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(2) HUMAN RESOURCE PLANNING

(2.1) The Importance of HUMAN RESOURCE PLANNING Human resource planning (HRP) is the first step in effective human resource management (HRM). It particularly involves the process of forecasting the labour needs of the organization and planning certain useful and important steps that the organization must take in order to meet those human resource needs that will contribute a high percentage for its overall success as human-resource planning should be connected to the organizations strategic objectives and mission (Butensky and Harari 1983). It can be said that human-resource planning is a challenge because the needs of the organization are constantly changing and sometimes do not converge and such challenge can be greater if the recruitment pool is limited or if the people in charge of human-resource management have not been trained to forecast the organizations needs to maintain and achieve success in all areas of concern (Butensky and Harari 1983). In determining a certain range of importance in regaining factual information regarding as to what extent does human resource planning contributes to the overall success of the organization then, it is important to take in consideration some of its planning issues that may affect positively and or negatively to the success of such organization thus, it is crucial to identify and determine these planning issues as it enumerated below (Craft 1980). It is believed that a better human resource planning
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will enhance the effectiveness of the organizations success in dealing appropriately to the nature of its job and be able to provide a thorough channel for interaction and communication in which there is a degree to which it will move towards the attainment of its mission as well as the realization of its goals and parallels in analyzing effectiveness with substantiality that many organizations are successful in so far as human resource planning of a specific organization is concerned with evaluation of its analysis and function to the culture of the organization (Dyer 1985). Similarly, HRP is incorporated with the organisation's strategic plan that mainly involves development as well as other organisation-wide initiatives, which reveals a strong interdependency among other HR activities such as employee recruitment, selection, orientation, appointment, performance management, the learning and change process, career development, and compensation and rewards (Gilley and Maycunich 2000, p. 182). If the process is not integrated in approach, it cannot optimistically create and develop the type and quality of labour forces needed to guarantee developmental organisational regeneration and competitive inclination. The consequences of poor HRP is overstaffing and understaffing. In overstaffing, there is reduced labour efficiency due to increased labour costs, poorer productivity as a result of too many employees with too little work to do, increased inventory levels due to over production, and a need for downsizing. Meanwhile, understaffing is manifested on skills shortages; increased lost opportunity costs; poorer service or product quality; missed deadlines and targets; increased labour costs due to overtime; and role overload leading to increased staff stress, higher employee turnover, poor morale, and higher accident rates.

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Treating the employees as champions and as significant aspect of the organisation naturally results to other positive outcomes. Positive outcomes may come in form of a very constructive suggestion from an experienced member of the workforce. Gilley and Maycunich (2000) welcome the input and recommendations of employees, particularly those who show a high level of mastery in his/her given area of expertise. For the given case, the employees of the organisation must freely air their comments, suggestions, and feedbacks. It is identified that upper members of the organisation are responsible for the major decision making and taking mechanisms but the important contribution of employees suggestions is also given of sufficient value. A good suggestion from the labour force may result to the improvement of the overall organisational performance (Brewer and Selden 2000). A number of empirical studies have concluded that understanding people and organisational practices have a significant effect on the organisation, which leads to high performance and productivity (Haltiwanger, Lane and Spletzer 1999). One good example that identifies this relationship was the study conducted by Delaney and Huselid (1996). Utilizing 590 profit and non-profit-oriented firms, the researchers concluded that HRM practices like staffing, selection, and training are positively associated with organisational performance. At the organisational level, HR professionals engage in human resource planning, as well as recruitment and selection, redesigning the organisational system (including culture, structure, managerial practices, and work environment), and compensation and remuneration program (Gilley and Maycunich 2000, p. 169).

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Employees suggestions must be acknowledged properly by the management. As organisational performance is achieved through HRM functions, they mould the employees as significant contributors to the firm (Sims 2002). In return, the learning that is experienced by the employee in the working environment particularly in the sugar industry is applied. Having the appropriate skills that are honed to the maximum level, people and organisational management practices will subsequently lead to the attainment of various goals of the organisation. From this relationship, it is then appropriate to conclude that the understanding of people and organisational management directly connects to the success or failure of the organisation. And the recognition of valuable suggestions counts a lot.

