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Human Resource Planning Process (HRP)Demand forecasting method-

Managerial Judgment, Work Study, Ratio-trend analysis Delphi technique

Supply forecasting methods- Management Inventory, Skill Inventory, Inflows & Outflows, turnover rate, conditions of work and absenteeism

In simple words, HRP is understood as the process of forecasting an organization's future demand for, and supply of, the right type of people in the right number.

After this only the HRM department can initiate the recruitment and selection process

Its called by manpower planning, personal planning or employment planning

• Basically it’s the process by which an organization ensures that it has the right the right number & kind of people, at the right number & kind of people, at the right place, at the right time, place, at the right time, capable of effectively & efficiently completing those tasks that will help the organization achieve its overall objectives.

ENVIRONMENT

ORGANISATIONALOBJECTIVES AND POLICIES

HR NEEDS FORECAST HR SUPPLY FORECAST

HR PROGRAMMING

HRP IMPLEMENTATATION

CONTROL AND EVALUATION OF PROGRAMME

SURPLUS SHORTAGE RESTRICTED HIRING RECRUITMENT REDUCED HOURS AND SELECTION VRS, LAY OFF, etc

THE HRP PROCESS

HR plans need to be based on Organizational Objectives.

The role of HRP is to subserve the overall objectives by ensuring availability and utilization of Human Resources.

In developing these objectives, specific policies need to be formulated to address the following questions:

Are vacancies to be filled from promotions from within or hiring from outside?

How do training and development objectives interfere with the HRP objectives?

What union constraints are encountered in HRP and what policies are needed to handle these constraints?

How to improve employees job? Should the routine and boring jobs continue or be eliminated?

How to downsize the organization to make it more competitive?

Demand forecasting is the process of estimating the future quantity and quality of people required.

The basis of the forecast must be the annual budget and long-term corporate plan, translated into activity levels for each function and department

Demand forecasting must consider several factors both internal and external.

Among external factors are competition(foreign

and domestic), economic climate, laws and regulatory bodies, changes in technology and

social factors.

Internal factors include budget constraints, production levels, new products and services, organizational structure and employee

separation.

Demand forecasting helps to :

Quantify the jobs necessary for producing a given number of goods

Prevent shortage of people where and when they are needed most

Determine what staff-mix is desirable in the future Monitor compliance with legal requirements with regard to reservation of jobs Asses appropriate staffing levels in different parts of the organization so as to avoid unnecessary costs

Managerial judgment Ratio-trend analysis Work study techniques Delphi technique Flow modelsFlow models Other techniquesOther techniques

In this all managers sit together, discuss and arrive at a figure which would be the future demand for labour.

This technique may involve a ‘bottom-up’ or ‘top-down’ approach. A combination of both could yield positive results.

This is the quickest forecasting technique.

This technique involves studying past ratios, say, between the number of workers and sales in an organization and forecasting future ratios, making some allowance for changes in the organization or its method.

Work study techniques can be used when it is possible to apply work measurement to calculate the length of operations and the amount of labour required.

• This technique is the method of forecasting personnel needs.

• It estimates of personnel needs from a group of experts, usually managers.

• The HRP experts act as intermediaries, summarize the various responses and report the findings back to the experts.

• Summaries and surveys are repeated until the experts opinion begin to agree.

Supply forecasting measures the no. of people likely to be available from within and outside an organization, after making allowance for absenteeism, internal movements and promotions, wastage and changes in hours and other conditions of work.

Quantify no of people and positions expected in near future.

Clarify the staff mixes.

Prevent shortage of people

Asses present staffing levels in different parts of organization.

Existing human resources

Internal sources of supply

External sources of supply

• Skill inventories – info. about non-managers.

1. Personal data 2. Skills 3. Special qualifications 4. Salary and job history 5. Company data 6. Capacity of individual 7. Special preference of individual

• Management inventories 1. Work history 2. Strengths 3. Weakness 4. Promotion potential 5. Career goals 6. Personal data 7. Number and types of employees

supervised 8. Total budget managed 9. Previous management duties.

HR planning and analysis Equal employment Staffing HR development Compensation and benefits Health,saftey and security Employee and labor relations

Inflows and outflows IS= current supply – outflow + inflow

Turnover rate No. of separations during one year

× 100 Avg. no of employees during the year

Conditions of work and absenteeism. Absenteeism is given by no of persons – days lost

×100 Avg. no of persons × no of working days

After personal demand and supply are forecast the vacancies should be filled at right time with right employees.

Converting HR plan into action. Action programmes are..

Recruitment Selection & placement Training and development Retraining & redeployment The retention plan The succession plan

Recruitment Selection & placement

If Shortage of employees- Do-

Hire new full-time employeesOffer incentives for postponing retirement Re-hire retired employees on part-time basisAttempt to reduce turnoverBring in over-time for present employeesSubcontract work to another companyHire temporary employeesRe-engineer to reduce needs

It covers no. of trainees required It necessary for existing staff Identification of resource personal for

conducting development programmes Frequency of training and development

programmes Budget allocation

Retraining and redeployment:New skill should be imported to existing

employee

Retention plan: Compensation plan Performance appraisal Employees leaving in search of green pastures Shortages Unstable recruits

Who is to be unneeded and where and when

Plans for re-development or re-training Steps to be taken to help unneeded

employees finding new jobs Policy for declaring terminations Programme for consulting with unions or

staff associations

Analysis of demand Audit of existing executives Planning of individual career path Career counseling Accelerated promotions Performance related training and

development Planned strategic recruitment Filling the openings

Establish the reporting procedures

Identifying who are in post and those who are in pipe line

It should report employment costs against budget and trends in wastage and employment ratios