HRM - HRP

HUMAN RESOURCE PLANNING
1. OBJECTIVE OF THE STUDY

1. To know the human resource planning process.
2. To know the need and importance of planning.
3. To know how human resource planning is carried out in a company.
2. INTRODUCTION
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B.N.N. COLLEGE, BHIWANDI
HUMAN RESOURCES PLANNING

Human resources (HR) planning refers to classic HR administrative functions, and the
evaluation and identification of human resources requirements for meeting organizational goals.
It also requires an assessment of the availability of the qualified resources that will be needed. To
ensure their competitive advantage in the marketplace and anticipate staffing needs,
organizations must implement innovative strategies that are designed to enhance their employee
retention rate and recruit fresh talent into their companies. Human resources planning are one
way to help a company develop strategies and predict company needs in order to keep their
competitive edge.
Planning for human resource is more important than planning for any other resource as
demand for the later depends upon the size and structure of the former whether it is in a country
or in an industry. Further, management of human resources hardly begins from human resources
planning .In fact it is the basis for most of the other functions.
Planning the right man for right job and developing him into effective team member is an
important function of every manager. It is because HR is an important corporate asset and
performance of organizations depends upon the way it is put in use. HRP is a deliberate strategy
for acquisition, improvement and preservation of enterprises human resources. It is a managerial
function aimed at coordinating the requirements, for and availability of different types of
employees. This involves ensuring that the organization has enough of right kind of people at
right time and also adjusting the requirements to the available supply.
E.W Vetter viewed human resources planning as a process by which an organization
should move from its current manpower position to its desired manpower position. Through
planning management strives to have the right number and right kind of people at the right places
at the right time, doing things which result in both the organization and the individual receiving
maximum long-run benefit.
According to Leon C Megginson, human resources planning are an integrated approach
to performing the planning aspects of the personnel function in order to have a sufficient supply
of adequately developed and motivated people to perform the duties and tasks required to meet
organizational objectives and satisfy the individual needs and goals of organizational members.
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Human resources planning may be viewed as foreseeing the human resource

requirements of an organization and the future supply of human resources and
1. Making necessary adjustments between these two and organizational plans.
2. Foreseeing the possibility of developing the supply of human resources in order to match it
with requirements by introducing necessary changes in the functions of human resources
management .In this definition, human resource means skill knowledge, values, ability,
commitment, motivation etc., in addition to the number of employees.
3. OBJECTIVES OF HUMAN RESOURCES PLANNING

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The important objectives of manpower planning in an organization are:-
1. To recruit and retain the human resources of required quantity and quality.
2. To foresee the employee turnover and make the arrangements for minimizing turnover and
filling up of consequent vacancies.
3. To meet the needs of the program of expansion, diversification, etc.
4. To foresee the impact of technology on work, existing employees and future human resources
requirements.
5. To improve the standards skill, knowledge, ability, discipline, etc.
6. To assess the surplus or shortage of human resources and take measures accordingly.
7. To maintain congenial industrial relations by maintaining optimum level and structure of
human resources.
8. To minimize imbalances caused due to non-availability of human resources of right kind, right
number in right time and right place.
9. To make the best use of its human resources.
10. To estimate the cost of human resources.
4. IMPORTANCE OF HRP
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Human resource planning is important for helping both organizations and employees to
prepare for the future but you might be thinking Are not things always changing? So what is
the value of planning? The answer is that even an imperfect forecast of the future can be quite
helpful. Consider weather forecasts. You can probably think of occasions when it snowed, even
though the television weather forecaster predicted there would be no snow. Conversely, you can
probably think of times when it did not snow, even though the weather forecaster predicted a foot
of snow by the next morning. You may be surprised to learn that as inaccurate as weather
forecasts sometimes seem to be many organizations pay a forecasting service for regular weather
updates. The reason for this is quite simple. Even a production that is sometimes wrong is better
than no forecast or production at all. Perhaps the best example is the stock market. If someone
had even a fairly accurate way to predict which stocks would go up and which stocks would go
down, that person could make a great deal of money investing in the stock market, even though
there would be some mistakes. The key is whether ones production tool improves the chances of
making the right decisions. Even though the predictive tool may not be always accurate, as long
as it is more accurate than random guessing it will result in better decisions.
The same point applies to human resource planning. Even though neither organizations
nor employees can look into the future, making predictions can be quite helpful, even if they are
not always accurate. The basic goal of human resource planning, then, is to predict the future
and, based on these predictions, implement programme to avoid anticipated problems. Very
briefly humans resource planning is the process of examining an organizations or individuals
future human resource needs (for instance, what types of skills will be needed for jobs of the
future) compared to future human resource capabilities (such as the types of skills employees or
you already have) and developing human resource policies and practices to address potential
problems for example, implementing training programme to avoid skill deficiencies.
5. NEED FOR PLANNING

