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HUMAN RESOURCE PLANNINGLECTURE 3Lecturer: Amnah ImtiazKinnaird College for Women

HUMAN RESOURCE PLANNING

“Human resource planning is the process of systematically forecasting the future demand and supply for employees and the deployment of their skills within the strategic objectives of the organization”.

Human Resource Management Instructor: Amnah

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HUMAN RESOURCE PLANNING It addresses human resource needs

both in quantitative and qualitative terms. This means answering two basic questions:

i. How many people?ii. What sort of people?


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HUMAN RESOURCE PLANNING Another definition:

“a process by which an organisation ensures that it has the right number and kinds of people, at the right place, at the right time, capable of effectively and efficiently completing those tasks that will help the organisation achieve its overall strategic objectives”


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LINK TO BUSINESS Human resource planning should be an

integral part of business planning. It defines the core competences the

organisation needs to achieve its goals. It interprets the plans in terms of people

requirements. But it may influence the business by drawing attention to ways in which people could be developed more effectively to further the achievement of business goals, as well as focussing on any problems that might have to be resolved in order to ensure that the people required will be available and will be capable of making necessary contribution.Human Resource Management

Instructor: Amnah Imtiaz

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HUMAN RESOURCE PLANNING ACTIVITIES

HR planning is basically a decision-making process that combines three important activities:

1) Identifying and acquiring the right number of people with the proper skills

2) Motivating them to achieve high performance and

3) Creating interactive links between business objectives and people-planning activities.


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STRATEGIC PLANNING What is Strategic Planning?

Strategic planning is a process of setting major organisational objectives and developing comprehensive plans to achieve them.

It involves deciding on major directions of the organisation, including its structure, strategies, policies and the contributions of its various resources.


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INTEGRATING HR & STRATEGIC PLANNING

Why is it important to integrate HR and Strategic Planning?

Since, an important part of the strategic planning process is the determination of necessary labour requirements and the prediction of likely resources, there is a need to integrate both Strategic Planning and HR Planning


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THE FACTORS INFLUENCING THE INTEGRATION OF HR AND STRATEGIC PLANNING

The nature of organisational environments (rapidly changing organisations- technological changes)

Organizational Size – larger co. are most likely to use strategic HR plans

History, culture and philosophy- co. with dynamic, people oriented, and fwd thinking cultures recognise the need for st. Hr plans

The nature of business strategies-aggressive co. operating in dynamic env.

Location and level of HR function- co. who recognise hr as their valuable asset

Values and skills of HR managers- the role of HR specialists have a positive impact on these integrations


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COMPONENTS OF HUMAN RESOURCE PLANNING

Human resource planning involves three sequential steps:

1) Forecasting demand for manpower i.e. Estimating organisation’s future human resource supply.

2) Analysing human resource supply

3) Matching the human resource requirements with its availability, thereby perceiving excess or shortfalls and initiating required manpower policies or strategies.


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3- Matching HR requirements with availability

i- Human Resource Audit

ii- Potential Losses

iii- HR Information System

2- Analysing Human Resource SupplyInternal External

1-Forecasting Manpower Demand

i- Executive Judgement ii- Statistical Analysis

Components of Human Resource PlanningHuman Resource Management Instructor: Amnah

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1- FORECASTING DEMAND FOR MANPOWER

It is the starting point of HR planning process.

The corporate plan and its various components such as Finance, Marketing, Production or Service plan can be used as the basis for developing the man-power planning model.

Analysis of the organisational plans helps in forecasting the demand for human resources since it provides a clear indications as to the quantum of future work activity.


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FACTORS THAT INFLUENCE LIKELY DEMAND FOR MANPOWER Introduction of new products Expansion plans Technological Changes Agreement with Unions Changes in organisational structures

(centralisation/ decentralisation)


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WHAT METHODS DO THE FIRMS ADOPT TO FORECAST MANPOWER DEMAND?

There are two most-widely used methods which are as under:

I. Executive JudgementII. Statistical Analysis


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i. EXECUTIVE JUDGEMENTThe simplest, quickest and easiest way to get

across. Most small and medium as well as the firms

in unorganised sectors, who do not have data banks, adopt this method.

Individual managers state their manpower requirements for some future date and the results then are pieced together and assessed or aggregated for the whole enterprise.

Three approaches can be adopted here:1. Bottom-up – concerned supervisors send

their proposals to the top officials2. Top-down- mgt prepares the requirements

and send down.3. Participative (combo) they both consult-

better results

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II- STATISTICAL ANALYSIS There are three types of approaches that

can be employed here:

1. Ratio-trend Analysis – (on the basis of past data)

2. Econometric Model– (Manning tables, Delphi techniques, replacement charts)

3. Work-study Techniques – (man-hour techniques, only used under favourable situations)


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3- MATCHING HR REQUIREMENTS WITH AVAILABILITY

This third component of HR planning has three further steps:

I. Human Resource AuditII. Potential LossesIII. Human Resource Information System


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2- ANALYSING HUMAN RESOURCE SUPPLY Internal Analysis (suggested)- can act

as powerful incentives when qualifications, experience, capacities of the internal employees match- lums example – mobilink example

External Analysis (brings variety) but expensive and uncertain


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I- HUMAN RESOURCE AUDIT Once the future human resource needs are

estimated, the next step is to determine the present supply of manpower resources.

This task is accomplished by undertaking a total audit of the existing personnel which takes into account several factors and gives an accurate and clear indication of the gaps that exist and need to be filled either from “within” or by “external” recruitment.

The process of auditing involves the continual questioning of the existing methods of working as well as present achievement.

Information collected reveals the present realities related to the existing human resource utilisation of the firm.


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IN WHAT WAYS, THE INFORMATION GATHERED VIA HR AUDIT IS UTILISED?The information gathered helps set up two

kinds of formats

Skill inventory – contains data about each employee’s skills, abilities, work performance etc.

Succession Planning/Replacement charts- shows the position in the organisation, present incumbents in those positions, likely future candidate for those posts and the readiness of those candidates to take over those positions OR positions that may become vacant in the near future and individuals who may fill the vacancies.


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II- POTENTIAL LOSSES Potential losses or manpower wastage

takes a major toll of the existing stock of manpower and a major consideration for HR planning.

Potential losses to the organisation include: voluntary quits, deaths, retirements, dismissals, lay-offs, prolonged illness, sabbaticals etc.

Potential losses to the department include:

promotions, transfers, demotions etc.


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III- HUMAN RESOURCE INFORMATION SYSTEM

Is a method by which an organisation collects, maintains, analyses and reports information on people and jobs.

It is database that keeps important information about employees in a central and accessible place.

An information system must necessarily be an integral part of HR Planning.

Benefits of HRIS: a) facilitate employment planning decisions b) track most information about employees and jobs c) competitive edge tool


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