Human Resource Management
Course No. MBA 609
Part-2 HR Planning
Atanu Gupta
Adjunct Faculty
MBA program, East Delta University
atanu.gupta@yahoo.com
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Contents
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The Recruitment and Selection Process
Steps in Recruitment and Selection Process
Planning and Forecasting
The Planning Process
Forecasting Personnel Needs
Human Resource Information System (HRIS)
Importance of HRP
Factors affecting HRP
Requisites for successful HRP
atanu.gupta@yahoo.com
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After studying this chapter,
you should be able to….
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Explain the main techniques used in employment
planning and forecasting.
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List and discuss the main outside sources of
candidates.
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Effectively recruit job candidates.
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Develop a help wanted ad.
Name and describe the main internal sources of
candidates.
Explain how to recruit a more diverse workforce.
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The Recruitment and Selection
Process
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Decide what positions you’ll have to fill through
personnel planning and forecasting.
Build a pool of candidates for these jobs by
recruiting internal or external candidates.
Have candidates complete application forms and
perhaps undergo an initial screening interview.
Use selection techniques like tests, background
investigations, and physical exams to identify
viable candidates.
Decide who to make an offer to, by having the
supervisor and perhaps others on the team
interview the candidates.
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Steps in Recruitment and
Selection Process
The recruitment and selection process is a series of hurdles
aimed at selecting the best candidate for the job.
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Planning and Forecasting
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Employment or personnel planning
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The process of deciding what positions the
firm will have to fill, and how to fill them.
Is the process of fore casting a firms future
demand for, and supply of, the right type of
people in the right number.
Succession planning
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The process of deciding how to fill the
company’s most important executive jobs.
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Succession planning
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What to forecast?
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Overall personnel needs.
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The supply of inside candidates
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The supply of outside candidates
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The Planning Process
Environment
Organizational objectives & Policies
HR need Forecast
HR supply Forecast
HR Programming
HRP Implementation
Control & Evaluation
Surplus
Shortage
Restricted Hiring, lay off etc
Recruitment, selection etc
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Forecasting Personnel Needs
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Trend analysis
 This is the quickest forecasting technique.
 The study of a firm’s past employment needs over a
period of years to predict future needs.
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Studying the variations in your firm’s
employment levels over the last few years.
For example you might compute the number of
employees in your firm at the end of each of the
last five years or perhaps the number of each
subgroup like sales, production, administrative
etc.
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Trend analysis Example
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Forecasting Personnel Needs
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Ratio analysis
 A forecasting technique for determining future
staff needs by using ratios between a causal
factor(like sales volume) and the number of
employees needed(number of sales people).
 For example suppose a sales person traditionally
generates $500,000 in sales. If the sales revenue
to salespeople ratio remains the same,you would
require six new sales person next year(each of
whom produces an extra $500,000) to produce a
hoped for extra $3 million in sales.
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The Scatter Plot
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Scatter plot
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A graphical method used to help identify the
relationship between two variables.
Size of Hospital
(Number of Beds)
Number of
Registered Nurses
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Determining the Relationship Between
Hospital Size and Number of Nurses
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Forecasting the Supply of Inside
Candidates
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Qualifications or Skill inventories
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Skill Inventories consolidate information about
non-managers in an organization. Because the
information from skills inventories is used as
input into transfer and promotion decisions.
Information Includes:
1. Personal Data: Age, Sex, Marital Status
2. Skills: Education, Training, Job Experience
3. Special Qualifications: Membership in professional bodies.
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Manual Systems and
Replacement Charts
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Personnel replacement charts
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Company records showing present performance
and promo ability of inside candidates for the
most important positions.
Position replacement card
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A card prepared for each position in a company
to show possible replacement candidates and
their qualifications.
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Computerized Information
Systems
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Human Resource Information System
(HRIS)
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Computerized inventory of information that
can be accessed to determine employees’
background, experience, and skills that may
include:
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Work experience codes
Product or service knowledge
Industry experience
Formal education
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Forecasting the Supply of
Outside Candidates
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Factors impacting the supply of outside
candidates
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General economic conditions
Expected unemployment rate
Sources of information
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Periodic forecasts in business publications
Online economic projections
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Bureau of Labor Statistics
Other agencies
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Importance of HRP
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Future personnel needs
Part of strategic planning
Creating highly talented personnel
International strategies
Foundation of personnel functions
Increasing investments in human resources
Resistance to change and move
Unite the perspectives of line and staff
managers
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Factors affecting HRP
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Type and Strategy of organization
Organizational growth cycles and
planning
Environmental uncertainties
Time horizons
Type and quality of information
Nature of jobs being filled
Outsourcing
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Requisites for successful HRP
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HRP must be recognized as an integral part of corporate
planning. The planner of human resources must therefore, be
aware of the corporate objectives.
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Backing of top management for HRP is absolutely essential
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Personnel records must be complete, up to date and readily
available.
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Data collection, analysis, techniques of planning and the
plans themselves need to be constantly revised and improved
in the light of experience.
atanu.gupta@yahoo.com
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