HRP

1. Human Resource Planning
Unit -2

2. Definition
• “HRP is a process of determining and assuming that the
organization will have an adequate number of qualified
persons, available at the proper times, performing jobs
which meet the needs of the enterprise and which provide
satisfaction for the individuals involved.”
Personnel Planning- The process of
deciding what positions the firm will
have to fill, and how to fill them.

3. 3
Characteristics of HRP
1. HRP is a forward looking or future oriented.
2. HRP is a ongoing or continuous process.
3. HRP is a integrated part of corporate planning.
4. The basic purpose of HRP is to make optimum
utilization of an organization’s current and future HR.
5. HRP has both qualitative and quantitative aspects.
6. HRP is primary responsibility of Management.
7. HRP can be long term or short term.

4. Characteristics……
8. HRP is a two phased process involving calculation
about the demand for and supply of human resources,
so as to secure an equilibrium between the two. A
manpower plan consists of two sub-plans;
(a) a manpower demand plan
(b) a manpower supply plan.
9. HRP should not be rigid, it should be flexible.

5. Need and Importance of HRP
• HRP identifies gap in existing manpower in terms of their quantity
and talent. Suitable training and other steps can be taken in time to
fill these gaps.
• There is need to replace employees who retire, die, resign and
become incapacitated due to injury. Provision for replacing of
personnel can be made through HRP.
• HRP facilitates the expansion and diversification of organization. In
the absence of HR plans, the required human resource will not be
available to execute expansion and diversification plans at the right
time.

6. Quantitative Aspect of Human
Resource Planning
Quantitative aspect of human resource planning involves
demand forecasting and supply forecasting.
(i) The Economic Considerations relating to determination of
economic situation and in the light of that future sales and
production estimates are made. These estimates affect manpower
requirements.
(ii) Expansion programmes in future also affect future manpower
requirements

7. Cont…
(iii) Availability of existing manpower resources of different kinds
should be kept in mind. This is helpful in forecasting future
manpower requirements.
(iv) Rate of labour turnover is an important instrument with the help of
which estimates with regard to future manpower requirements can
be made. It provides required information statistically i.e. how many
employees have left and joined the organisation during a specific
period of time. Labour turnover rates are calculated by applying
separation method, replacement approach and flux method. In the
light of labour turnover rate future manpower requirements can be
estimated,

8. Cont…
(v) Resignations and retirements, promotion, demotion, separation,
transfers, dismissals and lay off etc. are other important
considerations to be borne in mind before initiating the process of
human resources planning.
(vi) Changes in the management thinking, philosophy and plans etc.
also affect manpower plans. Technological changes and
diversifications etc. bring about changes in the skills and
performance of workers.

9. Qualitative Considerations:
(i) Work-load analysis. It is a technical aspect of manpower planning.
It includes and studies auditing of human resources, study of work
standards and demand analysis etc.
(ii) Auditing of Employees Involves Preparation of Skill Inventory.
Skill inventory covers data regarding skill and work priorities
pertaining to work of different categories of workers. Big
organisations prepare organisational charts and other employee
information cards for this purpose.
(iii) Study of work standards is necessary for the quality of workers
required. It is indispensable for preparing job analysis which
includes job specifications and job descriptions.

10. Demand and Supply Forecasting:
Factors and Methods
Demand Forecasting:-Demand forecasting is a quantitative aspect of
human resource planning. It is the process of estimating the future
requirement of human resources of all kinds and types of the
organisation.
Factors: Forecasting of demand for human resources depends on
certain factors such as:
(1) Employment trend in the organisation for at least last five years to
be traced
to determine the future needs.
(2) Organisation has to find out the replacement needs due to
retirement, death, resignation, termination etc.

11. (3) Improvement in productivity is yet another factor. To improve
productivity organisation needs better employees with skills and
potential. Productivity leads to growth but depends on the demands
for the product of the enterprise in the market. Higher demand may
lead to more employment of skilled personnel’s.
(4) Expansion of the organisation leads to hiring of more skilled
persons. The base of human resource forecast is the annual budget.
Manufacturing plan depends upon the budget. Expansion in
production leads to more hiring of skills and technology.

12. Methods
• Managerial judgment
• Work Study
• Econometrics
• Delphi
• Regression
• Barometric

13. DATABASE FOR MANPOWER
FORECASTING
• Database has a crucial role to play in manpower
forecasting as it determines the methodologies that can be
adopted. There is a different database for macro and micro
that are as follows
• Database for Macro Forecasting
• Data Base for Micro Forecasting :

14. Database for Macro Forecasting
• Population Statistics
• Data on Economic Parameters
• Information on Technologies

15. Data Base for Micro Forecasting
• Personal Data Module.
• Recruitment Module
• Job Experience Module
• Performance Appraisal Module
• Training and Development Module
• Miscellaneous Module

16. MANPOWER SUPPLY
FORECASTING
• The next step in the process of manpower planning
involved is to find out that how much demand of
manpower can be met from within. This can be possible
through the manpower supply forecasting. The manpower
supply forecasting will involve following steps:

17. MANPOWER SUPPLY
FORECASTING
• Manpower inventory.
• Forecasting the wastage.
• Dimensions of Manpower Supply
• There are four dimension of manpower supply, that are as
follows:
i) Stock and Flow
ii) Quantity and Quality
iii) Occupation and Education
iv) Macro and Micro

18. Demand generation
strategy
• Brand definition.
• Buyer personas.
• Content creations.
• Acquisitions channels.
• Technological updates.