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The need for planning arises mostly due to the fact that modern organizations have to
survive, operate and grow in highly competitive market economics where change is the order of
the day. The change may be either revolutionary (sudden) or evolutionary (slow). The different
areas of change include: change in technology, change in population, change in economic
structures and systems, change in policies of government, change in employee attitudes behavior
etc. These changes create problems for the management through threats and challenges.
Managers have to bear the problems caused due to the changes and act upon them tactfully in
order to avoid or reduce the effects of these problems on the survival, operation and growth of
the organization.
Efficient managers can foresee the problems likely to occur and try to prevent them.
As pointed by Terry, successful managers deal with foreseen problems and unsuccessful
managers struggle with unforeseen problems. The difference lies in planning. Managers have to
foresee to make the future favorable to the organization in order to achieve the goals effectively.
They introduce action, overcome current problems, prevent future uncertainties, adjust the goals
with the unforeseen environmental conditions and exert all their resources to achieve their goals.
According to Megginson, to have an organization that looks forward to the future and
tries to stay alive and prosper in a changing world, there must be active, vigorous, continuous
and creative planning.
Thus, there is a greater need for planning in order to keep the organization dynamic in a
changing situation of uncertainty
More specifically, HRP is required to meet following objectives:
1) Forecast HR requirement.
2) Cope-up with the change in market conditions, technologies, products, government
regulations and policies, etc.
3) Use existing HR productivity.
4) Promote employees in a systematic manner.
If used properly, it offers a number of benefits:
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1) Create reservoir of talent.

2) Prepares people for future.
3) Expand or contract.
4) Cut cost.
5) Succession planning.
6. ADVANTAGES AND ROLE OF HRP

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Now-a-days organizations are fully dependent on human resources. Thus, they are giving great
importance to Human Resource (Manpower) Planning.
Following points bring out advantages / role of HRP:1. To make optimum utilization of human resources: HRP helps to make optimum utilization
of the human resources in the organization. It helps to avoid wastage of human resources.
2. To forecast manpower requirements: HRP helps to forecast the future manpower
requirements of all organizations. It helps to forecast the number and type of employees who
will be required by the organization in a near future.
3. To
provide
manpower:
Every
organization
requires
manpower
to
conduct
its business activities. HRP provides different types of manpower as per the needs of the
organizations.
4. To face manpower problems: HRP helps to face the manpower problems, which are caused
by labor turnover, introduction of new technologies, etc.
5. To integrate different plans: HRP helps to integrate the personnel plans with the other
important plans of the organization.
6. To make employee development programme more effective: HRP selects the right man for
the right post. The right man will get maximum benefits from the employee development
programme. Therefore, HRP helps to make the employee development programme more
effective.
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7. To reduce labor cost: Today the cost of labor is about 25% to 45% of the cost of production.
So the labor cost is increasing very quickly. Labor cost has to be reduced in order to face
competition. HRP helps to avoid both shortage and surplus of labor. It helps to make optimum
utilization of labor. It also helps to reduce labor turnover. All this helps to reduce labor cost.
8. To enable organizations to grow: When an organization grows, the number of jobs also
increases. More employees are required to perform these jobs. HRP helps to supply these
employees to the organizations. So HRP enables the organization to grow.
9. To identify potential replacements: Each year many employees either retire or leave or are
taken out of the organization. HRP helps to find replacements for these employees. These
replacements may be either from inside or from outside the organization.
10. To avoid disturbance in the production process: In HRP, the manpower requirements of
the organization are determined well in advance. So the manpower is supplied continuously to
the organization. This helps the production process to run smoothly. Thus, HRP helps to avoid
disturbances in the production process.
11. Basis for effective recruitment and selection: HRP is the basis for effective recruitment and
selection in the organization. It helps the organization to select the right man for the right post.
12. Basis for employee development programme: HRP is the basis for employee development
programme.
7. CONCEPTS OF HUMAN RESOURCE PLANNING

