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Session # 3 HR Planning

Human resource planning is a proactive activity to forecast staffing needs on short, intermediate, and long term bases. The main drivers of HR planning are organizational direction and workforce changes. The key steps in HR planning are analyzing current needs, making future forecasts using techniques like trend analysis and ratio analysis, and developing employment programs. HR planning helps identify surpluses and shortages, reduces costs, supports growth, and ensures leadership succession. It is linked to corporate and business strategies and is important for effective workforce management in Pakistan's corporate sector.

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Usama Usama
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73 views14 pages

Session # 3 HR Planning

Human resource planning is a proactive activity to forecast staffing needs on short, intermediate, and long term bases. The main drivers of HR planning are organizational direction and workforce changes. The key steps in HR planning are analyzing current needs, making future forecasts using techniques like trend analysis and ratio analysis, and developing employment programs. HR planning helps identify surpluses and shortages, reduces costs, supports growth, and ensures leadership succession. It is linked to corporate and business strategies and is important for effective workforce management in Pakistan's corporate sector.

Uploaded by

Usama Usama
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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HUMAN RESOURCE MANAGEMENT

Session # 3 HR PLANNING
• Introduction to HR Planning

• Main Drivers for HR Planning

• Steps in HR Planning

• Forecasting Approaches

• Need of HR Planning

• Linkage of HR Planning with Strategy

• HR Planning in Corporate Sector of Pakistan


HUMAN RESOURCE PLANNING
Human Resource Planning (HRP) is a proactive activity to forecast the required
number of employees for various future vacant or newly created positions in
organization on short term, intermediate and long term basis. It also covers the
identification of surplus employees and the decision of their reduction.
MAIN DRIVERS FOR HR PLANNING
There are many drivers of HR planning but the main two important drivers for HR Planning
are;

1. Direction of Organization:
It includes Organization's Vision, Mission, Objectives, Corporate Strategy, Business Strategy, new
technology and Changing organizational Structure.

2. Workforce Transfers, Promotions and Job Leavers:


It includes current employees transfers to various other departments or cities/countries, promotions of
employees to next position and job leavers may cause a need of new employees for various existing
positions to be filled
STEPS IN HUMAN RESOURCE
PLANNING
1. Analyzing the current needs and HR inventory of Organization
The current strategic plus structural needs and manpower status of organization has to be analyzed. For this the following
things need to be noted;

• Organizational Strategies.

• Structure.

• Number of departments shown in the structure.

• Number of Staff in these department.

2. Making Future HR Forecasts: Trend Analysis, Ratio Analysis, Scatter Plots, Work Load Analysis, Succession
Planning etc.

3. Developing Employment Programs: Recruitment and Selection Procedures and Placement Plans.
FORECASTING APPROACHES
The Most common forecasting approaches involve the use of simple techniques like trend analysis
and ratio analysis to estimate staffing needs based on the sales projections and historical sales to
personal relationships.
1. Trend Analysis:
Tend Analysis involves projecting human resource demand using past basis trends in the
organization. It involves focusing on a specific period of time (Last Five Years) and generating
data on the employment levels within that period of time.
2. Ratio Analysis:
Ratio Analysis means making forecast based on the ratio between some causal factor like sales
volume and the number of workers required such as number of salespeople. Ratio Analysis
assume that productivity remains about the same.
FORECASTING APPROACHES
3. Expert Forecast:

This include informal decisions, formal expert surveys and Delphi Technique. Managers
estimate future HR requirements based on their experience and judgements (Long terms needs
of human resources).

4. The Scatter Plot:

Scatter plot shows how two variables such as a measure of business activity and firm’s staffing
levels are related. This technique studies the relationship between two factors in a business.
(Possible business factors include service delivery and size of workforce.
FORECASTING APPROACHES
5. Workload Analysis:

Work load analysis is a tool used to predict and plan future work and staff requirement based
upon historical data.

6. Succession Planning:

Succession planning is a process for identifying and developing internal people that has the
potential to fill critical position in the organization, including but not limited to the business
leadership roles.
FORECASTING APPROACHES
Succession planning is a five step process that takes place as follows;
1. Identify Critical Position

2. Identify Competencies

3. Identify succession management strategies

4. Document and implement succession plans

5. Evaluate Effectiveness
FORECASTING APPROACHES
Short term, Intermediate & Long Term Forecasting:

1. Short term Forecasting: (12 Months)

2. Intermediate term Forecasting: (Two to Three Years)

3. Long term Forecasting (More than three Years)


NEED OF HUMAN RESOURCE
PLANNING
HR planning is beneficial or needed to the organization in the following manner;
• Shortages and Surpluses can be identified

• All the recruitment and selection programs are based in human resource planning.

• Helps to reduce the labor costs.

• Helps in growth and diversification of business.

• Realize the importance of workforce management

• Identifies the future leaders of organization.


LINKAGE OF HR PLANNING WITH
STRATEGY
• Corporate Strategy:
• Acquisition & Mergers

• Market Development

• Shut Down Decision

• Business Strategy:
• Cost leadership

• Differentiation
HR PLANNING IN CORPORATE
SECTOR OF PAKISTAN
• Level 1 – High Potential – High Performance: “Ready to take Higher Positions”.

• Level 2 – High Potential – High Performance: “Shall be ready for Higher Positions in 2 to 3 years”.

• Level 3- Fit for Purpose – Understand and Perform his job very well but cannot take Higher
Responsibility”.
• Level 4- Concerns: “Performance seldom meets expectations appropriate training and guidance
required”.
• Level 5- Exit: “Lack of Commitment, no potential for improvement, therefore the notice of
intention to separate would be required:.
THANK YOU

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