Elements of HRP
HUMAN RESOURCES PLANNING
1. Forecasting Demand
Ex: Estimate
personnel
need by using
past or future
sales volume ,
number of
customers etc.
using
regression
Process of anticipating and carrying out the movement
of people into, within, and out of the organization
Estimating the number and types of people
needed to meet organizational goals
The goal is to achieve the optimum use of
human resources
Quantitative Approaches
Statistical and mathematical techniques
Forecasting shortage, surplus, career paths
1. Estimate the demand for labor for the future
2. Estimate the supply of labor from inside and outside the
firm
3. Match the projected labor supply and demand
Qualitative Approaches
Judgmental, subjective
Management forecasts (Opinions of supervisors)
Performance appraisals, promotability
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2. Forecasting Supply of Employees
Determining the availability of the number & types of
employees needed
• Internal Labor Supply
Staffing tables (Firm’s jobs, numbers of employees
occupying them & future requirements)
Employee profiles (Qualifications of current employees)
Replacement charts (Current jobholders & potential
replacements)
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3. Balancing Supply and Demand Considerations
• External Labor Supply
Shortage of employees 
Recruitment
Overtime
Temporary employees
Recall laid off employees
Surplus of employees 
Reduction/downsizing
Layoffs
Early retirement
Hiring freeze
Reduced working hours
Transfers/reassignments
Forecasting economic and demographic changes
Industry and technological trends
Published documents
A layoff is the temporary or
permanent discharge of an employee
for business reasons, such as
personnel management or
downsizing an organization.
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Criteria for Layoff Decisions
Downsizing
• Performance
Some healthy companies use it to reduce costs
and increase earnings
• Seniority
 Research shows it doesn’t lead to improved financial
performance, productivity, and long-term gains
last hired, first out
first hired, first-out
 Use it as a last resort (not as a quick fix)
 Use legitimate layoff criteria (performance &
replacability)
 Manage survivors effectively
 Communicate openly and honestly
• Salary
• Company strategy
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