Human resources Planning Meaning, Process and Importance.pptx

Shows processes involved in Human Resource Planning

1. HUMAN RESOURCE MANAGEMENT Human resources slide 1 Human Resource Planning Dr. V. K. Jain GMN College Ambala Cantt

2. INDEX Meaning of HRP Process of HRP Importance of HRP Barriers to HRP and Steps to make it Effective Human resources slide 2

3. HUMAN RESOURCE PLANNING Meaning Lorem ipsum dolor sit amet, consectetur adipiscing elit. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Lorem ipsum dolor sit amet, consectetur adipiscing elit. 50% 80% 35% HUMAN RESOURCE Planning: It is basically concerned with procurement of right persons, in right numbers and at right time HRP is affected by HR policy of the organization, production, development and automation of company, expansion and diversification needs etc. It minimizes imbalance caused due to non-availability of right type of manpower for a desired position and at right time. Human resources slide 3 “Human Resource Planning is the process of determining the manpower requirements and the means for meeting these requirements in order to carry out the integrated plan of the organization.” Coleman Human Resource Planning consists of: Forecasting future manpower requirements based on economic environment and development of industry; Judgemental estimates as per specific future plans of the company Making inventory of manpower and their utilization. Anticipating manpower problems as per forecast of manpower in future. Planning for recruitment, selection, promotion, transfer etc. HRP is a continuous process. In view of the ever changing future needs, it must be flexible to ensure adjustments in manpower requirements.

4. 6. Control and Appraisal of HR Plan 5. Implementation of HR Plan 3. Forecasting HR Supply 2. Forecasting HR Demands 4. Estimate Net HR Gaps/ Requirements HUMAN RESOURCE PLANNING PROCESS Human resources slide 4 1. Analyzing Organizational Objectives , Plans and Policies

5. 1. Analyzing Organizational Objectives, Plans and Policies Knowledge of organizational objectives, plans and policies is required for effective HRP. Knowledge of objectives of HRP is required as they are derived from organizational objectives. The objectives of HRP must be in consistent with objectives of the organization as the HRP is concerned with meeting organizational needs of future manpower requirements. Hence, the HR department needs to begin HRP based on analysis of organizational objectives, plans and policies. Further, HRP should take into account the organizational policies for expansion, diversification, upgradation, implementation of new technology, automation plan, financial and marketing policies. HR policies regarding filling up vacant posts from external or internal sources, training and development, job enrichment, career planning etc. need to be properly analyzed. It will help to make an assessment of manpower for the present and future needs

6. 2. Forecasting Human Resource Demand To estimate future manpower requirements with right quality and in right quantity on the basis of organizational plans over a given period of time. Forecasting of manpower must take into account the replacement needs due to retirement, resignation, death etc. Further, employment trends, growth and expansion needs, absenteeism and labour turnover are also to be considered. To keep in mind that job Analysis is pre-requisite to select the right persons with right quality for the job. Various forecasting techniques are given below:

7. This technique is used by every organization. Two approaches – Top Down and bottom up are used. Under ‘Top Down’ the top management makes forecast of manpower requirements for the entire organizations and sent to the Depts. for their Information and approval. In ‘Bottom Up’, the depts send their requirements on the basis of which forecast is made by the top mgt. This technique is used where work load is easily measurable Under this method total workload is converted into manhours needed to produce one unit considering the capabilities of the work force. Demand for manpower is thus estimated on the basis of estimated total production and manhours required to produce one unit and worker’s contribution in terms of man hour. Demand for HR can also be determined by ratio between production level and number of workers available This ratio can be used to estimate future HR requirements FORECASTING TECHNIQUES FOR HR DEMAND Managerial Judgement Work Study Technique Ratio Trend Analysis Econometric Model Human resources slide 7 A combination of the two – ‘Participative Approach’ where dept. heads and top mgt Meet and decide HR needs can be better. Let us assume: Estimated Production = 3,00,000 Units Standard Hrs for one Unit = 2 Hrs. Contribution per employee = 1500 Hrs. Est. Manpower =300000x2=600000 hrs = 600000/1500 = 400 workers Let us assume: Production = 3,00,000 Units p.a. Number of workers = 1500 Ratio between production and workers = 300000 : 1500 = 200 : 1 Est. Production for next year = 4,00,000 Units Number of Workers required = = 400000/200 = 2,000 Workers (on the basis of 200 : 1) These models are based on mathematical and statistical techniques for estimating future manpower requirements. Under this model relationship is established between HR (dependent variable) and Sales, Ptoduction , Workload etc. (Independent Variables) to predict the requirements of manpower

8. FORECASTING TECHNIQUES FOR HR DEMAND Human resources slide 7 Techniques used by other organizations Organization-cum-succession Charts Historical Records Statistical Techniques – Correlation/ Regression Delphi Technique Other Techniques This technique takes into consideration HR requirements given by expert group i.e. managers. They collect data about manpower needs, estimate the requirements and prepare report. The process continues till all experts agree on the estimates.

9. 3. FORECASTING HR SUPPLY Estimated Supply of HR Present or Existing HR Potential Additions of HR Potential Loss of HR Human resources slide 7 1. Present / Existing HR: It explains HR inventory on the basis of department, age, sex, marital status, skill, experience, qualification, training, potentials etc. Internal mobility on account of promotion/ transfer should be evaluated. = + - To determine the size and quality of present and potential HR resources available from within and outsode the organization to meet the future demand of HR. The following figure explains supply forecasting 2.. Potential Additions of HR: Due to fresh recruitment needs, slelection , promotion, transfer etc. 3. Potential Losses of HR: Due to death, retirement, resignation, retrenchment, discharge, promotion and transfer. It may also be due to absenteeism or labour turnover.

10. 4. Estimating Net Human Resource Requirements To estimate gap between HR demand and HR supply as per the forecast both in qualitative and quantitative terms. Determining the requirements of manpower by subtracting HR supply from HR demand and surplus manpower if any. Preparing a blueprint of the requirements of each department both on qualitative and quantitative basis. First of all Surplus of manpower is adjusted to other departments Shortage of Manpower is met by making plan for recruitment, selection, placement. 5. Implementation of Human Resource Plan 6. Control and Appraisal of Human Resource Plan First assessment of HRP efforts and their contribution in achieving organizational objectives. In case Manpower needs are not met effectively, review HR plan or organizational plan.

11. Thank You Human resources slide 10