Manpower demand forecasting is the key element in the whole human resource planning function. The effectiveness of HRP therefore depends on the accuracy of the demand forecasting.
Different methods are adopted by organizations for the purpose HRP so that it can help to achieve the organizational goals or objectives. In this article we will discuss the techniques of HRP.
Techniques of Human Resource Planning: Managerial Judgement
Under this method , the managers or supervisors who are well- acquainted with the work load, efficiency and ability of employees, think about their future workload future capabilities of employees and decide on the number and type of human resource required. This is done by the line manager or supervisor who send report of their respective department to top management for approval. Under this bottom-up approach, the management at the top compare the proposal with the organizational plans. This system is reversed under top-down approach where top management send the proposal to ground level keeping in view the organizational plan, departmental plan and human resource plan. But participative approach is suitable for almost every type of organization where management at the top and and ground level supervisors and official meet and decide on the human resource needs based on the experience of the supervisors and the plans formulated by the top management official.
Techniques of Human Resource Planning : Statistical Techniques
There are two types of statistical techniques useful for human resource planning. Those are explained below in shorts.
Ratio Trend Analysis
Under this method, the ratios are calculated for past data relating to number of employees of each category and production level, sales level, activity level, work load level against the number of manpower involved. An example can clear the method.
Let, present level of production as on 1.1.2021= 1500 unit.
Present number of manpower as on 1.1.2021= 30
Ratio is 30:1500 = 1.50
Estimated level of production as on 1.1.2023=2500 unit
Manpower required as on 1.1.2023= 50
However future manpower requirement may increase due to decline in physical stamina of employees, change in values, increase in extra and social activities.
Econometric Models
Econometric models for human resource planning are build up by analyzing past statistical data and by planning and bringing the relationship among variables. This variable include those factors which effect manpower requirement directly or indirectly like investment, production sales activities and work load etc. The economic model or formula used to forecast manpower needs based on movements in various variables.
You may also read: Why Human Resource Planning is important?
Techniques of Human Resource Planning : Work Study Techniques
These techniques are more suitable where the volume of work is easily measurable. Under this method, total production and activities in terms of clear units are estimated in years. manhour required to produce/perform each unit is calculated. Work ability of each employee is estimated in terms of manhour after giving due weightage to absenteeism, rest etc.
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I hope this article will help you to understand the Techniques of Human resource Planning. If you have any query you may write down the in comment section.
