HUMAN RESOURCE MANAGEMENT

MODULE 2 — HUMAN RESOURCE PLANNING

1. MEANING OF HUMAN RESOURCE PLANNING (HRP)

1.1 Definition
Human Resource Planning (HRP): HRP is the process by which an organization ensures that it
has the right number of people, with the right skills, in the right jobs, at the right time — to achieve
its organizational objectives.

HRP is essentially a bridge between the current workforce and the future workforce needed by the
organization. It is both a process and a strategy.

Some other important definitions:

"Human Resource Planning is the process of determining manpower requirements and the means
for meeting those requirements in order to carry out the integrated plan of the organization."
— E.W. Vetter
"HRP is the process, including forecasting, developing, implementing, and controlling, by which a
firm ensures that it has the right number of people and the right kind of people at the right places,
at the right time doing work for which they are economically most useful."
— Geisler

1.2 Simple Explanation — The Core Idea

Right People → Right Job → Right Time → Right Cost

HRP involves two core activities working together:

▸ Demand Forecasting: How many people, with what skills, will the organization need in the
future?
▸ Supply Analysis: How many people are currently available (internally and externally) with
those required skills?
▸ Gap Resolution: If demand ≠ supply, what action must be taken — hire, train, redeploy, or let
go?

Example: Tata Consultancy Services (TCS) conducts annual HR Planning cycles where each business
unit forecasts project-wise headcount demand for the next 4 quarters, which is then matched against
bench strength and external hiring pipelines.

📌 Note: HRP is also called Manpower Planning or Workforce Planning — these terms are used
interchangeably in exams.
1.3 The HRP Process — Step by Step
Step Stage Activity Output

1 Organizational Understand corporate goals, Strategic direction for HR

Objectives expansion plans, technology
upgrades
2 HR Demand Estimate future workforce Projected headcount by
Forecasting requirements using trend role/department
analysis, work study, managerial
judgment
3 HR Supply Audit internal HR (skills inventory, Available workforce picture
Analysis attrition data); assess external
market availability
4 Gap Analysis Compare Demand vs Supply: HR gap report
identify surplus or shortage in
numbers and skills
5 Action Recruitment drive / training HR action plan
Planning programs / retrenchment /
redeployment based on gap
6 Implementation Execute the plan: hire, train, Staffing changes actioned
redeploy, or separate employees
7 Monitoring & Track outcomes, measure plan Revised HR plan
Review effectiveness, adjust for new
changes

2. OBJECTIVES OF HUMAN RESOURCE PLANNING

The objectives of HRP represent what the planning process is designed to achieve — the outcomes it
aims for.

▸ Ensure Optimum Use of Manpower: Prevent idle time and ensure every employee
contributes meaningfully to organizational output. Avoid situations where people are over-
staffed or under-utilized.

▸ Avoid Shortage and Surplus of Employees: Shortage leads to overwork and missed
targets; surplus leads to unnecessary costs. HRP maintains the right headcount balance at all
times.

▸ Support Recruitment and Training Planning: By forecasting future HR needs, HRP gives
lead time for recruitment drives and training programs — ensuring the right skills are ready
when needed.

▸ Improve Organizational Productivity: Optimal staffing means work gets done efficiently —
no bottlenecks from understaffing and no waste from overstaffing.

▸ Support Organizational Goals: HRP translates business strategy into people requirements
— ensuring every strategic initiative has the workforce it needs to succeed.
 ▸ Facilitate Career and Succession Planning: By knowing future role requirements, HRP
helps employees plan career development and organizations prepare successors for critical
positions.

▸ Control HR Costs: By planning proactively, organizations avoid expensive emergency hiring,

overtime, or redundancy payments that result from poor planning.

▸ Enable Diversity & Inclusion: HRP can include targets for gender, disability, and minority
representation as part of workforce planning goals.

Example: Infosys's annual HR plan sets explicit objectives: hire X freshers, retain Y% of senior staff,
upskill Z% of workforce in emerging technologies — each tied directly to its 5-year business growth
plan.

3. IMPORTANCE OF HUMAN RESOURCE PLANNING

📌 Note: Difference tip for exams: Objectives = what HRP aims to achieve. Importance = why HRP is
essential for organizations.

3.1 Why Is HRP Important?

▸ Facilitates Long-Term Planning: HRP forces organizations to think ahead — aligning future
workforce with long-term business direction. Without it, organizations react to crises instead of
anticipating them.

