UNIT 10 SHRM

HUMAN RESOURCE PLANNING

(HRP)
Ms Shabnam
LEARNING OBJECTIVES
Ms Shabnam
Define Human Resource Planning (HRP)
Understand the nature and importance of HRP
Analyse and evaluate the factors affecting HRP
Critically evaluate the HRP process
HUMAN RESOURCE PLANNING (HRP)
Ms Shabnam
Human Resource Planning (HRP) refers to the
process of evaluation and identification of HR
requirements for meeting organisational goals to
ensure competitive advantage in the marketplace.

HRP should be a key component of nearly every
corporations strategic business planning.

HRP translates the organisations objectives and
plans in to the number of workers needed to meet
those objectives.

HUMAN RESOURCE PLANNING (HRP)
Ms Shabnam
HRP planning approach addresses the following
questions
How many employees do we have/need?
How are they distributed? Their department/
branch locations
What is the age profile?
How many will leave in each of the next five years?
How many will be required in one, five, ten years?




Characteristics of Strategic HRP
Ms Shabnam
Having adequate number of employees
Having the right mixture of talent
Moves beyond the traditional role of HR as primarily
an administrative control function
Adds value to the organisation
The Importance of Strategic HRP
Ms Shabnam
Provides a road map for future staffing requirements-provides
future personnel needs
Business competition- to consider optimal solutions for the long-
term and under challenging economic conditions-enables to cope
with business changes
Employee Development-documents the talents and skills of
people who are in place and creates a highly talented workforce
Can anticipate resistance to change and re-location


Factors that Affect HRP
Ms Shabnam
The stage of business- business growth, business
change and business decline
Labour cost control- labour budgeting
Impact of Technology
Labour market trends and regulations
Demographic trends




Factors that Affect HRP
Ms Shabnam
Human Resources are unpredictable-they can easily
upset plans through resigning, being sick, refusing to
take up certain roles
Surpluses and deficits are more difficult to manage
Human Resources need careful and sensitive to
handling, which requires substantial thought and
care on the part of HR managers

Human Resource Planning Process
Ms Shabnam
The HRP process has to take account of the
organisations likely future demand for labour and of
the potential supply of labour
Demand forecasting
Supply forecasting
Human Resource Planning Process
Ms Shabnam
Demand Forecasting: This entails estimating the
organisations future staffing requirement in terms of
numbers and skills, by reference to its aims and
objectives and taking account of changes in working
practices and activity levels.

Supply Forecasting: This entails estimating the
likely future labour supply, both from and within the
organisation taking account of employee wastage,
current skills mix, performance, etc. and from outside
the organisation taking account of the potential pool of
staff with the right levels of knowledge and skill.
STEPS FOR EFFECTIVE HR PLANNING
Ms Shabnam
Demand Forecasting
Inventory Analysis and Supply Forecasting
Audit
Reconciliation
Control



STEPS FOR EFFECTIVE HR PLANNING
Ms Shabnam
Inventory analysis is keeping track of the current
employees in the organisation to determine the extent
to which this meets the forecast
The HR Inventory Analysis Entails
Skills inventory or keeping track of the number of
employees and the age, locations, qualifications, and
skills of each employee to determine the specific role
each employee would fill in the short term and in the
long term
STEPS FOR EFFECTIVE HR PLANNING
Ms Shabnam
Forecasting resignations and recruitment and
understanding their impact on the skills inventory
levels
Forecasting leaves, transfers, dismissals, sabbaticals,
prolonged illness

Internal supply of HR include methods such as
replacement schedules, succession planning

AUDIT
Ms Shabnam
Audit is the process of reconciling inventory with
forecast through a systematic analysis of demand and
supply forecasting and identifying areas where
shortages and surpluses exist

AUDIT
Ms Shabnam
The audit phase also involves
Identifying reasons for resignations, the cost of such
resignations such resignations such as recruitment
and training costs of new hires, cost of lost
experience, skills and knowledge of the departing
employee and devise retention plans to retain key
talent
Review the effectiveness of the recruitment activities,
training and development initiatives, career planning
exercises, succession planning and other
interventions
RECONCILIATION
Ms Shabnam
Action plans to bridge the gap between forecast and supply
The various alternatives include:
Strategy to recruit new employees
Adopting retrenchment or downsizing strategy to shed
excess workforce
Training and development plans to right-size the
workforce
Career planning and succession planning to identify key
personnel
Changes in work regulation such as timings, overtime
policy etc

CONTROL
Ms Shabnam
Monitoring and controlling the implementation of
the HR plan

This entails ensuring implementation proceeds in
accordance with the plan and also taking timely course
corrections