Human Resource Planning Can Be Defined as a Process by Which an Organization Ensures That It Has the Right Number and Kinds of People

Human Resource planning can be defined as a process by which an organization ensures that

it has the right number and kinds 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 or in other words HRP can be defined as planning for the future personnel

needs of an organization, taking into account both internal activities and factors in the

external environment.

Need and Importance of HRP

Human resource Planning translates the organization objectives and plans into the number of

workers needed to meet these objectives. The need and importance of HRP is as follows:

HRP helps in determining the future manpower requirements and avoids problems like

over staffing or understaffing in the organization. HRP helps in tackling with the factors

like competition, technology, government policies etc. that generates changes in the job

content, skill requirements and number and types of personnel required. Now a days there

is a demand of exceptional intellectual skills while the existing staff becomes redundant, the

HR manager has to attract and retain qualified and skilled personnel and also required to deal

with issues like career development, succession planning for which he takes the help of HRP.

A proper and realistic human resource plan is needed to ensure equal employment and

promotional appointments to the candidates for weaker sections, physically handicapped and

socially and politically oppressed citizens. HRP provides valuable and timely information

for various designing and execution of personnel functions like recruitment, selection,

transfers, promotions, layoffs, training and development and performance appraisal. It helps

the organization to anticipate imbalance in human resources, which in turn will facilitate

reduction in personal costs. HRP facilitates planning for future needs which will help in

better planning of assignments to develop managers and to ensure the organization has a

steady supply of experienced and skilled employees.

Factors affecting Human Resource Planning

HRP is a dynamic and ongoing process. The process of updating is not very simple, since

HRP is influenced by many factors, which are as follows: The type of organization

determines the production process and number and type of staff needed. Organization

operates under different political, social environment and has to carefully formulate the HR

policies and so the HR manager has to evolve suitable mechanism to deal with uncertainties

through career developments, succession planning, retirement schemes etc. The human

resource needs of an organization depend on the strategic plan adopted by it. For e.g. the

growth of a business calls for hiring of additional labor, while mergers will need a plan for

layoffs. The type and quality of information used in making forecasting is an important

factor influencing HRP. Accurate and timely human resource information system helps in

getting better quality personnel. HRP also depends on the time periods and accordingly the

short and long-term plans are adopted. And this time span is based on the degree of

environmental uncertainties. HRP is required to ensure that suitable candidates should be

appointed at the right kind of job.

So these are some of the factors that affect the human resource planning.

Limitations of Human Resource Planning

It is very difficult to ascertain future manpower requirements of an organization, as future

is always uncertain. It is more relevant to the countries that face the problem of scarcity of

human resources. It is a time consuming and costlier process. It is beneficial in the

organizations that adopt a professional approach and at the same time are conscious about the

changing environment. HRP is beneficial where adequate skilled manpower is available. .

HRP is also made difficult in the organizations that have a very high labour turnover.

MBA Knowledge Base > Human Resource Management > Process of

Human Resource Planning

Process of Human Resource Planning

Human resource planning is the responsibility of all managers. It

focuses on the demand and supply of labour and involves the

acquisition, development and departure of people. This is recognised

as a vital HR function as the success of an organisation depends on its

employees.

The purpose of HR planning is to ensure that a predetermined number

of persons with the correct skills are available at a specified time in

the future. Thus, HR planning systematically identifies what must be

done to guarantee the availability of the human resources needed by

an organisation to meet its strategic business objectives. To achieve

this HR planning cannot be undertaken in isolation. It must be linked

to the organisation’s overall business strategy, and concentrate on the

organisation’s long-range human resource requirements.

Read More: Introduction to Human Resource Planning

Process of Human Resource Planning

1. Analysing the Corporate Level Strategies: – Human Resource

Planning should start with analysing corporate level strategies which

include expansion, diversification, mergers, acquisitions, reduction in

operations, technology to be used, method of production etc.

Therefore Human Resource Planning should begin with analysing the

corporate plans of the organisation before setting out on fulfilling its

tasks.

2. Demand forecasting: – Forecasting the overall human resource

requirement in accordance with the organisational plans is one of the

key aspects of demand forecasting. Forecasting of quality of human

resources like skills, knowledge, values and capabilities needed in

addition to quantity of human resources is done through the following

methods: -

a. Executive or Managerial Judgement: – Here the managers decide

the number of employees in the future. They adopt one of the three

approaches mentioned below: -

Bottom-Up approach: – Here the concerned supervisors send their

proposals to the top officials who compare these with the

organisational plans, make necessary adjustments and finalise them.

Top-Down approach: – Here the management prepares the

requirements and sends the information downwards to the supervisory

–level who finalises the draft and approves it.

Participative Approach: – Here the supervisors and the management

sit together and projections are made after joint consultations.

Drawbacks

The chief drawback of these methods is that estimation of manpower

is made using guesswork.

b. Statistical Techniques: – These methods use statistical methods and

mathematical techniques to forecast and predict the supply and

demand of Human Resources in the future.

