human resource planning

Human Resource PlanningHuman Resource Planning

Asif JaleesAsif Jalees


Human Resource Planning is required to Human Resource Planning is required to translate corporate goals into a workable translate corporate goals into a workable plan for the whole organization.plan for the whole organization.

HR department’s role is to review all HR department’s role is to review all department’s manpower plans before they department’s manpower plans before they are sent to final approval.are sent to final approval.

Human Resource PlanningHuman Resource Planning HR department systematically forecast HR department systematically forecast

future demand and supply for an future demand and supply for an organization.organization.

Human Resource Planning enables Human Resource Planning enables concerned managers and HR concerned managers and HR Departments to develop staffing needs Departments to develop staffing needs and plans that support the organizational and plans that support the organizational strategy by allowing it to fill job openings strategy by allowing it to fill job openings proactively.proactively.


Supply of Employees Demand for Employees

Reason of Manpower Planning

- Strategic Goals.

- Forecast demand for new products or services.

- Manpower for expansions.

- Availability of relevant knowledge, skills, and abilities.

Human Resource Planning ObjectivesHuman Resource Planning Objectives Integrate strategic demands with Integrate strategic demands with

appropriate staffing levels.appropriate staffing levels. Effective and efficient utilization of Effective and efficient utilization of

available manpower.available manpower. Matching HR activities and future Matching HR activities and future

organizational objectives efficiently.organizational objectives efficiently. Achieve economies in hiring new Achieve economies in hiring new

manpower.manpower. Coordination for developmental programs Coordination for developmental programs

with in the organization.with in the organization. To ensure company is responsive to To ensure company is responsive to

change in its environment. change in its environment.

Cause of Demand for Human Resources in the FutureCause of Demand for Human Resources in the Future

a) a) ExternalExternal

EconomicsEconomics

Social, Political and LegalSocial, Political and Legal

TechnologyTechnology

CompetitorsCompetitors


b) b) OrganizationalOrganizational

Strategic PlansStrategic Plans

BudgetsBudgets

Sales and Production forecastsSales and Production forecasts

New venturesNew ventures

Organization and Job DesignOrganization and Job Design


c) c) WorkforceWorkforce

RetirementRetirement

ResignationsResignations

TerminationsTerminations

DeathsDeaths

Coverage of AbsencesCoverage of Absences

Types of Human Resource PlanningTypes of Human Resource Planning

HR planning is done every year at two different HR planning is done every year at two different levels.levels.

- For Bottom Level Jobs. (Workers)- For Bottom Level Jobs. (Workers)- For Upper Management Jobs. (Senior - For Upper Management Jobs. (Senior

Management)Management) Aggregate PlanningAggregate Planning- This planning relates to all levels with in the - This planning relates to all levels with in the

organization. organization.

Supply for Human ResourcesSupply for Human Resources

After projecting the manpower second After projecting the manpower second step is supply of the manpower. step is supply of the manpower.

Supply for Human ResourcesSupply for Human Resources

We have two channels for this:We have two channels for this:1)1) Internal Supply of the resources:Internal Supply of the resources:- - Consist of employees who are the part of Consist of employees who are the part of

the organization and can be promoted or the organization and can be promoted or rotated to different positions.rotated to different positions.

2) 2) External Supply of the resources:External Supply of the resources:- - Are those who can be attracted from the Are those who can be attracted from the

market.market.

Supply of Human Resources for OrganizationSupply of Human Resources for Organization

Supply of Human

Resource

b-3)External

Resources

b-2)Internal

Resources

b-1)Succession

Planning

b) Availability of Human

Resources

a) Organization

Forecast TechniquesForecast Techniques

HR department forecast manpower HR department forecast manpower demands for future. Some of the demands for future. Some of the techniques are:techniques are:

a)a) Expert Technique:Expert Technique:-- Is based on the judgments of those who Is based on the judgments of those who

are knowledgeable about future needs are knowledgeable about future needs and have expertise in the relevant field.and have expertise in the relevant field.


b) b) Nominal Group Technique:Nominal Group Technique:

- NGT technique presents a group (Ranging from NGT technique presents a group (Ranging from five to fifteen) of managers with a problem five to fifteen) of managers with a problem statement such as, what will cause our staffing statement such as, what will cause our staffing needs to change in coming year?needs to change in coming year?