▸ Reduces Uncertainty and Risk: By forecasting demand and supply of labor, HRP reduces
the risk of being caught off-guard by retirements, resignations, technology changes, or sudden
business growth.

▸ Enables Better Talent Management: Knowing which skills will be needed helps organizations
identify, develop, and retain the right talent. Internal mobility and succession pipelines are built
proactively.

▸ Controls Costs: HRP prevents panic hiring (which is expensive), excess recruitment, bloated
payrolls from surplus staff, and costly training duplication.

▸ Ensures Smooth Organizational Functioning: Key positions are never left vacant for too
long; projects and operations run smoothly because staffing needs are anticipated in advance.

▸ Supports Change Management: During mergers, acquisitions, restructuring, or digital

transformation, HRP ensures that human resource dimensions are considered and managed.

▸ Improves Employee Morale: Planned career paths, development opportunities, and fair
succession processes improve employee trust, satisfaction, and engagement.

▸ Helps Achieve Competitive Advantage: Organizations with the right talent at the right time
can execute strategies faster than competitors.
3.2 Objectives vs. Importance — Side-by-Side Comparison

Objectives of HRP (What it wants to

Importance of HRP (Why it is needed)
achieve)

Ensure right number of people at the right Helps in long-term organizational planning and
place and time sustainability
Avoid manpower shortage or surplus situations Reduces uncertainty and risk in workforce
decisions
Support recruitment, training, and career Enables better talent management and
planning retention strategies
Improve organizational productivity through Controls HR costs — avoids overstaffing or
optimal staffing panic hiring
Align human resources with organizational Ensures smooth functioning during growth,
goals and strategy change, or crisis
Facilitate workforce diversity and inclusion Gives the organization a competitive edge
planning through people

Example: During India's COVID-19 lockdown (2020), companies with robust HRP — like HCL
Technologies — quickly identified which roles could shift to remote work, redeployed employees across
projects, and avoided mass layoffs, while companies without HRP scrambled to react.

4. NEED FOR HUMAN RESOURCE PLANNING

HRP becomes essential due to various pressures and triggers that organizations face. These are the
specific situations that make HRP not just useful, but necessary:

▸ Business Expansion and Growth: When an organization opens new branches, enters new
markets, or launches new products, it needs additional workforce. HRP ensures this demand is
planned and met in time.
Example: Reliance Jio's launch in 2016 required hiring tens of thousands of engineers, sales staff, and
customer service agents — possible only through meticulous HR planning.

▸ Technological Changes and Automation: Introduction of new technology changes skill

requirements. Some roles become redundant; new specialized roles emerge. HRP anticipates
and manages this transition.
Example: When Indian banks introduced core banking systems, HRP helped identify which staff
needed digital training and which positions could be reduced through automation.

▸ Employee Turnover and Attrition: Industries with high turnover (IT, retail, hospitality) must
continuously plan to replace departing employees without disrupting operations.
Example: The Indian IT industry has an average attrition rate of 15–25%. Companies like Wipro and
Cognizant use HRP to maintain talent pipelines and reduce time-to-hire below 45 days.

▸ Changing Business Environment: Economic recessions, policy changes, trade disruptions,

or pandemics force organizations to adjust their workforce. HRP provides a framework for agile
response.
 Example: During the 2008 global financial crisis, many organizations with HRP frameworks were able
to execute targeted workforce reductions while preserving critical capabilities.

▸ Global Competition: Competing globally requires world-class talent. HRP ensures the
organization has the specialized skills — data scientists, global supply chain experts,
multilingual managers — to compete internationally.
Example: Indian pharma companies like Sun Pharma and Dr. Reddy's use HRP to maintain FDA-
compliant quality teams for their US and European markets.

▸ Government Regulations and Compliance: Labor laws, diversity mandates, and safety
requirements necessitate planned staffing levels and composition. HRP ensures compliance is
built into workforce decisions.

▸ Retirement and Succession Gaps: As experienced employees retire, organizations must

have successors ready. Without HRP, critical institutional knowledge is lost.
Example: In Indian public sector banks, a large number of officers are nearing retirement
simultaneously — making HRP critical for succession and knowledge transfer planning.

5. ASSESSMENT OF AVAILABLE HUMAN RESOURCES (SUPPLY

ANALYSIS)

Supply Analysis is the process of determining how many and what types of employees are currently
available to meet the organization's future needs. It has two dimensions — internal supply and external
supply.

