HUMAN RESOURCE PLANNING

1. HUMAN RESOURCE PLANNING

2. MEANING HRP is the process by which an organization ensures that it has the right number and kind of people, at the right places, at the right time. HR planning: Compares the present state of the organization with its goals for the future. Identifies what changes it must make in HR to meet these goals.

3. HRP Identifies • Number of employees required • Skill Requirement • Strategy to deal with surplus & deficit of employees • Strategy to improve utilization of employees • Strategy to retain employees

4. HRP PROCESS • Environmental Scanning • Assessing Current Human Resources • Demand Forecasting • Supply Forecasting • Gap Analysis • Action Programme • Control & Evaluation

5. ENVIRONMENTAL SCANNING • Identifies and anticipates sources of problems, threats & opportunities. • Provides the context in which HR decisions will be made.

6. 2. ASSESSING CURRENT HR • HR Inventory • Job Analysis

7. 3. DEMAND FORECASTING • It is based on present & projected activity level such as outputs. • Forecast Activity level is derived from business plan, department plan, budget etc. • Demand Forecast is influenced by corporate plans.

8. DEMAND FORECASTING METHODS Qualitative Method • Managerial Judgment • Delphi Technique • Nominal Group Technique Quantitative Method • Ratio Trend Analysis • Work Study Technique

9. 4. SUPPLY FORECAST • Number of people available • Potential Losses • Effect of Absenteeism • Sources of supply from within • Sources of supply from outside

10. 5. GAP ANALYSIS Compare the number and type of current HR with the demand forecast and identify potential shortages or surpluses of employees, skills and competencies

11. 6. ACTION plan In Case of Surplus • Estimate size to which workforce should be reduced • Estimate the number of people to be retrenched • Financial inducements to encourage voluntary redundancies • Outplacement Services • Plan to retain key workers

12. Options for Reducing a Surplus

13. 6. ACTION PLAN In Case of Deficit Initiate Recruitment, Selection, Training etc.

14. Options for Avoiding a Shortage

15. 7. CONTROL & EVALUATION • Control & Evaluation monitors the effectiveness of HR plans over time • Deviations from the plans are identified and actions are taken.

16. HR Planning Lucy's Restaurant

17. Lucy's Restaurant – HR Planning Lucy's Restaurant has just created a business plan that projects a 300% growth potential for their business. They have also learned that a large office building is next door. • The business plan shows Lucy's growing to: • 20 Tables -- serving 120 meals per day • Open for Breakfast, Lunch, and Dinner (6:30 AM to 9:00PM) – 2 Shifts • There are nine employees (including Lucy)

18. Lucy's Restaurant – HR Planning Group Deliverables: • Identify the different positions you will use to staff the larger restaurant. • Each position must include the tasks, duties, and responsibilities that it entails. • There will be nine employees. Determine how many of each position you will need and what the attrition for that position is anticipated to be. • Based on your business expectations, list how many people for each position you will need for each shift (or timeframe) • Draw a chart / matrix showing the schedule • Pick a group spokesperson to share the position descriptions with the class.