- Where each participant writes down as many Where each participant writes down as many answers as he can imagine. Followed by answers as he can imagine. Followed by discussion. This exercise gives different ideas to discussion. This exercise gives different ideas to predict future needs. predict future needs.


c) c) Formal Survey:Formal Survey:

- - This is like most simplest form. Where This is like most simplest form. Where you ask departmental managers to you ask departmental managers to identify their future needs for identify their future needs for manpower.manpower.


d) d) Delphi Technique:Delphi Technique:

- - Estimates are solicited from a group of experts, Estimates are solicited from a group of experts, usually departmental managers. Then HR usually departmental managers. Then HR planners act as an intermediary to summarize planners act as an intermediary to summarize the various responses and report the findings the various responses and report the findings back to the experts. back to the experts.

Forecast TechniquesForecast Techniquese) e) Trend Projection Forecasts:Trend Projection Forecasts:- This is the quickest forecasting technique and This is the quickest forecasting technique and

is based on past trends. We have two parts in is based on past trends. We have two parts in it:it:

I.I. Extrapolation: Involves extending past rates Extrapolation: Involves extending past rates of change into the future. For example in of change into the future. For example in past, 20 production workers were hired every past, 20 production workers were hired every month. The trend shows that in future we will month. The trend shows that in future we will need 240 workers.need 240 workers.

II. II. Indexation: This approach focuses Indexation: This approach focuses employment growth with an index. For employment growth with an index. For example, in case of production increases by example, in case of production increases by 10% we will need ten new workers for our 10% we will need ten new workers for our future needs. future needs.


f) f) Budget & Planning Analyses:Budget & Planning Analyses:- Organizations that need HR planning generally Organizations that need HR planning generally

have detailed budgets and long range plans. have detailed budgets and long range plans. History of department budget reveals financial History of department budget reveals financial authorizations for more employees.authorizations for more employees.

g) g) New Ventures:New Ventures:- - This approach is useful when you have not This approach is useful when you have not

experienced complicated manpower planning in experienced complicated manpower planning in past. In such scenario you may approach the past. In such scenario you may approach the organization who is already operating in the organization who is already operating in the industry with such manpower planning. industry with such manpower planning.


h) h) Computer Model:Computer Model:

- - The most sophisticated forecasting The most sophisticated forecasting approaches involve computer models, approaches involve computer models, which are series of mathematical formulas which are series of mathematical formulas that simultaneously use extrapolation, that simultaneously use extrapolation, indexation, survey results and estimates of indexation, survey results and estimates of workforce changes to compute future workforce changes to compute future manpower requirement.manpower requirement.

Succession Planning Succession Planning

What is Succession Planning?What is Succession Planning?

Any IdeaAny Idea

Succession PlanningSuccession Planning Succession Planning is carried out in Succession Planning is carried out in

order to develop successors for senior order to develop successors for senior positions for having replacement in case positions for having replacement in case of senior executive’s separation or of senior executive’s separation or retirement from the company.retirement from the company.

To ensure continuous support and To ensure continuous support and strengthen in the organization’s strengthen in the organization’s operations.operations.

Succession Planning StepSuccession Planning Stepss1.1. Based on the reporting relationship, seniority and Based on the reporting relationship, seniority and

also the individual’s capability and experience, HR also the individual’s capability and experience, HR department will find out possible successors in department will find out possible successors in every department in direct consultation with the every department in direct consultation with the concerned departmental head.concerned departmental head.

2.2. A Chart will be developed showing the current A Chart will be developed showing the current position and his potential successors with their brief position and his potential successors with their brief profiles.profiles.

3.3. Discussions are held by HR and concerned Discussions are held by HR and concerned departmental head with the incumbent whose departmental head with the incumbent whose successors are being identified in order to obtain successors are being identified in order to obtain clarity on the requirements of his successors, so clarity on the requirements of his successors, so that proper identification is assured. that proper identification is assured.

Succession Planning StepsSuccession Planning Steps4. A plan would be chalked out to specify the time 4. A plan would be chalked out to specify the time

period and the development needs. Normally, period and the development needs. Normally, followed by:followed by:

Development program / courses.Development program / courses.

Job rotation if applicable.Job rotation if applicable.

Assigning of specific projects.Assigning of specific projects.

Assigning the responsibilities to work as Assigning the responsibilities to work as officiating for the same position for which he is officiating for the same position for which he is being developed.being developed.

Assessment of Current ManpowerAssessment of Current Manpower

Age profiles of the workers and Age profiles of the workers and management staff helps to make decision management staff helps to make decision about future manpower requirement, about future manpower requirement, development needs and succession development needs and succession planning.planning.

Thank youThank you

human resource planning

Education

supply of human resources

human resourcesafter

human resourceswe

future demand

forecast demand

new manpower

future needs

departments manpower