Ratio-Trend analysis: – In this method depending on the past data

regarding number of employees in each department, like production

department, sales department, marketing department and workload

level, etc ratios for manpower are estimated. Past values are plotted

and extrapolated to get fairly accurate future projections.

c. Work Study method: – This technique is suitable to study the

correlation between volume of work and labour i.e. demand for

human resources is estimated based on the workload. Work study

method is more appropriate for repetitive and manual jobs when it is

possible to measure work and set standards.

d. Delphi Technique: – ‘Delphi’ Technique is named after the Greek

Oracle at the city of Delphi. In this method, the views of different

experts related to the industry are taken into consideration and then a

consensus about the Human Resource requirement is arrived at.

Delphi technique is used primarily to assess long-term needs of

human resource.

3. Analysing Human Resource Supply: – Every organisation has two

sources of supply of Human Resources: Internal & External.

Internally, human resources can be obtained for certain posts through

promotions and transfers. In order to judge the internal supply of

human resources in future human resource inventory or human

resource audit is necessary. Human resource inventory helps in

determining and evaluating the quantity of internal human resources

available. Once the future internal supply is estimated, supply of

external human resources is analysed.

4. Estimating manpower gaps: – Manpower gaps can be identified by

comparing demand and supply forecasts. Such comparison will reveal

either deficit or surplus of Human Resources in the future. Deficit

suggests the number of persons to be recruited from outside, whereas

surplus implies redundant employees to be re-deployed or terminated.

Employees estimated to be deficient can be trained while employees

with higher, better skills may be given more enriched jobs.

5. Action Planning: – Once the manpower gaps are identified, plans

are prepared to bridge these gaps. Plans to meet the surplus manpower

may be redeployment in other departments and retrenchment. People

may be persuaded to quit voluntarily through a golden handshake.

Deficit can be met through recruitment, selection, transfer and

promotion. In view of shortage of certain skilled employees, the

organisation has to take care not only of recruitment but also retention

of existing employees. Hence, the organisation has to plan for

retaining of existing employees.

6. Modify the Organisational plans: – If future supply of human

resources form all the external sources is estimated to be inadequate

or less than the requirement, the manpower planner has to suggest to

the management regarding the alterations or modifications in the

organisational plans.

7. Controlling and Review: – After the action plans are implemented,

human resource structure and the processes should be controlled and

reviewed with a view to keep them in accordance with action plans.

8 processes of human resource planning

Posted on February 8, 2013 by shma

Human Resource Management is very important for the survival and prosperity of an

organisation. Procurement of right kind and right number of employees is the first operative

function of Human Resource Management. Before selecting the right man for the right job, it

becomes necessary to determine the quality and quantity of people required in the

organisation. This is the primary function of Human Resource Planning.

Human Resource Planning

Human Resource Planning is the planning of Human Resources. It is also called manpower

planning/ personnel planning/ employment planning. It is only after Human Resource

Planning that the Human Resource department can initiate the recruitment and selection

process. Therefore Human Resource Planning is a sub-system of organisational planning.

Definition

“Human Resource Planning is a strategy for the acquisition, utilisation, improvement and

preservation of an organisation’s human resource” – Y.C. Moushell

“Human Resource Planning is a process of forecasting an organisation’s future demand for

human resource and supply of right type of people in right numbers” – J.Chennly.K

Features of Human Resource Planning

1. It is future oriented: – Human Resource Planning is forward-looking. It involves forecasting

the manpower needs for a future period so that adequate and timely provisions may be made

to meet the needs.

2. It is a continuous process: – Human Resource Planning is a continuous process because the

demand and supply of Human Resource keeps fluctuating throughout the year. Human

Resource Planning has to be reviewed according to the needs of the organisation and

changing environment.

3. Integral part of Corporate Planning: – Manpower planning is an integral part of corporate

planning because without a corporate plan there can be no manpower planning.

4. Optimum utilisation of resources: – The basic purpose of Human Resource Planning is to

make optimum utilisation of organisation’s current and future human resources.

5. Both Qualitative and Quantitative aspect: – Human Resource Planning considers both the

qualitative and quantitative aspects of Human Resource Management, ‘Quantitative’ meaning

the right number of people and ‘Qualitative’ implying the right quality of manpower required

in the organisation.

6. Long term and Short term: – Human Resource Planning is both Long-term and short-term in

nature. Just like planning which is long-term and short-term depending on the need of the

hour, Human Resource Planning keeps long-term goals and short-term goals in view while

predicting and forecasting the demand and supply of Human Resource.

7. Involves study of manpower requirement: – Human Resource Planning involves the study of

manpower availability and the manpower requirement in the organisation.

Objectives of Human Resource Planning

1. Optimum utilisation of human resources currently employed in the organisation.

2. To reduce imbalance in distribution and allocation of manpower in organisation for various

activities.

3. To ensure that the organisation is well-equipped with the required Quantity and Quality of

manpower on a sustained basis.

4. To anticipate the impact of technology on jobs and resources.

5. To control cost of Human Resources employed, used and maintained in the organisation.

6. To provide a basis for management development programmes.

7. To ensure optimum contribution and satisfaction of the personnel with reasonable

expenditure.