19. Recruitment Analytics
• Recruitment analytics is the discovery and interpretation
of meaningful patterns for sourcing, selecting, and hiring.
This means that data is used to find and explain patterns in
data.
• For example, if new hires leave within the first three
months, this may indicate a mismatch with the job
description and the actual role, selection mistakes or a bad
on boarding process.

20. Recruitment reporting and analytics
• Operational reporting
• Advanced reporting
• Analytics

21. Reliability and Validity of
selection process:
• Selection a best suitable candidates for a job is an essential
function of HR department. And, the effective selection is
depends to a large degree on the basic testing concepts of
validity and reliability.
• Reliability: It is a test’s first major requirement and refers
to its consistency. A test is said to be reliable only when
the result an outcome is consistent on identical test
obtained form same person at two different occasion.

22. Validity
• Validity (legal acceptance): It measures to prove that
something is true or correct. In other words, validity tells
us whether the test is measuring what we think it’s
supposed to be measuring.

23. Validity can be of following types:
• Content validity: Content validity means, the content of the test
item correlates highly with the job content. In other words, the
content that choose for data entry test is a representative sample of
what the person needs to know for the job, then the test is probably
content valid.
• Predictive validity: It means the performance of an employees or
test score highly correlates with the future requirement of the job.

24. Cont…..
• Concurrent validity: It means, the degree to which test
score correlates with job performance (i.e. those we do
well in the test do well in job).
• Construct validity: It means the relation between the job
and its score in practical aspects. In other words, the extent
to which the test measures the psychological quality or
quantifies the psychological aspect of an individual

25. Bias
• Bias, prejudice mean a strong inclination of the mind or
a preconceived opinion about something or someone. A
bias may be favorable or unfavorable: bias in favor of or
against an idea.

26. Selection Bias
• Selection bias is an experimental error that occurs when
the participant pool, or the subsequent data, is not
representative of the target population.
• In-group favouritism, which concerns the hiring,
promoting and rewarding of those in the“in” group (Bell
2013), constrains diversity, working against women in
particular and minority groups.

27. Types Bias
• Gender bias
• Affinity bias
• Fundamental attribution bias
• Beauty bias
• Confirmation bias
• Halo effect

28. Predicting Turnover and
Performance
• As the poor economy and the associated decrease in
employee raises and bonuses make it more difficult to
retain high-performing employees, organizations need to
make pre-hire determinations of which candidates are
most likely to stay with the organization.

29. Cont…
Pre-hire Predictors
• Are pre-hire predictors of turnover also effective
indicators of work performance? Several indicators, such
as biodata (biographical data) and pre-hire attitudes, have
been explored for the purpose of answering that very
question. In particular, three types of information are
especially strong indicators of job performance and
turnover.

30. Predicting Turnover
• Biodata– predictors that represent pre-hire embeddedness
in the organization (employee referral; number of friends
and family) and habitual commitment (tenure in prior job;
number of jobs in last five years)
• Pre-hire attitudes– includes the applicant’s self-
confidence and confidence with decisions, as well as the
applicant’s desire for a job and pre-hire intent to quit
• Personality traits– Conscientiousness (being dependable
and reliable) and Emotional Stability (ex. Individuals who
have low emotional stability tend to have negative
perceptions of themselves and their environment.)

31. Turnover Decisions and Job
Performance
• Some notable indicators of which employees are likely to
remain working for a company six months after hire
include: pre-hire embeddedness, habitual commitment,
personal confidence, motivation for employment,
conscientiousness, and emotional stability.

32. Cont….
• Further, beyond the period of six months post hire, up to
two years later, the remaining two indicators for voluntary,
avoidable turnover are conscientiousness and emotional
stability.
• The number of jobs held over the previous five years was
a better indicator of early turnover, whereas tenure on the
most recent job was more predictive of early job
performance. The good news is that most turnover
decisions are “functional,” meaning that those employees
who tend to stay in an organization tend to be the better
performers.

33. The following pieces of information are critical to
determining future employee turnover based on
predictive analytics:
• Duration of employment.
• Time elapsed since previous promotion (if any)
• Compensation level.
• Job performance scores and ratings.
• Commute time.