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RECRUITMENTRecruitment is the most important function of personnel administration. Recruitment is

understood as the process of searching for and obtaining applicants for jobs, from among whom
the right people can be selected. Theoretically, recruitment process is said to end with the receipt
of applications, in practice the activity extends to the screening of applications so as to eliminate
those who are not qualified for the job.
A process of finding and attracting capable applicants for employment. The process
begins when new recruits are sought and ends when their applications are submitted. The result
is a pool of applications from which new employees are selected.
In the words of Edwin & Fillipo Recruitment is the process of searching for prospective
employees and stimulating them to apply for jobs in the organization.
According to this
definition recruitment is a prospecting job where organizations make searching for prospective
employees but in practice prospective employees also seek out organizations like organizations
seek out prospective employees.
SELECTION
Selection is the process of picking up individuals (out of the pool of job
applicants) with requisite qualifications and competence to fill jobs in the organization. A
formal definition of Selection is as under
Definition of Selection:
Selection is the process of differentiating between applicants in order to identify and hire
those with a greater likelihood of success in a job.
INDUCTION
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The action or process of inducting someone to a post or organization. Once an employee

is selected and placed on an appropriate job, the process of familiarizing him with the job and the
organization is known as induction.
Induction is the process of receiving and welcoming an employee when he first joins the
company and giving him basic information he needs to settle down quickly and happily and stars
work.
Induction can be defined as a process of introducing the employee who is newly elected
to the organization. When an employee is given a letter of appointment he joins the company on
duty. The very first thing that the company does is, introduces the new employee to the
organization and people working there. An induction program may be conducted at a particular
center for all employees or at different places (branches of the company) for different employees.
Normally the new employee is called together to the staff training college for the induction
program.
A process through which a new employee is integrated into an organization, learning about
its corporate culture, policies, and procedures, and the specific practicalities of his or her job. An
induction program should not consist of a one-day introduction, but should be planned and paced
over a few days or weeks. In the United States there is a growing use of boot camps, which work
to assimilate a new employee rapidly into the culture of the employing organization.
ORIENTATION
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The process of welcoming and introducing employees to their jobs, co-workers and the
organization by providing them with information regarding such items as policies, procedures,
company history, goals, culture and work rules
Two questions need to be answered in regards to the orientation of a new employee:
1. Who will orientate the new employee?
2. What should be covered during orientation?
One person should be in charge of handling orientation. Generally, this will be the
owner/operator; however, on large farm operations, another employee may specifically be
responsible for orientating all new employees. Having just one individual in charge of orientation
ensures a consistent message to new employees. The orientation of a new employee can involve
several people even though one person has overall responsibility.
Generally, the process of orientation begins by taking the new employees around the factory
and offices of the company. The supervisor gives new employees' introduction to the fellow
employees and provides the immediately needed information about others as well as about the
organization, so that he feels comfortable in the new surroundings. Lectures and discussions may
be arranged to provide the necessary information and guidance. Handbooks, manuals and
pamphlets may also be supplied for the orientation of the new employees.
TRAINING
Process of teaching new knowledge and skills to perform their job effectively.
Organized activity aimed at imparting information and instructions to improve the
recipients performance or to help him or her attain a required level of knowledge or skill.
Educational preparation for performing a job that is typically provided to staff by
the business that has recently hired them before they become active in service to the company.
The term training refers to giving skills and knowledge to new or present employee to
perform their task or job.
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Example showing a machine or tool how to operate.

According to Dale S Beach, training is the organized procedure by which people learn new
knowledge and skills for definite purpose.
DEVELOPMENT
Development refers to the learning opportunities designed to help employees grow.
Development refers to those learning opportunities designed to help the employees grow.
Development is not primarily skill-oriented. Instead, it provides general knowledge and
attitudes which will be helpful to employees in higher positions. Efforts towards development
often depend on personal drive and ambition. Development activities, such as those supplied by
management developmental programme, are generally voluntary.
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PERFORMANCE APPRAISAL
Performance Appraisal is the systematic evaluation of the performance of employees and to
understand the abilities of a person for further growth and development. Performance appraisal is
generally done in systematic ways which are as follows:
1. The supervisors measure the pay of employees and compare it with targets and plans.
2. The supervisor analyses the factors behind work performances of employees.
The employers are in position to guide the employees for a better performance.
Objectives of Performance Appraisal
Performance Appraisal can be done with following objectives in mind:
1. To maintain records in order to determine compensation packages, wage structure,
salaries raises, etc.
2. To identify the strengths and weaknesses of employees to place right men on right job.
3. To maintain and assess the potential present in a person for further growth and
development.
4. To provide a feedback to employees regarding their performance and related status.
5. To provide a feedback to employees regarding their performance and related status.
6. It serves as a basis for influencing working habits of the employees.
7. To review and retain the promotional and other training programme.
PERFORMANCE MANAGEMENT
The role of HR in the present scenario has undergone a sea change and its focus is on
evolving such functional strategies which enable successful implementation of the major
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corporate strategies. In a way, HR and corporate strategies function in alignment. Today, HR

