Human Resource Planning
Human Resource Planning
•‘The process of determining human resource
requirements and the means of meeting those
requirements in order to carry out the integrated plan of
the organization’ – Coleman
• It is a process by which an organization ensures that
•it has the right number and kinds of people
•at the right place
•at the right time
•is capable of effectively and efficiently completing those tasks that will help the organization achieve its
overall strategic objectives.
Linking Organizational Strategy to Human
Resource Planning
• Ensures that people are available to
meet the requirements set during
strategic planning.
Assess trends in
Human
•Current employees
•Future organizational plans
Resource
•General economic trends Planning
Predict demand : both short term
and long term
Forecast internal supply Forecast external supply
Compare future demand
and internal supply
Plan for dealing with predicted
shortfalls or overstaffing and change skill mix
Evaluation of the plan
Forecasting Personnel Needs
• Trend analysis
• The study of a firm’s past employment needs over a period of years to
predict future needs.
• Ratio analysis
• A forecasting technique for determining future staff needs by using ratios
between a causal factor and the number of employees needed.
• Assumes that the relationship between the causal factor and staffing needs is
constant
The Scatter Plot
• Scatter plot
• A graphical method used to help identify the relationship between two
variables.
Size of Hospital Number of
(Number of Beds) Registered Nurses
200 240
300 260
400 470
500 500
600 620
700 660
800 820
900 860
etermining the Relationship Between
ospital Size and Number of Nurses
Using Computers to Forecast Personnel
Requirements
• Computerized forecasts
• The use software packages to determine of future staff needs by projecting sales, volume of
production, and personnel required to maintain a volume of output.
• Generates figures on average staff levels required to meet product demands, as well as forecasts for direct
labor, indirect staff etc.
• Typical metrics: direct labor hours required to produce one unit of product (a measure of productivity), and
three sales projections—minimum, maximum, and probable.
Managerial Judgment
•Forecast based on factors-such as
projected turnover or desire to enter
new markets which will affect the
number of human resource.
Forecasting the Supply of Inside Candidates
• Qualifications inventories
• Manual or computerized records listing employees’ education, career and
development interests, languages, special skills, and so on, to be used in
selecting inside candidates for promotion.
Manual Systems and Replacement Charts
• Personnel Inventory and development record form
• Compiles qualifications information regarding education, training and courses, career and
development interests, languages and skill of each employee
• Personnel replacement charts
• Company records showing present performance and promotability of inside candidates for
the most important positions.
• Position replacement card
• A card prepared for each position in a company to show possible replacement candidates
and their qualifications.
Computerized Information Systems
• Human Resource Information System (HRIS)
• Computerized inventory of information that can be accessed to determine
employees’ background, experience, and skills that may include:
• Work experience
• Product or service knowledge
• Industry experience
• Formal education
Forecasting Internal Supply
Decreases in internal supply come about
through:
• Retirements
• Dismissals
• Transfers-out
• Lay-offs
• Voluntary quits
• Sabbaticals
• Prolonged illnesses
• Deaths
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Forecasting the Supply of Outside Candidates
• Factors impacting the supply of outside candidates
• General economic conditions
• Availability of potential job candidates in
specific occupations.
Planning for Shortages
• Recruit new full-time employees
• Hire contingent workers
• transfers-in
• Offer incentives for postponing retirement
• Rehire retires employees part-time
• Attempt to reduce turnover
• Work present staff overtime
• Subcontract work to another firm
• Reengineer to reduce needs
• Outsource an entire function
• Use technology to improve productivity
• Encourage to return from leave
Planning for Surpluses
• Offer incentives for early retirement
• Transfer or reassign excess employees
• Use slack time for employee training or equipment maintenance
• Reduce work hours
• Lay off employees
• Freeze hiring
• Arrange sabbaticals
Evaluation Of The Planning
• Evaluation Should Consider
• Accuracy of Forecasts
• Sufficiency to meet the need
• Time
• Quantity
• Skill
• Cost
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