This document provides an overview of human resource planning. It discusses that human resource planning is a process by which an organization ensures it has the right number and type of employees with the necessary skills in the right positions at the right time. It then describes the objectives, types (aggregate and succession planning), and strategies of human resource planning. Succession planning specifically aims to identify and prepare key staff for future management roles.
2. HUMAN RESOURCE PLANNING
Human resource planning is a process by
which an organization ensures that:
it
has the right number and kinds of people
at the right place
at the right time
capable of effectively and efficiently completing those
tasks, that will help the organization to achieve its overall
strategic objectives.
3. HRP
Human resource Planning is the process by which
a management determines how an organization
can move from its current manpower position
to desired manpower position.
Through planning, a management strives to
have the right number and the right kind of
people at the right places, at right time.
4. FEATURES OF HRP
Process
tries to ensure the right people at right
place and at right time are available
Determines future needs of manpower as per
organizational planning and structure
Takes into account the manpower availability at a
future period
5. OBJECTIVES OF HRP
There are five major objectives of HRP and is
mentioned below:
Prevent overstaffing & understaffing.
Ensure the organization has the right employees with
the right skills in the right place at right times.
Ensure that the organization is responsive to changes in
the environment.
Provide direction and coherence to all HR activities in the
system.
Unite the perspective of line & staff managers.
6. TYPES OF HR PLANNING
HR Planning is of two types:
Aggregate
Planning
Successio
n Planning
7. AGGREGATE PLANNING
Aggregate Planning is done for the group of
employees at specific level, usually the low level
jobs.
Aggregate planning is forecasting the demand for
employees.
The single greatest indicator of the demand for
employees is demand for organization's
product or services.
8. AGGREGATE PLANNING (CONTD…)
Aggregate planning is done
FORCASTING METHOD.
through
UNIT
In this method, each individual unit, department
or branch of the organization estimated its
future needs for employees.
For example each branch of a bank may prepare
its own forecast for the estimation of its future
needs for employees each branch manager has
for the particular office. This is also called as
bottom-up planning.
9. AGGREGATE PLANNING (CONTD…)
Top-down
forecasting
involves
senior
managers allocating budgeted amount for
employee payroll expenditures and then dividing
the pool at subsequent levels down the
hierarchy.
Each manager receives the budget from the
superiors and then decides how to allocate
these funds down to the next group of
managers.
10. AGGREGATE PLANNING
Once the demand for the employees is
forecasted , the organization plan for an
adequate supply of employees to meet its
demand.
Further in this process of forecasting the
demand of the employee, knowledge, skills,
abilities, experience should also be taken into
considerations while fulfilling the demand.
11. STRATEGIES TO MANAGE EMPLOYEE SHORTAGES & SURPLUS
Strategies for managing
shortages:
Recruit new permanent
employee.
Offer incentive to postpone
retirement,
Rehire retirees part-time
Attempt to reduce turnover
Work current staff overtime
Subcontract work out
Hire temporary employees &
Redesign job process so that
fewer employees are needed.
Strategies for managing surplus:
Freeze Hiring
No replacement of employees
Offer early retirement schemes
Layoffs
Reduce outsourced work
Expand operations
12. SUCCESSION PLANNING
Succession Planning involves identifying the key
management positions that the organization
cannot afford to have vacant.
These are generally senior management positions
that the organizations feels difficult to fill.
Succession Planning works in two ways:
As a facilitator of transition when a employees leaves.
As an instrument to identify high potential employee
for the need of future assignments.
13. SUCCESSION PLANNING (CONTD…)
Succession Planning is easy to understand on
concept basis, but on practical implementation
it is very much difficult.
On the basis of traditional approach succession
planning it uses a tool called as Replacement
Chart.
Replacement Chart identify key positions,
possible successor for each of these positions.
Replacement chart can be easily derived by the
Organizational Chart
14. SUCCESSION PLANNING (CONTD…)
SAMPLE REPLACEMENT CHART
VICE PRESIDENT
OF MKT
DIRECTOR-SALES
Ready now
MANAGERPROMOTIONS
17 months
DIRECTORMKT.RESEARCH
1 year
In the above chart the VICE PRESIDENT has three(3) direct reporting
from
Dir-Sales, Mgr. Promotions & Dir-Mkt. Research. Beneath it
is the time mentioned for all these three to be ready to take the
responsibilities of the VICE PRESIDENT.
15. SUCCESSION PLANNING (CONTD…)
Succession Planning not only helps to ensure
that key management positions remain filled
but also helps to identify critical training and
development
needs
of
both
individual
managers and the organization as a whole.
Succession planning clearly involves taking an
investment-oriented
approach
towards
employee.
Succession Planning initiatives aimed at key
managers need to be coupled with a specific
retention strategy designed for potential
successors.
16. SUCCESSION PLANNING (CONTD…)
Pros & Cons of Disclosing Succession
Advantages
Disadvantages
Planning
Do Not Tell
Tell
High performers
may leave the
org., unsure of the
future
Unrealistic
expectations
Allows flexibility
as business
needs change
Retention
Strategy
Not telling to the employees has a benefit of the employer “not committing”
to employees and allows some flexibility in changing the mix of the
employees as per the requirement of the business.
On the other hand if the individuals are not aware that they have been
targeted as "high potentials” they may be more receptive to the opportunities
with other employers.