Human Resource Planning PDF

v a forecast of the demand for human resources – BACR1 Human Resource Management this involves an examination of the internal and Topic 2: Human Resource Planning...

v a forecast of the demand for human resources – BACR1 Human Resource Management this involves an examination of the internal and Topic 2: Human Resource Planning external labor supply Human resource planning is the responsibility of all v a forecast of the supply of external human managers. resources – the techniques used for forecasting - It focuses on the demand and supply of labor and the internal supply of personnel include turnover involves the acquisition, development, and departure of analysis, skill inventories, and succession planning people. The purpose of HR planning is to ensure that a predetermined v a forecast of the supply of human resources number of persons with the correct skills are available at a available within the organization - but not all specified time in the future. vacancies can be filled from within the organization. Time Frame of HRP i. What is Human Resource Planning? Ø short range ( 0 to 1 year ) Human Resource Planning – a process by which the Ø intermediate range ( 2 to 5 years ) management ensures the right number of people and the right kind of people, at the right place, at the right time doing the Ø long range ( beyond 5 years ) right things for which they are recruited and placed for the achievement of goals of the organization. Factors Affecting the Time Frame of HRP ii. Approaches to Human Resource Planning 1. Demand – ( number of employees required to achieve organizational objectives) To forecast the organization’s future HR requirements and determine where they will be obtained. Three sets of 2. Supply – (they have too much labor ) forecasts are required: 3. Net Needs – ( additional human resources requirements Four Basic Terms of Manpower Forecasting while the organization has its current human resources 1. Long Term Trend - long term forecasting is usually done Two approaches used in forecasting the demand for human for five years or more depending on the company operations resources are: and customer demands. a) Quantitative approach - this approach uses 2. Cyclical Variations - this refers to the reasonable and statistical and mathematical techniques. The focus of predictable movement that occurs over one year or more. this approach is on forecasting HR shortages, 3. Seasonal Variations - this is a reasonable prediction surpluses and it aims to reconcile the supply and change over one year. This covers firms who manufacture demand for human resources given the organization’s seasonal products and hire temporary workers for a objectives temporary increase in demand like Christmas and other b) Qualitative approach – this approach uses expert special occasions. opinion ( usually a line manager ) to predict the future. 4. Random Variations - this is one occasion where there is The focus is on evaluations of employee no special pattern and it is quite difficult to predict or performance and probability as well as management. determine. v. Manpower Forecasting - is the first step of the entire manpower planning activity. The manpower planner foresees the demand and supply of different types of manpower resources in the firm. The basic idea is to look into which department; unit or level there is a shortage or surplus of human requirements. 1. Determining the objectives of Human Resource have to be removed either in the form of termination, Planning retirement, layoff, transfer, etc. - the objective for which the manpower planning is to be done 5. Employee Plan - this plan is to be formulated should be defined precisely, to ensure that the right number accordingly. of people for the right kind of job is selected. 6. Training and Development - the training programs are 2. Analyzing Current Manpower Inventory conducted to equip the new employees as well as the old ones with the requisite skills to be performed on a particular - the next step is to analyze the current manpower supply job. in the organization through the stored information about the employees in terms of their experience, skills, proficiency, 7. Appraisal Manpower Planning etc. required to perform a particular job. - here the human resource plan is compared with its 3. Forecasting Demand and Supply of Human Resources actual implementation to ensure the availability of many employees for several jobs. The firm has to decide the - here the required skills of personnel for a particular job success of the plan and control the deficiencies if any. are matched with the job description and specification. GENERALIZATION 4. Analyzing the Manpower Gaps HR planning must be conducted for more effective and - in case the demand is more than the supply of human efficient use of human resources. It helps in scheduling resources, that means there is a deficit, and thus new recruitment and selecting effectively by providing information candidates are to be hired. that determines how many people are needed and the kinds of -Whereas, if the demand is less than supply, there arises a people needed for job openings. Through the HR planning surplus in the human resources, and hence, the employees process, the organization can identify the mix of skills it will need in the future.