This document outlines the HR planning process. It begins by defining HR planning as determining the right number and type of employees needed at the right time. The process involves analyzing corporate and unit strategies, forecasting demand and supply of employees, determining net HR requirements by matching demand and supply, and addressing surpluses or deficits. Surpluses may be addressed through redeployment, layoffs or retirement programs, while deficits can be filled through new hiring, training or outsourcing. The process aims to ensure the organization has the right people at the right time to meet its goals.
2. INTRODUCTION
In the present competitive era, an organization’s most valuable
asset is its HR – EMPLOYEES. Their skills and knowledge, as
well as their relationship with key customers can often be
irreplaceable and can be determine an organization’s success.
Human Resource: The people who are working in an
organization is called as human resource. And also called as
Man Power.
Human Resource Management is defined as the act of
procuring, developing and maintaining a competent workforce
with in the organization in an effective and efficient manner.
3. DEFINITION: HR PLANNING
“ HR Planning as a process by which an organization should
move from its current man power position to its desired man
power position, through Planning, management strives to
have the right number & right kind of people at the right
places at right time doing things which result in both the
organization and individual receiving maximum long run
benefit.”
4. ANALYSE UNIT &
CORPORATE
LEVEL STRATEGY
DEMAND FORECAST
CONTROL &
REVIEW
MECHANISM
FORECAST THE
FUTURE SUPPLY
OF HR (IF SUPPLY
IS INADEQUATE)
NET HR
REQUIREMENTS
SUPPLY FORECAST
SURPLUS HR DEFICIT HR
• EMPLOYMENT
• OUTSOURCING
• INTERNAL
MOBILITY
• RECRUITMENT
AGENCIES
• REDEPLOYMENT
• RETRENCHEMENT
• LAYOFF
• IRON SHAKEHANDS
• VRS/ GOLDEN
SHAKEHANDS
HR
PLANNING
PROCESS
5. ANALYSE UNIT & CORPORATE
LEVEL STRATEGY
Need to know the objectives of the organization.
Objectives may vary from one organization to
another.
Departments also vary within the organization.
6. DEMAND FORECAST
Process of estimating the quality and quantity of people required.
Can be done by 2 programmes—
1. Managerial judgement -- based on previous experience.
2. Statistical methods— can calculate future manpower requirement
a) Work study method: 4M’s, time standards for various jobs.
b) Ration trend analysis: work: members.
Ex: 25 students: 1 teacher. To start a school with 100 students you need to
hire 4 teachers.
7. SUPPLY FORECAST
To make an estimation of supply of human resources taking into
consideration the analysis of current human resources inventory and future
availability.
Existing inventory:- Head count, Job family inventory ( same category),…….
Labor wastage:- find out the reasons of people leaving the organization.
Permanent/ Temporary total loss (deaths, voluntary retirement, dismissals/
loss of aptitudes, absenteeism )
Permanent/ Temporary partial loss ( ill health or accidents/ job offered to
the employees )
Potential additions
8. NET HR REQUIREMENTS
Matching the demand and supply
Develop a plan to link your organization’s demand for
quality staff with the supply available in the market.
HR planning depends on whether there is deficit or
surplus in the organization.
9. NET HR REQUIREMENTS
SURPLUS HR (DEMAND <
SUPPLY)
In case of SURPLUS,
the plan may be
finalized for
Termination, VRS,
Redeployment.
DEFICIT HR (DEMAND >
SUPPLY)
In case of DEFICIT,
the plan may be
finalized for new
Recruitment,
Training, Internal
Mobility.
10. SURPLUS HR
• REDEPLOYMENT – employment in associated entity
• RETRENCHEMENT – reduce business expenses
• LAYOFF – temporary discharge of workers
• IRON SHAKEHANDS – compulsory retirement
• VRS/ GOLDEN SHAKEHANDS – payment may be in
cash, stock option,….