8. To recruit and retain human resource of required Quantity and Quality.

Need for Human Resource Planning

1. Shortage of Skills: – These days we find shortage of skills in people. So it is necessary to

plan for such skilled people much in advance than when we actually need them. Non-

availability of skilled people when and where they are needed is an important factor which

prompts sound Human Resource Planning.

2. Frequent Labour Turnover: – Human Resource Planning is essential because of frequent

labour turnover which is unavoidable by all means. Labour turnover arises because of

discharges, marriages, promotion, transfer etc which causes a constant ebb and flow in the

workforce in the organisation.

3. Changing needs of technology: – Due to changes in technology and new techniques of

production, existing employees need to be trained or new blood injected into an organisation.

4. Identify areas of surplus or shortage of personnel: – Manpower planning is needed in order to

identify areas with a surplus of personnel or areas in which there is a shortage of personnel. If

there is a surplus, it can be re-deployed, or if there is a shortage new employees can be

procured.

5. Changes in organisation design and structure: – Due to changes in organisation structure and

design we need to plan the required human resources right from the beginning.

Problems with Human Resource Planning

1. Resistance by Employers: – Many employers resist Human Resource Planning as they think

that it increases the cost of manpower for the management. Further, employers feel that

Human Resource Planning is not necessary as candidates will be available as and when

required in the country due to the growing unemployment situation.

2. Resistance by Employees: – Employees resist Human Resource Planning as it increases the

workload on the employees and prepares programmes for securing human resources mostly

from outside.

3. Inadequacies in quality of information: – Reliable information about the economy, other

industries, labour markets, trends in human resources etc are not easily available. This leads

to problems while planning for human resources in the organisation.

4. Uncertainties: – Uncertainties are quite common in human resource practices in India due to

absenteeism, seasonal unemployment, labour turnover etc. Further, the uncertainties in the

industrial scenario like technological changes and marketing conditions also cause

imperfection in Human Resource Planning. It is the uncertainties that make Human Resource

Planning less reliable.

5. Time and expense: – Human Resource Planning is a time-consuming and expensive exercise.

A good deal of time and cost are involved in data collection and forecasting.

Guidelines for making Human Resource Planning effective

1. Adequate information system: – The main problem faced in Human Resource Planning is the

lack of information. So an adequate Human resource database should be

maintained/developed for better coordinated and more accurate Human Resource Planning.

2. Participation: – To be successful, Human Resource Planning requires active participation and

coordinated efforts on the part of operating executives. Such participation will help to

improve understanding of the process and thereby, reduce resistance from the top

management.

3. Adequate organisation: – Human Resource Planning should be properly organised; a separate

section or committee may be constituted within the human resource department to provide

adequate focus and to coordinate the planning efforts at various levels.

4. Human Resource Planning should be balanced with corporate planning: – Human resource

plans should be balanced with the corporate plans of the enterprise. The methods and

techniques used should fit the objectives, strategies and environment of the particular

organisation.

5. Appropriate time horizon: – The period of manpower plans should be appropriate according

to the needs and circumstances of the specific enterprise. The size and structure of the

enterprise as well as the changing aspirations of the people should be taken into

consideration.

Factors affecting Human Resource Plans

External factor:

They are the factors which affect the Human Resource Planning externally. They include:-

1. Government policies: – Policies of the government like labour policy, industrial policy,

policy towards reserving certain jobs for different communities and sons-of-the-soil etc affect

Human Resource Planning.

2. Level of economic development: – Level of economic development determines the level of

human resource development in the country and thereby the supply of human resources in the

future in the country.

3. Information Technology: – Information technology brought amazing shifts in the way

business operates. These shifts include business process reengineering, enterprise resource

planning and Supply Chain Management. These changes brought unprecedented reduction in

human resource and increase in software specialists. Example: – Computer-aided design

(CAD) and computer-aided technology (CAT) also reduced the existing requirement of

human resource.

4. Level of Technology: – Technology is the application of knowledge to practical tasks which

lead to new inventions and discoveries. The invention of the latest technology determines the

kind of human resources required.

5. Business Environment: – Business environment means the internal and external factors

influencing the business. Business environmental factors influences the volume of mix of

production and thereby the supply of human resources in the future in the country.

6. International factors: – International factors like the demand and supply of Human resources

in various countries also affects Human Resource Planning   .

Internal factors:

1. Company Strategies: – The organisation’s policies and strategies relating to expansion,

diversification etc. determines the human resource demand in terms of Quantity and Quality

2. Human Resource policies: – Human Resource policies of the company regarding quality of

human resources, compensation level, quality of working conditions etc. influence Human

Resource Planning.

3. Job analysis: – Job analysis means detailed study of the job including the skills needed for a

particular job. Human Resource Planning is based on job analysis which determines the kind

of employees to be procured.

4. Time Horizon: – Company’s planning differs according to the competitive environment i.e.

companies with stable competitive environment can plan for the long run whereas firms

without a stable environment can only plan for short term. Therefore, when there are many

competitors entering business/ when there is rapid change in social and economic conditions

of business/ if there is constant change in demand patterns/ when there exists poor

management practice, then short term planning is adopted or vice-versa for long-term

planning.