5.1 Internal Supply Sources

These are the human resources already within the organization that can be tapped to fill future
requirements.

A) Skills Inventory / HR Information System (HRIS)

A skills inventory is a comprehensive database of each employee's qualifications, skills, experience,
languages, certifications, and performance history. Modern organizations maintain this digitally through
HRIS platforms.
▸ Helps quickly identify who is ready for promotion, transfer, or a new project:
▸ Updated regularly to capture new skills acquired through training:
Example: Infosys's 'iCount' system tracks the skills and project experience of all 300,000+ employees,
enabling internal talent matching before external hiring is considered.

B) Performance Records and Appraisal Data

Past performance ratings help identify high-potential employees who are ready for greater
responsibility, and also those who may need performance improvement plans.
▸ Used for identifying High-Potential (HiPo) employees for succession plans:
▸ Helps make internal promotion decisions based on merit, not just seniority:

C) Succession Plans
Pre-identified candidates for critical positions in case of retirement, resignation, or sudden vacancy. A
healthy succession pipeline means no critical role is ever left unfilled for long.
Example: Tata Group maintains formal succession plans for all positions from team leader upwards —
ensuring leadership continuity across its 30+ companies worldwide.

D) Workforce Demographics and Attrition Data

Analyzing employee age profiles, tenure, gender ratio, and historical attrition rates helps predict future
supply gaps due to retirements, resignations, and other exits.

5.2 External Supply Sources

When internal supply is insufficient, organizations look at the external labor market.

▸ Recruitment Market: Job portals (Naukri, LinkedIn), campus placements, recruitment

agencies, job fairs.
▸ Labor Market Analysis: Studying the availability of skills in the market, prevailing salary
levels, competition for talent, and regional/industry-specific talent clusters.
▸ Educational Institutions: Tie-ups with IITs, IIMs, NITs, and vocational institutes for a steady
fresh talent pipeline.
▸ Contract and Gig Workers: For short-term or project-specific demands, engaging
freelancers, contractual staff, or outsourced vendors.
▸ Returnees and Re-hires: Former employees ('alumni') who may be willing to return
('boomerang hires') with added experience.

5.3 Internal vs External Supply — Comparison Table

Source Sub-Source What It Provides Example

Internal Skills Inventory / Database of current Wipro's internal talent

HRIS employee skills, portal lists employee
qualifications, certifications competencies for
project matching
Internal Performance Identifies high performers HUL identifies 'HiPo'
Records for promotion or stretch (High Potential)
assignments employees for fast-
track leadership
programs
Internal Succession Plans Pre-identified candidates for TCS maintains a
critical roles if vacancies succession pipeline for
arise all senior manager
positions
Internal Transfer & Moving employees across Infosys redeployed
Redeployment departments or locations to bench employees from
fill gaps stagnant projects to
high-demand AI teams
External Recruitment Market Fresh talent from colleges, Cognizant's campus
job portals, recruitment hiring from IITs, NITs,
agencies and tier-2 colleges
annually
 External Labor Market Study of available skills in HCL benchmarks its
Analysis the market, wage trends, salaries against
competition Nasscom salary
surveys
External Contract / Gig Flexible workforce for short- Zomato and Swiggy
Workers term or project-based rely on gig delivery
demands partners for variable
demand management
External Poaching / Lateral Hiring experienced Amazon India hiring
Hiring professionals from senior managers from
competitors Flipkart for its logistics
expansion

6. WORKLOAD ANALYSIS

Workload Analysis: The process of estimating the total amount of work to be done in an
organization (or a department) during a specific period, and calculating the number of employees
required to complete that work efficiently.

Workload Analysis translates business targets into manpower requirements. It is the most objective
and scientific way to determine how many employees are needed.

6.1 Steps in Workload Analysis

▸ Step 1: Identify the work to be done: Determine total output targets — units to be produced,
services to be delivered, calls to be handled, etc.
▸ Step 2: Determine work standards: How much can one employee produce/deliver per day,
shift, or hour? (Based on time studies or historical data.)
▸ Step 3: Calculate total man-hours required: Total work ÷ output per person = number of
people needed.
▸ Step 4: Adjust for absenteeism and efficiency: Add a buffer for leaves, holidays, and
efficiency losses.

