HUMAN RESOURCE
PLANNING
Objectives
By the end of this lecture, students should;
Know the meaning of HR Planning
Have an idea about the importance of HR
Planning to organisations
Know briefly the key steps in the HR Planning
Process
Know the consequences of poor HR Planning
WHAT IS HUMAN RESOURCE PLANNING ?
Human Resource Planning (HRP) is the
predetermination of the future course of action
chosen from a number of alternative courses of
action for procuring, developing, managing,
motivating, compensating, career planning,
succession planning and separating the human
element of enterprise (Aquinas, 2006).
HRP determines the human resources required by
the organisation to achieve its strategic goals
(Armstrong, 2006).
Getting the right people with the right skills in the
WHAT IS HUMAN RESOURCE PLANNING ?
(Contd.)
The process an organisation uses to ensure that
it has the right amount and the right kinds of
people to deliver a particular level of output or
services in the future (Gomez-Mejia et al., 2007).
Anticipating the future business and
environmental demands of an organisation and
then developing a blue-print to meet the
CHARACTERISTICS OF HRP
1. HRP incorporates the human resources needs
in the light of organisational goals
2. HRP is directed towards well-defined
objectives.
3. HRP ensures that at all times, the organisation
has the right number and kind of people at the
right time.
4. HRP paves the way for an effective
motivational process.
5. The planning should be flexible enough to
AIMS OF HR PLANNING
The aims of HRP in any organisation will depend largely on its context. Generally, the aims are:
a. To attract and retain people with the right blend of
skills.
b. To anticipate the problems of potential surpluses or
deficits of people.
c. To develop a well-trained and flexible workforce so as
to enable the organisation adapt to changing situations.
d. To reduce dependence on external. recruitment when
key skills are in short supply.
e. To improve the utilisation of people by introducing
STEPS IN THE HRP PROCESS
The dynamism in business practices nowadays
has made HRP assumed significance .
HRP consists of the following stages:
a. Determining organisational objectives
b. Analysing factors for manpower requirement
(Demand forecasting; Supply forecasting)
STEPS IN THE HRP PROCESS
1. Determining Organisational Objectives
Before undertaking the HRP of an organisation, the
short-term and long-term objectives should be analysed.
The ultimate mission or purpose is to relate future
human resources to future enterprise needs so as to
maximise the future returns on investment in human
resources.
The HRP should meet two requirements:
1. should be directly related to the essential nature of the
organisation.
2. Changes in selected factors should be proportional to changes
STEPS IN THE HRP PROCESS
2.
Analysing factors for manpower requirements
The factors for manpower requirement can be
analysed in two ways:
a. Demand Forecasting: It is a process of determining future human resource needs in terms of quantity and quality. The
various heads of departments may review current job
descriptions to determine the necessary skills and qualifications needed for the job.
STEPS IN THE HRP PROCESS
C. Determining Net HR Requirements
HR Demand = External Supply + Internal
Supply Therefore, HR Demand – Internal
Supply = External Supply
The matching process brings demand and
STEPS IN THE HRP PROCESS
d. Action Plan
The issues of shortages or surpluses are
addressed at this stage.
The HRP is executed through various HR
activities, including recruitment, selection,
placement, training, socialisation, layoffs.
There is also the control and evaluation of
Tools & Techniques of HRP
Many tools are available to assist in the
human resource planning process.
Three key tools for consideration are:
1. Skills inventory
2. Succession planning
Tools & Techniques of HRP
A. Skills Inventory
This refers to the consolidated list of biographical and
other information on all employees in the organisation.
In its simplest form, it contains the list of names, certain
characteristics, and skills of employees. Seven broad
categories of information included in a skills inventory are: Personal data; Skills; Special qualifications; Salary and job history; Capacity of individual; Special preferences of
individual. Because the information from a skills inventory is used as input into promotion and transfer decisions, it should contain information about each employee’s
Tools & Techniques of HRP
B. Succession Planning
It is a technique that identifies specific people to fill
future openings in key positions throughout the organisation. Some organisations have the
organisational replacement chart, which shows both incumbents and potential replacements for given
positions within the organisation.
A simple organisational replacement chart shows the:
Tools & Techniques of HRP
C. Ratio Analysis
This tool is used in HR planning to measure the
organisation’s human resource vitality as indicated by the presence of promotable personnel and existing backups. Two premises underlie ratio analysis:
An organisation is “vital”
An organisation is “stagnant”
The end product of ratio analysis is the organisational
Advantages of HR Planning
1. Improvement of labour productivity: When
employees are kept satisfied through proper HR
planning, their morale is boosted and improves
productivity.
2. Recruitment of qualified human resources: HR
planning helps to recruit the best labour force for the
long-term survival of the firm.
3. Adjusting with the rapid technological change: With
the change in technology, the job and job
requirements are also changing. It is therefore
necessary to forecast and meet the changing
Advantages of HR Planning
4. Reducing labour turnover: Labour turnover refers to the
mobility of labour out of the organisation. A firm may lose experienced and skilled labour force through labour
turnover. This can be minimised through effective manpower planning.
5. Improved goal attainment: The planning process results
in improved goal attainment set by the organisation and for the HR department.
6. Helps a firm to meet future labour needs: A proper
planning of the human resource helps to avoid
Class Discussion