5. Type and Quality of Information: – Any planning process needs qualitative and accurate

information about the organisational structure, capital budget, functional area objectives,

level of technology being used, job analysis, recruitment sources, retirement plans,

compensation levels of employees etc. Therefore Human Resource Planning is determined on

the basis of the type and quality of information.

6. Company’s production and operational policy: – Company’s policies regarding how much to

produce and how much to purchase from outside in order to manufacture the final product

influences the number and kind of people required.

7. Trade Unions: – If the unions declare that they will not work for more than 8 hours a day, it

affects the Human Resource Planning. Therefore influence of trade unions regarding the

number of working hours per week, recruitment sources etc. Affect Human Resource

Planning.

8. Organisational Growth Cycles: – At starting stage the organisation is small and the need of

employees is usually smaller, but when the organisation enters the growth phase more young

people need to be hired. Similarly, in the declining/recession/downturn phase Human

Resource Planning is done to re-trench the employees.

Human resource (HR) planning or manpower planning is a continuous

process. The human resource manager is required to revise the

employment policies from time to time for achieving the best results.

Human resource planning/ manpower planning process involve the

following steps:-

1. Objectives of human resource planning: human resource planning

must be matched with overall organizational plans. It should be

concerned with filling future vacancies rather than matching existing

personnel with existing jobs.

2. Current manpower stock: Current manpower stock must be

continuously maintained by every department. Manpower inventory

must have the detailed bio data of each individual . this record not

only help in employee development but also in the finding out the

surplus/ shortage of manpower.

3. Demand/ supply forecasting: firstly the organization must check the

demand of manpower after every one year, two-year so on. For this

purpose employment trends to show the number of employees on

payroll during last say three years to show the trend.

Replacement needs arise due to the death, retirement or termination of

the employees.

Growth and expansion helps in creating a number of positions at work

place.

After the demand forecasting it is also important to check the supply

of the different type of personnel for this purpose human resource

audit, replacement charts can be prepared.

4. Determining net requirement: human resource manager must check

the demand and supply of the manpower before deriving at any

conclusion.

5. Redeployment and redundancy: in redeployment the surplus

employees in one department can be transferred to another department

where deficit of employees estimated and in case of redundancy

where surplus employees cannot be redeployed them can be offered

voluntary retirement scheme.

6. Employment programme: here it is required to prepare programmes

of recruitment, selection, transfer and promotion to achieve

organization goal.

7. Training and development: it is very necessary for the employees to

keep them updated in the job they are doing.

8. Evaluation of Human resource planning: after doing all the above

steps it is necessary to evaluate the effectiveness of human resource

planning.

Thus, the above mentioned steps are important steps for the process of

human resource planning.

Meaning and Definition of

Human Resource Planning

Human resource planning or man power planning is essentially the process

of getting the right of qualified people into the right job at the right time. It is

a system of matching the supply of people with openings the organization

experts over a given time frame.

According to Edwin B. Geisler:-

Manpower planning is, “the process 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 things for which they are economically mast useful”.

According to Bruce P. Coleman:-

Manpower Planning is, “the process of determining manpower

requirements in order to carry out the integrated plan of the organization.

According to Leon C. Megginson:-

Human resource planning is “an integrated approach to performing the

planning aspect of the personal function in order to have a sufficient supply

of adequately developed and excepted people to perform the duties and

task required to meet organizational objective and satisfy the individual

needs and goals of organizational members”.

Emergence of human resource planning

The emergence of hr Planning reflect a broadening of the mission of the

personnel function. New full time staff roles have been established in many

companies to provide support to managerial practices HRP. HRP

professionals fulfill various roles, depending on the tasks and

organizational priorities. Consulting roles is vital in effective implementation

of changes called for in HRP.AS companies deal with changing social and

individual values, come face-to-face with the application of employment-

related laws, and experience HR constraints I achieving business plans

and objectives, HRM assumes an increased signification.

Activity of human resource planning

The major activity of human resource planning include:-

Forecasting future manpower requirements, either in terms of mathematical

projections of trends in the economic environment and development in

industry, or in terms of judgmental estimates based upon the specific future

plans of a company.

Making an inventory of present manpower resources and assessing the

extent to which these recourses are employed optimally.

Anticipating manpower problem by projecting present resources into the

future and comparing them with the forecast of requirements to determine

their adequacy, both quantitatively and qualitatively,and

Panning necessary programmes of requirement, selection, traninig,

development, utilization, transfer, promotion, motivation and copmansation

to ensure that future manpower requirements are properly met.

Characteristics of Human Resource

Planning.

Following are the feature of human resource planning:-

Well Defind objectives:

The objectives of the organization in stratergy planning and oprerating

planning may from the objective of human resource planning. Human

resource needs are planned, on the basis of the company’s goals. Basides,

human resource planning has its own objectives, like developing human

resource, updating technical expertise, career planning of individual

executives and people, ensuring better commitment of people and so on.