6.2 Workload Analysis Formula

o Number of Employees Required = Total Work Volume ÷ Output per Employee

Example 1 (Manufacturing):
Target: 500 units/day | 1 worker produces 10 units/day
Employees needed = 500 ÷ 10 = 50 workers

Example 2 (Call Centre):

Expected calls: 4,000/day | 1 agent handles 40 calls/day
Agents needed = 4,000 ÷ 40 = 100 agents

Example 3 (Adjusted for Absenteeism):

Needed: 100 workers | Absenteeism rate: 10%
Actual hiring target = 100 ÷ (1 - 0.10) = 100 ÷ 0.90 ≈ 112 workers
6.3 Types of Workload
▸ Production-Based: Output targets in units, tonnes, or items — common in manufacturing.
▸ Service-Based: Customer interactions, transactions processed, beds managed — common in
BPO, healthcare, banking.
▸ Project-Based: Number of modules, deliverables, or milestones — common in IT,
construction, consulting.

Example: Maruti Suzuki conducts annual workload analysis at its Manesar plant: each production line
has a defined takt time (time per unit), and total shift output targets are used to determine exact worker
headcount per line, including buffer for absenteeism and machine downtime.

7. MANNING NORMS

Manning Norms: Manning Norms are standardized rules or ratios that specify the minimum or
standard number of employees required for a given unit of work, output level, supervisory span, or
operational function.

Manning norms provide a quick and consistent basis for determining staffing needs. They are based
on industry standards, government regulations, organizational policy, and scientific work studies.

7.1 Types of Manning Norms

▸ Supervisory Norms: Define the span of control — how many workers one supervisor can
effectively manage.
– Example: 1 supervisor for every 10 workers on a production floor
– Example: 1 HR executive per 100 employees (HR-to-employee ratio)

▸ Equipment-Based Norms: Define how many operators are needed per machine or
equipment unit.
– Example: 1 machine operator per CNC machine; 3 crew members per aircraft

▸ Regulatory / Statutory Norms: Set by law or regulatory bodies for safety and compliance.
– Example: Factories Act mandates 1 welfare officer per 500 workers in a factory
– Example: Medical Council of India requires 1 doctor per 1,000 population in public health

▸ Service-Level Norms: Used in service industries based on customer-to-staff ratios.

– Example: 1 teacher for 30 students (RTE Act mandate in India)
– Example: 1 cabin crew member per 50 passengers (DGCA norm for Indian airlines)

▸ Project-Based Norms: Define team composition for project delivery.

– Example: 1 project manager for every 5 developers in a software project
7.2 Manning Norms Calculation Examples
Example 1: Factory Setup
Workers needed: 300 | Supervisor norm: 1 per 10 workers
Supervisors required = 300 ÷ 10 = 30 supervisors

Example 2: Hospital
Beds: 200 | Nurse norm: 1 per 4 beds
Nurses required = 200 ÷ 4 = 50 nurses

Example 3: HR Department
Total employees: 2,000 | HR norm: 1 HR per 100 employees
HR staff required = 2,000 ÷ 100 = 20 HR professionals

Example 4: School
Students: 600 | Teacher-student norm: 1:30
Teachers required = 600 ÷ 30 = 20 teachers

7.3 Basis for Setting Manning Norms

▸ Industry Benchmarks: Comparing with similar organizations in the same sector.
▸ Government / Statutory Guidelines: Laws like Factories Act, Companies Act, DGCA
regulations, RBI guidelines.
▸ Time and Motion Studies: Scientific measurement of how long each task takes.
▸ Historical Organizational Data: Past experience of what staffing levels have delivered
optimal productivity.
▸ Technology Level: Higher automation generally means fewer people needed per unit of
output.

Example: In India's organized retail sector (e.g., DMart, Reliance Retail), manning norms are set
centrally by the HR team: 1 store manager per 50 staff, 1 cashier per 40 billing transactions per hour,
and 1 security guard per exit point — enabling rapid store expansion with consistent staffing.

8. DEMAND ANALYSIS OF FUTURE HUMAN RESOURCES (DEMAND

FORECASTING)

HR Demand Forecasting: The process of estimating the future quantity and quality (skill mix) of
human resources required by an organization to achieve its strategic objectives.

Demand forecasting answers the question: How many people, with what skills, will we need — in 1
year? 3 years? 5 years? It is the foundation of the entire HRP process.

