HUMAN RESOURCE PLANNING

MEANING

• HRP is the process by which an organization ensures that it has the right number and kind of people, at the right places, at the right time.

HR planning: • Compares the present state of the organization with its goals for the future.• Identifies what changes it must make in HR to meet these goals.

HRP IDENTIFIES Number of employees required Skill Requirement Strategy to deal with surplus & deficit of

employees Strategy to improve utilization of

employees Strategy to retain employees

HRP PROCESS1. Environmental Scanning2. Assessing Current Human Resources3. Demand Forecasting4. Supply Forecasting5. Gap Analysis6. Action Programme7. Control & Evaluation

1. ENVIRONMENTAL SCANNING

Identifies and anticipates sources of problems, threats & opportunities.

Provides the context in which HR decisions will be made.

2. ASSESSING CURRENT HR

HR Inventory

Job Analysis

3. DEMAND FORECASTING

It is based on present & projected activity level such as outputs.

Forecast Activity level is derived from business plan, department plan, budget etc.

Demand Forecast is influenced by corporate plans.

DEMAND FORECASTING METHODS

Qualitative Methodi. Managerial Judgmentii. Delphi Techniqueiii. Nominal Group Technique

Quantitative Methodiv. Ratio Trend Analysisv. Work Study Technique

4. SUPPLY FORECAST Number of people available Potential Losses Effect of Absenteeism Sources of supply from within Sources of supply from outside

5. GAP ANALYSIS

Compare the number and type of current HR with the demand forecast and identify potential shortages or surpluses of employees, skills and competencies

6. ACTION PLANIn Case of Surplus• Estimate size to which workforce should be

reduced• Estimate the number of people to be

retrenched• Financial inducements to encourage

voluntary redundancies• Outplacement Services• Plan to retain key workers

OPTIONS FOR REDUCING A SURPLUS

Downsizing

Pay reduction

s

Demotions

Transfers Work sharing

Hiring freeze

Natural attrition

Early retiremen

t

Retraining

6. ACTION PLANIn Case of Deficit

Initiate Recruitment, Selection, Training etc.

OPTIONS FOR AVOIDING A SHORTAGE

Overtime Temporary employees Outsourcing

Retrained transfers

Turnover reductions

New external

hires

Technological

innovation

7. CONTROL & EVALUATION

Control & Evaluation monitors the effectiveness of HR plans over time

Deviations from the plans are identified and actions are taken.

HR Planning

Lucy's Restaurant

LUCY'S RESTAURANT – HR PLANNINGLucy's Restaurant has just created a

business plan that projects a 300% growth potential for their business. They have also learned that a large office building is next door.

The business plan shows Lucy's growing to:20 Tables -- serving 120 meals per dayOpen for Breakfast, Lunch, and Dinner

(6:30 AM to 9:00PM) – 2 ShiftsThere are nine employees (including

Lucy)

LUCY'S RESTAURANT – HR PLANNINGGroup Deliverables: Identify the different positions you will use to

staff the larger restaurant. Each position must include the tasks, duties,

and responsibilities that it entails. There will be nine employees. Determine how

many of each position you will need and what the attrition for that position is anticipated to be.

Based on your business expectations, list how many people for each position you will need for each shift (or timeframe)

Draw a chart / matrix showing the schedule Pick a group spokesperson to share the position

descriptions with the class.

POSITION Shift 1Number working this shift)

Shift 2Number working this shift)

Attrition:the number of people who will leave / quit.

Total Number of People employed over the entire year

Tasks, Duties, Responsibilities

Cooks

Wait Staff

Management

Bar?

Bussing

Other?

TOTAL

9 total 9 + attrition