works towards facilitating and improving the performance of the employees by building a
conducive work environment and providing maximum opportunities to the employees for
participating in organizational planning and decision making process. Today, all the major
activities of HR are driven towards development of high performance leaders and fostering
employee motivation. So, it can be interpreted that the role of HR has evolved from merely an
appraiser to a facilitator and an enabler.
Performance management is the current buzzword and is the need in the current times of cut
throat competition and the organization battle for leadership. Performance management is a
much broader and a complicated function of HR as it encompasses activities such as joint goal
setting, continuous progress review and frequent communication, feedback and coaching for
improved performance, implementation of employee development programme and rewarding
achievements.
INDUSTRIAL RELATIONS
The term Industrial Relations comprises of two terms: Industry and Relations.
Industry refers to any productive activity in which an individual (or a group of individuals) is
(are) engaged. By relations we mean the relationships that exist within the industry between
the employer and his workmen.
The term industrial relations explain the relationship between employees and management
which
stem
directly
or
indirectly
from
union-employer
relationship.
Industrial relations are the relationships between employees and employers within the
organizational settings. The field of industrial relations looks at the relationship between
management and workers, particularly groups of workers represented by a union. Industrial
relations are basically the interactions between employers, employees and the government, and
the institutions and associations through which such interactions are mediated.
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COUNSELING
Support process in which a counselor holds face to face talks with another person to help
him or her solve a personal problem, or help improve that person's attitude, behavior,
or character.
Counseling is similar to coaching in that it shares the same goal, improving performance
and/or stopping inappropriate workplace behaviors. With counseling, however, the meeting
between the supervisor and the employee takes on a different feel. In such meetings the
supervisor attempts to understand and identify the issues contributing to the performance or
behavioral problem. Accordingly, in a counseling meeting, the supervisor is focused on listening,
verifying their understanding of the problem and engaging in problem solving with the
employee. Like the coaching transaction, the supervisor and the employee leave the counseling
meeting with a corrective plan in mind. Counseling is letting the employee know that the
supervisor takes the issue seriously and wants to help them get past it. At the same time, the
message is clear from the supervisor--the employee's performance must improve, behaviors must
change or more serious steps will have to be taken.
PROMOTIONS
Promotion is advancement of an employee to a better job. Better in terms of greater
responsibility, more prestige or status, greater skill and especially increased rate of pay or salary.-Paul Pigors
and Charles A. Myers
Promotion is defined as giving higher position to the employee, which carries high status
more responsibilities and higher status. Promotion means advancement of employee in terms of
pay and status also improvement in working conditions.
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Promotions are used to fill the positions which are more important to fill rather than
the present position of employee. It can be filled by external recruitment but employees having
eligibility and experience must be appointed for their motivation. Also it will decrease labor turn
over as external recruitment costs more. Also increase in salary and status will increase job
satisfaction.
When scale of pay is increased without changing job it is called up-gradation and
promotion involves changes in job as well as high salary.
TERMINATION
Termination is an action taken by the employer to end the employer/employee relationship.
Employers have a basic right to terminate the employment of an employee, but along with that
right comes responsibilities. Employers must comply with the employment/labor standards and
human rights legislation for their jurisdiction and beyond that, employers must treat employees
fairly and in good faith as defined by common law or civil law
DISMISSAL
Dismissal is where the employer chooses to require the employee to leave, generally for a
reason which is the fault of the employee. The most common colloquial term for dismissal in
America is "getting fired" whereas in Britain the term "getting the sack" or "getting sacked" is
also used.
LAYOFF
A less severe form of involuntary termination is often referred to as a layoff . A layoff is
usually not strictly related to personal performance, but instead due to economic cycles or the
company's need to restructure itself, the firm itself going out of business or a change in the
function of the employer (for example, a certain type of product or service is no longer offered
by the company and therefore jobs related to that product or service are no longer needed). One
type of layoff is the aggressive layoff; in such a situation, the employee is laid off, but not
replaced as the job is eliminated.
Often, layoffs occur as a result of "downsizing", "reduction in force" or "redundancy". These
are not technically classified as firings; laid-off employees' positions are terminated and not
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refilled, because either the company wishes to reduce its size or operations or otherwise lacks the
economic stability to retain the position. In some cases, a laid-off employee may eventually be
offered their old position again by his/her respective company, though by this time he or she may
have found a new job.
TRANSFERS
A transfer is a relocation of an employee to the same class in a different department or job
site or to a related classification within the same salary range.
A transfer is a lateral move to a position in the same classified pay range (classified
position) or to a position with comparable duties and responsibilities (non-classified positions).
VOLUNTARY TRANSFER:
Transfer requests may be granted at any time, subject to the
availability of positions and the qualifications of the applicant. Employees who have requested a
transfer shall be given first consideration for a transfer based upon, but not limited to seniority,
job performance, qualifications, and the needs of the District.
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8. THE PLANNING PROCESS

