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Anticipating the directions and the magnitude of development of each individual sectors
of the economy.
Evolving norms of the employing manpower in each individual sector keeping the view
the
Technological optionsPresent as well as futurefor each sector of the economy.
Translating the physical targets for the development of each individual sector into the
manpower requirement using the sector specific manpower norms.
Estimating the educational; equivalents of the manpower requirement.
Analyzing the implications of estimates of educated manpower requirements for
educational development, based on assumptions regarding the enrollment rates, transitions
probability and wastage and the stagnation rates at the each level of education.
Limitations of the Manpower Requirement Approach:
The first limitation assumes that the educated manpower of different types are used in fixed
proportions and that there no substitutions possibilities among the various categories of educated
manpower.
The second limitation is that it postulates a definite link between an industrial task and an
educational level.
The crucial information in all forecasting exercises is the assumptions about the distant unknown
future. Any error in judgment, in this regard, will seriously affect manpower balances at a later
date resulting in either excess supply or excess demand. In the context of educational planning,
excess demand is relatively easier to manage. Excess supply, on the other hand, leads to serious
economic and sociological problems which are often difficult to deal with.
Approaches to HRP
HR planning is a mechanism created to forecast the required human resource to perform a
specific task. It also assesses the skill requirement of employees for each job. It is a complex task
which estimates the future demand and supply position of HR in the organization. Hence, it gives
a picture of infinite future in advance in terms of human resource requirement for the company.
Here, the approaches to HR planning are as follows
Quantitative Approach
It is also known as top down approach of HR planning under which top level make and efforts to
prepare the draft of HR planning. It is a management-driven approach under which the HR
planning is regarded as a number's game. It is based on the analysis of Human Resource
Management Information System and HR Inventory Level. On the basis of information provided
by HRIS, the demand of manpower is forecasted using different different quantitative tools and
techniques such as trend analysis, mathematical models, economic models, market analysis, and
so on. The focus of this approach is to forecast human resource surplus and shortages in an
organization. In this approach major role is played by top management.
Qualitative Approach
This approach is also known as bottom up approach of HR planning under which the
subordinates make an effort to prepare the draft of HR planning.Hence, it is also called subordinate-driven approach of HR planning. It focuses om individual employee concerns. It is
concerned with matching organizational needs with employee needs. Moreover, it focuses on
employee's training, development and creativity. Similarly, compensation, incentives, employee
safety, welfare, motivation and promotion etc. are the primary concerns of this approach. In this
approach, major role is played by lower level employees.
Mixed Approach
This is called mixed approach because it combines both top-down and bottom-up approaches of
HR planning. In fact, the effort is made to balance the antagonism between employees and the
management. Hence, it tends to produce the best result that ever produced by either of the
methods. Moreover, it is also regarded as an Management By Objective(MBO) approach of HR
planning. There is a equal participation of each level of employees of the organization.
development etc. Thus, it helps in meeting the future needs of the organisation of highly
skilled employees.
7. Fulfill Individual Needs of the Employees: It helps to satisfy the individual needs of the
employees for promotions, transfer, salary encashment, better benefits etc.
8. Helps Formulation of Budgets: It helps in anticipating the cost of human resources e.g.
salary and other benefits etc. It facilitates the formulation of human resource budget for
various departments/divisions of the organisation. So, it may also help in, the formulation
of suitable budgets in an organisation.
9. To Check Joblessness: In the exercise of right-sizing of employees by the organisation,
some of the employees may become surplus. It means their services are no more required
in the organisation. It tries to foresee the need for redundancy. It plans to check job loss
or to provide for alternative employment in consultation with various concerned parties
and authorities.
Barriers to HRP:
Planners face significant barriers while formulating an HRP. The major ones are the following:
1. People question the importance of making HR practices future oriented and the role
assigned to HR practitioners in formulation of organizational strategies. Their argument is
simple-there are people when needed. Offer attractive package of benefits to them to quit
when you find them in surplus.
2. HR practitioners are perceived as experts in handling personnel matter, but are not
experts in managing business. The personnel plan conceived and formulated by the HR
practitioners when enmeshed with organisational plan, might make the overall strategic
plan itself defective.
3. HR information often is incompatible with the information used in strategy formulation.
Strategic planning efforts have long been oriented towards financial forecasting often to
the exclusion of other types of information.
4. Conflicting may exist between short-term and long-term HR needs. For example, there
arises a conflict between the pressure to get work done on time and long-term needs, such
as preparing people for assuming greater responsibilities. Many managers are of the
belief that HR needs can be met immediately because skills are available on the market as
long as wages and salaries are competitive. These managers fail to recognize that by
resorting to hiring or promoting depending on short-term needs alone, long-term issues
are neglected.
5. There is conflict between quantitative and qualitative approach to HRP. Some people
view HRP as a number game designed to track the flow of people across the departments.
These people a strictly quantitative approach to planning. Others take a qualitative
approach and focus on individual employee concerns such as promotabilty and career
development. Best results would accrue if there is a balance between the quantitative and
qualitative approaches.
6. Non-involvement of operating managers renders HRP ineffective. HRP is not strictly an
Hr department function. Successful planning needs a co-ordinated effort on the part of
operating managers and HR personnel.