slides helps students to understand HR planning. how HR department forecasting HR needs and supply for next upcoming years.

1. We’re blaming ‘society’, yet we
are society. So to make it a
better place, we MUST CHANGE
ourselves first…

2.  Human Resource Planning Process (HRP)
 Demand forecasting method-
 Managerial Judgment,
 Work Study,
 Ratio-trend analysis
 Delphi technique
 Supply forecasting methods-
 Management Inventory,
 Skill Inventory,
 Inflows & Outflows,
 turnover rate,
 conditions of work and absenteeism

3.  In simple words, HRP is understood as the
process of forecasting an organization's
future demand for, and supply of, the right
type of people in the right number.
 After this only the HRM department can
initiate the recruitment and selection
process
 Its called by manpower planning, personal
planning or employment planning

4. • Basically it’s the process by which an
organization ensures that it has the rightthe right
number & kind of people, at the right place, atnumber & kind of people, at the right place, at
the right time,the right time, capable of effectively &
efficiently completing those tasks that will help
the organization achieve its overall objectives.

5. ENVIRONMENT
ORGANISATIONAL
OBJECTIVES AND POLICIES
HR NEEDS FORECAST HR SUPPLY FORECAST
HR PROGRAMMING
HRP IMPLEMENTATATION
CONTROL AND
EVALUATION OF PROGRAMME
SURPLUS SHORTAGE
RESTRICTED HIRING RECRUITMENT
REDUCED HOURS AND SELECTION
VRS, LAY OFF, etc
THE HRP PROCESS

6.  HR plans need to be based on Organizational Objectives.
 The role of HRP is to subserve the overall objectives by
ensuring availability and utilization of Human Resources.
 In developing these objectives, specific policies need to be
formulated to address the following questions:
 Are vacancies to be filled from promotions from within or
hiring from outside?
 How do training and development objectives interfere with the
HRP objectives?
 What union constraints are encountered in HRP and what
policies are needed to handle these constraints?
 How to improve employees job? Should the routine and boring
jobs continue or be eliminated?
 How to downsize the organization to make it more
competitive?

7.  Demand forecasting is the process of
estimating the future quantity and quality of
people required.
 The basis of the forecast must be the annual
budget and long-term corporate plan,
translated into activity levels for each
function and department

8.  Demand forecasting must consider several
factors both internal and external.
 Among external factors are competition(foreign
and domestic), economic climate, laws and
regulatory bodies, changes in technology and
social factors.
 Internal factors include budget constraints,
production levels, new products and services,
organizational structure and employee
separation.

9.  Demand forecasting helps to :
 Quantify the jobs necessary for producing a given
number of goods
 Prevent shortage of people where and when they are
needed most
 Determine what staff-mix is desirable in the future
 Monitor compliance with legal requirements with
regard to reservation of jobs
 Asses appropriate staffing levels in different parts of
the organization so as to avoid unnecessary costs

10.  Managerial judgment
 Ratio-trend analysis
 Work study techniques
 Delphi technique
 Flow modelsFlow models
 Other techniquesOther techniques

11.  In this all managers sit together, discuss and
arrive at a figure which would be the future
demand for labour.
 This technique may involve a ‘bottom-up’ or
‘top-down’ approach. A combination of both
could yield positive results.

12.  This is the quickest forecasting technique.
 This technique involves studying past ratios,
say, between the number of workers and
sales in an organization and forecasting
future ratios, making some allowance for
changes in the organization or its method.

13.  Work study techniques can be used when it is
possible to apply work measurement to
calculate the length of operations and the
amount of labour required.

14. • This technique is the method of forecasting
personnel needs.
• It estimates of personnel needs from a group
of experts, usually managers.
• The HRP experts act as intermediaries,
summarize the various responses and report
the findings back to the experts.
• Summaries and surveys are repeated until
the experts opinion begin to agree.

15. Supply forecasting measures the no. of
people likely to be available from within and
outside an organization, after making
allowance for absenteeism, internal
movements and promotions, wastage and
changes in hours and other conditions of
work.

16.  Quantify no of people and positions expected
in near future.
 Clarify the staff mixes.
 Prevent shortage of people
 Asses present staffing levels in different
parts of organization.

17.  Existing human resources
 Internal sources of supply
 External sources of supply

18. • Skill inventories – info. about non-managers.
1. Personal data
2. Skills
3. Special qualifications
4. Salary and job history
5. Company data
6. Capacity of individual
7. Special preference of individual

19. • Management inventories
1. Work history
2. Strengths
3. Weakness
4. Promotion potential
5. Career goals
6. Personal data
7. Number and types of employees supervised
8. Total budget managed
9. Previous management duties.

20.  HR planning and analysis
 Equal employment
 Staffing
 HR development
 Compensation and benefits
 Health,saftey and security
 Employee and labor relations

21.  Inflows and outflows
IS= current supply – outflow + inflow
 Turnover rate
No. of separations during one year × 100
Avg. no of employees during the year

22.  Conditions of work and absenteeism.
Absenteeism is given by
no of persons – days lost ×100
Avg. no of persons × no of working days

23.  After personal demand and supply are
forecast the vacancies should be filled at
right time with right employees.

24.  Converting HR plan into action.
 Action programmes are..
 Recruitment
 Selection & placement
 Training and development
 Retraining & redeployment
 The retention plan
 The succession plan

25. Recruitment
Selection & placement
If Shortage of employees
- Do-
Hire new full-time employees
Offer incentives for postponing retirement
Re-hire retired employees on part-time basis
Attempt to reduce turnover
Bring in over-time for present employees
Subcontract work to another company
Hire temporary employees
Re-engineer to reduce needs

26.  It covers no. of trainees required
 It necessary for existing staff
 Identification of resource personal for
conducting development programmes
 Frequency of training and development
programmes
 Budget allocation

27.  Retraining and redeployment:
 New skill should be imported to existing
employee
Retention plan:
 Compensation plan
 Performance appraisal
 Employees leaving in search of green pastures
 Shortages
 Unstable recruits

28.  Who is to be unneeded and where and when
 Plans for re-development or re-training
 Steps to be taken to help unneeded
employees finding new jobs
 Policy for declaring terminations
 Programme for consulting with unions or
staff associations

29.  Analysis of demand
 Audit of existing executives
 Planning of individual career path
 Career counseling
 Accelerated promotions
 Performance related training and
development
 Planned strategic recruitment
 Filling the openings

30.  Establish the reporting procedures
 Identifying who are in post and those who
are in pipe line
 It should report employment costs against
budget and trends in wastage and
employment ratios