Human Resource Planning I Objectives I Importance I Process

Meaning of Human Resource Planning:

Human Resource Planning is about planning for the future of the organization. It is a specialized process of planning which aims to place an appropriate number of personnel with the requisite qualification at right jobs, at the right time in order to meet both organizational and individual needs as aspirations.

Human Resource Planning “is the process by which management determines how the organization should move from its current HR position. Through planning, management strives to have the right number and the kinds of people, at the right places, at the right time, doing things which result in both the organization and the individual receiving maximum long term benefit.

Nature of HRM:

1. HRM involves management functions like planning, organizing, directing and controlling.

2. It involves procurement, development, maintenance and management of the human resource.

3. It helps to achieve individual, organizational and social objectives.

4. HRM is a mighty disciplinary subject. It includes the study of management psychology communication, economics and sociology.

5. It involves team spirit and teamwork.

Importance of HRM:

It helps to maximize human potential in the organization.
It helps to establish the organizations staffing needs and provides a basis for mating those needs.
It helps to forecast the shortages in the organizations and helps to plan the recruitment of skilled and appropriate manpower/HR.
It helps the organization to cope with repaid expansion, enlargement and the move towards multinational operations.
It helps the organization to cope with changing legislation and constitutional demands and requirements.
It helps to secure and increase the value of HR in an organization.
It helps to create a trained, skilled, motivated and professional workforce.
It helps in a career management program.
It helps to design an appropriate and effective staffing plan for the organization.

Purposes of Human Resource Planning:

To help the organization use HR effectively.
To serve organizational and individual needs.
To reduce expenses associated with such factors as low productivity, absenteeism, excessive turnover etc.
To correct imbalances of HR in the organization.
To forecast shortages and surpluses of HR.
To improve overall business planning.
To provide more opportunities for disadvantaged groups.
To incorporate in the organizational planning the demand of changing external and internal demands (such as new laws, constitutional requirements employees demands, etc).
To promote greater awareness of the importance of sound HRM throughout all levels of management.
To maximize individual employees' aptitude and potential.
To provide a tool for effective alternative HRM actions and policies.

The process of manpower planning

For small organizations there may be little or no systematic manpower planning, and many large firms only plan for one or two years ahead, as they feel that their the market is not predictable enough to forecast accurately beyond this time-span.

For many businesses, manpower planning is only thought about seriously when there is a foreseeable crisis. For example the fall in the teenage population during the early 1990s has forced many firms to reconsider the attractiveness of their jobs to young workers, and to make plans to attract older workers.

The Planning Process:

HRP essentially involves forecasting personnel needs, assessing personnel supply and matching demand-supply factors through personnel-related programmes. The planning process is influenced by overall organizational objectives and the environment of business.

HR Plan Implementation:

Once an organization’s personnel and supply are forecasts, the two must be reconciled or balanced in order that vacancies can be filled by the right employees at the right time. HR programming, the third step in the planning process, therefore, assumes greater importance.

HR Plan Implementation:

Implementation requires converting an HR plan into action. A series of action programmes are initiated as a part of HR plan implementation. Some such programmes are recruitment, selection and placement; training and development; retraining and redeployment; the retention plan; and the redundancy plan. In this context, a brief note of each is given.

Recruitment, Selection and Placement: After the job vacancies are known, efforts must be made to identify sources and search for suitable candidates. The selection programme should be professionally designed and, among other considerations, special care must be taken to ensure compliance with the reservation policies of the government.

Usually, companies hire for specific job openings. However, some companies hire a group of qualified individuals (management trainees, for example), not for specific jobs. In these cases, the groups of trainees move through a variety of assignments, over a year or two, and then they are placed on specific jobs. An effort is made to match individual job preferences and qualifications with organizational needs.

Training and Development: The training and development the programme should cover the number of trainees required; training and development programmes necessary for the existing staff; identification of resource personnel for conducting development programmes, frequency of training and development programmes; and budget allocation for such programmes.

Retraining and Redeployment: New skills are to be imparted to existing staff when technology changes. When a product line is discontinued, its employees are to be retrained and redeployed to other departments where they could be gainfully employed.

Retention Plan: New skills are to be imparted to existing staff when technology changes. When a the product line is discontinued, its employees are to be retrained and redeployed to other departments where they could be gainfully employed.

