1. Human Resources Planning

2. Objectives
• After completing this module, you will be
able to:
o Define human resources planning
o Discuss the process of human resource
planning
o Explain the importance of human
resources planning
o Discuss what HRMS is

3. Topics
• In this module, we will focus on the following topics:
o What is Human Resources Panning?
o Process of Human Resource Planning
o Importance of HR Planning
o HRMS and HRIS
o Summary

4. What is Human Resources Panning?
In this topic, we will define the
term human resource planning
and discuss how HRP tries to
integrate people management
with the organisation’s
strategic and business goals.

5. Let’s Define HR Planning
• HR Planning is the process by which management ensures that it has the
right personnel, who are capable of completing those tasks that help the
organisation, to reach its objectives.
• Continuous HR planning links people management to the organisation’s
mission, vision, goals and objectives, as well as its strategic plan and
budgetary resources.
• In this way, HR planning works to establish a link between:
o Strategic planning and business planning
o Arrangement and alignment of staff and employees on the other
• In other words, human resource planning is concerned with planning for
all aspects, like retention, separations, training and development,
compensation, etc.

6. Objectives of Human Resources Panning
• HRP leads to making processes effective and/or creating a
competitive advantage in the larger perspective.
• For example, through a clear plan to hire suitably experienced
candidates at a right cost, the HR planning gives the
organisation a competitive edge over other players in the
market.
• Objectives of Human Resource Planning:
o Vertical integration
o Involvement of Stakeholders
o Understanding Demographics
o Measurement and Assessment

7. Objectives of Human Resources Panning(Contd.)
• Vertical Integration
o HR planning and in turn HR management are not
an end in them selves.
o Human resource planning needs to be linked to
business planning or strategic planning. Business Goals
Business Goals
o They are meant to support and enable the
company to attain its business and strategic goals.
o This is called as vertical integration.
• Involvement of Stakeholders HR Planning
o HR planning aims at serving the stakeholders and
customers of the human resources department.
o The stakeholders and customers of HRD are
managers, executives, and line employees.
o So, the planning process MUST actively involve
them.

8. Objectives of Human Resources Panning(Contd.)
Understanding Demographics
• HR planning can't be effective without an understanding
of:
o The company or organisation
o Its managers and employees
o Its mission and issues
o The environment in which it works
• Therefore, good HR planning comprises of
understanding the demographics like:
o Data
o Profiles
o Projections

9. Objectives of Human Resources Panning(Contd.)
• Measurement and Assessment
o As with any planning endeavour, the outcomes of the
implementation of an HR plan should be measurable
and assessable.
o Measurement for HRP can be done through metrics
like:
• Employee turnover
• Frequency of grievances
• At the same time, it is very important to assess the effects
of the implementation of an HR plan on the achievement
of the organisation's business goals.
• Thus, HR planning refers to the development of plans in
these areas of achievement of the organisation's business
goals.

10. HR Planning for All
• Is human resource planning only relevant to large
companies or should small businesses do HR planning too?
• Large companies have a large number of employees, and
the level of complexity of their business is also much
higher.
• As a result, such companies have to have a have a much
more formal and comprehensive approach to HR planning.
• But this does not mean that HR planning is associated only
with large companies.
• Even a business owner with very few employees need to
plan about various personnel and human resources issues.

11. Process of Human Resource Planning
In this topic, we will discuss the
basic steps for human resource
planning. Apart from this, we
will also list the parameters for
internal and external check for
human resource planning.

12. Steps Involved in HRP
• The model of HR planning that we are going to discuss
relies on gap analysis and aims at linking HR planning
to overall business planning.
• Click each of these circles to find out more.
• Workforce Analysis
o A key component of HR planning is to understand
your workforce and planning for projected
shortages and surpluses in specific occupations
and skill sets.

13. Steps Involved in HRP(Contd.)
• Internal Check
o It consists of identifying factors internal to the
organisation that may affect HR capacity to
meet organisational goals.
• External Scan
o It consists of determining the most important
environmental factors expected to affect
workforce capacity, given known operational
and HR priorities and emerging issues.
• Gap Analysis
o At this stage, the gap between the
organisation’s current and future HR needs is
analysed based on the environmental scan
and operational business goals.

