecasting helps in

➔ Quantify the jobs necessary for the production plan or services

➔ Staff-mix ratio desirable in the future
➔ Avoid unnecessary costs
➔ Prevent shortages or surplus
There are various methods for demand forecasting like

➔ Managerial Judgement -simple discussions with various managers to

determine the need of manpower
➔ Ratio /Trend analysis- studying past ratios of no of workers needed for
each job /or for production of certain units and forecasting the future raios
➔ Workforce/workload analysis-the length of operations and the amount of
labour required. Planned output for next year/standard working hours etc
are analysed.
➔ Regression analysis -relationship between sales volume and employee size
➔ The Delphi method - a process used to arrive at a group opinion or
decision by surveying by a panel of experts. Experts respond to several
rounds of questionnaires, and the responses are aggregated and shared
with the group after each round.
 4. HR Supply Forecast
It determines whether the HR department will be able to procure the required number of
personnel.

Supply forecast measures the number of people likely to be available from within and
outside the organisation.Supply analysis covers the:

➔ Existing human resources

➔ Internal sources of supply
➔ External sources of supply
Present Employees Analysis
HR Audits summarise each employee's skills and abilities. Skill Inventories store
data about employees skills,qualifications,job history,special preferences,etc.HRIS
is also useful here to collect the needed data.

This analysis aids HR to identify employees with particular skills in order to satisfy
the changing needs of the company.
Internal supply
Various methods of calculating the internal supply:

Inflow and outflow method

Turnover rate=no of seperations on 1 year/average no of employees

during the year x100

Conditions of workplace

Absenteeism rate and trends

productivity level

Movement among jobs

 External Supply
Organisations look out for prospective employees from external sources.

➔ New skills and experience will be available

➔ To replenish lost personnel
➔ Organisational growth and diversity

Placements,consultants,unsolicited applicants
5. HR Programming
The Organisation’s demand and supply forecast must be balanced through proper
planning. There are 6 HR Programs that arise out of HRP exercise

➔ Hire
➔ Train
➔ Re-Train
➔ Retrench
➔ No Action
➔ Succession
6. HR Plan Implementation
The HR plan needs to be converted into action. Implementation Programs are
done through:

➔ Recruitment,selection & Placement

➔ Training & Development
➔ Retraining and Redeployment
➔ Retention plan
➔ Downsizing plan
 Redeployment,Redundancy/Retrenchment

Redundancy, retrenchment, and redeployment are terms used to describe when a job is no
longer needed, and what happens to the employee in that role.

Redundancy
● A job is no longer needed due to changes in business operations
● This can be due to technological advancements, market demand changes, or
organizational restructuring

Redundancy/Retrenchment

● Once a position is redundant, the employee holding that role can either be
redeployed (moved into another job for the same employer) or retrenched (lose
their job)
Action plan for
Redeployment,redundancy/Retrench
ment
Redeployment - Outplacement, Employment in sister organisations or other
companies

Redundancy/Retrenchment - Reduced working hours,work sharing, lay off,

VRS,downsizing,compulsory retirement( also known as iron handshake), creating
of ad hoc projects.
7. Control Evaluation
➔ The last phase in the HRP process.
➔ Done to review the entire process and make the appropriate
changes.
➔ Helps in future course of action
 Requisites for successful HRP
➔ HRP must be recognised as an integral part of corporate planning
➔ Backing of top management is essential
➔ HRP responsibilties should be cetralised
➔ Personnel records must be up to date and readily available
➔ Time horizon of the plan must be long enough to permit any remedial action
➔ Plans should be prepared by skill levels rather than by aggregates
➔ Data collection,analysis and other plans themselves need to be constantly revised
and improved
➔ External and internal forces should be analysed properly
➔ HRIS