Determine personal needs:

Human resource planning is releted to the determination of personnel

needs, in the organization. The thinking will have to be done in advance, so

that the persons are available at a time, when they are needed.

Having Manpower Invantory:

It include the inventory of present manpower in the organization. The

manager should know the persons, who will be available to him, for

undertaking higher responsibilities in the near future.

Adjusting Demand and supply;-

Manpower requirements have to be planned well in advance as suitable

personse are not immediately available. In case sufficient persons will not

be available in future, then efforts should be made, to start recruitment

proccedd well in advance. The demand and supply of personal should be

seen in advance.

Creating proper Work Environment:-

Basides estimating andemploying personnel, manpower planning also

ensures that proper working condition are created.people should like to

work in the organization and they should get proper job satisfaction.

Developing polices:-

It result in the development ofpolicies, programmes and procedures for the

acquisition, development, preservation and utilization of the organization’s

human assets.

Dynamic Activitity:-

Manpower planning is a continuous or never ending process because the

demand and supply of manpower are subject to frequent change. It is

dynamic activity.

Objectives of Human Resource Planning.

Folowing are the objective of HRP:-

Forecat human resource Requirements:-

Human Resource planning is essential to determine the future human

resource needs in an organization.In the absence of such a plan, it would

be difficult to have the service of the right kind of people at the time.

Proper planning is require to cope with changes in market conditions,

technology products, and government regulations in an effective way.

These change call for continuous allocation or reallocation of skill and in

the absence of planning there might be underutilization of human

resources.

Realizining organizational goal:-

In order to meet the needs of expansion programmes and growth streaergy

of the organization planning is essential.

Promoting Emplyees:-

The databased available provides a comprehensive skill repertoire, which

facilitates for decision making as to the promotional opportunities to be

made available for the ofganization.

Effective Utiliation of human resource:-

This databased is also useful for identifying surplus abd unutilized human

resources and resources. In times of downsizing or in estimatind the cost

benefit analysis of human resources would add value to the process.

Facilities Economic Development:-

At the national level, manpower planning is essential for economic

development. It is particularly helpful in the generation of employment in

educational reforms and in geographical mobility of talent.

Helps fill the Gap:-

Manpower planning identified the gaps in existi ng manpower so that

suitable training programmes may be developed for building specific skills,

required in future.

Need of human resource planning:-

Storage of employee and skill

The storageof certain catagaries of employees and variety of skills despite

the problem of unemplyement

Change in tequnology

The rapid change in technology, marketing, management, etc, and the

consequent need for new skill and new categaries of employees.

Rplacement of personal:-

A large number of persons are to be replaced in the organization because

of retirement, old age, death, etc. there will be a need to proper persons for

taking up new position in such contingencies.

Labour ternover:-

There are always labour turnover in every organization. The degree of

labour turnover may vary from concern but it cannot be eliminated

altogather. There will be a need to recruit new persons to take up the

positions of those who have left the organization.

Expansion plan:-

Whenever there is a plan to expand or diversify the concern then more

persons will be required to take up new positions.hrp is essential under

these situations.

Human resource audit:-

Capabilities, skills, performance abilities and potentialities of each

individual are evaluated in the human resource audit.

For improving in Quality of life and quality

of work:-

Asubstantial improvement in quality of life and qualiry of work life backed

by total quality management, require systemantic human resource

planning.

Proper evolutone:-

Human resource plenning must always be backed by proper evaluation and

appraisal systems. Periodical appraisal of performance, both in qualitative

and quantitative terms, throwns light on actal performance as a result of

planning.

HRP at Different levels:

Different institutions make hrp at different levels for their own purposes, of

which national level, industry level, unit level, departmental level and job

level are important.

National Level: Genrally government at the center plan for human

resources at the national level. It forecast the output level of that particular

industry.

Sectoral level:- Manpower requirement for a particular sector like

agricultural sector, industrial sector or tertiary sector are projected based

on the government policy, projected output etc.

Industry leval:- Manpower needs of a particular industry like cement, textile,

chemical is predicted taking in to account the output level of that particular

industry.

Unit level:- This covers the estimation of human resource needs of an

organization or company based on its corporate plan.

Departmental level:-

This covers the manpower needs of a particular department in a company.

Job level:- Manpower needs of a particular job family within department like

Mechanical Engineer, are forecast.

Importance or advantages:-

Future personal needs:-

Planning is significant as it helps determine future personal needs. Surplus

or deficinency in staff strength is the result of the absence of or defective

planning. All public sector enterprices find themseleve overstaffed now, as

they never had any planning of their personal requirements.

Coping with change:-

Hrp enables an enterprise to cope with change in competitive forces,

markets, technology, product and government requlations. Such changes

generate change in job content, skill demands and number and type of

personel.

Replacement of persons:-

A large number of persons are to be replaced in the organization because

of retirement, old age, death, etc. There will be a need to proper persons

for taking up new position in such contingences.

Labor Turnover:-

There is always labor turnover in every organization. The degree of labor

turnover may vary from concern to concern but it cannot be eliminated

altogather. There will be a need to recruit new persons to take up the

positions of those who left the organization.

