Human Resource Planning :Human Resource Planning


HUMAN RESOURCE PLANNING :HUMAN RESOURCE PLANNING Right number of people with right skills at right place at right time to implement organizational strategies in order to achieve organizational objectives In light of the organization’s objectives, corporate and business level strategies, HRP is the process of analyzing an organization’s human resource needs and developing plans, policies, and systems to satisfy those needs.


HUMAN RESOURCE PLANNING :HUMAN RESOURCE PLANNING Ensuring HR resource supply meets human resource demands Setting human resource objectives and deciding how to meet them


Think :Think Does any organization face problems which can be sorted with HRP? Is HRP a part of any organization, department, functional stream in an organization? Does HRP have any role in entrepreneurial venture?


HRP Types :HRP Types Hard Quantitative analysis in order to ensure that the right number and right sort of people are available. Soft Ensuring the availability of people with right type of attitude and motivation who are committed to the organization and engaged in work as well as behave properly.


Soft :Soft Hard


Slide 7:Macro – HRP – Population planning and control, literacy and education, health and medical care, housing. Micro – HRP Dimension of HDI A long and Healthy life Knowledge A decent standard of living


HDI :HDI Composite measure of the three dimensions: Life expectancy Adult literacy Standard of living of human development


Aim of HRP :Aim of HRP Attract and retain competent employees Anticipate the problems of potential surpluses or deficit of people. Develop a well trained and flexible workforce. Reduces dependence on external recruitment when key skills are in shortage. Improve the utilization of people by introducing more flexible systems of work


The HR Planning Cycle has four general stages: :The HR Planning Cycle has four general stages: Forecasting future demand of HR Forecasting future internal supply of HR Forecasting future external supply of HR Formulating responses to the forecasts


Slide 11:Resourcing Strategy Scenario Planning Labour Turnover Analysis Demand / Supply forecasting Business Strategic Plans Human Resource Plan Work environment analysis Operational effectiveness analysis Resourcing Retention Flexibility Productivity Work Environment HRP Process


Stage 1: Forecasting Future Demand (2) :Stage 1: Forecasting Future Demand (2) Techniques Used to Forecast Demand: Systematic Techniques Time series or ratio trend analysis Work-study approach Productivity trend analysis Managerial Judgement Working back from costs


Stage 2: Forecasting Internal Supply :Stage 2: Forecasting Internal Supply Involves identifying/acknowledging the existing staff employed by an organisation department by department grade by grade Involves: Skills Audit Predicting Staff Turnover Internal promotion analysis


Stage 3: Forecasting External Supply :Stage 3: Forecasting External Supply Filling the GAP using the external labour market: Local National International HR Planners must gain an understanding of the dynamics of the Labour Market to update plans as trends change and develop accordingly.


Stage 3: Forecasting External Supply / Dynamics of the Labour Market :Stage 3: Forecasting External Supply / Dynamics of the Labour Market The following statistics can be most useful General population density Population movements Age distribution Social class Unemployment rates School leavers Proportion with higher education Skill levels Skills shortages Sources of Info include: ‘Labour Market Trends’, Labour Market Quarterly, Annual Social Trends survey, Chamber of Commerce, Training and Enterprise Councils


Stage 4: Formulating Responses to the Forecasts/Action Planning :Stage 4: Formulating Responses to the Forecasts/Action Planning Forecasting should identify any potential mismatch between future demand and supply If demand exceeds supply – develop plans to match the shortfall If supply is likely to exceed demand – develop plans to reduce the surplus (Taylor, 2002; Beardwell and Claydon, 2007)


Slide 17:Labour Turnover (Number of leavers in a specific period (usually 1 year) * 100)/ Average no. of employee during the same period Stability Index (No. with 1 year’s service or more *100)/ Number employed 1 year ago


Alternatives to Deal with Employee Shortages and Surpluses :Alternatives to Deal with Employee Shortages and Surpluses


Rightsizing :Rightsizing To reduce (as a workforce) to an optimal size


Thank You… :Thank You…