Human Resource Planning
Human Resource Planning
Human Resource Planning
Introduction
Human Resources planning is a process by which
management determine how the organization should move
from its current manpower position to its desired
manpower position. Through planning, management
strives to have the right number and the right kinds of
people, at the right place, at the right time, doing things,
which result in both organization and the individual
receiving maximum long-run benefits HR planning is a
mechanism created to forecast the required human
resource to perform a specific task. It also assesses the skill
requirement of employees for each job. It is a complex task
which estimates the future demand and supply position of
HR in the organization.
Hence, it gives a picture of infinite future in advance in
terms of human resource requirement for the company.
Meaning
• Human resource planning involves getting the right number of qualified
people into the right jobs at the right time
• It involves:
– Identifying and acquiring the right number of people with the
proper skills
– Motivating them to achieve high performance
– Creating interactive links between business objectives and resource
planning activities
Concept of HRP
• Human Resource Planning (HR Planning) is both a process and a set
of plans.
• An effective HR plan also provides mechanisms to eliminate any gaps that
may exist between supply and demand. Thus, HR planning determines the
members and types of employees to be recruited into the organization or
phased out of it.
• Dynamic by nature, the HR planning process often requires
periodic readjustments as labor market conditions change
• It is how organizations assess the future supply of and demand for human
resources.
Definition
• Acc to Geisler, “ HRP is the process including
forecasting, developing, implementing & controlling
– by which a firm ensures that it has the right
number of people & right kind of people, at the right
place ,at the right time doing things for which they
are economically most suitable.
Why is HRP important ?
• Even an imperfect forecast is better than none
at all
• Anticipating needs – prepare for the future
gives you an edge
• Address potential problems – avoid skill
deficiencies
What is HRP?
• HRP is a sub-system of total organizational
planning.
• HRP facilitates the realization of the
company’s objectives for the future by
providing the right type and number of
personnel
• HRP is also called Manpower planning,
Personnel planning or Employment planning
• HRP ensures that the organization has:
– Right Number
– Right Kind
– Right Place
– Right Time
Objectives of HRP
• Forecasting Human Resource Requirement
• Effective Management of change
• Realizing Organizational Goals
• Effective utilization of HR
• Promoting Employees
Objectives of HRP
• Forecasting Human Resources Requirements: HRP is essential to
determine the future needs of HR in an organization. In the absence of
this plan it is very difficult to provide the right kind of people at the right
time.
• Effective Management of Change: Proper planning is required to cope
with changes in the different aspects which affect the organization. These
change needs continuation of allocation/ reallocation and effective
utilization of HR in organization.
• Realizing the Organizational Goals: In order to meet the expansion and
other organizational activities the organizational HR planning is essential.
• Promoting Employees: HRP gives the feedback in the form of employee
data which can be used in decision-making in promotional opportunities
to be made available for the organization.
• Effective Utilization of HR: The data base will provide the useful
information in identifying surplus and deficiency in human resources.
Needs of HRP
• Employment – Unemployment situation
• Technological change
• Organizational change
• Demographic change
• Skill shortage
• Government influence
• Legislative control
• Impact of the pressure group
• Systems approach
• Lead time
NEEDS OF HRP
• Employment-Unemployment Situation: Though in general the number of
educated unemployment is on the rise, there is acute shortage for a variety
of skills. This emphasis is the need for more effective recruitment and
retaining people.
• Technological Change: The myriad changes in production technologies, marketing
methods and management techniques have been extensive and rapid. Their
effect has been profound on the job contents and job contexts. These changes
cause problems relating to redundancies, retaining and redeployment. All these
suggest the need to plan manpower needs intensively and systematically.
• Organizational Change: In the turbulence environment marked by cyclical
fluctuations and discontinuities, the nature and pace of changes in organizational
environment, activities and structures affect manpower requirements and
require strategic considerations.
• Demographic Change: The changing profile of the work force in terms of age,
sex, literacy, technical inputs and social background has implications for HRP.
• Skill Shortage: Unemployment does not mean that the labour market is a
buyer’s market. Organizations generally become more complex and require a
wide range of specialist skills that are rare and scare. Problems arise when such
employees leave.
Cont………
• Governmental Influences: Government control and changes in legislation with
regard to affirmative action for disadvantages groups, working conditions and
hours of work, restrictions on women and child employment, causal and contract
labour, etc. have stimulated the organizations to be become involved in
systematic HRP.
• Legislative Control: The policies of “hire and fire” have gone. Now the
legislation makes it difficult to reduce the size of an organization quickly and
cheaply. It is easy to increase but difficult to shed the fat in terms of the
numbers employed because of recent changes in labour law relating to lay-offs
and closures. Those responsible for managing manpower must look far ahead
and thus attempt to foresee manpower problems.
• Impact of the Pressure Group: Pressure groups such as unions, politicians and
persons displaced from land by location of giant enterprises have been raising
contradictory pressure on enterprise management such as internal recruitment
and promotion, preference to employees’ children, displace person, sons of soil
etc.
• Systems Approach: The spread of system thinking and advent of the macro
computer as the part of the on-going revolution in information technology
which emphasis planning and newer ways of handling voluminous personnel
records.
• Lead Time: The log lead time is necessary in the selection process and training and
deployment of the employee to handle new knowledge and skills successfully.
Benefits of HRP
• Defining future personnel needs
• Coping with change
• Providing base for developing talents
• Forcing top management to involve in HRM
Factors affecting HRP
ORGANIZATIONAL GROWTH CYCLES & PLANNING
• Embryonic stage – No personnel planning
• Growth stage – HR forecasting is essential
• Maturity stage – Planning more formalized & less flexible
• Declining stage – Planning for layoff, retrenchment &
retirement
ENVIRONMENTAL UNCERTAINITIES
• Political, social & economic changes
• Balancing programmes are built into the HRM
programme through succession planning, promotion
channels, layoffs, flexi time, job sharing, retirement, VRS,
etc….
Factors affecting HRP
TIME HORIZONS
• Short-term & Long-term plans
TYPE & QUALITY OF FORECASTING
INFORMATION
• Type of information which should be used in
making forecasts
NATURE OF JOBS BEING FILLED
• Difference in employing a shop-floor worker & a
managerial personnel
HRP Process
ENVIRONMENT
ORGANISATIONAL
OBJECTIVES AND
POLICIES
HR PROGRAMMING
HRP IMPLEMENTATATION
CONTROL AND
EVALUATION OF PROGRAMME
SURPLUS SHORTAGE
RESTRICTED HIRING RECRUITMENT
REDUCED HOURS AND SELECTION
VRS, LAY OFF, etc
• Turnover rate
No of seperations during one year × 100
Avg no of employees during the year
• Conditions of work and absenteeism.
Absenteeism is given by
no of persons – days lost ×100
Avg no of persons × no of working days
• Productivity level
External supply
• New blood and new experience