Expansion plan:-

Whenever ther is a plan to expand or diversify the concern then more

persons will be required to take up new positions.Human resource planning

is essential under these situation.

Human resource audit:-

Capabilites,skill,performance abilities and potentialities of each individual

are evaluated in the human resources audit. On many occasions,

replacement charts or succession plans are kept so that potential

executives are located for every position in the organization during the

given future period.

Incresing Investments in Human Resource:-

Another compelling reson for HRP is the investment an organization makes

in its Human resources. Human assets, as opposed to physical assets, can

increase in value.

Disadvantages of human resource

planning:-

Depending on forecast:-

Manpower planning involves forecasting the demand and supply of human

resources.Thus the effectiveness of planning depends upon the accuracy

of forecasts.

Identity Crisis:-

Many human resource specialists and the managers do not understand the

whole manpower planning process. Becouse of this, there is genrally an

identity crisis.

Suport of top management:-

Manpower planning Require full and wholehearted support from the top

management. In the absence of this support and commitment, it would not

be possible, to ensure the necessary resources, co opration and support

for the success of the manpower planning.

Uncertainties:-

It is risky, to depend upon genral estimates of manpower, in the face of

rapid changes in the environment. Absenteeeism, turnover, seasonal

employment, technological changes and market fluctuations are the

uncertainties, which serve as constraints to manpower planning.

Expensive and time consuming:-

It is expensive or more time consuming prosescc . employee may resist

manpower planng, felling tat it increasing the cost of manpower.

Human resource planning procces:-

HUMAN RESOURCE PLANNING MODEL

Envirnment scanning such as:-

Economical factore

Technological changes, including robotics and automation.

Demografical change, including age, composition and literacy.

Political and legislative child care, and educational facilities and priorities.

Social concern, including child care, and educational facilities and priorities.

Organizational Objective and policies:-

HR plans need to be based on organizational objectives. In practice, this

implies that objectives of the HR plan must be derived from organizational

objectives. Specific requirement in terms of number and charecteristics of

employees should be derived from the organizational objectives.

HR Demand Forecast:-

Demand forecasting is the process of estimating the future quantity and

quality of people required. The basis of the forecast must be the annual

budget and long term corporate plan, into activity level for each function

and department. such as growth, technology introduction and goal.

HR Supply Forecast:-

Personnel demand anyalasis provide the manager with the means of

estimating the number and kind of employees that wikk be required. The

next logical step for the management is to determine weather it will be able

to procure the required nuber of personnel and the sources for such

procurement.This information is provides by supply forecasing.

HR programming:-

Once an organization personnel and supply are forecast, 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 assuming greater importance.

HR Plan Imlimantation:-

Implimantation required converting an HR plan into action. A series of

action programmes are initiated part of HR plan implimantation.Some such

programmes are recruitment, selection placement ,traning and

development and succession plan.

Control and Evalution:-

This represent fifth and the final plan in HRP process.The HR plan should

include budget, target and standard. It should also clarify responsibilities for

implimantation and control, and establish reporting procedure, which will

enable achievement to be monitored against the plan. These may simply

report on the number employed against establishments and on the number

recuited against the recruitment target. But they should be also report

employment cost against budget, and trend in wastage and employement

ratios.

Summery:-

In sort Human resource planning is continues process and it is effective to

organizational goal and object such as purpose.HRP has to factore

affected such as 1) internal 2) external factor. The organization must plan

for attracting and retraining key personnel. The needs must be determined

in advance so as to permit adequate time for the training and development

of required personnel. The man power planning must be done within the

limit of a budget. There is no use formulating an excellent plan which

cannote be implemented because of financial constraints. The process of

HRP involves three key steps – assessing and making an inventory of the

current human resource, forecasting the organization’s human resources

needs and matching the demand and supply of the human resources. The

effective period of an effective manpower plan should be appropriate to the

needs and circumstances of the particular organization. Moreover, planning

should have the full support of the top management. Effective Human

Resource Planning reduce the pressures on the management an

employees, as both employment and retrenchment would be well planned

and phased out over a comfortable time, span, avoiding unpleasant

consequences. In short human resource planning must be help full in

taking batter decision for future planning

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Coleman

has defined HR/MP planning as “The Process of determining

manpower requirements and the means for meeting those

requirements in order to carry out the integrated plan of the

organization.”

Stainer

defines manpower planning as “Strategy for acquisition,utilization,

improvement and preservation of an enterprise’s humanresources.”

Vetter

opines that it is the process by which managementdetermines how the 

organization should move from its manpowerposition to its desired

manpower position to carry out integrated plan of the

organization.According to

Geisler

, “Manpower planning is the process – includingforecasting,

developing and controlling by which a firm ensures that ithas-

•

 The right number of people,

•

 The right kind of people,

•

At the right places,

•

At the right time, doing work for which they are economicallymost

useful”

Definitions, Meaning & characteristics of Planning.

