HUMAN RESOURCE PLANNINGHUMAN RESOURCE PLANNING

ASST PROF. JONLEN DESAASST PROF. JONLEN DESA

INTRODUCTION TO HRMINTRODUCTION TO HRM

Human Resource refers to the quantitative & qualitative aspects of employees working in an organization.

Human resources are the most important & valuable resource of an organization.

Human Resource Management is making the efficient and effective use of the human resources so that goals are achieved.

HRM is that part of management, which is concerned with people at work and with their relationship with an enterprise.

The scope of HRM includes Acquisition, Development, Maintenance & Control of human resources.

DEFINITION OF HRMDEFINITION OF HRM

“HRM is the planning, organizing, directing & controlling of the procurement, development, compensation, maintenance and separation of human resources to the end that individual, organizational and social objectives are accomplished”.

Edwin B. Flippo

HUMAN RESOURCE PLANNING (HRP)

HRP is planning or deciding the quantity & quality of people required in an organization.

HRP is striking a balance between HR required & acquired in an organization.

It is important for a firm to plan its workforce requirements in advance.

There should always be a match between demand for and supply of human resources.

It is a process by which an organization determines how much and how it should acquire its desired manpower to achieve organizational goals.

HRP ensures adequate supply of manpower when required.

HRP helps a firm have the right number of people at the right times and right places to help a firm achieve its organizational objectives.

DEFINITIONDEFINITION

According to Terry L. Leap and Michael D. Crino, “HRP includes estimation of how many qualified people are necessary to carry out the assigned activities, how many people will be available and what, if anything must be done to ensure that personnel supply equals personnel demand at the appropriate point in future.”

OBJECTIVES OF HRP

Ensure adequate supply of manpower as and when required. Ensure proper use of existing human resources in the organization. Forecast future requirements of human resources with different skills. Assess surplus or shortage of human resources available over a specified

period of time. Control the human resources already deployed in the organization. Anticipate the impact of technology on jobs and requirements for human

resources. Provide lead time available to select & train the required additional human

resources over a specified time period.

NEED FOR & IMPORTANCE OF HRPNEED FOR & IMPORTANCE OF HRP Despite growing unemployment, there has been a shortage of human

resources with required skills, qualification & capabilities to carry on work. Hence the need for HRP.

Many employees die, retire, leave the organization or become incapable because of ailments and need to be replaced by new employees.HRP ensures smooth supply of workers without interruption.

HRP is essential due to increase in workforce turnover which is unavoidable & even beneficial. Voluntary quits, marriages, promotions, seasonal fluctuations, better prospects are examples of factors that lead to employee turnover.

HRP is needed to meet the needs of expansion & diversification programs of an organization.

HRP is needed to identify areas of surplus as well as shortage of personnel and to take appropriate measures to correct the same.

Technological changes and global changes have brought about a change in production & distribution method. These changes also require a change in the number and skills of employees. Hence HRP enables organizations to cope up with such changes.

BENEFITS OF HRPBENEFITS OF HRP

HRP meets organization need for the right type of people, in the right number, at the right place & time.

HRP helps maintain a balance between demand for & supply of human resource.

HRP makes optimum use of human resources. Manpower shortfalls & surpluses are avoided. HRP helps firms create and develop training & succession planning

for managers. It provides multiple gains to the employees by way of promotions,

incentives, perquisites and benefits.

Some of the problems of managing change may be foreseen in advance and their consequences mitigated. Consultation in advance with affected groups can take place at an early stage, thus avoiding resistance to change.

HRM compels management to assess critically the strengths & weaknesses of its employees on continuous basis and take corrective measures for improvement.

Duplication of efforts and efforts is eliminated as a result of HRP & coordination of workers efforts can be improved.

With an increase in skills, productivity & job satisfaction of employees, the organization becomes the main beneficiary in terms of increase in profits, growth, prosperity & an edge over its competitors.

SCOPE OF HRPSCOPE OF HRP

Listing the current manpower.Checking how much manpower is being utilized.Determining the manpower requirementsDetermining the types of training programsPlanning about the surplus manpower

PROCESS OF HRPPROCESS OF HRP

1. Analyzing Organizational Plan & Objectives1. Analyzing Organizational Plan & Objectives

The process of HRP planning begins with analyzing the overall plans & objectives of the firm.

The reason for this is HR plans stem from the business plan. Analysis of business plan into sub-sectional plans like production,

sales, finance, marketing etc helps access the requirements of HR for each department.

Analysis of organizational objectives provides for human resource requirements in the firm.

If the objective of the company is to grow, expand or increase sales, then, the requirements for manpower will be more for all departments.

Hence, HRP needs to be made according to the organizational plans.

2. Analyzing Objectives of Human Resource Planning2. Analyzing Objectives of Human Resource Planning

The next step is to analyze the objectives of HRP. The main purpose of HRP is to find the right quantity & quality of

workforce in the organization, who will in turn benefit the company, by helping it achieve its various goals.

HRP aims at matching employees abilities with organizational requirements.

HRP also aims at maximizing the future return on investment in human resources.

3. Forecasting Demand for Human Resources3. Forecasting Demand for Human Resources

In this step, the management tries to determine how many employees are going to be required in the organization at a particular point of time.

However, this varies from time to time depending upon both internal and external factors.

External factors include competition, changes in technology, government policies, economic environment etc.

Internal factors include growth & expansion, change in leadership, employees resignation, retirement, termination, death etc.

Hence, both these factors have to be taken into consideration while forecasting the demand for human resources.

There are various techniques for forecasting the demand for human resources.

TECHNIQUES FOR FORECASTING DEMANDTECHNIQUES FOR FORECASTING DEMAND

4. Forecasting Supply of Human Resources4. Forecasting Supply of Human Resources

After forecasting the demand for human resources, the next step is to forecast the supply of human resources.

It gives an estimate about the quantity & quality of people available from internal & external sources.

Forecasting of human resource begins with the current human resource inventory or human resource audit- which contains information about the present human resources in an organization.

It reveals the number & type of human resources available. This indicates whether demand is more than supply or supply is

more than demand for human resources.

5. Matching Demand & Supply5. Matching Demand & Supply

Once demand & supply of human resources of an organization are forecasted, the two need to be matched or reconciled.

Such reconciliation will reveal either shortage or surplus of human resources in future.

Accordingly, action plans can be prepared to strike a balance between the two.

Incase of shortage of HR requirements, it can be met through recruitment, transfers, promotions, retentions etc.

Incase of surplus human resources, it can be rectified through redeployment, VRS schemes, retrenchment etc.

6. Monitoring and Control6. Monitoring and Control

The final step in HRP is monitoring and control. Once action plans are implemented, these need to be continuously

regulated and monitored against standards. Monitoring helps reveal deficiencies and immediate corrective action

can be taken to remove the deficiency. In case of changes in the business environment, earlier plans need to

be modified.