Human Resource Planning
HR Planning is the process of examining an organizations‟ future human resource need. It involves:
Identifying and acquiring the right number of people with the proper skills Motivating them to achieve high performance Creating interactive links between business objectives and resource planning activities
Human Resource Planning
Human Resource Planning (HR Planning) is both a process and a set of plans. It is how organizations assess the future supply of and demand for human resources.
An effective HR plan also provides mechanisms to eliminate any gaps that may exist between supply and demand. Thus, HR planning determines the members and types of employees to be recruited into the organization or phased out of it. Dynamic by nature, the HR planning process often requires periodic readjustments as labor market conditions change.
Strategic Planning Technological forecasts Economic forecasts Market forecasts Organizational planning Investment planning Annual operating plans Human Resource Demand Annual employment requirements Numbers Skills Occupational categories Human Resource Supply Existing employment inventory After application of expected loss and attrition rates Compared with
Decisions Action Decisions Layoff, retirement, etc.
Decisions Overtime, recruitment, etc.
The HRP Process
All effective HR planning shares certain features. It is generally agreed that HR planning involves four distinct phases or stages: Situation analysis or environmental scanning
Forecasting demand for human resources
Analysis of the supply of human resources
Development of plans for action
Why is HRP important ?
Even an imperfect forecast is better than none at all Anticipating needs – prepare for the future gives you an edge Address potential problems – avoid skill deficiencies
What is HRP?
HRP is a sub-system of total organizational planning. HRP facilitates the realization of the company‟s objectives for the future by providing the right type and number of personnel HRP is also called Manpower planning, Personnel planning or Employment planning
HRP ensures that the organization has:
Right Number Right Kind Right Place Right Time
Benefits of HRP
Create reservoir of talent Prepares people for future Expand or Contract Cut Costs Succession Planning
Managerial Judgment Ratio trend analysis Work Study Techniques Delphi Technique Flow Models Others
Factors in Demand forecasting
Social factors – Working conditions, Govt. regulations, environmental conditions, religious, cultural. Technological Factors Political Factors – Trade restrictions, War etc. Economic Factors Demand generation Growth Employee Turnover
Job Analysis is not a one time activity as jobs are changing constantly The job and not the person – an important consideration in job analysis is conducted of the job and not of the person It simply highlights what are the minimum activities that are entailed in a job.
Does the job cover a reasonable but not too extensive range of different tasks? Are there opportunities to use knowledge and skills associated with effective performance of the job? Can the individual make full use of their skills and develop their skill base?
Is the purpose of the job clearly and unequivocally Is its contribution to the organisation‟s objectives evident? Is its contribution to its dept obvious? Is the post holder responsible for the successful completion of the whole job? Do the internal systems help the post holder do the job?
Relationships Are the formal...
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