Introduction to HRP

8/2/2019 Introduction to HRP

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Human ResourcePlanning/Manpower Planning

Date: 18/01/2012


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What is HRP? Human resource planning is the term used to

describe how companies ensure that their staff are

the right staff to do the jobs.

It includes:

planning for staff retention/compensation planning for candidate search

training and skills analysis

labour employee relation


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PURPOSE OF HRP

In simple words HRP is understood as the process offorecasting an organizations future demand for and supply ofthe right type of people in the right numbers

It is only after HRP is done, that the company can initiate andplan the recruitment and selection process

HRP facilitates the realization of the companys objectives by

providing right type and right number of personnel

HRP is important because without a clear-cut manpowerplanning, estimation of an organizations human resourceneed is reduced to mere guesswork.


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OBJECTIVES OF HRP

Forecast personnel requirements

Use existing manpower productively

Promote employees in a systematic manner

Creating highly talented personnel

Optimizing investment in HR

Resistance to change & move


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Importance of HRPMinimizing wastage on excess personnel.

Forecasting future needs and expenses.

Scheduling productivity---meeting workflow.

Hiring

Training


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How does HR Planning occur? We forecast the demand

We find whether the sources are available internallyor externally.

After that we create a plan of action to reconcilesupply and demand.


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HRP Functions

Organizational development

Organizational design & job analysis

Talent management

Recruitment & retention


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Strategic HR planning

Company Sponsored Benefit Plans

Change Management

Functions Contd.


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Advantages of HRPThe cooperate pal of the organization regarding expansion,

diversification, technological change, should be backed up bythe availability of human resources.

It offsets uncertainty and change.

It provides scope for advancement and development of

employees through training, development etc.

It helps to satisfy the individual needs of the employees for thepromotions transfers, salary enhancement, better benefits etc.


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It causes the development of various sources ofhuman resources to meet the organizational needs.

It facilitates the control of all functions, operations,contribution and cost of human resources.

It helps to foresee the need for redundancy and plansto check of human resources and to change thetechniques of management.


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HRP Process

Analyzing organizational plans and decidingobjectives

Forecasting the manpower requirements (Demandforecasting)

Preparing manpower inventory (Supply forecasting)

Developing employment plans

Developing human resource plan


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Analyzing organizational plans and decidingobjectives:

The short term and long term plans of the firm should be

analyzed before setting human resource objective

The firm objective stated in the economic terms wouldincorporate expected economic growth , diversification

plans, market opportunities, and government policies

e.g. short term objective of a company may be to hire 25employees in direct sales force and long term objective


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Forecasting manpower requirement

(demand forecasting)

It is a process of estimating the future requirementsof manpower, by function and by level of skills

It consist several factor both external as well asinternal. External factors are competition( domesticas well as local), laws & regulation etc

Internal factors include budget constraint,production levels, new product & services


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Revise Organizational Objectives and Strategies Link

If no feasible HR program can be devised, theorganization must revise strategic plans.


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Preparing manpower inventory(Supply forecasting)

The basic purpose of preparing manpower

inventory is to find out the size and qualityof personnel available within theorganization to man various positions

Every organization have two major sourcesof supply of manpower: internal andexternal


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Developing employment plans

The existing number of personnel and their

skills ( from human resource inventory) arecompared with the forecasted manpowerneeds( demand forecasting ) to determine thequantitative gaps in the workforce


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Developing human resource plan

The surplus of number of employees forecasted orshortage of workers forecasted. The human

resource requirement need to be translated intoa concrete HR plan, backed up by detailed

policies, programmed and strategies ( forrecruitment , selection , training , promotion

, retirement, replacement etc.)


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Determine Feasibility

Requires knowledge of programs, how programs fittogether and external environmental constraints (e.g.,labor force, labor unions, technology created skill

shortages) and internal environmental constraints(skill shortages within the organization, financialresources, managerial attitudes, culture)

Do the benefits outweigh the costs

Difficulty in quantifying costs and benefits


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HRP ModelOpen new

product line

Open new

factory anddistribution

system

Develop staffingfor newinstallation

Production

workers

Supervisors

Technical staff

Other managers

Recruiting andtrainingprogramsfeasible

Transfersinfeasiblebecause oflack ofmanagers with

right skills

Recruit skilledworkers

Develop

technical trainingprograms

Transfermanagers fromother facilities

Recruit managersfrom outside

Too costly to hirefrom outside

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Develop newobjectivesand plans


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Thank You!Always Remember:Plastic thoughts are past thoughts at the back of our mind ,Paper thoughts are present thoughts at present in our mind,Glassy thoughts are heart breaking thoughts ,

(Aluminum) foiled thoughts are future thoughts might be

futile or fruitful ,

Some thoughts never decomposeLet us recycle them with Forgetfulness, forgiveness andLoveliness around us.

Introduction to HRP

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