HUMAN RESOURCE PLANNING

Human Resource Planning

Human Resource Planning is the

process of forecasting a firm’s future
demand for, and supply of, the right
type of people in the right number.
Definition
 Human Resource planning includes
the 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 point in the future.
 Definition
 Specifically, human resource planning is the
process by which an organisation ensures that
it has the right number and kind of people, at
the right place, at the right time, capable of
effectively and efficiently completing those
tasks that will help the organisation achieve its
overall objectives. Human resource planning
translates the organisation’s objectives and
plans into the number of worker needed to
meet those objectives. Without a clear cut
planning, estimation of an organisation’s
human resource need is reduced to mere
guesswork.
 David A. Decenzo and Stephen P. Robbins
Importance of HRP
 Future personnel needs.
 Helps in strategic planning
 Creating high talented personnel
 Global strategies
 Foundation of personnel function
 Increase investments in human
resources
 Resistance to change
Factors affecting HRP
 Type and strategy of organisation
 Organisational growth cycle and planning
 Environmental uncertainties
 Time horizons
 Type and quality of forecasting
information
 Nature of jobs being filled
 Outsourcing
HR Demand Forecast
 Demand forecasting is the process
of estimating the quantity and
quality of people required to meet
future needs of the organisation.
Forecasting Techniques
 Ratio trends analysis
 Regression analysis
 Work study techniques
 Delphi techniques
 Managerial judgments
HR Supply Forecast
 Supply forecast determines whether
the HR department will be able to
procure the required number of
personnel. Specifically, supply
forecast measures the number of
people likely to be available from
within and outside an organisation.
HR Supply Forecast

The supply analysis covers:

 Existing human resources

 Internal source of supply
 External source of supply
JOB ANALYSIS
Job
 Job may be defined as “collection or
aggregation of tasks, duties and
responsibilities which as a whole,
are regarded as a regular
assignment to individual
employees.”
Job Analysis
 Job Analysis is the process of
studying and collecting information
relating to the operations and
responsibilities of a specific job. The
immediate products of this analysis
are job description and job
specification.
Job analysis involves following steps:
 Collecting and recording job information

 Checking the job information for accuracy

 Writing job description based on

information

 Using the information to determine the skill,

abilities and knowledge

 Updating the information from time to time

Job Description
 A list of job’s duties, responsibilities,
reporting relationship, working
conditions, and supervisory
responsibilities.
Job Specification
 A list of job’s “human requirements”
that is, the requisite education,
skills, personality and so on.
 JOB ANALYSIS
A process of obtaining all pertinent job facts

Job Description Job Specification

• Job Title • Education
• Experience
• Location • Training
• Job summary • Initiative
• Duties • Physical effort
• Machine tools etc • Responsibilities
• Material etc • Communication skills
• Supervision • Emotional characteristics
• Working condition • Unusual sensory sight etc.
• Hazards
 Use of Job Analysis Information

Job description and

Job Specification

Recruiting Salary Training

Performance
& & &
Appraisal
Selection Wages Develop

Career Health & Employee

Planning Safety Discipline
RECRUITMENT
Recruitment
 It is the process of finding and
attracting capable applicants for
employment. The process begins
when new recruits are sought and
ends when their applications are
submitted. The result is pool of
applicants from which new
employees are selected.
Initiating the Recruitment Process
 Prior to initiating a recruitment procedure, the
following matters should be considered:
 Clarification of the scope and skill sets required to
successfully perform the duties of the position
 Review of the Job Fact Sheet or Position Description
to ensure that the skills and abilities required
coincide with the current expectations of the
position. If they do not, then a position evaluation
should be undertaken.
 Review of the compensation available to the
position (i.e. salary and benefit plans, etc.)
 Analysis of the impact that the hiring will have on
the budget
 Factors Governing recruitment

External factors Internal factors

 Supply and demand  Recruitment policy
 Unemployment rate Recruitment  HRP
 Labour Market  Size of the firm
 Political  Cost
 Social  Growth
 Expansion
 Building Pool of Candidate

