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1. HUMAN RESOURCE
PLANNING
“Throughout history it is the quality of the
country’s manpower that has distinguished or
disgraced it in the comity of nations.”
Anonymous
09/21/12 1

2. Definitions
• HRP is the process by which an org 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 org achieve its
overall obj.
• HRP translates the org’s objectives and plans of workers
needed to meet those objectives. Without a clear-cut
planning, estimation of an org’s human resource need is
reduced to mere guess work.
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3. AIM OF HRP
• Attract and retain people with appropriate
skills, expertise and competencies
• Anticipate the problems of potential
surpluses and deficits of people
• Develop a well trained and flexible work
force
• Have an appropriate retention policy
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4. Potential benefits
• Upper management better aware of the
HR current configuration.
• Personnel cost is controlled.
• More time provided to locate talent.
• Affirmative Action Plan implemented
• Time to develop employees
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5. Sequencing-Human resource
planning
• Planning Process related to Strategy
• Resourcing strategy as employer of
choice.
• Scenario planning-Trends
• Demand/ Supply forecasting-Techniques.
Advertisement
• Recruiting
Documentation
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6. HUMAN RESOURCE PLANNING PROCESS
Forecast of
labour Forecasts of
demands labour supply
Forecasts of
labour surplus
or shortage
Goal setting
and strategic
planning
Program
implementation
09/21/12 and evaluation 6

7. A procedure for estimating Human Resource shortage or surplus for a job or Occupation category
Start with
Current Census
The number of people now in the group being studied
Expected Losses
The number of people expected to leave the group
between now and the planning horizon due to
retirements, quits, promotions, and deaths
To the remaining number add
Expected promotions. Replacement Needs
In light of human resource
objective.
To the resulting number add
The resulting number is Growth Needs
As determined by
organizational objectives.
The resulting number is
Replacement Needs Surplus
Predicted Demands
Shortage
To be met by external supply

8. 1. Number currently employed 70
2. Annual wastage rate based on past records
10 percent
3. Expected losses during the year 07
4. Balance at end year 63
5. Number required at end year 75
6. Number to be obtained during year (5-4) 12
Human Resourse Management

9. FACTORS AFFECTING HRP
• Strategy to be followed.
• Growth cycle of firm.
• Environmental Uncertainties.
• Time Horizons
• Type and Quality of Forecasting.
• Nature of Jobs to be filled.
• Off-Loading of Jobs.
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10. REASONS FOR DEMAND FORCASTING:
1. Quantify the jobs necessary for producing goods.
2. Determine staff-mix desirable in the future.
3. Assess appropriate staffing levels in different
parts organisation to avoid unnecessary costs.
4. Prevent shortage of people when they are needed
most.
5. Monitor compliance with legal requirements.
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11. ENVIRONMENTAL SCAN
• Tight Labor Market • Employee choice wide
• Recession • Employer choice wide
• Employee choice wide
• Skill shortage
• Buy not make
• High Turnovers
• High Tech Positions • Buy not Make
• Stable Environs • Attrition made up
• Expanding Environs • Aggressive Recruiting
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12. Self-employment
Peripheral group I Secondary
labour markets Flexibility
through quantitative adjustment
Agency temporaries
Core group
Subcontracting
Primary labour
markets
Flexibility through
utilization Part timers
Short term
contracts Peripheral group II Job
Public sharing
subsidy Delayed
trainees recruitment
Out-sourcing
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The flexible firm

13. OPTIONS
• Category A- Directly employed
– Full time
– Part time workers
– Job sharers
– Flexitime
– Annual hour contracts
Category B
- Self employed
- Free lance
Category C
- Agency workers
- Subcontracts
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14. HUMAN RESOURCING:Planning and performance
Fluctuations in demand
High
Small core
Average core combined
workforce (inc.
with Category A
Category A home
overtime and Category B
workers and part-
own-pool temporaries
timers) and
Low Category C workers High
Labour
costs
Average core
Large core combined
combined with
with Category A
Category A part-
part-time
timers, shift
workers, home
workers and
Category C agency
and/or subcontracts
Low
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Risk assessment model of flexible working patterns

