Human Resource Planning: Dr.S.Jayaraj Associate Professor College of Business and Economics Bahirdar University

Human Resource Planning
DR.S.JAYARAJ
ASSOCIATE PROFESSOR
COLLEGE OF BUSINESS AND ECONOMICS
BAHIRDAR UNIVERSITY
All organizations perform human resource planning
formally or informally.HRM planning is practiced in
the second stage of development of HRM Activity,
Most of the organizations talk more than doing
formal planning.
HRM deals with formal planning
Stages of Development of a HRM Activity
ialist Stage.1NEW
In this stage the experts or originators are exhorting
specialists to adopt the activity. Panaceas are
promised and bromides offered
Stage.2 EARLY DEVELOPMENT
In this stage ,descriptions of organizations perform Rarely
the activity and how happy they are with results are practiced
provided.
Stage .3.CONFLICT
The doubts begin .the comments and voices of
experience warn. It did not work for us. Multiple
studies are undertaken Frequently
practiced
Stage .4 MATURITY
A great deal of empirical data is colleted.Theories
and explanations for the conflict are established
Meaning and definition of Human
Resource Planning
Definition
Human Resource Planning is the process that

helps to provide adequate human resources
to achieve future organizational objectives.
It includes forecasting future needs for employees of
various types, comparing these needs with present
workforce, and determining the numbers an types of
employees to be recruited or phased out of
organization's employment group
Importance of Human Resource Planning
Formal employment planning is important because
1.It helps in more effective and efficient use of

Human resources.
2.It leads to more satisfied and better developed

employees
3.It helps in bringing more effective equal

employment opportunity planning
1.
1.More effective and Efficient Use of People at work
We cannot schedule recruiting if we do not know

how many people are needed. Similarly we may not
be able to select effectively if we do not know the
kinds of persons needed for job openings.
Careful analysis of HRM activities shows that their

effectiveness and efficiency, which result in
increased productivity, depend on human resource
planning.
2. More Satisfied and better developed Employees
Employees who work for organizations that use

good human resource planning systems have better
chance to participate in planning their own careers
and to share in training and development
experiences. They realize that their talents are
important to the organization.
This leads to greater employee satisfaction , lower
absenteeism, fewer accidents and higher quality of
work.
3. More Effective EEO Planning
Government has increased its demands for equal

employment opportunities .It is easier to complete
the required government reports and respond
satisfactorily to EEO demands using human
resource planning.
HUMAN RESOURCE PLANNING PROCESS
Strategic
Human Resource Human Resource
management
Demand supply
decisons
Technological Annual Employment

forecasts requirements Existing employment
Economic forecasts inventory
Market forecasts Numbers After application of
Organizational Skills expected loss and
planning Occupation categories attrition rates
Investment planning
Variances
If surplus
Decisions: If shortage
Lay off
Retirements Decisions:
Overtime
Recruitment
END END
FORECASTING FUTURE DEMAND FOR EMPLOYEES
THE EXPERT- THE TREND REGRESSION

ESTIMATE PROJECTION ANALYSIS
TECHNIQUE TECHNIQUE FORECAST
• Expert forecast • It is to develop a • The Unit
the employee forecast based on Demand
needs based on a past Foreasting
his own relationship Technique
experience. between a factor • Simple
• The expert- related to Regresson
estimate employment
technique can be • Eg. Sales forecast
more effective if and employee
the experts use needs.,-Markov
Delphi technique chain analysis
Analysis of Supply of Present Employees
After projecting employment needs next step is to

determine availability of those presently working in
it.
It should be compared with demand projection to
determine the need to hire ,lay off, promote or
train.
Major tool of analysis used to compute the
employment supply is the Skills Inventory
Skills Inventory
A skills inventory is the simplest form is the list

names , certain characteristics, and skills of people
working for the organisation.It provides a way to
acquire these data and makes them available where
needed in an efficient manner.
Skills inventory tools can range from simple pieces of
paper or forms to sophisticated computer
information systems.
The degree of sophistication necessary is related to
the size, complexity and volatility
Human Resource Information Systems
Organizations like IBM,RCA and US Civil Service

Commission have computerized inventories that allow
them to plan employees career ,monitor career progress and
match the right person with the best job for his or her skill.
These systems are referred to as human resource
information system(HRIS).
For large organizations manual system is not efficient or
even feasible.
IBM system is called IRIS( IBM Recruitment Information
System).When there is need to fill vacancy the manager
requirements are entered into the computer ,then receives a
computer listing of possible candidates.
MicroHRIS
It is stand alone human resource information

system offered by Personnel Consulting Service
Inc.,
The data base of MicroHRIS provides information
regarding employee’s personal statistics , EEOC
classifications , employees’ compensations , and
performance evaluation and firms’s benefit
structure( life insurance amounts , health insurance
coverage, etc.,)
Privacy
However ,many individuals are concerned that

computers can violate their privacy. Federal employees
are protected by the Privacy Act of 1974.The act
permits employees to examine, copy,correct,or amend
employee information. If there is a dispute about the
accuracy of computer stored information or what
information is to be stored , an appeal procedure is
available.
The Act prohibits ,with certain exceptions, the
disclosure of information to outsiders without written
consent of the employee.
Replacement Chart
Another device that less sophisticated than HRIS

type system is the Replacement Chart.
The replacement chart is used primarily with
technical, managerial,professional employees.It is a
display of summary data about individuals currently
in the organisation.The replacement chart that an
readily reviewed to pinpoint potential problem
areas in terms of human resources planning.
Actions decisions in Human Resource
Planning.
Analysing the composition of the workforce

Action decisions with no variance in supply and
demand
Action decisions with a shotage of employees
Action decisions in Surplus conditions.

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Human Resource Planning

Human Resource Planning is the process that

Formal employment planning is important because

1.It helps in more effective and efficient use of

2.It leads to more satisfied and better developed

3.It helps in bringing more effective equal

We cannot schedule recruiting if we do not know

Careful analysis of HRM activities shows that their

Employees who work for organizations that use

Government has increased its demands for equal

Technological Annual Employment

THE EXPERT- THE TREND REGRESSION

After projecting employment needs next step is to

A skills inventory is the simplest form is the list

Organizations like IBM,RCA and US Civil Service

It is stand alone human resource information

However ,many individuals are concerned that

Another device that less sophisticated than HRIS

Analysing the composition of the workforce

Action decisions in Surplus conditions.

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