(2.2) Factors Affecting Human Resource Planning

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Competition, globalisation, technological innovations, varying market and consumer trends, and other occurrences affect the HR-Planning and supply of the labour. With these conditions, there is a need for intensive planning. Planning is very essential for future human resource needs and possibilities. The essence of human resource planning (HRP) is the presence of a concrete plan of getting the right people particularly the employees as well as coaches in the given right place and time (Gilley and Maycunich 2000). Cascio (1995, p. 142) provides a definition of HRP as an attempt to predict future business and environmental demands and needs on an organisation and to similarly provide competent people to carry out business needs and gratify demands. HRP is not simply a component of the HR function but it is perceived as a process that focuses on identifying an organisation's labour needs under varying conditions and at the same time developing the interventions and initiatives essential to satisfy those identified needs (Gilley and Maycunich 2000). Further, HRP is an essential aspect of human capital development (Budhwar and Debrah 2001, p. 11). Gilley and Maycunich (2000) aver that HRP includes "job analysis, career planning, and other activities designed to identify what is best for the organization as a whole" (p. 38). Thus, it is a very essential as aspect of HR function towards every organisational growth and achievement. Kwak, McCarthy and Parker (1997) identify the focus of HRP, which is the achievement of the appropriate quantity and quality of skilled people in specific positions at the time they are needed (p. 173). The core value of HRP as well as other HR functions like recruitment and selection is the enhancement of organisational competitiveness and renewal of existing capabilities that serve as the

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motivating factors of the whole organisation (Gilley and Maycunuch 2000). Today's HR highly developed extensively in its sophistication and strategic planning processes (Gubman 2004). HRP is a method of systematically arranging the future. It also includes putting into place a plan designed to address upcoming performance problems or productivity and quality requirements. Thus, the advantage of such process is the reduction of risks and threats that create impact to the whole organisation and its productivity. By addressing unknown variables through HRP, organisations have the opportunity to support and configure their expectations to guarantee definite and positive outcomes. Failing to do so would lead to uncertainties that will eventually create another organisational difficulty. The failure to conduct HRP endangers the organisation's future success. The challenges of HRP include the needs of the business, competitive pressures, and future HR trends and requirements (Gilley and Maycunich 2000, p. 184). These challenges affect the HRP process. It is presupposed that organisations have their individual business needs and requirements. These may refer to the needs of better business returns, productivity, quality, value, competence, safety, and customer satisfaction. These needs likewise create anxiety within the bounds of the organisation, hence contributing to the other pressures directly related to the employees. To address such, a smart organisation should learn to anticipate resurging occurrences and how the quality and quantity of human resources can provide the given business needs. In general, businesses are motivated to meet future organisational needs, for this is also a determinant of organisational growth. For the issue of competitive pressures, this is apparently connected to the emerging culture of

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competition among the various industries in the global marketplace. An organisation is given the option to fight such pressures or succumb to its effects. To solve this, it is important for organisations to immediately formulate business solutions that can adequately respond to their competitors and among these solutions are the sufficient and competent human resources. This is practically effective if incorporated with the benefits of employee training and development. Lastly, the HR function is facing future trends that basically affect and transform its conventional functions. It is necessary to forecast future HR requirements as a result of emerging trends for the reason that the organisation will be ready with whatever circumstance that will occur. Hence, it will condition itself by having increased workforce quality and quantity, project outcomes, and minimise potential organisational hazards especially in the HR activities. In conclusion, HRP involves a lot of processes that is integrated to organisational strategies towards the 1. Achievement of goals. 2. Analysis of a firms needs for human resources (where and when), identification of the size of the firm in terms of the numbers of employees required to get the work done (how many), 3. Planning the HR actions necessary to meet these needs (Gubman 2004). If an organisation is poor in its HRP process, it can lead to overstaffing or understaffing. There is no generic or one-best-way of doing HRP. It is a

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continuous and ongoing organisational activity rather than episodic or one-off annual event.

