Human Resource PlanningHuman Resource PlanningHuman Resource PlanningHuman Resource PlanningHuman Resource PlanningHuman Resource PlanningHuman Resource PlanningHuman Resource Planning

- Prof. Hema Kapoor

OverviewOverviewOverviewOverviewOverviewOverviewOverviewOverview

� Human Resource Planning

� Process of Human Resource Planning

� Techniques of HR Planning

HR PlanningHR PlanningHR PlanningHR PlanningHR PlanningHR PlanningHR PlanningHR Planning

� Process by which the company identifies the number of jobs vacant, whether there is excess staff or shortage of staff & to deal with this excess or shortage

� Process of analyzing & identifying the need for and availability of human resources so that the organization can meet its objectives

HR Planning processHR Planning processHR Planning processHR Planning processHR Planning processHR Planning processHR Planning processHR Planning process

External SupplyExternal SupplyExternal SupplyExternal SupplyExternal SupplyExternal SupplyExternal SupplyExternal Supply

External Supply DefinedExternal Supply DefinedExternal Supply DefinedExternal Supply Defined

� Net migration into and out of the area

� Individuals entering/ leaving workforce- Factors affecting persons entering & leaving

� Actions of competing employers

Geographic & Competitive

Concerns

� Working patterns and arrangements

Workforce composition & work patterns

� Economic forecasts for next few yearsEconomic conditions

� Government regulations & pressures Government influences

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Internal SupplyInternal SupplyInternal SupplyInternal Supply

� Ensures that people are available to meet requirements set during strategic planning

� Assessing current human resources

� Human resources inventory report summarizes information on current workers & their skills

HR Information System (HRIS)HR Information System (HRIS)HR Information System (HRIS)HR Information System (HRIS)

� HRIS are computerized databases that contain important information about employees� PAN number

� Date of birth/ joining

� Information about dependents

� Educational background

� Past experience

� ...

� ...

Internal Supply: FactorsInternal Supply: FactorsInternal Supply: FactorsInternal Supply: Factors

�Promotions, lateral moves & terminations

�Training & development programs

�HR policies

�Succession Planning

� Replacement charts

�Organizational capabilities inventory data

�Transition matrix or Markov matrix

� Model using probabilities

Internal SupplyInternal SupplyInternal SupplyInternal Supply

Corporate Analysis

• Objective and Strategies• Company organization Plans• Market forecasts & budgets• Financial plans• Production targets

Manpower Plans

• Recruitment & selection• Training & development• Retrenchment• Productivity

Monitoring & Control

Manpower Gaps

• Surplus of numbers & skills

• Shortages

Demand Forecast

• Numbers• Job Categories• Skill Requirements

Supply Forecast

• Manpower inventory• Losses & additions• External supply

Manpower objectives

& policies

Modify organizational

plans

HR PlanningHR PlanningHR PlanningHR Planning

Techniques of HR PlanningTechniques of HR PlanningTechniques of HR PlanningTechniques of HR Planning

Approaches to HR Demand Forecasting

Quantitative Qualitative

Trend analysis

Mathematical models

Expert forecasts

Delphi technique

Nominal group technique

Techniques of HR PlanningTechniques of HR PlanningTechniques of HR PlanningTechniques of HR Planning

�Quantitative Techniques:

� Trend Analysis – forecasts employment requirements on the basis of some organizational index. Example: compensation, sales)

� Mathematical Models – like statistical regression analysis, simulation model

Techniques of HR PlanningTechniques of HR PlanningTechniques of HR PlanningTechniques of HR Planning

� Qualitative Techniques:� Expert forecasts – managers estimate future HR

requirements based on their experiences & judgments

� Delphi technique – uses input from a group of experts• The experts opinions are sought using separate questionnaires on what forecasted situations will be

• These expert opinions are then combined & returned to the experts for a second anonymous opinion

• The process continues through several rounds until the experts essentially agree on a judgment

� Nominal group technique – unlike the Delphi technique, requires experts to meet face to face• Their ideas are usually generated independently at first, discussed as a group & then compiled as a report

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