14. Steps Involved in HRP(Contd.)
Priority Setting and Work Plan
Based on the organisation’s priorities, environmental
scan, and HR performance related data, the following
factors are determined:
o The major human resources priorities
o The strategies that will achieve the desired
outcome
Monitoring, Evaluating, Reporting
This leads to improve the HRD’s capacity to:
o Measure performance
o Set targets
o Integrate results information into decision
making processes
o Determine future priorities

15. Parameters of Internal Check
• Check the key forces affecting the organisation's
operations like:
o Collective agreements
o Staffing issues
o Cultural issues
o Work/life balance
o Demographics
o Technology requirements
o Budget issues
o Expectation of clients

16. Parameters of Internal Check(Contd.)
• Check the organisation’s skills abilities and capabilities.
• Check the company’s current internal environment, elements supporting its strategic direction,
elements that deter the organisation from reaching its goal.
• Check the changes in the organisational structure in the past and accordingly forecast future
changes.
• Check organisational changes with respect to amount and type of work in the past and
intended changes in the future.
• Check transformation in the use of technology.
• Check changes in recruitment methodology.
• Check customer’s perception about the quality of organisation’s products and services,
strength areas and possible improvements.
• Check the contribution of current programs, processes or services to the achievement of
specific organisational goals.

17. Parameters of External Scan
• In order to do human resource planning, you need to
have a sense of both:
o The current external environment
o Things that may happen in the future in the
labour market place
• The current external environment, its elements
relevant to the company, elements that can inhibit
the company from reaching its goals.
• Check company’s specific issues and their
implications
• Check the critical forces in the environment that need
to be addressed

18. Parameters of External Scan (Contd.)
• Check the impact of local trends on the company like:
o Demographic
o Economic
o Political
o Intergovernmental
o Cultural
o Technological
• Check the competition in the market and it’s effect
on the company
• Check the sources of work, possibilities of change in it
and it’s effect on the organisation
• Check possibilities of change in the external
environment and it’s implications
• Check the trends affecting similar work in other
jurisdictions
• Check the trends affecting the company's
partners/stakeholders and customers

19. Importance of HR Planning
In this topic we will discuss the
importance of HR planning.

20. Introduction
• Human resources planning is important for the
following reasons:
o Succession planning
o Training and staff development
o Making a HR planning and development
system

21. Succession Planning
• After listing the reasons why HR planning is
important, let us see how HR planning is
important for succession planning.
• Orderly and planned transfer of powers,
responsibilities and job functions when
employees -- usually in executive and
management positions, leave the company
through retirement, or other means.
• If we think of human resource planning as
ensuring that the right people and right skills are
available so the company can meet its strategic
and shorter term goals, then it's clear that
succession planning is an important part of this
process.

22. Succession Planning (Contd.)
• For example, a person targeted to fill an
anticipated vacancy from within may be
encouraged for succession by giving the
necessary training.
• This can be by way of:
o Studying relevant university courses
o Attending seminars for skill building
o Shadowing a current incumbent to learn
the ropes
o Receiving coaching and mentoring from
the incumbent
o Participating in job rotations

23. Succession Planning (Contd.)
• Succession planning can also be used with a new hire
who may be hired before the incumbent leaves and is
prepared for the full position while the incumbent is
still in place.
• This is because the purpose of HR planning is to
ensure continuity of operations.
• For succession planning, research is carried out to
find out best practices with the following two
objectives.
o Designing tools and processes for succession
planning
o Designing leadership and executive development
programs

24. Succession Planning (Contd.)
• Designing tools and processes for succession
planning:
o Human resources planning is typically
responsible for the tools and processes
associated with successful succession planning.
o Business or line units use the system to
manage their own staffing needs. Together,
these two groups produce a comprehensive
process.
• Designing leadership and executive development
programs :
o For the purpose of leadership and executive
development, companies identify talent
continuously and cyclically.
o It’s an ongoing process and not a one shot
deal.
o The companies have a good sense of
leadership and management competencies
they will need, and need to develop.

25. Training and Staff Development
• A well thought out human resource plan is important for organized staff development
process in an organisation and is also strategic, organized, and designed to contribute to the
company's bottom line.
• Many a times, there is a wide gap between training and business needs.
• This is because most of the training in corporations yields no value at all to the company
because they are unconnected to business needs, either for the present or for the future.
Hit or Miss Process
Training Process
Well Thought-out Human Organized Staff
Resource Plan Development

26. Training and Staff Development(Contd.)
• It is very important to choose the kinds of training, suitable for
present and future needs, which will result in employees
being better contributors now and in the future.
• Thus, a sound human resource plan will:
o Anticipate the skills that will be needed in the future
o Identify gaps in skills that are present skill level and the
required skill level in future
o Plan for the development of staff in advance
o Make sure the skills will be available when required
• When training and staff development are linked to identified
present and future needs via HR planning, it also allows for
the use of multiple kinds of developmental activities, and not
just reliance on training for skill development.

