Human Resource Planning Process, Methods, and Techniques PDF

HUMAN RESOURCE PLANNING: PROCESS, METHODS AND TECHNIQUES (Part 1) 1  Learning Objectives The Process of Human Resource Planning includes: Forecasting Demand : nature, factors, techniques and approaches Forecasting Supply: nature, techniques D...

HUMAN RESOURCE PLANNING: PROCESS, METHODS AND TECHNIQUES (Part 1) 1  Learning Objectives The Process of Human Resource Planning includes: Forecasting Demand : nature, factors, techniques and approaches Forecasting Supply: nature, techniques Determining Manpower Gaps Barriers to HRP 2 You as the student at the end of the lesson, should be able to: A. Discuss the reasons for formal human resource planning. B. Describe the steps involved in the HR planning process (as discussed in class). Understand what goes into each step of the planning process. C. Recognize the methods available for forecasting demand for human resources. D. Describe the options available for follow-up action. E. Understand when each option is appropriate. 3 Managers follow a systematic process or a model when planning for HR. the following figure will illustrate the same. HR Planning Process 4 You will notice that the process is familiar to you. The process of the HR planning begins with considering the organizational objectives and strategies. Then both external and internal assessments of HR needs and supply sources must be done and forecasts developed. Key to assessing internal human resources is having solid and reliable information, which is accessible through a human resource information system (HRIS). 5 Before we outline the broad steps in HRP, it is thus important to view the various kinds of plans that one can construct which tend to put a boundary on the exact steps to taken. For instance, an organization can have: Company level plan Departmental level plan Job level This contrasts with National level plan Sectorial level plan Industry level plans- mostly handled by the governments of the country. 6 The last three plans provide environmental constraints on the first three if you go by environmental factors. HRP has long-range plans and short range plans. The long-range plans go side by side with the corporate strategic planning, typically looking five to ten years into the future, whereas, short-range plans focus on immediate needs, such as identifying job openings that must be filled within a one-year timeframe.. 7 Another important question that comes to mind is who is responsible for this process. Top-level executives are responsible for manpower planning, as it is one of the important factors influencing the success of an organization. The Human Resource Division in consultation with other corporate heads usually prepares the plans. The responsibility and accountability for manpower aspects of various divisions is on their respective heads. They should undertake their own appraisals of future needs in such a way as to provide a concrete basis for organization-wide forecasting and planning. 8 In order to contribute to effective manpower planning within the organization, the Human Resource Department must offer counsel and advice to various divisional heads and coordinate the various manpower estimates from time to time. Prof. Geisler outlined the responsibilities of Human Resource Department in respect of manpower planning. 9  The Responsibilities of the Human Resource Division include: 1- Assist and counsel operating managers to plan and set objectives. The HR Division collaborates with managers to define clear, achievable goals for their teams. By providing insights into workforce capabilities and needs, HR helps ensure that objectives align with both departmental and organizational goals, fostering better strategic planning. 2- Collect and summarize manpower data keeping long-run objectives and broad organizational interests in mind. HR is responsible for gathering comprehensive data on current workforce demographics, skills, and performance. This data is analyzed and summarized to inform decision-making, ensuring that staffing strategies align with the company’s long-term vision and goals, as well as its overall mission. 10  The Responsibilities of the Human Resource Division include: (cont’d) 3- Monitor and measure performance against the plan and keep top management informed. HR tracks the effectiveness of manpower plans by assessing key performance indicators (KPIs) related to staffing, productivity, and employee satisfaction. Regular updates and reports to top management ensure that leadership is aware of progress and can make informed decisions about resource allocation and strategic adjustments. 11  The Responsibilities of the Human Resource Division include: (cont’d) 4- Provide proper research foundation for effective manpower and organizational planning; The HR Division conducts research and analysis on labor market trends, workforce dynamics, and organizational needs. By providing data driven insights and recommendations, HR supports effective planning that enhances organizational efficiency and adaptability to changing conditions. 12 13 Once the Corporate strategy and objectives are clear, estimates of demand and supply can be made with the help of certain approaches and methods. When each projection is formulated, the difference between them is determined. This difference is termed as known as Manpower gap. The whole purpose behind human resources planning is to close this gap!! There are different strategies which we will discuss later in this lesson only which result in filling the manpower gap. 14  Before beginning the process of forecasting, always decide on: A- The approach of how the estimation are to be based qualitative, or quantitative. Both approaches have their strengths and are often used in tandem to provide a comprehensive estimation framework. Qualitative methods can offer valuable context to quantitative data, while quantitative methods can provide a solid foundation for decision-making. Qualitative Estimation: This approach relies on subjective judgment and non-numerical data to make estimates. It often involves gathering insights from experts or stakeholders through interviews, surveys, and discussions. 15  Before beginning the process of forecasting, always decide on: (cont’d) Application of Qualitative Estimation: Qualitative estimation is useful when historical data is scarce or when dealing with new or uncertain scenarios. For example, in project planning, a team might use qualitative methods to assess potential risks or the likelihood of project success based on expert opinions. Advantages of Qualitative Estimation: Captures nuances and context that quantitative methods may miss. Useful in early stages of planning when data is limited. 16  Before beginning the process of forecasting, always decide on: (cont’d) Quantitative Estimation: This approach relies on numerical data and statistical methods to make estimates. It involves analyzing historical data, trends, and measurable factors to derive estimates. Application: Quantitative estimation is often used for budgeting, forecasting, and resource allocation, where historical data is available. For example, a company might use past sales data to project future sales figures. Advantages: Provides objective, data-driven insights. Easier to validate and replicate results through statistical analysis. 17  Before beginning the process of forecasting, always decide on: (cont’d) B- Basic factors to be considered:.Wastage, This refers to the loss of resources, which can include employee time, materials, or inefficiencies in processes. Understanding wastage helps organizations identify areas for improvement to enhance productivity and reduce costs. Redundancy, This occurs when there are more employees than necessary for a given job or task, often leading to underutilization of resources. It’s important to assess redundancy to ensure optimal staffing levels and avoid unnecessary labor costs. 18  Before beginning the process of forecasting, always decide on: (cont’d) labor costs, This encompasses all expenses related to employing staff, including salaries, benefits, training, and overhead costs. Analyzing labor costs helps organizations budget effectively and evaluate the financial impact of staffing decisions. absenteeism , This refers to the habitual non-presence of an employee at their job. High rates of absenteeism can indicate issues with employee satisfaction, health, or work-life balance. Tracking absenteeism is crucial for understanding its impact on productivity and workforce morale. 19  Before beginning the process of forecasting, always decide on: (cont’d) Labor Turnover: This is the rate at which employees leave an organization and need to be replaced. High turnover can be costly and disruptive, so it's important to analyze turnover rates to identify underlying causes and develop retention strategies. 20