Meaning and Concept of Planning

In simple words, planning is deciding in advance what is to be done, when where, how and by whom it is to be done. Planning bridges the gap from where we are to where we want to go. It includes the selection of objectives, policies, procedures and programmes from among alternatives. A plan is a predetermined course of action to achieve a specified goal. It is an intellectual process characterized by thinking before doing. It is an attempt on the part of manager to anticipate the future in order to achieve better performance. Planning is the primary function of management.

Definitions of Planning

Different authors have given different definitions of planning from time to time. The main definitions of planning are as follows:

According to Alford and Beatt, "Planning is the thinking process, the organized foresight, the vision based on fact and experience that is required for intelligent action."

According to Theo Haimann, "Planning is deciding in advance what is to be done. When a manager plans, he projects a course of action for further attempting to achieve a consistent co-ordinate structure of operations aimed at the desired results.

According to Billy E. Goetz, "Planning is fundamentally choosing and a planning problem arises when an alternative course of action is discovered."

According to Koontz and O' Donnell, "Planning is an intellectual process, conscious determination of course of action, the basing of decision on purpose, facts and considered estimates."

According to Allen, "A plan is a trap laid to capture the future."

Nature / Characteristics of Planning

The main characteristics or nature of planning is given below:

Planning is an Intellectual Process

Planning is an intellectual process of thinking in advance. It is a process of deciding the future on the series of events to follow. Planning is a process where a number of steps are to be taken to decide the future course of action. Managers or executives have to consider various courses of action, achieve the desired goals, go in details of the pros and cons of every course of action and then finally decide what course of action may suit them best.

Planning Contributes to the Objectives

Planning contributes positively in attaining the objectives of the business enterprise. Since plans are there from the very first stage of operation, the management is able to handle every problem successfully. Plan try to set everything right. A purposeful, sound and effective planning process knows how and when to tackle a problem. This leads to success. Objectives thus are easily achieved.

Planning is a Primary Function of Management

Planning precedes other functions in the management process. Certainly, setting of goals to be achieved and lines of action to be followed precedes the organization, direction, supervision and control. No doubt, planning precedes other functions of management. It is primary requisite before other managerial functions step in. But all functions are inter-connected. It is mixed in all managerial functions but there too it gets precedence. It thus gets primary everywhere.

A continuous Process

Planning is a continuous process and a never ending activity of a manager in an enterprise based upon some assumptions which may or may not come true in the future. Therefore, the manager has to go on modifying revising and adjusting plans in the light of changing circumstances. According to George R. Terry, "Planning is a continuous process and there is no end to it. It involves continuous collection, evaluation and selection of data, and scientific investigation and analysis of the possible alternative courses of action and the selection of the best alternative.

Planning Pervades Managerial Activities

From primary of planning follows pervasiveness of planning. It is the function of every managerial personnel. The character, nature and scope of planning may change fro personnel to personnel but the planning as an action remains intact. According to Billy E. Goetz, "Plans cannot make an enterprise successful. Action is required, the enterprise must operate managerial planning seeks to achieve a consistent, coordinated structure of operations focused on desired trends. Without plans, action must become merely activity producing nothing but chaos."

Role, Significance, Importance & Advantages of Planning

An organisation without planning is like a sailboat minus its rudder. Without planning, organisation, are subject to the winds of organizational change. Planning is one of the most important and crucial functions of management. According to Koontz and O'Donnell, "Without planning business becomes random in nature and decisions become meaningless and adhoc choices." According to Geroge R. Terry, "Planning is the foundation of most successful actions of any enterprise." Planning becomes necessary due to the following reasons:

Reduction of Uncertainty

Future is always full of uncertainties. A business organisation has to function in these uncertainties. It can operate successfully if it is able to predict the uncertainties. Some of the uncertainties can be predicted by undertaking systematic. Some of the uncertainties can be predicted by undertaking systematic forecasting. Thus, planning helps in foreseeing uncertainties which may be caused by changes in technology, fashion and taste of people, government rules and regulations, etc.

Better Utilization of Resources

An important advantage of planning is that it makes effective and proper utilization of enterprise resources. It identifies all such available resources and makes optimum use of these resources.

Increases Organizational Effectiveness

Planning ensures organizational effectiveness. Effectiveness ensures that the organisation is in a position to achieve its objective due to increased efficiency of the organisation.

Reduces the Cost of Performance

Planning assists in reducing the cost of performance. It includes the selection of only one course of action amongst the different courses of action that would yield the best results at minimum cost. It removes hesitancy, avoids crises and chaos, eliminates false steps and protects against improper deviations.

Concentration on Objectives

It is a basic characteristic of planning that it is related to the organizational objectives. All the operations are planned to achieve the organizational objectives. Planning facilitates the achievement of objectives by focusing attention on them. It requires the clear definition of objectives so that most appropriate alternative courses of action are chosen.

Helps in Co-ordination

Good plans unify the interdepartmental activity and clearly lay down the area of freedom in the development of various sub-plans. Various departments work in accordance with the overall plans of the organisation. Thus, there is harmony in the organisation, and duplication of efforts and conflict of jurisdiction are avoided.

Makes Control Effective

Planning and control are inseparable in the sense that unplanned action cannot be controlled because control involves keeping activities on the predetermined course by rectifying deviations from plans. Planning helps control by furnishing standards of performance.

