4HRPlanning

8/2/2019 4HRPlanning

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HR Planning



Meaning

HRP or Manpower Planning is essentially theprocess of getting the right number of qualifiedpeople into the right job at the right time. It is asystem of matching the supply of people

(existing employees and those to be hired orsearched for) with openings the organizationexpects over a given time frame. – forward

looking function.



Objectives

• Forecast personnel requirements

• Cope with changes

• Use existing manpowerproductively

• Promote employees in asystematic manner



Importance

If used properly HRP offers following benefits:• Reservoir of talent available at any point oftime

• Prepare People for Future – they can betrained, motivated and developed inn advanceto meet future needs

• Expand or Contract

• Cut Costs – no shortage/excess in HR andenablement of advance planning of physicalfacilities

• Succession Planning



Factors affecting HRP

Organizational Growth

Cycle and Planning

Type and strategy or

Organization

Time Horizons

Environmental

Uncertainties

Outsourcing

Type and quality of

forecasting information Labour Market

HRP



Techniques of HR DemandForecasting

Managerial Judgement

Work study Techniques

Others

Ratio Trend Analysis

Regression Analysis

Delphi Technique Flow Models

HRP



The Process of HRPFORECASTING THE DEMAND OF HR

The process of HRP, usually followed in largeorganization, consists of the following steps:

(a) External Challenges: These arise from 3

sources:* Economic developments

* Political, social and technical changes

* Competition (b) Organizational decisions:

(c) Workforce factors – wastages, leave andabsenteeism



(d) Forecasting Techniques:

* Expert forecasts

* Trend Analysis 2006-07 Production of Units 5000

2006-07 No. of workers 100

Ratio 100:5000 2007-08 Estimated Prodn 8000

No of workers reqd 8000 x 100/5000=160

If Supervisors have a span of 20 workers, 8 supervisors are also needed in 2007-08



(e) Other Methods: several mathematical models, withthe aid of computer – e.g. regression, optimizationmodels, budget & planning analysis

To proceed systematically HR professionals generallyfollow 3 steps:* Workforce Analysis* Workload Analysis

Planned output for the year 10,000 pcsStd hrs per piece 3 hrsPlanned hrs reqd 30,000 hrsProductive hrs per person/yr 1,000 hrs

No of workers reqd 30If span of control in the units is 10 per officer,then 3 officers also reqd.

*Job Analysis



PREPARING MANPOWER INVENTORY(SUPPLY FORECASTING)

The basic purpose of preparing inventory is tofind out the size and quality of personnelavailable within the orgn to man variouspositions

Internal Sources – demographic profile ofemployees, their experience, job level, pastperformance & future potential to be kept ready

External Sources – to the extent an orgn is ableto anticipate its outside recruitment needs….



Factors Assisting/Influencing Internal and External Forecast

Internal Supply Forecast

• Manning Table – shows no. of employees in each job – tries to classify employees on the basis of age, sex,position, category, experience, qualification, skill, etc.

– a study of this will indicate whether the current MP isproperly utilized or not

• Replacement Chart – shows the profiles of jobholders, dept-wise and reveals those who could be

used as replacements when need arises• Skill Inventory – reveals the routine & strategic skills of

an employee before or since joining the orgn.



External Supply Forecast

• Labour Market Conditions – local employmenttrends of relevant categories of employees,competition for such skills, availability of parttime labour, migration trends of labour, housingfacilities available, transport needs, etc.

• Macro Level Factors – non-availability of acertain category of jobs to ‘outsiders’; cultural

factors, customs and social norms; training

schemes of government, etc.



DETERMINING GAPS

The existing number of personnel and their skills

(from manpower inventory) are compared withthe forecasted manpower needs (demandforecasting) to determine the quantitative and

qualitative gaps in the workforce. Areconciliation of demand and supply forecastswill give us the number of people to be recruitedor made redundant as the case may be.



Determining Manpower NeedsYear

1 2 31. No. required at beginning of year2. Changes to requirements forecast DEMAND3. Total requirements at the end of yr (1+2)-------

4. No available at beginning of yr5. Additions (transfers, promotions) SUPPLY6. Separations7. Total available at end of yr (4+5+6) -----------

8. Deficit or Surplus (3 – 7) RECONCILIATION OFTHE ABOVE9. Losses of those recruited during yr10. Additional no needed during yr (8+9) MP NEEDED



FORMULATING MANPOWER PLANS

Changes in product mix, union agreements,

competitive actions are some of theimportant things that need specialattention

Guidelines to avoid in HRP

1. Objectives to be made very clear

2. Top Management support

3. Manpower inventory

4. Human Resource Information System

5. Coordination – a separate wing tocoordinate HRP

4HRPlanning

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