15. FORECASTING METHODS
QUALITATIVE QUANTITATIVE OTHERS
Managerial Judgment Extrapolation/ Trend Budget Analysis
Delphi Technique Indexation Transitional Analysis
Nominal Group Markov Analysis Computerized
Technique
Expert Survey Regression
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16. PROGRAMME PLANNING OPTIONS
Hire new full-time employees
Offer incentives for postponing retirement
Re-hire retired employees on part-time basis
If a shortage of Attempt to reduce turnover
employees is expected Bring in overtime for present staff
…. Subcontract work to another company
Hire temporary employees
Re-engineer to reduce needs.
Do not replace employees who leave
Offer incentives for early retirement
Transfer or re-assign excess employees
If a surplus of employees Use slack time for employees training or
is expected …. equipment maintenance
Reduce work hours
Lay-off employees
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17. OPTIONS FOR REDUCING AN
EXPECTED LABOR SURPLUS
Option Speed Human Suffering
Downsizing Fast High
Pay reductions Fast High
Demotions Fast High
Transfers Fast Moderate
Work sharing Fast Moderate
Retirement Slow Low
Natural attrition Slow Low
Retraining Slow Low
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18. OPTIONS FOR AVOIDING AN EXPECTED
LABOR SHORTAGE
Option Speed Human Suffering
Overtime Fast High
Temporary Fast High
employees
Outsourcing Fast High
Retrained Transfers Slow High
Turnover reductions Slow Moderate
New external hires Slow Low
Technological Slow Low
innovation
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19. DOWNSIZING
• Planned elimination of large number of
personnel with goal of enhancing the
organisational’s competitiveness
• Does this option destroy the firm’s
reputation in the labor market?
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20. DOWNSIZING
• Reducing costs • Loss of talent
• Replacing Labor by • Social network
Tech effected
• Mergers & • Drop of motivation
Acquisitions • Hurt image building
• Moving to more • Only as a last resort
economical locations • Improve forecasting
09/21/12 20

21. TELE WORKING
TRADE OFFS
• ADVANTAGES • DISADVANTAGES
– Gains in productivity – Lack of commitment
– Reduction of overhead – Problems in
– Retention of rare skills communication
– Penetration of unusual – Problems in
labor markets supervision
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22. RETENTION PLANS
• Compensation plans made attractive.
• Fair Appraisal management
• Advancement opportunities
• Congenial working climate.
• Compatibility job and person
• HR Audit.
09/21/12 22

23. BARRIERS TO HRP
• Principle of “Employment at Will”
• HR taking a back seat on “Strat partner” role.
• Financial forecasting takes precedence.
• Conflict between short and long term goals.
• Conflict between Qualitative and Quantitative
methods of forecasting.
• Mis-coord between operations and HR
09/21/12- 23

24. Cost of Labor Turnover
• Leaving cost
• Direct costs: Ad, Selection cost/time,
Orientation/training costs
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25. The Labour turnover index
Number of leavers in a specified period (usually 1 year) X 100
Average number of employees during the same period
Stability index
Number 1 year’s service or more X 100
Number employed 1 year ago
Human Resourse Management

26. A HYPOTHETICAL TRANSITIONAL
MATRIX FOR AN AUTO PARTS
MANUFACTURER
2009
2005 (1) (2) (3) (4) (5) (6) (7) (8)
1. Sales manager .95 .05
2. Sales .05 .60 .35
representative
3. Sales apprentice .20 .50 .30
4. Assistant plant .90 .05 .05
manager
5. Production .10 .75 .15
manager
6. Production .10 .80 .10
assembler
7. Clerical .70 .30
8..Not in .00 .20 .50 .00 .10 .20 .30
organization
09/21/12
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27. Survival rate analysis
Entry Original Number surviving to end of year after engagement
Cohort Strength Year 1 Year 2 Year 3 Year 4 Year 5
A 40 35 28 26 22 20
B 32 25 24 19 18 17
C 48 39 33 30 25 23
D 38 32 27 24 22 19
E 42 36 30 26 23 21
Total 200 167 142 125 110 100
Average
survival 100 % 83 % 71% 62% 55% 50%
rate
Human Resourse Management

28. Leavers by length of service
Leavers by length of service Total Average Index of
number number labour
Less than 3-6 6 1-2 3-5 5 or
Occupation leaving employed turnover
3 months months month years years more
%
s years
A 5 4 3 3 2 3 20 220 10
B 15 12 10 6 3 4 50 250 20
C 8 6 5 4 3 4 30 100 30
Totals 28 22 18 13 8 11 100 550 18
Human Resourse Management