(2.3) Human Resource Planning Process


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Designing the Management System A crosscutting issue in human resource planning is to ensure that a proper system is in place to handle the process. The overall aim of this system is to manage human resources in line with organizational goals. The system is in charge of human resource plans, policies, procedures and best practices. For example, the system should track emerging human resource management trends, such as outsourcing certain non-core functions, adopting flexible work practices and the increased use of information technology, and, if appropriate, implement them. Environmental Analysis The first step in the human resource planning process is to understand the context of human resource management. Human resource mangers should understand both internal and external environments. Data on external environments includes the following: the general status of the economy, industry, technology and competition; labor market regulations and trends; unemployment rate; skills available; and the age and sex distribution of the labor force. Internal data required include short- and long-term organizational plans and strategies and the current status of the organization's human resources. Forecasting Human Resource Demand The aim of forecasting is to determine the number and type of employees needed in the future. Forecasting should consider the past and the present requirements as
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well as future organizational directions. Bottom-up forecasting is one of the methods used to estimate future human resource needs by gathering human resource needs of various organizational units. Analyzing Supply Organizations can hire personnel from internal and external sources. The skill inventories method is one of the techniques used to keep track of internal supply. Skill inventories are manual or computerized systems that keep records of employee experience, education and special skills. A forecast of the supply of employees projected to join the organization from outside sources, given current recruitment activities, is also necessary. Reconciliation and Planning The final step in human resource planning is developing action plans based on the gathered data, analysis and available alternatives. The key issue is that the plans should be acceptable to both top management and employees. Plans should be prioritized and their key players and barriers to success identified. Some of these plans include employee utilization plan, appraisal plan, training and management development plan and human resource supply plan.

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References Budhwar, PS & Debrah, YA Eds. (2001) Human Resource Management in Developing Countries, Routledge, London

Cascio, WF (1995) Managing human resources: Productivity, quality of work life, profits (4th edn), McGraw-Hill, New York

Gilley, JW & MAycunich, A (2000) Beyond the Learning Organization: Creating a Culture of Continuous Growth and Development through State-Of-The-Art Human Resource Practices, Perseus Books, Cambridge, MA

Gubman, E 2004, "HR Strategy and Planning: From Birth to Business Results", Human Resource Planning, 27, 113-123

(2.4) Human Resource Planning and Government No specific studies were commissioned on the subject of staff resource planning under the Corporate Social Responsibility initiative, at either the State

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Govt. or the Central Govt. level; unlike substantive work on training, career development and performance management which resulted in issue of policies and orders/guidelines. The broad directions therefore are to be found in the guidelines on personnel/human resources management practices. The CSR studies, it appears, takes into cognisance that guidelines existed for advance planning of staff requirements and staff resource planning has been generally done as a cadre planning exercise from time to time for sanctions for new posts and upgradations of posts. In India, due to the agrarian sector with seasonal operations time disposition and availability for work have been the criteria for measuring employment. The accepted method of measuring employment is the usual status. Reliable estimates of employments are generated through National Sample Survey (NSS) conducted once in five years. As per the results of the NSS conducted in 1999-2000 , total work force as on 1.1.2000, as per Usual Status approach (considering both principal and subsidiary activities) was of the order of 4.6 million. About 7% of the total work force is employed in the formal or organized sector (all public sector and all no agriculatural establishments in privation sector with 10 or more workers) while remaing 93% work in the informal and unorganized sector. The size of the Organised Sector employment is estimated through the Employment Market Information Programme of DGE&T, Ministry of Labour. The capacity of the organised sector to absorb additional accretion to the labour force, taking into account the current accent on modernisation and automation, is limited. In other words, an overwhelming proportion of the increase in the labour force will have to be adjusted
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in the unorganised sector. About 369 million workers are placed today in unorganised/informal sector in India; agriculture workers account for the majority of this work force.

There are different programmes started by government to provide better human/staff to meet the industry requirements: Employment Market Information Programme The main objectives of the Employment Market Information (EMI) Programme are:

To provide information at short intervals about the structure of employment in the public and private sectors at the area,

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state and national levels and also to monitor the changes in the level of employment

To present occupational composition and educational profile of employees in the public and private sector establishments.

To identify the occupations which are characteristic to a given industry.

To assess the manpower shortages in various industries and in various occupations in the organised sector.

To make available information required for career counseling and vocational guidance through the National Employment Service.

