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Meaning:HRP is a process of striking balancebetween human resources required andacquired in an organization.

Definition:

Human Resource Planning is a process ofdetermining and assuming that theorganization will have an adequate number

of qualified persons, available at the propertimes, performing jobs which meet the needsof enterprise and which provide satisfactionfor the individuals involved. Beach.

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Ensure adequate supply of manpower as and

when required

Ensure proper use of existing human

resources in the organization Forecast future requirements of human

resources with different levels of skills

Assess surplus or shortage, if any, of human

resources available over a specifies period oftime

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Anticipate the impact of technology on jobs and

requirements of human resources

Control the human resources already deployed in

the organization

Provide lead time available to select and train the

required additional human resource over a specifiedtime period

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Type and Strategy of Organization

Organizational Growth Cycles and Planning

Environmental Uncertainties

Time Horizons

Type and Quality of Information

Labour Market

Outsourcing

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Environmental Scanning

Economic factors Eg., General and regional conditions

Technological Changes Eg., Robotics and Automation Demographic changes Eg., Age, Literacy

Political and legislative issues Eg., Laws and

administrative rulings

Social concerns Eg., Educational facilities

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Organizational objectives and policies

Specific policies need to be formulated to address

them following questions: Are vacancies to be filled by promotions from within or

hiring from outside?

How to enrich employees job? Should the routine and

boring jobs continue or be eliminated? How to ensure continuous availability of adaptive and

flexible workforce?

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HR Demand forecast

Demand forecasting is the process of estimating the

future quantity and quality of people required. Thebasis of the forecast must be the annual budget and

long-term corporate plan, translate into activity

levels for each functions and department.

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Demand Forecasting Techniques

Managerial Judgement

Ratio-trend analysis

Regression analysis

Work-study techniques

Delphi technique Flow models

Others

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Managerial Judgement

Bottom-up Approach: Managers submit theirdepartmental proposals to top managers who arrive

at the company forecasts.

Top-down Approach: Top managers prepare company

and departmental forecasts. These forecasts are

reviewed with departmental heads and agreed upon

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Ratio-Trend Analysis

Involves studying past ratios and forecasting future

ratios making some allowances for changes in theorganization or its methods.

Regression Analysis

Forecast is based on the relationship between salesvolume and employee size.

Regression analysis is more statistically

sophisticated.

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Planned output for next year 25,000 units

Standard hrs/unit 4

Planned hours required for the year(25,000x4)1,00,000

Productive hrs per worker/year (after allowing

normal overtime, absenteeism and idle time)2,000

Number of workers required 50

(1, 00,000/2,000)

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The members are asked to provide their estimates of

human resource requirements through a series of

carefully designed questionnaire.

Each member anonymously and independently completes

the first questionnaire

Results of the first questionnaire are compiled at acentral location, transcribed and copied.

Each member receives the copy of the result

After viewing the results, members are again asked to

review their estimates. The initial results typicallytrigger new estimates or cause changes in the original

position.

Steps d and e are repeated as often as necessary until a

consensus is reached.

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Flow Models

Among the flow models, the simplest one is

called theMarkov Model.

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Supply forecast determines whether the HR

department will be able to procure the

required number of personnel

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The supply analysis covers

Existing Human Resources

Internal sources of supply

External sources of supply

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Existing human resources (PresentEmployees)

Analysis of present employees is greatlyfacilitated by HR audits. HR audits

summarise each employees skills and

abilities

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Turnover rate

Turnover rate is the traditional and simple

method of forecasting internal supply. The

turnover rate is:

Number of separations during one year X 100Average number of employees during the year

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Conditions of work and absenteeism

Number of persons days lost X 100

Average number of persons x number of

working days

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Movement among jobs

Some jobs are sources of personnel for otherjobs. For example, secretaries may be

obtained by the promotion of typists and

branch managers are obtained from a pool of

section managers.

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External Supply

New blood and new experience will be

available

Organization needs to replenish lost

personnel

Organizational growth and diversification

create the needs to use external sources to

obtain additional number and type of

employees.

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What is Recruitment?

Recruitment is generating of

applications or applicants for specific

positions to be filled up in the organization.

Define Recruitment.

A process of searching for prospective

employees and stimulating and encouraging

them to apply for jobs in an organization Flippo

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1.Present Employees2. Employee Referrals

3. Former Employees

4. Previous Applicants

1. Employment Exchanges

2. Advertisements

3. Employment Agencies

4. Professional Associations

5. Campus Recruitment

6. Deputation

7. Word-of-Mouth

8. Raiding

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