INTERNAL EXTERNAL
 SOURCES OF RECRUITMENT

INTERNAL EXTERNAL

 Current Employee • Advertising

 References from present • Employment agencies
employee • Temporary help
 Databank of former • Executive recruiters
applicants • Referrals and walk-ins
 Retired Employee • College recruiting
 Former employee • Company’s web site
• Free and fee-paying
Website services
Recruiting Yield Pyramid
 It is the historical arithmetic
relationships between-

 Recruitment leads and invitees

 Invitees and interviews
 Interviews and offers made
 Offers made and offers accepted
Recruiting Yield Pyramid

New hires
50
Offers made (2:1)
100
Candidates interviewed (3:2)
150
Candidates invited (4:3)
200
Leads generated (6:1)
1200
 Internal
versus
External
Recruitment
Advantages & Disadvantages
 Internal Recruitment
Advantages Disadvantages
1. It is less costly 1. It perpetuates the old
concept of doing things
2. Candidates are already 2. It abets raiding (make a
oriented toward organisation person provide something)
3. Organisation have better 3. Candidate’s current work
knowledge about the may be affected
internal candidates
4. Enhancement of employee 4. Politics play greater role
morale and motivation
5. Good performance is 5. Morale problem for those
rewarded not promoted
 External Recruitment
Advantages Disadvantages
1. Benefits of new skill, new 1. Better morale and
talent and experiences to motivation associated
organisation with internal recruiting is
denied to the
organisation
2. Compliance with 2. It is costly
reservation policy becomes
easy
3. Scope of resentment, 3. Chances of creeping in
jealousies and heartburn false positive or false
are avoided negative error
SELECTION
Selection
 Selection is the process of
differentiating between applicants
in order to identify those with a
greater likelihood of success in a
job.
Selection
 The selection of a candidate with
the right combination of education,
work experience, attitude, and
creativity will not only increase the
quality and stability of the
workforce, it will also play a large
role in bringing management
strategies and planning to fruition.
Factors affecting selection
 External environment
 Supply and demand of specific
skill
 Unemployment rate
 Legal and political considerations
 Company’s Image
Factors affecting selection
 Internal environment
 Company’s policy
 HRP
 Cost of hiring
Process of selection
Preliminary Interview

R Selection tests
E
J Employment Interview
C
Reference & background
T
E Selection Decision
D
Medical Examination

Job Offer

Employment Contract

Evaluation
Basic Testing Concepts
 Generally tests are administered to
determine the applicant’s –
 Ability
 Aptitude
 Personality
 Interest
Basic Testing Concepts
 Ability tests

 Helps to determine how well one can

perform his task
Basic Testing Concepts
 Aptitude tests
 Helps to determine a persons potential
to learn in a given area
Basic Testing Concepts
 Personality tests

 To measure a prospective employee’s

motivation to function in a particular
working environment
Basic Testing Concepts
 Interest tests

 To measure an individual’s activity

preferences. (For career change or
when there is multiple career option
available)
 Selection Tests
Tests Description
MBTI Understanding personality type

16 PF Measuring personality factors

Interviews
 Formal, in depth conversation conducted
to evaluate the applicant’s acceptability.

 Adapted to unskilled, skilled, managerial

and professional employees.

 Two-way exchange of information, the

interviewers learn about the applicant,
and the applicant learns about the
organization
Shortcomings of interviews
 Absence of reliability

 Lack of validity

 Biases
Preparing for the Interview
 Abundant research exists that reliability and
validity of the selection interview are higher when
an interview is structured, planned and
standardized in form. This approach fosters a
comprehensive investigation of the applicant's
background, precludes personal and non-job-
related questions, and increases impartiality in
qualification assessment. Therefore, an interview
plan is strongly recommended.

 Prior to developing the interview plan, it is critical

to be clear about the job requirements and stick
to them throughout the hiring process. This
ensures that you “don’t fall in love with each
candidate and redefine the job to fit”.
Types of Interview
Interview may be

One to one Interview

Only two participants –

1. Interviewer
2. Candidate
Sequential Interview

1 2 3

Involves series of interviews

Candidates moves from room to room
Panel Interview

Two or more interviewers

Formal
 Objectives of Interview
 Helps obtain additional information
from applicant

 Facilitates giving general information

to applicant

 Help build image of the organization

THANKYOU