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Human Resource PlanningHuman Resource Planning

--Importance of HR PlanningImportance of HR Planning

--Assessing OrganizationsAssessing OrganizationsStrategyStrategy


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2002 Southwestern College Publishing. All rights reserved. 22

HR Planning: What is it?HR Planning: What is it?

Human Resource (HR) Planning The process of analyzing and identifying the need

for and availability of human resources so that theorganization can meet its objectives.

HR Planning Responsibilities Top HR executive and subordinates gather

information from other managers to use in thedevelopment of HR projections for top management

to use in strategic planning and settingorganizational goals


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Human Resource Planning is the process bywhich an organization ensures that it has theright number and kind of people, at the rightplaces, at the right time, capable of effectively

and efficiently completing those tasks that willhelp the organization achieve its overallobjectives.

( Source: Decenzo and Robbins 2000,Personnel/Human Resource Management)



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HR/ Manpower Planning is the process ofacquiring and utilizing human resources in theorganization. It ensures that the organizationhas the right number of employees in the right

place at the right time.

( Source: Adhikari, Dev Raj, 2001,HumanResource Management )



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Employment planning is the process offormulating plans to fill future openings basedon an analysis of the positions that areexppected to be open and whether these will

be filled by inside or outside candidates. (Source: Dessler, G. 2000,Human ResourceManagement )



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Factors That Determine HR PlansFactors That Determine HR Plans

Figure 23


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Human Resource Planning (contd)Human Resource Planning (contd)

HR Planning Issues Attracting and retaining qualified outsiders

Management succession between generations ofowners/heads

Evolution of HR activities as business grows

Organisational effectiveness and HR policies


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HR Planning ProcessHR Planning Process

HR Strategies The means used to anticipate and manage the

supply of and demand for human resources. Provide overall direction for the way in which HR

activities will be developed and managed.

OverallOverall

Strategic PlanStrategic Plan

Human ResourcesHuman ResourcesStrategic PlanStrategic Plan

HR ActivitiesHR Activities


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FOM 9.9

HR PlanningHR Planning

Assessing FutureAssessing FutureHuman ResourceHuman ResourceNeedsNeeds

Assessing CurrentAssessing CurrentHuman ResourcesHuman Resources

Developing aDeveloping aProgrammeProgramme to Meetto Meet

NeedsNeeds


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Salient features of HRPSalient features of HRP

1. Its a systematic approach. Why??? because itensures a continuous and proper staffing. It avoids or

checks on occupational imbalances (shortage orsurplus) occurring in any of the department of theorganization.

2. There is a visible continuity in the process.

3. There is a certain degree offlexibility. That is, it issubject to modifications according to needs of theorganization or the changing circumstances.Manpower plans can be done at micro or the macro

levels depending upon various environmental factors.


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HRP A Continuous ProcessHRP A Continuous Process

Forecasting future manpower requirements.

Making an inventory of present manpowerresources and assessing the extent to whichthese resources are employed optimally.

Anticipating manpower problems by projectingpresent resources into the future

Planning the necessary programmes ofrequirement, selection, training, development,utilization etc


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Benefits of HR PlanningBenefits of HR Planning

Better view of the HR dimensions of businessdecisions

Lower HR costs through better HR management.

More timely recruitment for anticipate HR needs

More inclusion of protected groups through plannedincreases in workforce diversity.

Better development of managerial talent


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Uses of HRPUses of HRP

Improve the Utilization of human resources. Match human resource related activities and

future organization objectives efficiently.

Achieve economies in hiring new workers. Coordination between various HR Programmes

such a employment equity plan and hiringneeds


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Importance of HRPImportance of HRP

Ensures optimum use of people Forecast future requirements

Help determine recruitment/induction levels

To anticipate redundancies/surpluses

To determine training levels and works

Know the cost of manpower if there is a newproject is being taken up


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Linking business strategy with operationalLinking business strategy with operationalstrategy:strategy:

HRP is an important process to maintain theHRP is an important process to maintain thelink between business strategy and itlink between business strategy and itoperation. It follows different proceduresoperation. It follows different proceduresincluding the need to assess the impact ofincluding the need to assess the impact oftechnological changes on new jobs and newtechnological changes on new jobs and newskillsskills((


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Minimizing the risk of loosing:

Minimizing the risk of loosing:

By forecasting the needs of technical and humanBy forecasting the needs of technical and humanresource requirements, HRP can minimize theresource requirements, HRP can minimize thefuture risk of loosing. Delay in recognizing humanfuture risk of loosing. Delay in recognizing humanresources might be costly and expensive in theresources might be costly and expensive in the

future.future.