The planning process is influenced by overall organizational objectives and the environment of
business. HRP essentially involved forecasting human resource need assessing human resource
supply and matching demand supply factors through human resource related programme.
THE HRP PROCESS
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1. Organizational Objectives and Policies

HR plans to be made based on organizational objectives implies that the objectives of the
HR plan must be derived from organizational objectives. Specific requirements in terms of
number and characteristics of employees should be derived from the organizational objectives.
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Organizational objectives are defined by the top management and the role of HRP is to sub serve
the overall objectives by ensuring availability and utilization of human resources.
2. HR Needs Forecast
Demand forecast 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,
translated into activity levels for each function and department.
Demand forecasting must consider several factors both external as well as internal.
The external factors are competition, economic climate, laws and regulatory bodies, changes in
technology and social factors. Internal factors include budget constraints, production levels, new
products and services, organizational structure and employee separations.
3. HR Supply Forecast
Personnel Demand analysis provides the manager with the means of estimating the
number and kind of employees that will be required. The next step for the management is to
determine whether it will be able to procure the required number of personnel and the sources for
such procurement. This information is provided by supply forecasting. Supply forecasting
measures the number of people likely to be available from within and outside an organization,
after making allowance for absenteeism, internal movements and promotions, wastage and
changes in hours and other conditions of work.
4. HR Programming
Once an organizations personnel and supply are forecast, the two must be reconciled in
order that vacancies can be filled by the right employees at the right time. HR programming
assumes greater importance in the planning process.
5. HR Plan Implementation
Implementation is nothing but converting an HR plan into action. A series of action
programme are initiated as a part of HR plan implementation. Some such programme is
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recruitment, selection and placement, training and development, retraining and redeployment, the
retention plan and the redundancies plan.
6. Control and Evaluation
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 establishment and on the numbers recruited against the recruitment targets.
They should also report employment costs against budget, and trends in wastage and
employment ratios.
Other Forecasting Methods
The organizations follow more than one technique for forecasting their peoples needs.
L&T, for example, follows bottom-up of management judgment and work study techniques for
demand forecasting. Forecasting process in L&T begins during November of every year. The
Department heads prepare their personnel estimates (based on details of production budget
supplied to them) and submit the estimates to the respective personnel managers. The personnel
heads will review the estimates with the departmental heads and will send final reports to
Bombay office where centralized HR department is located. Estimates are reviewed by the HR
department and final figures are made known to those personnel managers who initiate steps to
hire the required number of people in the following year.
EXAMINING EXTERNAL AND INTERNAL ISSUES

External and internal issues are the forces that drive human resource planning. An issue is
any event or trend that has the potential to affect human resource outcomes, such as employee
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motivation, turnover, absenteeism, the number and types of employees needed and so forth.
External issues are events or trends outside of the organization, such as work force demographics
and technology. Internal issues refer to events or trends within the organization, such as business
strategy, organizations structure and company profitability.
Work Force Demographics: Potentially important external issue is the composition of the
national workforce. Specifically, there are likely to be changes in the social, gender and age
composition of the workforce. Asians will comprise a large percentage of the workforce in
the future. Women are also expected to comprise a large segment of the workforce than in the
past. The number of married women who are employed has doubled since 1970. The
increased participation of women will have a pressure on organizations to provide pro-family
policies, such as flexi time, and child care to support working mothers. Increased
representation of minorities will result in more emphasis on diversity programme to ensure
harmonious relations between workers from different racial and ethnic groups.
Technology: Organization is investing so many amounts on information technology during

the 1980s. Given the size of the investment, a variety of changes in the human resource area
have occurred. Human resource requirements have come down drastically due to
technological changes. There are many organizations who have announced plans to reduce its
workforce around 50 per cent employees as a result of technological changes. Now that you
have read about some of the external issues that affect human resource planning, you will
learn about some important internal issues. Organizational Structure: Many businesses today
are changing their organizational structure. Organizational structure refers to how work tasks
are assigned, who reports to whom, how communications and decisions are made? As part of
their restructuring during some companies are creating teams to perform the work. Business
Strategy: The approach that a company adopts in conducting business is referred to as its
business strategy. For example, a particular company may adopt strategy on quality
enhancement, cost reduction and so on and so forth. It is important for organizations to
monitor both the internal and external environment to anticipate and understand the issues
that will affect human resources in the future.
DETERMINING FUTURE ORGANISATIONAL CAPABILITIES

