Human resource planning is the process of systematically reviewing an organization's human resource needs to ensure that the required number of employees with the proper skills are available when needed. The process involves forecasting future human resource requirements and availability, comparing requirements to availability, and taking actions like restricting hiring or recruiting if there is a surplus or shortage of workers. Key techniques in human resource planning include zero-based forecasting, bottom-up approaches, mathematical models, and simulation. Succession planning and development are also important to ensure qualified candidates are available for managerial positions.

1. HUMAN RESOURCE
PLANNING

2. Strategic Planning
The process by which top
management determines
overall organizational
purposes and objectives and
how they are to be achieved

3. Human Resource Planning
The process of systematically
reviewing HR requirements to
ensure that the required
number of employees, with
the required skills, are
available when they are
needed

4. Human Resource Planning Process
External Environment
Internal Environment
Strategic Planning
Human Resource Planning
Forecasting
Human
Resource
Requirements
Comparing
Requirements
and Availability
Forecasting
Human Resource
Availability
Surplus of
Workers
Demand =
No Action Restricted Hiring,
Reduced Hours,
Early Retirement,
Layoff, Downsizing
Shortage of
Workers
Recruitment
Selection

5. HR Forecasting Techniques
• Zero-based
forecasting
• Bottom-up
approach
• Use mathematical
models
• Simulation

6. Forecasting HR Requirements
• Estimate of numbers and kinds of
employees the organization will need at
future dates
• Demand for firm’s goods or services
must be forecasted
• Forecast is then converted into people
requirements

7. Forecasting HR Availability
• Determining whether the firm will be
able to secure employees with the
necessary skills and from what
sources
• Show whether the needed employees
may be obtained from within the
company, from outside the
organization, or from a combination
of the two sources

8. Surplus of Employees
• Restricted
hiring
• Reduced hours
• Early
retirement
• Layoffs

9. Shortage of Workers
Forecasted
• Creative
recruiting
• Compensation
incentives
• Training programs
• Different selection
standards

10. Succession Planning and
Development
• Succession planning - Process of
ensuring that the qualified person is
available to assume a managerial
position once a position is vacant
• Succession development - Process of
determining a comprehensive job profile
of key positions and then ensuring that
key prospects are properly developed to
match these qualifications