8.1 Factors Affecting Future HR Demand

▸ Business Growth and Expansion Plans: New product lines, new geographies, and revenue
targets drive additional workforce demand.
▸ Technological Changes: Automation reduces demand for manual roles but creates demand
for tech-savvy specialists.
▸ Market Demand for Products/Services: Higher sales volume = higher production/service
delivery workforce requirement.
 ▸ Government Policies and Regulations: New compliance requirements may mandate
additional staff (e.g., GST specialists after 2017 GST rollout in India).
▸ Organizational Restructuring: Mergers, demergers, and reorganizations change role
requirements significantly.
▸ Employee Turnover Rate: Higher attrition means higher replacement demand on top of
growth demand.
▸ Workforce Demographics: An ageing workforce means retirements will create natural
vacancies.

8.2 Methods of HR Demand Forecasting — Detailed Table

Method How It Works Best Used When Example

Managerial Senior managers Small organizations; new A startup's CEO

Judgment estimate HR needs ventures with limited data estimates needing
based on experience and 20 engineers in
business plans next 6 months
based on product
roadmap
Trend Analysis Uses historical data (past Stable, data-rich TCS projects IT
years' employee count vs organizations with headcount by
output) to project future consistent growth analyzing 5-year
needs statistically patterns revenue-to-
employee ratios
Work Study / Calculates time needed Manufacturing, logistics, If each agent
Task Analysis per task × volume of work BPO — where tasks are handles 40
to determine required measurable calls/day and
workforce expected calls =
4,000, need 100
agents
Leading Uses ratios (e.g., nurses : Regulated industries with A hospital requires
Indicators / patients; professors : mandated staffing ratios 1 nurse per 6
Ratio Method students) to set staffing patients — 300
norms patients means 50
nurses minimum
Conclusion by Benchmarks against New units, subsidiaries, An IT firm opening
Analogy similar organizations or or companies entering a Bangalore office
industry standards for new markets benchmarks
staffing norms staffing against
similar firms in the
city
Delphi Method Expert panel gives Uncertain environments; HR experts at
forecasts iteratively until long-term planning Wipro predict
consensus is reached digital skills
demand over the
next 3 years
through structured
rounds
Regression Statistical model showing Large data-rich Infosys uses
Analysis relationship between organizations with regression to
business variables and advanced HR analytics predict headcount
HR numbers based on revenue
growth and project
pipeline
8.3 Demand vs Supply Gap Analysis
Once demand is forecasted and supply is assessed, the gap between the two determines the HR
action plan:

HR Gap = Forecasted Demand − Available Supply

If Gap is POSITIVE (Demand > Supply) → SHORTAGE → Hire / Train / Outsource

If Gap is NEGATIVE (Supply > Demand) → SURPLUS → Redeploy / VRS / Freeze hiring
If Gap is ZERO (Demand = Supply) → BALANCED → Monitor and maintain

HR Surplus (More staff than HR Shortage (Fewer staff than

Situation
needed) needed)

Definition Organization has more employees Organization does not have enough
than required for current operations employees to meet workload
demands
Causes Automation, downsizing, business Business growth, attrition, new project
slowdown, mergers launch, skill gaps
HR Voluntary Retirement Scheme (VRS), Recruitment drives, overtime,
Response redeployment, transfers, layoffs outsourcing, temp staffing, training
Indian BSNL offered VRS to 78,000 IT firms like TCS hired 40,000+
Example employees in 2019 to cut surplus freshers in 2021 to meet post-COVID
manpower costs demand surge
Global General Motors laid off 14,000 Amazon hired 500,000 workers
Example workers in 2018 due to declining globally in 2020 to manage e-
sedan demand commerce surge during COVID
Long-Term Attrition-based reduction, early Strategic workforce planning, building
Fix retirement, restructuring talent pipelines, upskilling existing
staff

Example: During the 2021 IT hiring surge in India, demand forecasting showed a gap of 300,000+ tech
professionals across the industry. Companies used multiple strategies: mass campus hiring, lateral
hiring, reskilling of non-tech employees, and engaging contract workers — all planned through HR
demand analysis.

9. HR POLICY

HR Policy: An HR Policy is a formal, written set of guidelines and principles that governs how an
organization manages its people — covering decisions on recruitment, training, compensation,
promotions, disciplinary action, and employee relations.

HR policies provide consistency, fairness, and legal compliance across all HR decisions. They act as
the rulebook that both managers and employees can refer to for guidance.