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HRP is proHRP is pro--active, not reactive :active, not reactive :For solving any sort of future HR problem HRP isFor solving any sort of future HR problem HRP ispropro--active rather than reactive rather than re--active.active.


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HRP is not in isolation :HRP is not in isolation :HRP recognizes that there must be an explicit linkHRP recognizes that there must be an explicit linkbetween planning function of human resources andbetween planning function of human resources andother organizational functions, such as strategicother organizational functions, such as strategicplanning and market forecasting.planning and market forecasting.


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HRP promotes awareness :HRP promotes awareness :HRP promotes the awareness that human resourceHRP promotes the awareness that human resourceactivities are equally important at every level of theactivities are equally important at every level of theorganization. All employees have to be involved inorganization. All employees have to be involved inHR planning activities.HR planning activities.


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Key Elements of HRP ProcessKey Elements of HRP Process

Responsibilities of Human Resource Department in respect of manpower:

Assist and counsel operating managers to plan and set objectives.

Collect and summarise manpower data keeping long-run objectives and broadorganizational interests in mind.

Monitor and measure performance against the plan and keep top management informedabout it.

Provide proper research base for effective manpower and organizational planning.

Thus, the three key elements of the process are

Forecasting the demand for labour,

Performing a supply analysis, and

Balancing supply and demand considerations.


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Scanning the External EnvironmentScanning the External Environment

Environmental Scanning The process of studying the environment of the

organization to pinpoint opportunities and threats.

Environment Changes Impacting HR

Governmental regulations

Economic conditions

Geographic and competitive concerns

Workforce composition


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AnalysingAnalysing the demandthe demand

A. Workforce analysis - to determine the

rate of influx and outflow of employeeB. Workload analysis, the amount of work

to be done with which one can calculate thenumbers of persons required for various

jobs with reference to a planned output.C. Job analysis: Job analysis helps in finding

out the abilities or skills required to do thejobs efficiently.


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Internal Assessment of theInternal Assessment of the

Organizational WorkforceOrganizational Workforce

Auditing Jobs and Skills

What jobs exist now?

How many individuals are performing each job?

How essential is each job? What jobs will be needed to implement future

organizational strategies?

What are the characteristics of anticipated jobs?


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Managing Human ResourceManaging Human Resource

Surplus or ShortageSurplus or Shortage

Workforce Realignment

Downsizing, Rightsizing, and Reduction inForce (RIF) all mean reducing the number of

employees in an organization.Causes

Economicweak product demand, loss of market

share to competitors

Structuraltechnological change, mergers and

acquisitions


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Downsizing approaches

Attrition and hiring freezes Not replacing departing employees and not hiring new

employees/ Early retirement buyouts

Offering incentives that encourage senior employees to

leave the organization early.

Layoffs Employees are placed on unpaid leave until called back

to work when business conditions improve.

Employees are selected for layoff on the basis of their

seniority or performance or a combination of both.


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Downsizing approaches (contd)

Outplacement services provided to displacedemployees to give them support and assistance:

Personal career counseling Resume preparation and typing services

Interviewing workshops

Referral assistance

Severance payments

Continuance of medical benefits

Job retraining


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Dealing with DownsizingDealing with Downsizing

Investigate alternatives to downsizing

Involve those people necessary for success in theplanning for downsizing

Develop comprehensive communications plans

Nurture the survivors

Outplacement pays off


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Assessing HR EffectivenessAssessing HR Effectiveness

HR Audit A formal research effort that evaluates the current

state of HR management in an organization

Audit areas:

Legal compliance Current job specifications and descriptions

Valid recruiting and selection process

Formal wage and salary system Benefits

Employee handbook

Absenteeism and turnover control

Grievance resolution process

Orientation programme Training and

development

Performance management system

Documents

HR Planning 3 x