27. Making a HR Planning & Development System
• After discussing the importance of HR planning in the staff training process, let us
discuss how it is important in making a HR planning & development system.
• When the needs of both employees and corporations are integrated in the HR
planning process, the results for both the parties are much superior to the
situation where only one set is considered.
HR Planning and Staff Development
Needs of Company Needs of Employees

28. Making a HR Planning & Development System(Contd.)
• Needs of Company
• The developmental needs of the company are
addressed through an integrated HR forecasting and
employee development plan.
• It contains the following components:
o Strategic business planning
o Job/Role planning
o Human Resource Inventorying

29. Making a HR Planning & Development System(Contd.)
• Needs of Employees
• Staffing issues are addressed by the HRD. Following
are some of the staffing issues:
o Job analysis
o Recruitment and Selection
o Induction/orientation and Initial Training
o Job Design and Job Assignment
o Employee Development Planning
o Inventorying of Development Plans
o Proper and timely follow-up of the
developmental activities
o Making career development processes

30. HRMS and HRIS
In this topic, we will discuss
what HRMS or Human
Resource Management System
is and what its relationship to
HR planning is.

31. What is HRMS?
• What is HRMS?
• Human resource planning involves the collection and use
of personnel data, so that it can be used as input into the
strategic HR function.
• There are huge amounts of data one can use in the
process.
• Human Resource Management System
o Data Storage
o Data Use

32. What is HRMS? (Contd.)
• Data Storage
o With the help of human resource management
system or HRMS, the user can store personnel
data in a form that can be that can be easily
accessed and analyzed.
o Thus, HRMS functions as a means of collecting
and organizing data about one’s staff.

33. What is HRMS? (Contd.)
• Data Use
o The data stored by HRMS can be further used as
Payroll
input in HR planning. Module
o Thus, it can be used to data to fulfill the various
functions usually associated with a human
Performance Recruitment
resources department. Management, Selection and
Appraisal and Applicant
o The human resources management software Performance Database
Planning Module
typically will help administer and record
personnel functions through the use of various HRMS
software modules.
o HRMS is comprehensive and can handle
information and HR processes for almost every
Training and Benefits
possible organisational function. Staff Administration
Development Module
o It is integrated and accessible through a Module
common computer interface. Integration allows
exceedingly sophisticated data management and
reporting.

34. What is HRMS? (Contd.)
• HRIS is a simple system formatted to provide
accurate and timely data and information for the
purpose of decision making.
• Centralised and systematic procedure for collecting,
maintaining and validating data needed by an
organisation about its human resources. Human Resources
Information
• It is a part of the organisation’s larger management System
information system.

35. HRIS and Human Resource Management
• HRIS and Human Resource Management
• After discussing some introductory information about
HRIS, let us discuss how it contributes to human
resources planning.
• A system like HRIS makes it possible for the HR to
readily identify their employees with the particular Human Resources
skills required to be performed and thus fulfil the Information
changing needs of the company. System
• The system does not look at merely planning; it
encompasses in totality the function of HRM.

36. HRIS and Human Resource Management (Contd.)
• HR Planning and Analysis
o Organisational charts
o Staffing projections
o Skills inventories
o Turnover analysis
o Absenteeism analysis
o Cost of restructuring
o Internal job matching
o Job description tracking
• Employment Strategies
o Action plan
o Applicant tracking
o Proper workforce utilization
o Manpower availability analysis

37. HRIS and Human Resource Management (Contd.)
• Resourcing
o Recruitment sources
o Applicant tracking
o Job offer refusal analysis
• Compensation & Benefits
o Pay structures
o Wage & salary costing analysis
o Salary administration
o Benefit usage analysis
• Employee Development & Career Management
o Employee training profiles
o TNA
o Succession planning
o Career interests & experience

38. HRIS and Human Resource Management (Contd.)
• Employee Relations ( including labour relations)
o Exit interview analysis
o Employee work history
o Conducting surveys ( for example: attitude
survey)
o Recording of various audit reports
o costing of trade union negotiations
• Health & Safety
o Safety training
o Accident records

39. HRIS and Human Resource Management (Contd.)
• The stored employee data in the data base is called as
skill inventory.
o Work history
o Duties and tasks managed in total
o Subordinates supervised, if any
o Personal data including education
Skill Inventory
o Strengths
o Weakness ( so that suitable training programs can
be given)
o Career goals
o Potential & aptitude
• For an HR person, it is extremely important to maintain
these records and update it regularly.

40. Summary
• In this topic, we learnt:
• Continuous HR planning links people management to the organisation's mission, vision, goals
and objectives, as well as its strategic plan and budgetary resources.
• Objectives of Human Resource Planning:
o Vertical integration
o Involvement of Stakeholders
o Understanding Demographics
o 4Measurement and Assessment
• The stages involved in HR planning process are:
o Workforce analysis
o Internal check
o External scan
o Gap analysis
o Priority setting and work plan
o Monitoring, evaluating, reporting

41. Congratulations!
You have successfully
completed the session ‘Human
Resources Planning.’