Retention Plan: Retention plan covers actions which would help reduce avoidable separations of employees. Important actions under this head are:

Compensation plan: Increasing pay levels to meet competition, improving pay structures to remove inequities, altering payments systems to reduce excess fluctuations, introducing incentives which would match performances.
Performance appraisal: To assess employee performance at least once in a year.
Employee leaving in search of green pastures: Providing better career opportunities and ensuring that employees are aware of such schemes.
Employees quitting because of conflict: To encourage conflict but maintain it at a reasonable level; when conflict exceeds safe limits, to take steps to resolve conflict.
The induction crisis: Improving recruitment and selection procedures to ensure that job requirement are specified accurately and that the people who are selected fit the specifications; ensuring that candidates are given a realistic picture of the job, pay and working conditions, developing better induction and initial training programmes.
Shortages: Improving recruitment, selection and training for the people required; introducing better methods of planning and scheduling work to lessen peak loads.
Unstable recruits: Taking more care to avoid recruiting unstable individuals by analyzing the characteristics of applicants who are likely to cause instability, and using this analysis to select the right candidates.
Downsizing plans: where there is surplus employees, trimming of the labour force will be necessary. The trimming or downsizing plan shall indicate.

Who is to be made redundant and where and when;

Plans for re-development or re-training, where this has not been converted in the re-development plan;

Steps to be taken to help redundant employees find new jobs;

Policy for declaring redundancies and making redundancy payments; and

Programme for consulting with unions or staff associations and informing those affected.

Control and Evaluation:

Control and evolution represents the fifth and final phase in the HRP process. The HR plan should include budgets, targets, and standards. It should also clarify responsibilities for implementation and control, and establish reporting procedures which will enable achievements to be monitored against the plan. These may simply report on the numbers employed against the establishment (identifying both those who are in post and those who are in pipeline) and on the numbers recruited against the recruitment targets. But they should also report employment costs against budget and trends in wastage and employment ratios.

Factors in forecasting HR needs:

Managers should consider several factors when forecasting personnel needs. From a practical point of view, the demand for your product or service is paramount. Thus, in a manufacturing firm, sales are projected first. Then the volume of production required to meet these sales requirements is determined. Finally, the staff needed to meet this volume of output is estimated. In addition to production or sales demand, the following factors should also be considered.

Projected turnover (as a result of resignations or terminations).
Quality and nature of your employees (in relation to what you see as the changing needs of your organization).
Decisions to upgrade the quality of products or services or enter into new markets.
Technological changes resulting in increased productivity.
The financial resources available to your department.

Factors in forecasting the supply of outside candidates

General economic conditions.
National labor market conditions.
Local labor market conditions.
Occupational market conditions.

Factors affecting Human Resource Planning in an organization

Human resource planning can be defined as the process of identifying the number of people required by an organization in terms of quantity and quality. All human resource management activities start with human resource planning. So we can say that human resource planning is the principle/primary activity of human resource management.

1. Employment:-

HRP is affected by the employment situation in the country i.e. in countries where there is greater unemployment; there may be more pressure on the company, from the government to appoint more people. Similarly some company may force a shortage of skilled labour and they may have to appoint people from other countries.

2. Technical changes in the society:-

Technology changes at a very fast speed and new people having the required knowledge are required for the company. In some cases, the company may retain existing employees and teach them the new technology and in some cases, the company have to remove existing people and appoint new.

3. Organizational changes:-

Changes take place within the organization from time to time i.e. the company diversify into new products or close down business in some areas etc. in such cases the HRP process i.e. appointing or removing people will change according to the situation.

4. Demographic changes:-

Demographic changes refer to things referring to age, population, the composition of workforce etc. A number of people retire every year. A new batch of graduates with specialization turns out every year. This can change the appointment or the removal in the company.

5. Shortage of skill due to labour turnover:-

Industries having a high labour turnover rate, the HRP will change constantly i.e. many new appointments will take place. This also affects the way HRP is implemented.

6. Multicultural workforce :-

Workers from different countries travel to other countries in search of a job. When a company plans it’s HRP it needs to take into account this factor also.

7. Pressure groups:-

Company has to keep in mind certain pleasure. Groups like human rights activist, woman activist, media etc. as they are very capable for creating problems for the company when issues concerning these groups arise, appointment or retrenchment becomes difficult.

Thank You

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Human Resources Business Partner: Concept, Importance in business, Role and Model-Part-A

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Human Resource Planning I Objectives I Importance I Process