1. ITM Sion
HR Batch
HR PLANNING AND AUDIT

2. HR PLANNING AND AUDIT


HR planning is process that identifies current and
future human resources needs for an organization to
achieve its goals.
An HR audit is a process to review implementation of
your institutions policies and procedures, ensure
compliance with employment law, eliminate
liabilities, implement best practices and educate your
managers.

3. HUMAN RESOURCE PLANNING



In simple words, HRP is understood as the
process of forecasting an organization's future
demand for, and supply of, the right type of
people in the right number.
After this only the HRM department can
initiate the recruitment and selection process
Its called by manpower planning, personal
planning or employment planning

4. HR PLANNING

Recruitment, Selection & Placement

Training & Development

Retraining & Redeployment

Retention Plan

Downsizing Plan

5. HR PLANNING PROCESS

6. HR DEMAND FORECASTING





Demand forecasting is the process of estimating the future
quantity and quality of people required.
The basis of the forecast must be the annual budget and longterm corporate plan, translated into activity levels for each
function and department
Demand forecasting must consider several factors both
internal and external.
Among external factors are competition(foreign and
domestic), economic climate, laws and regulatory bodies,
changes in technology and social factors.
Internal factors include budget constraints, production levels,
new products and services, organizational structure and
employee separation.

7. HR FORECASTING TECHNIQUES















Managerial Judgment
Trend Analysis
Ratio Analysis
Scatter Plot
Computerized Forecast
Work Study Technique
Delphi technique
Regression Analysis
Econometric Models
Nominal Group Technique
H R Budget and Planning Analysis
Scenario Forecasting
Workforce Analysis
Workload Analysis
Job Analysis

8. IMPORTANCE OF HR PLANNING
1)Each Organization needs personnel with necessary
qualifications, skills, knowledge, experience & aptitude .
2)Need for Replacement of Personnel - Replacing old, retired or
disabled personnel.
3)Meet manpower shortages due to labour turnover –
4)Meet needs of expansion / downsizing programmes
5)Cater to Future Personnel Needs - Avoid surplus or deficiency
of labour.
6)Helps to cope with changes in competitive forces, markets,
technology, products and government regulations.

9. OBJECTIVES
 The
role of HRP is to sub serve the overall objectives by
ensuring availability and utilization of Human
Resources.
 In
developing these objectives, specific policies need to
be formulated to address the following questions:





Are vacancies to be filled from promotions from within or
hiring from outside?
How do training and development objectives interfere with
the HRP objectives?
What union constraints are encountered in HRP and what
policies are needed to handle these constraints?
How to enrich employees job? Should the routine and boring
jobs continue or be eliminated?
How to downsize the organization to make it more
competitive?

10. HR AUDIT

An HR Audit is like an annual health check-up, it plays a vital
role in instilling a sense of confidence in the Management and
the HR functions of an organisation.
Need for HR Audit:
1.
Increase size of Organization & Personnel
2.
Change Philosophy of Management towards HR
3.
Increase Strength & Influence of Unions

11. OBJECTIVES:
1. Effectiveness: To review performance of Human resource
Department and its activities to determine effectiveness.
2.Implementation: To locate gaps, lapses, failings in applying
Polices, Procedures, Practices & HR-directives. Also to see
areas of wrong / non-implementation that hindered the
planned programs & activities.
3.Rectification: To take corrective steps to rectify mistakes,
shortcomings contesting effective work performance of HR
Department.
4. Evaluation: To evaluate HR Staff & employees.

12. 5. To evaluate the extent to which Line Managers
Applied Policies Programmes & Directives initiated by
Top Management & HR Department.
6.Modify: To review HR System and Modify to meet
challenges in comparison with other organizations.
7.Questioning: To seek answers to ‘What, Why ‘When
Happened while implementing Policies, Practices &
Directives in managing HRs

13. IMPORTANCE OF HR AUDIT








To make the HR function business-driven.
Change of leadership.
To take stock of things & to improve HRD for expanding,
diversifying, & entering into a fast growth phase.
For growth & diversification.
For promoting professionalism among employees & to switch
over to professional Management.
To find out the reasons for low productivity & improve HRD
strategies.
Dissatisfaction with a particular component.
To become employer of choice.

14. FIVE APPROACHES TO HR AUDIT:
1.
Comparative Approach.
2.
Outside Authority Approach.
3.
Statistical Approach.
4.
Compliance Approach.
5.
MBO Approach

15. Comparative Approach –

Auditors Identify another Company as a
MODEL. Result of their Organization
compared with those of Model Company.
Outside Authority Approach –

Often, Auditors use standard set by Outside
Consultant as BENCHMARK for comparison
of own Results.

16. Compliance Approach –

Auditors review Past Actions to determine if those
activities comply with legal requirements and
Company Policies, & Procedures. A Final approach is
for Specialists & Operating Managers to set
objectives in their areas of responsibility.
Management By Objectives Approach –

creates Specific Goals against which performance
can be measured. Then the Audit Team Researches
ACTUAL PEERFORMANCE and COMPARES WITH
THE OBJECTIVES.

17. AUDIT OF HR FUNCTION:
INVOLVES ALL ACTIVITIES OF HR FUNCTIONS, FROM HRP TO
IR
Major Areas:
1. Planning - Forecasting,
2. Scheduling;
3. Staffing & Development,
4. Organizing;
5. Motivation & commitment ;
6. Administration ;
7. Research & Innovation.