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The second step of the human resource planning process involves an analysis of future
organizational or personal capabilities. Capabilities include the skill level of employees,
productivity rates and number of employees, etc. In the past, more emphasis was on predicting
the number of employees of human resource supply the company was likely to have in the
future. Organizations may use varieties of procedures to estimate the supply. These procedures
are generally categories as either quantitative which use mathematical or statistical procedures or
qualitative which use subjective judgment approaches. The quantitative procedure generally uses
past information about job categories and the number of people retiring, being terminated,
leaving the organization voluntarily and being promoted. One of the most well known
quantitative procedures is the Markov analysis. This technique uses historical rates of promotion,
transfer and turnover to estimate future availabilities in the workforce. Based on the past
abilities, one can estimate the number of employees who will be in various positions within the
organization in the future. Qualitative or judgmental approaches are much more popular in
forecasting human resource supplies. Among the most frequent used methods are replacement
planning, succession planning and vacancy analysis. Replacement planning evolves an
assessment of potential candidates to replace existing executives and other top level managers as
they retire or leave for other organizations. Succession planning is similar to replacement
planning, except that it is more long term and developmentally oriented. Finally, vacancy
analysis is much like the Markov analysis, except that it is based on managerial judgments of the
probabilities. If knowledgeable experts provide estimates, vacancy analysis may be quite
accurate.
In recent years, organizations have become concerned with a broader range of issues of
future capabilities. For example, organizations have begun to estimate their future productivity
levels. Towards this end, bench marking is a technique that has become popular. Bench marking
involves comprising an organizations human resource practices and programme to other
organizations. Although bench marking often focuses on an organizations competitors, best
practices bench marking focuses on the programme and policies used by outstanding
organization. For example, Federal express, leadership evaluation system, employee survey
programmed and total quality management efforts are frequently studied by other organizations
because of their reputations.
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DETERMINING FUTURE ORGANISATIONAL NEEDS

In this step, the organization must determine what is human resource needs will be in the
future. This includes the number of employees that will be needed, the types of skills that will be
required. Productivity rates needed to complete successfully. There are methods for examining
the future number of employees; also several procedures are there for predicting the number of
employees needed in the future. This is referred to as the human resource demand two basic
approaches or estimating human resource demand are qualitative and quantitative methods.
Two quantitative techniques for estimating human resource demand are ratio analysis and
regression analysis. Ratio analysis involves comparing the number of employees to some index
of work load. If your organization was planning its future training and development (T&D)
staffing demand in five years, you could estimate the number of employees likely to be
employed by the company in five years. And then use this ratio to determine the number of T&D
employees needed in given years. For example, if your company was expecting to have 5,000
employees in five years, this ratio would suggest that around 21 T&D employees would be
needed. Regression analysis relies on factors or predictors that determine the demand for
employees, such as revenues, degree of automation, and so forth. Information on these predictors
from past years, as well as the number of workers employees in each of these years is used to
produce an equation or formula. The organization can then enter expected figures for the
predictors, such as revenues and degree of automation into the formula to obtain an estimated
number of employees needed in future years.
Regression analysis is more sophisticated than ratio analysis and should lead to more
accurate predictions of employee demand. Although both procedures are widely used, they have
their weaknesses. A major weakness is the factors that were related to workforce size may not be
relevant factors in future years. Turning now to qualitative tools for estimating the demand for
employees, the most common tool is the bottom-up forecast where department managers make
estimates of future human resource demands based on issues, such as new positions needed,
positions to be eliminated or not filled, expected overtime hours to be worked by temporary,
part-time or independent contractor employees and expected changes in workload by department.
Like any other technique, bottom-up forecasting has its shortcomings. For instance, line
managers may overestimate the demand in order to ensure that they dont find themselves
understaffed.
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9. CASE STUDY
HUMAN RESOURCE PLANNING OF WIPRO
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AN OVERVIEW:
Wipro started as a vegetable oil company in 1947 from an old mill founded by Aim
Premixs father. When his father died in 1966, Aim, a graduate in Electrical Engineering from
Stanford University, took on the leadership of the company at the age 21. He repositioned it and
transformed Wipro (Western India Vegetable Products Ltd) into a consumer goods company
that produced hydrogenated cooking oils/fat company, laundry soap, wax and tin containers and
later set up Wipro Fluid Power to manufacture hydraulic and pneumatic cylinders in 1975. At
that time, it was valued at $2 million.
In 1977, when IBM was asked to leave India, Wipro entered the information technology
sector. In 1979, Wipro began developing its own computers and in 1981, started selling the
finished product. This was the first in a string of products that would make Wipro one of India's
first computer makers. The company licensed technology from Sentinel Computers in the United
States and began building India's first mini-computers. Wipro hired managers who were
computer savvy, and strong on business experience.
In 1980 Wipro moved in software development and started developing customized