Encouragement to Innovation

Planning helps innovative and creative thinking among the managers because many new ideas come to the mind of  a manager when he is planning. It creates a forward-looking attitude among the managers.

Increase in Competitive Strength

Effective planning gives a competitive edge to the enterprise over other enterprises that do not have planning or have ineffective planning. This is because planning may involve expansion of capacity, changes in work methods, changes in quality, anticipation of tastes and fashions of people and technological changes etc.

Delegation is Facilitated

A good plan always facilitates delegation of authority in a better way to subordinates.

Steps involved in Planning

Planning is a process which embraces a number of steps to be taken. Planning is an intellectual exercise and a conscious determination of courses of action. Therefore, it requires courses of action. The planning process is valid for one organisation and for one plan, may not be valid for other organizations or for all types of plans, because various factors that go into planning process may differ from organisation to organisation or from plan to plan. For example, planning process for a large organisation may not be the same for a small organisation. However, the major steps involved in the planning process of a major organisation or enterprise are as follows:

Establishing objectives

The first and primary step in planning process is the establishment of planning objectives or goals. Definite objectives, in fact, speak categorically about what is to be done, where to place the initial emphasis and the things to be accomplished by the network of policies, procedures, budgets and programmes, the lack of which would invariably result in either faulty or ineffective planning.

It needs mentioning in this connection that objectives must be understandable and rational to make planning effective. Because the major objective, in all enterprise, needs be translated into derivative objective, accomplishment of enterprise objective needs a concrete endeavor of all the departments.

Establishment of Planning Premises

Planning premises are assumptions about the future understanding of the expected situations. These are the conditions under which planning activities are to be undertaken. These premises may be internal or external. Internal premises are internal variables that affect the planning. These include organizational polices, various resources and the ability of the organisation to withstand the environmental pressure. External premises include all factors in task environment like political, social technological, competitors' plans and actions, government policies, market conditions. Both internal factors should be considered in formulating plans. At the top level mainly external premises are considered. As one moves downward, internal premises gain importance.

Determining Alternative Courses

The next logical step in planning is to determine and evaluate alternative courses of action. It may be mentioned that there can hardly be any occasion when there are no alternatives. And it is most likely that alternatives properly assessed may prove worthy and meaningful. As a matter of fact, it is imperative that alternative courses of action must be developed before deciding upon the exact plan.

Evaluation of Alternatives

Having sought out the available alternatives along with their strong and weak points, planners are required to evaluate the alternatives giving due weight-age to various factors involved, for one alternative may appear to be most profitable involving heavy cash outlay whereas the other less profitable but involve least risk. Likewise, another course of action may be found contributing significantly to the company's long-range objectives although immediate expectations are likely to go unfulfilled.

Evidently, evaluation of alternative is a must to arrive at a decision. Otherwise, it would be difficult to choose the best course of action in the perspective of company needs and resources as well as objectives laid down.

Selecting a Course of Action

The fifth step in planning is selecting a course of action from among alternatives. In fact, it is the point of decision-making-deciding upon the plan to be adopted for accomplishing the enterprise objectives.

Formulating Derivative Plans

To make any planning process complete the final step is to formulate derivative plans to give effect to and support the basic plan. For example, if Indian Airlines decide to run Jumbo Jets between Delhi an Patna, obliviously, a number of derivative plans have to be framed to support the decision, e.g., a staffing plan, operating plans for fuelling, maintenance, stores purchase, etc. In other words, plans do not accomplish themselves. They require to be broken down into supporting plans. Each manager and department of the organisation is to contribute to the accomplishment of the master plan on the basis of the derivative plans.

Establishing Sequence of Activities

Timing an sequence of activities are determined after formulating basic and derivative plans, so that plans may be put into action. Timing is an essential consideration in planning. It gives practical shape and concrete form to the programmes. The starting and finishing times

are fixed for each piece of work, so as to indicate when the within what time that work is to be commenced and completed. Bad timing of programmes results in their failure. To maintain a symmetry of performance and a smooth flow of work, the sequence of operation shaped be arranged carefully by giving priorities to some work in preference to others. Under sequence it should be decided as to who will don what and at what time.

Feedback or Follow-up Action

Formulating plans and chalking out of programmes are not sufficient, unless follow-up action is provided to see that plans so prepared and programmes chalked out are being carried out in accordance with the plan and to see whether these are not kept in cold storage. It is also required to see whether the plan is working well in the present situation. If conditions have changed, the plan current plan has become outdated or inoperative it should be replaced by another plan. A regular follow-up is necessary and desirable from effective implementation and accomplishment of tasks assigned.

The plan should be communicated to all persons concerned in the organisation. Its objectives and course of action must be clearly defined leaving no ambiguity in the minds of those who are responsible for its execution. Planning is effective only when the persons involved work in a team spirit and all are committed to the objectives, policies, programmes, strategies envisaged in the plan.

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 government to appoint more people.

Similarly some company may force 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,

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 situation.

4. Demographic changes :-

Demographic changes refer to things referring to age, population,

composition of work force 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 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

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.