Human Resource Management
Human resource planning
DEFINITION:
the systematic study for an organization
to forecast the future demands and supply
of employees in order to keep fill the
vacancies.
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Human Resource Management
THE OBJECTIVES OF HRP:
HR Planning is required to meet the
following objectives:
1) Forecast personnel requirements: HR
planning is essential to determine the
future manpower needs in an organization.
In the absence of such a plan it will be
difficult to have the services of right kind of
people at the right time.
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Human Resource Management
OBJECTIVES OF HUMAN RESOURCE
PLANNING:
2) Cope (manage, handle) with change:
HR planning is required to cope with
changes in the market condition, technology,
products and government regulation in an
effective way. These changes may require
the services of people with the require
technical knowledge and training. In the
absence of an HR plan, we may not in a
position to enlist their service in time.
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Human Resource Management
OBJECTIVES OF HUMAN RESOURCE
PLANNING:
3) Use existing manpower productively: By
keeping an inventory of existing personnel in
an enterprise by skill, level, training,
educational qualifications, work experience; it
will be possible to utilize the existing
resources more usefully in relation to the job
requirements.
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Human Resource Management
OBJECTIVES OF HUMAN RESOURCE
PLANNING:
4) Promote employees in a systematic manner:
HR planning provides useful information on the
basis of which management decides on the
promotion of eligible personnel in the
organization. With the help of employees’ skill
inventory system, the manager can promote their
employees on systematic way.
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Human Resource Management
The process of Human
Resource Planning:
1) Forecasting the Demand for Human
Resources: most firms estimates how many
employees they require in future. The demand
for human talent at various levels is important due
the following factors:
A) EXTERNAL CHALLENGES:
B) ORGANIZATIONAL DECISION:
:
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Human Resource Management
External challenges
1) Economic development:
AFTER WORLD WAR SECOND, AS INDUSTRIALIZATION TAKE
PLACE, ECONOMIC DEVELOPMENT START. NEW INNOVATION
COMES TO THE MARKET. THAT’S WHY EVERY ORGANIZATION
NEEDS HIGHLY SKILLFUL AND UP-TO-DATE EMPLOYEES TO
FACE THESE CHALLENGES.
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Human Resource Management
2) POLITICAL, LEGAL, SOCIAL, AND
TECHNOLOGICAL CHANGE:
most organization need to forecast skillful
human resource due to political, legal,
social and technological change. these are
major external environmental forces that
effect the organization. if some changes
occur in these factors it will force the
organization to bring change.
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Human Resource Management
3)
Competition:
Due to strong competition among different firms,
every firm want to create a unique product from
their competitor to capture the market, that’s why
they work hard and always try to bring new changes
and innovation in their product. For this purpose
they want to hire highly skillful employees for their
organization that create something unique for them.
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Human Resource Management
b) Organizational decision
the demand for human talent is also
important due to organizational decision.
if the organization wants that they will
open new branches to expand their
business so for this purpose they will
forecast human resource.
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Conti…
Human Resource Management
when employee’s requirements and
availability have been analyzed after
that the firm can determines whether
it will have a surplus or shortage of
employees.
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Human Resource Management
if firm have shortage of employees than
they hire new employees. the firm must
obtain the proper quantity and quality of
workers from outside the organization. in
this case external recruitment and
selection is required. if firm have surplus
of employees than they reduce workforce
by restricted hiring, early retirement,
layoffs (temporary dismissal), job sharing
etc.
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Human Resource Management
c)
Workforce factors:
FORECASTING THE DEMAND FOR
HUMAN RESOURCE IS IMPORTANT
BECAUSE OF TERMINATION,
RESIGNATION, RETIREMENT, DEATH
OF CURRENT EMPLOYEES.
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Human Resource Management
2)PREPARING MANPOWER INVENTORY
(SUPPLY FORECASTING ):
 The
basic purpose of preparing
manpower inventory is to find out the
size and quality of personnel available
within the organization. Every
organization will have two major
sources of supply of manpower.
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Human Resource Management
CONTI
1) Internal labor supply:
2) External labor supply:
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Human Resource Management
1) INTERNAL LABOR SUPPLY:

A profile of employees in term of age, sex,
education, training, experience, job level, past
performance should be kept ready for use
whenever required. Requirements in term of
internal movement of employees (transfer,
promotion, retirement, termination etc). For
internal supply they count the number of
employees and try to collect information about
the workforce capabilities.
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Human Resource Management
FOLLOWING ARE THE METHODS THROUGH
WHICH THEY COLLECT INFORMATION.
a) Human Resource Audits: Human Resource audit
shows each employee skills, knowledge and
abilities. Audits of non managers are called skills
inventories, audits of managers are known as
management inventories. The inventory represents
each employee skills and abilities. Simply we can
say it is a brief summary regarding each employee
which shows strong and weak point of an
employee. Through this the planner can easily
adjust a person in future.
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Human Resource Management
CONTI
b) Succession planning: It is the process in which
the planers convert information about current
employee into decisions about future internal
job placement. For this purpose they keep the
record of every employee in human resource
information system. To find suitable candidate
human resource department provide different
type of training to their employee to accept
future job opening.
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Human Resource Management
CONTI
c) Replacement charts: It is a visual
representation of who will replace whom if
there is a job opening. To construct this type of
chart HR audit will provide information
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Human Resource Management
2) ESTIMATE OF EXTERNAL SUPPLY:

This is the second major source of labor supply.
when an organization grows rapidly, introduce
new technology than it is difficult to fill all the
vacant position from internal source than the
organization need for external supplies of
human resource.
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Human Resource Management
THE IMPORTANT INDICATORS FOR EXTERNAL LABOR
SUPPLY:
Education level of workforce.
 Demographic changes in population.
 Technical development.

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Human Resource Management
3) DETERMINE MANPOWER GAPS

The existing number of personnel and their
skills (from Human Resource inventory) are
compared with the forecasted manpower needs
( demand forecasting) to determine the
qualitative and quantitative gaps in the
workforce.
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Human Resource Management
4) FORMULATING HR PLANS:

After determining manpower gaps than we will
formulate HR plan for the organization that how
many employees required and which type of
employees.
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