software packages for their hardware customers. This expanded their IT business and
subsequently invented the first Indian 8086 chip. Since 1992, Wipro began to grow its roots off
27
shore in United States and by 2000 Wipro Ltd ADRs were listed on the New York Stock
Exchange.
With over 25 years in the Information Technology business, Wipro Technologies is the
largest outsourced R & D Services provider and one of the pioneers in the remote delivery of IT
services. Being a global provider of consulting, IT Services, outsourced R&D, infrastructure
outsourcing and business process services, we deliver technology-driven business solutions that
meet the strategic objectives of our Global 2000 customers. Wipro today employs 96,000 people
in over 50 countries. A career at Wipro means to learn and grow continuously, opportunities to
work on the latest technologies alongside the finest minds in the industry, competitive salaries,
stock options and excellent benefits.
HUMAN RESOURCE PLANNING:
Human resources planning are an important component of securing future operations. For
sustainability, plans must be made to ensure that adequate resources are available and trained for
all levels of an organization. Although police organizations are stretched to meet current service
requirements, it is important that they also spend time to create plans to ensure there will be
officers to fill future positions. These plans must be prepared well in advance, with targets set for
the short, mid and long term.
Not only must adequate resourcing be considered for the bulk of the workforce but
special consideration must be given for the leadership of each organization. This requires
developing specialized succession plans for identifying and grooming potential future leaders.
The leader candidates must receive management, leadership, and all relevant knowledge and
skills training. Plans should also be created to leverage the knowledge of those leaving todays
leadership roles so that future leaders are fully informed. Securing future policing operations
requires careful planning and a clear implementation strategy.
When I look at where we have come, what gives me tremendous satisfaction is not so
much the success, but the fact that we achieved this success without compromising on the value
we defined for ourselves? Values combined with a powerful vision can turbo-charge a company
to scale new heights and make it succeed beyond ones wildest expectations.
28
Azim Premji
The basic purpose of having a manpower plan is to have accurate estimate of required
manpower with matching skills requirements. The main objectives are:
Forecast manpower requirements.

Cope with changes environment, economic, organizational.
Use existing manpower productively.
Promote employees in a systematic way.
MODEL OF HRP SYSTEM
29
30
Human Resource Policies : Manpower Planning

Recruitment & Selection
Training & Development
Performance Appraisal
Promotion, Transfer, & Demotion
Administration Section
Grievance Handling
Kaizen suggestion
Welfare Activities
RECRUITMENT:
Recruitment refers to the process of screening, and selecting qualified people for a job at
an organization or firm, or for a vacancy in a volunteer-based organization or community group.
While generalist managers or administrators can undertake some components of the recruitment
process, mid- and large-size organizations and companies often retain professional recruiters or
outsource some of the process to recruitment agencies. External recruitment is the process of
attracting and selecting employees from outside the organization.
A. Internal Sources : Promotions and Transfer
Job postings
Employee Referrals
B. External Sources : Advertisement
Employment Agencies
On campus Recruitment
Employment exchanges
Education and training institute
WIPRO Recruitment Process :WIPRO recruitment process consists of three rounds.
Round 1: Written test
1. Verbal: This section will have 15 questions related to synonyms, antonyms, Analogies,
SC, Prepositions and reading comprehension.
31
RHEfVerOpPocsInmvl&FAuCzxbdgSaffiyti
2. Aptitude: These sections will have 15 questions related to aptitude topics like Time &
Work, Time & Distance, Blood Relations, Series Completion, Puzzles, Calendars, Clocks,
Percentages, and Ratio proportions, Ages, Pipes and Cisterns etc.
3. Technical: This section will have 20 questions related to basic technical concepts from C,
C++, Java, Linux, UNIX, DBMS, SQL, Programming fundamentals, Hardware, Software
Engineering, and Micro Processors etc. Candidates are informed to brush up their
technical skills which were covered in their regular academic curriculum.
Round 2: Technical Interview
This is a major elimination round. Candidates should be thorough with their basic
technical skills to clear this round. Candidates are here by informed to be prepared with their
core subjects.
Round 3: HR Interview
Candidates can expect basic HR interview questions like Tell me about yourself, Why
should I hire you, Why only WIPRO, What is SIX sigma level. Candidates will be tested in their
communication and vocabulary during technical and HR interviews.
Round 4: Placement
Upon Joining, the incumbent shall be given an employee code number by Manager(HR)
and he shall fill up the joining forms and shall submit the same to the Manager(HR) for further
course of action. Wipro recruit 40% employees from campus recruitment. Another popular
source for Wipros Recruitment is the Online Placement through NSR (National Skill Registry).
HUMAN RESOURCES INFORMATION SYSTEMS (HRIS)
HRIS Objectives
32
Human Resources Information Systems (HRIS) is an integration of HRM and

