Ch-3 Human Resource Planning

HUMAN RESOURCE
PLANNING
Asst. Prof. Parasmani Jangid
SDJ International College
• Human resource planning is one of the important
function of human resource management. It is an
integral part of the over all planning of any business unit.
human resource planning tries to maintain balance
between the requirements(demand) of human
resources(employees) and its supply in an organization
so that required number of human resources may be
available to achieve organization’s objectives
effectively.
• Human resources serves two purposes:-
• First: to get maximum out of the present employees of
the company
• Second:- to provide for future man power requirements.
MEANING
• Human resource planning, or HRP, is the ongoing, continuous

process of systematic planning to achieve optimum use of an
organization's most valuable asset — its human resources.
• The process that links the human resource needs of an

organization to its strategic plan to ensure that staffing is
sufficient, qualified, and competent enough to achieve the
organization's objectives. HR planning is becoming a vital
organizational element for maintaining a competitive
advantage and reducing employee turnover.
DEFINITION
• Dale S. Beach has defined it as
• “a process of
• determining and assuring 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.”
CHARACTERISTICS
• Managerial function- HRM is part of management. It is the responsibility of
management to make optimum use of human resource
• All level activity- country -in all sector, company-all level, factory-in
department
• Beneficial to both parties- organization & workers
• Top Management’s responsibility
• For all grades of employees
• Modern Concept-as important as business planning
• All aspects of personnel included -Recruitment, selection, training,
development, promotion, transfer, dismissal etc.
• Planning for long term and short term -Long term plans are prepared in
which the short term requirements are also included.
• Beneficial to the society- optimum utilization of resources, employment
and standard of living
HUMAN RESOURCE
PLANNING
FACTORS AFFECTING
HUMAN RESOURCE
PLANNING
Internal factors
• Top management policy: good policy gives best result
with less no. of employees.
• Size of business: expanded firms requires more of the
employees.
• Financial resources: availability of fund (for recruitment,
training, developmental programmes, etc.) is required.
• Technique of production: labour intensive & capital
intensive
CONT…
External factors
• Technological factors: changes in machines, methods of
production, mechanization of transport facilities, new
power source, etc. change in technological aspect
definitely change the needs of employees.
• Social factors: population, education and training, social
mobility, state employment policy, etc.
• Economic factors: change in economy, cyclical
fluctuation
• Political and legal factors: change in government,
industrial law and monetary policy.
IMPORTANCE/ADVANTAGES
• Provides estimates for future human resources requirements
• Provides guidelines for promotion and transfer
• Helpful in training programme
• Compliance with budgetary provisions
• Solution of retrenchment issue
• Saving of time, energy and cost
• Improves employee morale and satisfaction
• Implementation of long term plans
• Monitors staffing and retention policies
• Balance between demand and supply
• Availability of skilled manpower
LIMITATIONS
• Uncertain estimates(estimates not always accurate)
• Lack of co-operation from top executives
• Lack of essential information –about vacancies-leads to
imperfect planning
• Expensive
• Budgetary limitations
• Unreliabe data
HUMAN RESOURCE
PLANNING PROCEDURE
1. Determining the goal of the company
2. Collecting data about existing manpower- methods
1. Manpower Inventory (manning tables)
2. Skills Inventory (interview & questionnaire) Decision
making skill, Communication skill, Leadership
skill,Organizational and social skill
3. Manpower Audit
CONT.
3. Forecasting manpower demand- factors affecting
1. Trends of employment: current employment trends have
to be carefully studied for future projection of
organisation’s manpower needs.
2. Replacement needs: vacancies may arise due to
retirements, marriages of female candidates,
resignation, transfer, promotion ,death, etc. these can
also be predicted ion the basis of past experience.
3. Productivity changes-how to improve: Increased
productivity means same production with smaller no. of
workers, it may increase due to automation,
mechanisation, proper training and development
4. Expansion and development: growth rate in human
resources shall be considered accordingly.
4. Methods of Demand Forecasting
1. Work-load Analysis: estimated total sales and production
and activities for a specific future period are predicted.
This information is translated into number of man-hours
required to produce per units taking into consideration
the capability of the workforce.
2. Work-force Analysis: it considers labour turnover and
absenteeism while estimating HR requirements.
As these two factors really affect the manpower
requirements.
1. Absenteeism
2. Labor turnover rate
5. Estimating manpower supply
A. Internal Sources of Labour
1. Analysis of retention (LABOUR TURNOVER RATE)
2. Stability index
3. Analysis of Internal Movement
B. External Sources of Labour
6. Preparing a plan to take needed action- four elements
1. Manpower utilization
2. Manpower supply
3. Training
4. Personnel policies
WORK LOAD ANALYSIS
• 18000 UNITS MONTHLY
• 0.10 MAN-HOURS PER UNIT
• 18000*0.10=1800 MAN-HOURS
• AVERAGE WORKING 180 HOURS MONTHLY
• 1800/180= 10 PERSON
ABSENTEEISM
• MAN DAYS LOST ABSENT *100
• MAN DAYS ABSENT +MAN DAYS WORK
TURNOVER RATE
• NO. OF WORKERS WHO LEFT *100
• AVERAGE NO. OF WORKERS WORK IN YEAR
• A-0
• B-0
• C-5 2 working
• D-2
• E-10 VACANT
• F-10
Thank you

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HUMAN RESOURCE

• Human resource planning, or HRP, is the ongoing, continuous

• The process that links the human resource needs of an

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