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Human Resource Planning: M.Vamshidhar Reddy M100229ME

Human resource planning involves forecasting personnel needs based on factors like a company's strategic plans, projected revenues, turnover, and technological changes. Tools like trend analysis, ratio analysis, and scatter plots are used to project needs. Trend analysis studies past employment levels while ratio analysis uses historical ratios between variables like sales and employees. Scatter plots graphically show the relationship between two variables. Computerized forecasts can include more variables and estimate effects of different assumptions. Forecasting internal candidates involves reviewing qualifications inventories and replacement charts while outside candidates can be identified through online and print sources.

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254 views15 pages

Human Resource Planning: M.Vamshidhar Reddy M100229ME

Human resource planning involves forecasting personnel needs based on factors like a company's strategic plans, projected revenues, turnover, and technological changes. Tools like trend analysis, ratio analysis, and scatter plots are used to project needs. Trend analysis studies past employment levels while ratio analysis uses historical ratios between variables like sales and employees. Scatter plots graphically show the relationship between two variables. Computerized forecasts can include more variables and estimate effects of different assumptions. Forecasting internal candidates involves reviewing qualifications inventories and replacement charts while outside candidates can be identified through online and print sources.

Uploaded by

vamshidharreddym
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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HUMAN RESOURCE

PLANNING

M.Vamshidhar Reddy
M100229ME
What is it?

 Human Resource Planning is the process of


deciding what positions the firm will have to fill,
and how to fill them
Factors influencing

Firms
strategic
plans

Human Resource
Plans to enter new businesses Build new
Planning
plants

R
eductions
Forecasting Personnel Needs

qForecast revenues
qEstimate the size of the staff required
qProjected turnover
qDecision to upgrade products or services
qTechnological changes
qDepartment’s financial resources
q
q
Tools for projecting personnel needs

üTrend analysis
üRatio analysis
üScatter plot
Trend Analysis
Ø Studies variations in firm’s employment levels
Ø Computes the number of employees at the end of
each of the last five years
Ø Identifies trends that continues in future
Ø Provides initial estimate of staffing needs
Ø Employment levels rarely depend on passage of
time
Ø
Ratio Analysis

• Makes forecasts based on historical data


• Example :
 Ratio between sales volume and number of employees
required
 1 Sales person generates Rs.50,000 sales
 To generate Rs.3million sales we require 6 new sales
people
 If productivity rises or falls then historical ratios are not
accurate

•
•
Scatter plot
Graphically shows how two variables are related
Size of the hospital Number of registered
(no. of beds) nurses
200 240

300 260

400 470

500 500

600 620

700 660

800 820

900 860
DRAWBACKS
Ø Generally focuses on historical sales/personnel
relationships
Ø Impact of company’s strategic initiatives are not
considered
Ø Support outdated compensation plans
Ø Tends to institutionalize existing planning
processes, even in the face of rapid changes
Ø Tend to ‘bake in’ nonproductive idea
Computerized Forecasts

ü It includes more variables in the personnel


projections
ü A typical program generates average staff levels
required
ü Estimates the effects of various productivity and
sales level assumptions
ü Managerial judgement will play a big role

Forecasting the Supply of Inside Candidates
§ Here the task is to determine the which current
employees might be qualified for the projected
openings.
§ Estimated by referring to qualifications inventories

Qualification
inventories

Performance Educational Promotability Career


records background interests
§ Personnel replacement charts show the present
performance and promotability for each top
position
§ Position replacement card shows possible
replacements as well as their present performance,
promotion potential and training
COMPUTERISED INFORMATION SYSTEMS

Ø Automatically updates database


Ø Work experience codes
Ø Product knowledge
Ø Level of familiarity
Ø Industry experiences

PRIVACY ISSUES
The organization should balance

o Employee’s right to make this information


accessible to those in the firm who need it
o Employee’s right to privacy
Organization should incorporate an access matrix

which defines the right of users


ü Read only
ü Write only
FORECASTING THE SUPPLY OF
OUTSIDE CANDIDATES
q When there won’t be sufficient inside candidates to fill
the requirements companies go for the outside
candidates
q Information about the outside candidates is easy to find,
both online and in print format
q Fortune magazine has a monthly forecast for the
coming year

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