HUMAN RESOURCE PLANNING | HRM

HUMAN RESOURCE PLANNING

The term human resource planning is also known as workforce, planning, manpower planning.it comprises of two words which are Human Resource and Planning.

Human Resources: This is used to describe both the people who work for a company or organization and the department responsible for managing all matters related to employees, who collectively represent one of the most valuable resources in any business or organization.

Human resource planning (HRP) involves developing strategies for acquisition, utilization, improvement, and retention of human resources. It takes into account the future organizational objectives and plans, future human resource needs, current human resource position and assures future human resource availability.

The term Human Resource Planning has been defined differently by different scholars :

Dale S. Beach, “Human resource planning is the process of determining and ensuring that the organization will have an adequate number of qualified persons, available at the proper times, performing jobs which meet the needs of the enterprise and which provide satisfaction for the individuals involved”

According to Decenzo and Robbins – “Human resource planning is the process by which an organization ensures that it has the right number and kind of people, at the right place, at the right time, capable of effectively and efficiently completing those tasks that will help the organization achieve its overall objectives".

Simply, Human resource planning is the estimation of the current and future Human resources needs of the organization.

 Concept of Human Resource Planning (HRP):

According to Gcisler, “Manpower planning (HRP) is the process – including forecasting, developing, implementing and controlling, by which a firm ensures that it has the right number of people and right kind of people, at the right place, at the right time, doing things for which they are economically most suitable”.

HRP involves analysis and assessment of the current human resource availability in the organization in terms of numbers, skills, talents, competencies, qualifications, experience, age, tenures, performance ratings, designations, grades, compensations, benefits, etc. The future demand for human resources is estimated based on factors like attrition, lay-offs, foreseeable vacancies, retirements, promotions, pre-set transfers, certain unknown factors like resignations, abrupt transfers, or dismissals.

HRP meets demand forecast and ensures continuous and smooth supply of workforce. HRP also involves developing programs and policies for conducting communication programs with employees, relocation, talent acquisition, recruitment and outsourcing, talent management, training and development, and revision of policies. Human resource planning is concerned with gathering and analysis of detailed information about the existing workforce and forecasting future requirements.

It sets out the manpower objectives in line with the overall organizational objectives and designs plans and policies and concerned with control and evaluation of the effectiveness of manpower plans and their implementation.

CHARACTERISTICS OF HRP

On the basis of the analysis of the definition of HRP, it can be conducted that HRP has the followings characteristics.

it is Future-Oriented 

Human resource planning is prepared to assess the future requirement of manpower in the organization. It helps identify the size and composition of resources for future purposes.            

it is a Continuous Process 

 Human resource planning is a continuous process. The human resource planning prepared today may not be applicable for the future due to the ever-changing external forces of the environment.                                                                                                         

Optimum Utilization of Human Resources 

Human resource planning focuses on the optimum utilization of resources in the organization. It checks how the employees are utilized in a productive manner. It also identifies employees’ existing capabilities and future potentialities to perform the work.                                                                   

It helps in providing the Right employees & accurate Numbers 

Human resource planning determines the right number and kind of people at the right time and right place who are capable of performing the required jobs. It also assesses the future requirement of manpower for the organizational objectives.                      

It helps in Determination of Demand and Supply

Human resource planning is a process of determining the demand for and supply of human resources in the organization. Then a match between demand and supply estimates the optimum level of manpower.

It is related to Corporate Plan 

Human resource planning is an integral part of overall corporate plan of the organization. It can be formulated at strategic, tactical and operational levels.

It is A part of the Human Resource Management System 

As a part of the total human resource management system, human resource planning is regarded as a component or element of HRM which is concerned with the acquisition and assessment of manpower. It serves as a foundation for the management of the human resource in an effective and efficient manner.

It is dynamic

It is a highly dynamic function and requires very capable personnel to carry out planning efficiently.

OBJECTIVES OF HUMAN RESOURCE PLANNING ( HRP)

• To recruit and maintain the HR of requisite quantity and quality.
• To predict the employee turnover and make the arrangements for minimizing turnover and filing up of consequent vacancies.
• To meet the requirements of the programs of expansion, diversification, etc.
• To anticipate the impact of technology on work, existing employees, and future human resource requirements.
• To progress the knowledge, skill, standards, ability, and discipline, etc.
• To appraise the surplus or shortage of human resources and take actions accordingly.
• To maintain pleasant industrial relations by maintaining optimum level and structure of human resource.
• To minimize imbalances caused due to non-availability of human resources of the right kind, right number in the right time and the right place.
• To make the best use of its human resources; and
• To estimate the cost of human resources.