To monitor the progress in generating employment in organized sector during the five year Plans.

National Employment Service National Employment Service came into the existence in july 1945 for the purpose of resettling demobilized defence service personnel and discharged war workers in civil life through the network of employment exchanges controlled by the then Directorate General of Resettlement and Employment now know as Directorate General of Employment and Training.The network of ESS cibsust if abiyt 940 Employment Exchanges run by the State Government.Private placement agencies are also operation on a limited scale primarily in the urban area to cater to the
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requirement of the specialized fields in the organized secotr. Such agencies which help in achieving the above objective charge fees of varying amount both from the jobseekers and the employers. Several Other Schemes run by government agencies in India: ITI-Training Apprenticeship Craft Instructor Scheme Advance Vocational Scheme Women Training Institutions Modular Employable Skills Development Scheme World Bank Assisted Proect Up gradation of 1396 Govt. ITI through PPP Scheme

To fulfill above programmes there are few institution started by government: Advance Training Institutes at Hyderabad, Howrah, Knapur etc. Advance Training Institute for Electronics and Process Instrumentation at Dehradun Forman Training Institues at Bangalore and Jamshedpur Model Industrial Training Institute at Haldwani, Calicut,Jodhpur and Cuttack etc To Provide better managers and skilled professional government of India establish or provide help to different private and public sector institutes like IITs, IIMs and various engineering college, management college, polytechnics, deemed universities monitored by government agencies like AICTE, UGC,CSIR etc.
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(2.5) Barriers in Human Resource Planning

Both trade unions and the officers associations insist on the intake of personnel only at the lowest level. There is a lot of resistance even if it is proved after proper scrutiny that the organisation needs to recruit personnel also in higher grades. Even though it is found out that personnel in higher grades are required to be recruited, there is a lot of resistance. Such a situation is prevalent in many public sector units. This disease is likely to spread to private sector too in near future.

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Many a time, it is very difficult to transfer a person from one geographical region to another. There is a general tendency to resist such transfers. It is reported that European multinational companies have very well thought out programme of giving intensive training and preparing their personnel for effective discharge of responsibilities when they are transferred from one country to another. It is necessary that something on those lines be thought of by associations of Indian companies. For example, think of a man born, brought up, and educated in Kerla being posted in Assam. He will feel as if he has come to an entirely new country. Solutions have to be found out to these problems. This is necessary as complete regional balance in any manpower system is neither possible nor desirable. There is an imbalance in the growth prospects of people in different departments. Solutions have to be found out especially by companies to keep a balance which should avoid inter departmental conflicts. A system of rotational assignments after an intensive training could be employed so that this balance could be maintained. Many companies find to their dismay that their executive turnover is growing at a faster rate than their sales turnover. The older values are changing. Today a young MBA from any prestigious institution is in a hurry to become Managing Director in the shortest possible time. In addition to being overambitious, there are several other reasons for the increase in executive turnover. Some of these are:
Better prospects: It is very vague term having different meanings for different

people- money, designation, growth, overseas training, etc.

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Leaving before being fired: With the increase in number of high pressure chief executives, such resignations will increase in the years to come. Foreign assignment: A significant proportion of all those with specialised skills in fields such as engineering, and information technology take up foreign assignments to make a fortune. It is difficult to stop this tide.
Parity in promotion: Promotion policies of many companies, especially large

ones, contribute significantly to the executive turnover. A rational promotion policy is needed to reduce turnover on this account. Bas boss: A bad boss is like a pain in the neck. This inevitably leads to separations. A cohesive boss subordinate relationship will certainly result in longer job retentions. Organisational climate: Some of the above factors contribute to what may be termed loosely as organisational climate. As per survey, highly confident managers tend to be attracted to and are retained by organisations that provide the following parameters: a. Mutually agreed upon objectives that are challenging, yet realistic. b. Supervision that is supportive while allowing autonomy in meeting set Human resource planning objectives. c. Rewards that are based on achieved results and are proportional to organisational gain.

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d. Upward mobility that is attained through performance and not organisational policies. e. Training and development programmes that allow managers to acquire the necessary skills and knowledge for advancement. f. Performance appraisal that is responsible rather than capricious.

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