WH College –MBA

HRM

Human Resources Planning

(HRP)
Defining HR Planning
Strategy Oriented DEFINITION
 “A strategy for the acquisition, utilization,
improvement & retention of an
organization’s human resources”
 AIMS of HRP:
1. to ensure the optimum use of the people currently
employed
2. to provide for the future staffing needs of the
organization in terms of skills, number, & ages of
people
 HRP establish control: planner work as a
“policeman” who checks whether staffing
levels are optimum

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 Process Oriented Definition :
 HRP is as a continuous process of analyzing
an organization’s HR needs under the
changing conditions & developing the
activities necessary to satisfy these needs like
staffing, recruitment, selection, training, etc.
 Process aimed at assisting management to
determine how the organization should move
from its current staffing position to its desired
staffing position
 process by which an organisation ensures that
it has the right number & kind of people at the
right place and at the right time, capable of
effectively and efficiently completing those
tasks that help the organisation achieve its
overall objectives..
 “HRP includes estimation of how many qualified
people are necessary to carry out the assigned
activities, how many people will be available, and
what , if anything, must be done to ensure that
personnel supply equals personnel demand at the
appropriate time in the future.”
-Terry L.Leap
 “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.”
-Dales Beach
 “HRP is the process – including forecasting, developing
and controlling – by which a firm ensures that it has
the right number of people at the right places at the
right time doing work for which they are
economically most useful.”
-G.B.Geisler
INTRODUCTION:
Human Resource is an important corporate asset and
the overall performance of companies depends upon
the way it is put to use.
Globally Major issues in today’s organizations are skill
shortages, competency gaps, redundancies,
downsizing, rightsizing.
INTRODUCTION:

Causes of the issues are Inadequate Business Planning,

Inflexibility of Job, Job Descriptions, Absence of Training &
Development Programmes.
In order to realize company objectives. It is essential to have a
human resource planning (HRP) is essentially the process of
getting the right number of qualified people into the right job
at the right time so that an organization can meet its objectives.
OBJECTIVES OF HRP:
1. Ensure adequate supply of manpower as and WHEN
required.
2. Ensure proper use of existing human resources in the
organization.
OBJECTIVES OF HRP:
 Forecast future requirements of human resources
with different levels of skills.
 Assess surplus or shortage, if any, human resources
available over a specified period of time.
Contd..,
 Anticipate the impact of technology on job and
requirements for human resources.
 The ultimate objective is to relate future human
resources to future enterprise needs so as to
maximize the future return on investment in human
resources.
Contd..,
 Control the human resources already deployed in the
organization.
 Provide lead time available to select and train the
required additional human resource over a specified
time period.
Importance
 1)Each Organisation needs personnel with necessary
qualifications, skills, knowledge, experience & aptitude
.
 2)Need for Replacement of Personnel - Replacing old,
retired or disabled personnel.

 3)Meet manpower shortages due to labour turnover -

Indian Airlines, Gas Authority of India headless for 10 months.

 4)Meet needs of expansion / downsizing

programmes - As a result of expansion of IT companies the demand
for IT professionals are increasing. PSU’s offering VRS to employees to
retrench staff and labour costs. DOT.COMs firing staff.
 5) Cater to Future Personnel Needs - Avoid
surplus or deficiency of labour.
75% of organisations are overstaffed. Redeployment of staff to
other units.

 6) Nature of present workforce in relation with

Changing Environment - helps to cope with
changes in competitive forces, markets,
technology, products and government regulations.
Shift in demand from ERP to internet programming has increased
internet programmers demand at Wipro, Infosys etc. ITI retrained
its existing workforce in the new electronic telephone system.
Other uses

i) quantify job for producing product /

service ii) quantify people & positions
required
ii) determine future staff-mix
iii) assess staffing levels to avoid
unnecessary costs
iv) reduce delays in procuring staff
v) prevent shortage / excess of staff
vi) comply with legal requirements
Significance of HRP
Uncertainties can be managed through planning

Helps the organization develop action plan for

achievement of company’s objective for future

For strategic implementation

Significance of HRP
To minimize destruction/ disruption of organization
process

Helps to focus sharper at your competitive posture or

position

Focuses on short & long term people requirements

FACTORS AFFECTING HRP

1. Type and strategy of the organization

2. Organizational growth cycles and planning
3. Environmental uncertainties
4. Time horizons
5. Type and quality of forecasting information
6. Nature of jobs being filled
7. Off loading the work
Business Strategy & HRP
Business strategy HR strategy HRP activities
focus (Porter)

Cost leadership
Cost control Job & employee Internal promotions
Stable business specialization Emphasis on training
environment Employee efficiency Hiring & training for
Efficiency & quality Long HR planning scope specific capabilities

Differentiation
Long term focus Shorter HR planning scope External staffing
Growth Hire HR capabilities Hire & train for broad
Creativity in job behaviour required competencies
Decentralization Flexible jobs & employees

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Business Strategy & HRP
Business strategy HR strategy HRP activities
focus (Miles &
Snow)
Defender
Finds change threatening Bureaucratic approach Build HR
Favors strategies which Planned & regularly Likely to emphasize
encourage continuity & maintained policies to training programs & internal
security provide for lean HR promotion

Prospector
Succeed on change Creative & flexible Acquire HR
Favors strategies of management style Likely to emphasize
product & / or market Have high quality HR recruitment, selection &
development Emphasize redeployment performance base
& flexibility of HR compensation
Little opportunity for long-
term HRP

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Perspectives of HRP
 MACRO HRP –

◦ Assessing & forecasting demand for & availability of skills at

national / global level
◦ Predict the kinds of skills that will be required in future &
compare these with what is / will be available in the country
◦ Eg.
 Gillette merger with P&G whereby decided to
restructure & move from business units based on
geographic regions to global business units based
on product lines which resulted in redundancy of
some employees (Relocation to Singapore & VRS
for others)

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 MICRO HRP –
◦ Process of forecasting demand for & supply
of HR for specific organization
◦ Eg.
 Wipro (a software giant in India) raising
wages / short-listing students in their 2 nd yr.
of college for future employment in India
 Genpact (an IT solution company in India)
launching an associate trainee program
with Osmania University in India
Type and features
 Types of HR Planning:
◦ Long-term plan: 5years and above.
◦ Mid-term plan: 2 to 4 years.
◦ Short-term plan: 1 year.
 Features of HR planning:
◦ Consistency: consistent to organization goals.
◦ Continuity: between long-term, mid-term and
short-term.
◦ Flexibility: adapting according to change.
◦ Accuracy: be as close as possible to reality.
Stages in Human Resource Planning
 Forecasting
◦ Labor Demand
◦ Labor Supply
 Goal Setting and Strategic

Planning
 Program Implementation and

Evaluation
Forecasting Stage of Human Resource
Planning
 Determining Labor Demand
◦ derived from product/service demanded
◦ external in nature
 Determining Labor Supply

◦ internal movements caused by transfers,

promotions, turnover, retirements, etc.
◦ transitional matrices identify employee
movements over time
 Determining Labor Surplus or Shortage
Factors of HR Demand

 External Environment of Organization

 Internal Environment of Organization
 HR itself
Factors of HR Supply

 Regional factors

 Nation-wide factors