Human ResourceManagement

Chapter 2Chapter 2

HUMAN RESOURCE PLANNING

HUMAN RESOURCE PLANNING

• It is the process of getting right number of qualified persons into right job at the right time.

• The function is meant to support and enable the company to attain its business goals

Definition

• According to Edwin B.Geisler, “Manpower planning is the process by which the firm ensures that it has right number of people and then right kind of people, at the right places, at the right time, doing things for which economically most useful”

OBJECTIVES

• Forecast Personnel requirements• Cope with changes• Use of existing manpower

productively• Promote employees in a systematic

way

FEATURES OF HR Planning

• Well Defined Objectives• Determining Personnel Needs• Having Manpower Inventory• Adjusting Demand and Supply• Creating Proper Work Environment• Development of Policies• Complementary to Organization

Planning• Dynamic Activity

Reasons for Increasing Focus on HR Planning

• Employment-Unemployment Situation

• Technological Change• Organisational Change• Demographic Change• Skill Shortages• Government Influences• Impact of Pressure Groups

Importance of HR Planning

• Reservoir of Talent• Prepare people for future• Expand or Contract• Cut Costs• Succession Planning

Factors Influencing HRP

External Factors:•Government Policies•Level of Economic Dvpt•Business Environment•Level of Technology•International Factors

Internal Factors:•Company policies and strategies•Human Resource Policies•Job Analysis•Time Horizons•Type & Quality of Information•Company’s Production•Operational Policy•Trade Unions

Factors

HRP Process

Environment

Organizational Objectives and Policies

HR Demand Forecast HR Supply Forecast

HR Programming

HR Implementation

Control and Evaluation

Shortage, RecruitmentSelection

Surplus reducedLay off etc.

Process of HRP1. Environmental Scanning

-- Environmental Factors-- Technological Changes-- Demographic Changes-- Political & Legislative

2. Organizational Objectives and Policies

3. HR Demand Forecast

Factors Determining Forecasting Demand

• Anticipated Growth of an organization

• Budget constraints• Anticipated turnover in personnel

due to Retirement, Death, Transfers, Termination of Service

• Introduction of New Technology• Minority Hiring Goals

Forecasting Techniques• Managerial judgment• Ratio Analysis• Trend Analysis• Using Computer• Mathematical Methods• Delphi Technique• Workforce analysis• Workload analysis• Job analysis

4.HR SUPPLY FORECAST

• FACTORS DETERMING FORECASTING SUPPLY

-- Promotions of Employees within the organization

-- Availability of Required Talent in External Labor Market

-- Competition of Talent within the Industry

-- Population Movement Trends -- Enrolment Trends in Vocational

Schools, Colleges and Universities

SOURCES OF SUPPLY

• Internal Sources -- Staffing Tables -- Markov Analysis -- Skill Inventories -- Replacement and Succession

Planning• External Sources

Contd.,

5. HR Programming6. HR Plan Implementation• Recruitment plan• Redeployment plan• Training plan• Productivity plan• Retention plan7. Control and Evaluation

Effective Human Resource Planning

• Objectives• Top Management Support• Employee Skills Inventory• Human Resource Information

System• Coordination