Benefits/Importance of Human Resource Planning

Human resource planning or manpower planning is necessary for ail organisations because of following reasons:

To meet up requirements of the organisation: To do work in the organisation, every organisation needs personnel of desired skill, knowledge and experience. This human resources requirement of organisation can be effectively fulfilled through proper human resource planning. It helps in defining the number of personnel as well as kind of personnel required to satisfy its needs. It ensures the reservoir of desired human resources as and when required.

Counterbalance insecurity and change: There must be proper utilisation of human and non-human resources in the organisation. Sometimes the organisation may have adequate non-human resources e.g. machines, materials and money but inadequate human resources as a result, manufacturing process/production cannot be started. Human resource planning helps to offset uncertainties and changes as far as possible and enables to ensure availability of human resources of the right kind, at right time and at right place.

It helps in checking labour imbalance: Human resource planning helps to anticipate shortages and/or surpluses of manpower in the organisation. The shortage of manpower as well as surplus of manpower is not good for the organisation. It proves very expensive for the organisation. In case of shortage of human resources, physical resources of the organisation cannot be properly utilized. In case of surplus of human resources, this resource may remain under-utilized It helps in counter balancing the problem of shortage and surplus employees very comfortably. Human resource planning helps in correcting this imbalance before it become unmanageable and expensive.

Right-sizing the human resource requirements of the organisation: In an existing organisation, there is a constant need for right-sizing the organisation. In the organisation, some posts may fall vacant as a result of retirement, accidents, resignations, promotions or death of employees. Consequently, there is constant need of replacing people. Human resource planning estimates future requirements of the organisation and helps to ensure that human resources of right kind, right number, in right time and right place.

Training and Development of Employees: There is constant need of training and development of employees as a result of changing requirements of the organisation. It provides scope for advancement and development of employees through training and development etc. Thus, it helps in meeting the future needs of the organisation of highly skilled employees.

Fulfill Individual Needs of the Employees: It helps to satisfy the individual needs of the employees for promotions, transfer, salary encashment, better benefits etc.

To meet expansion and diversification needs of the organisation: It helps to execute future plans of the organisation regarding expansion, diversification and modernization. Through human resource planning it is ensured that employees in right number and of right kind are available when required to meet these needs of the organisation. It ensures that people of desired skills and knowledge are available to handle the challenging job requirements.

NEEDS FOR HRP

In recent years focus of HRP has increased due to the following reasons 

Employment situtation

underdeveloped country face shortage of talented and skilled manpower wich is an obstacle for industrial progress.

Technological changes 

there are rapid changes in technology which creates problems concerning redundancies retraining and redeployment of personnel.

organization change

there is rapidchange in organizational environment. the changes affect human resources requirement in terms of quantity and quality.

scarcity of skills 

organization has become increasingly complex and require wide range of specialized skills ,which are scarce.

Legislative control

there ware laws regarding human resources aspect do not permit to hire fire at free wheel.

Pressure groups 

trades unions, politicians and other group creates pressure on recruitment ,pro,motion and other aspect do not permit to hire and fire at free wheel.

HUMAN RESOURCE PLANNING PROCESS

The major stages involved in HRP are as follows;
Analysing Organizational Objectives:
The objective to be achieved in future in various fields such as production, marketing, finance, expansion and sales gives the idea about the work to be done in the organization.
 Inventory of Present Human Resources:
From the updated human resource information storage sys­tem, the current number of employees, their capacity, perfor­mance and potential can be analysed. To fill the various job requirements, the internal sources (i.e., employees from within the organization) and external sources (i.e., candidates from various placement agencies) can be estimated.
orecasting Demand and Supply of Human Resource:
The human resources required at different positions according to their job profile are to be estimated. The available internal and external sources to fulfill those requirements are also measured. There should be proper matching of job description and job specification of one particular work, and the pro­file of the person should be suitable to it.
Estimating Manpower Gaps:
Comparison of human resource demand and human resource supply will provide with the surplus or deficit of human resource. Deficit represents the number of people to be employed, whereas surplus represents termination. Extensive use of proper training and development programme can be done to upgrade the skills of employees.
Formulating the Human Resource Action Plan:
The human resource plan depends on whether there is deficit or surplus in the organization. Accord­ingly, the plan may be finalized either for new recruitment, training, interdepartmental transfer in case of deficit of termination, or voluntary retirement schemes and redeployment in case of surplus.
Monitoring, Control and Feedback:
It mainly involves implementation of the human resource action plan. Human resources are allocated according to the requirements, and inventories are updated over a period. The plan is monitored strictly to identify the deficiencies and remove it. Comparison between the human resource plan and its actual implementation is done to ensure the appropriate action and the availability of the required number of employees for various jobs.