9.1 Features of a Good HR Policy

▸ Clear and Unambiguous: Written in simple language; leaves no room for misinterpretation.
▸ Consistent: Applied uniformly across all employees — no selective enforcement.
 ▸ Flexible: Can be adapted as business environment, laws, or workforce needs evolve.
▸ Aligned with Organizational Goals: Reflects the culture, values, and strategic direction of the
organization.
▸ Legally Compliant: Incorporates all applicable labor laws and regulatory requirements.
▸ Communicated Effectively: All employees and managers are aware of the policies and how
to access them.
▸ Reviewed Periodically: Updated regularly to remain relevant and legally sound.

9.2 Types of HR Policies — Detailed Table

Policy Type What It Covers Key Provisions Example

Recruitment How the organization Internal vs external Infosys prioritizes

Policy attracts and selects hiring, diversity quotas, internal promotions
candidates selection criteria before external hiring
for mid-level roles
Training Policy Who gets trained, how, Training budget, TCS mandates 40
and at what frequency mandatory programs, hours of upskilling per
external certifications employee per year via
Fresco Play platform
Promotion Rules for employee Seniority vs merit, HUL's 'Build from
Policy advancement within appraisal score Within' policy promotes
the organization threshold, tenure managers based on
requirement performance ratings
over 3 years
Compensation Pay structure, Pay bands, variable Wipro's compensation
Policy increments, bonuses, pay %, benefits bands are annually
and benefits eligibility, market benchmarked against
benchmarking Mercer salary surveys
Transfer Policy Rules for moving Minimum tenure before SBI mandates transfers
employees across transfer, consent rules, of officers every 3
locations or relocation support years to prevent
departments corruption and build
versatility
Grievance How employee Escalation path, Tata Group's POSH
Policy complaints are raised timelines, (Prevention of Sexual
and resolved confidentiality Harassment) policy
with ICC and defined
timelines
Separation Rules for resignation, Notice period, Cognizant's voluntary
Policy retirement, severance pay, full & separation scheme
retrenchment, and final settlement during restructuring
termination process offered enhanced
severance packages

9.3 Why HR Policies Matter

▸ Ensure Fair Treatment: Employees know what to expect — there are no arbitrary decisions.
▸ Protect the Organization Legally: Documented policies are a defense in labor disputes and
court proceedings.
▸ Guide Manager Decision-Making: Line managers use policies as frameworks rather than
making ad hoc decisions.
 ▸ Build Trust and Culture: Transparent policies build an environment of trust and psychological
safety.
▸ Reduce Grievances: Clear policies reduce misunderstandings and workplace conflicts.

Example: Tata Group's HR policies are built on the Tata Code of Conduct — covering everything from
anti-bribery and sexual harassment prevention to leave policies and whistleblower protection. These
policies are reviewed annually and apply uniformly to all 935,000+ employees across its companies.

9.4 HR Policy vs HR Strategy

Basis HR Policy HR Strategy

Nature Operational guidelines for day-to-day Long-term directional plan for how HR
HR decisions supports business goals
Scope Covers specific HR activities (leave, Covers the overall direction of HR
pay, recruitment) function over years
Time Frame Ongoing, applied daily Long-term: 3–5 year planning horizon
Example Leave policy: 24 days paid leave per Strategy: Build a digital-first workforce
year by 2027 through reskilling

Module 2 — Quick Revision Summary

Topic Key Takeaway / One-liner

HRP Meaning The process of ensuring the right people, in the right numbers, with the
right skills, are available at the right time
Objectives Avoid surplus/shortage, support recruitment & training, improve
productivity, align with strategy
Importance Long-term planning, cost control, uncertainty reduction, talent
management, smooth functioning
Need for HRP Triggered by growth, tech change, turnover, global competition, and
environment changes
Supply Analysis Internal: skills inventory, performance records, succession plans |
External: labor market, campuses, gig workers
Workload Analysis Estimate work volume → convert to employee hours → determine
headcount needed
Manning Norms Standard ratios setting how many employees are needed per unit of
output or supervision
Demand Methods: Managerial Judgment, Trend Analysis, Work Study, Leading
Forecasting Indicators, Delphi, Regression
Gap Analysis Demand – Supply = Gap → Surplus (cut) or Shortage (hire/train)
HR Policy Formal guidelines governing HRM decisions: covers recruitment, training,
promotion, compensation, separation
Important Formulas to Remember
1. Employees Needed = Total Work Volume ÷ Output per Employee
2. Adjusted Headcount = Required Workers ÷ (1 − Absenteeism Rate)
3. HR Gap = Forecasted Demand − Available Supply
4. Supervisor Count = Total Workers ÷ Span of Control (Manning Norm)
5. External Demand = Total Demand − Internal Supply

End