Information Systems (IS). HRIS or Human resource Information system helps HR managers
perform HR functions in a more effective and systematic way using technology. It is the system
used to acquire, store, manipulate, analyze, retrieve, and distribute pertinent information
regarding an organization's human resources. A human resource information system (HRIS) is a
system used to acquire, store, manipulate, analyze, retrieve, and distribute pertinent information
about an organization's human resources.
10. IMPACT OF HRP

HRP itself is a process of determining human resources needs in the future and of monitoring
responses to these needs. HRP links a companys business plans and broad objectives with the
specific programme and other HRM activities. Organizations need to learn to forecast HR needs
more effectively. More analytic techniques, driven by strategic planning are vital. Organizations
must learn to manage employee performance more effectively. Even though performance
33
measurement is complex and ill-defined, yet it is critical to effective management for this very
reason. Organizations must also learn to manage careers of their employees more effectively.
Impact of Technology on HRP
In order to cope with the competition, organizations have to ensure on:
a) Producing goods and services more efficiently and economically.
b) Innovating product and processes so as to gain competitive advantages.
Advances in computer technology have offered organizations new opportunities to enhance and
streamline their processes. Computer aided design (CAD), and computer aided manufacturing
(CAM) reduce human resource involvement and shrink the cycle time. Advances in information
technology have reduced efforts required in impacting, retrieval, processing, and sharing of data.
Accurate and timely information can be made available to different levels of management for
decision making. All these changes in technology result in a change in occupational and skill
profile of manpower. Different manufacturing technologies have different skills required to
design, operate and maintain the machines and equipment. Also, the same technology can have a
different impact on different categories of workers and industries. The actual skill implications of
technology change will depend on:
a) Management policy for deployment of manpower
b) Attitudes bargaining strength of the union
c) Ability of manpower to adjust and adapt to the new technology.
According to ILO, introduction of new technology can affect other aspects of working
like workers responsibilities, skill requirements, job-content, physical and mental work load,
career prospects and communication and social relationships at workplace.
Skills and knowledge are required for operating and maintaining new technology and
participating in innovative processes. The manual content of skill tends to decrease for skilled
workers and office staff but requirements for mathematical skills and ability to plan and
anticipate future situations tend to increase. The methods, systems and style of management also
34
need changes in line with high skill demands on personnel. A more democratic and decentralized
management style is necessary to motivate highly educated employees.
The present education system of our country is inadequate to match the technological
needs. The syllabus is outdated; teachers are not fully acquainted with the new technology and
there is a lack of infrastructure facilities. Therefore, companies will have to provide appropriate
training to add these skills. Manpower planners should keep in mind this requirement and also
the requirement of retraining. There may also be a need for rationalization of the trade structure
because of multi-skilling. For example, traditional and relatively conceived metal trades which
date back to 1930s have been replaced by six broadly defined occupations. Lathe, mulling,
grinding could be clubbed as cutting mechanics, production engineering, machine and systems.
Engineering, precision engineering and light engineering could be put as industrial
mechanics. In office context, we now require persons who are computer trained and also operate
other office equipment such as fax, and Xeroxing machines this will also require restructuring
of employees.
11. BARRIERS TO HRP

Planners face significant barriers while formulating an HRP. The major ones are following:
1) HR practitioners are perceived as experts in handling personnel matters, but are not experts in
managing business.
2) People question the importance or making HR practices future oriented and the role assigned
to HR practitioners in formulation of organizational strategies.
35
There are people when needed offer handsome packages of benefits to them to quit when you
find them in surplus. When the task is so simple, where the need for is elaborate and time
consuming planning for human resources.
3) HR information often is incompatible with other information used in strategy formulation.
Strategic planning efforts have long been oriented towards financial forecasting, often to the
exclusion of other types of information. Financial forecasting takes precedence over HRP.
4) Conflict may exist between short term and long term HR needs. For example, there arises a
conflict between the pressure to get the 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.
Therefore, long times plays are not required, short planning are only needed.
5) There is conflict between quantitative and qualitative approaches to HRP. Some people view
HRP as a number game designed to track the flow of people across the department.
6) Non-involvement of operating managers renders HRP ineffective. HRP is not strictly an HR
department function. Successful planning needs a co-ordinate effort on the part of operating
managers and HR personnel
12. RESEARCH ANALYSIS

In todays competitive world, a company has to carry out human resource planning to
survive the competition. Due to planning the company gets to know when and how much human
resource is required. Planning helps to get the required human resource on time.
In these times of great economic turbulence, the importance of human resource planning
is more apparent than ever. A short-sighted lay-off, intended to temporarily reduce overhead, can
result in much heavier long-term costs. Firm may one day regret letting people go when they are
36
spending time and money to hire and train new staff. Plus, they lose profits when they lose
experienced, knowledgeable employees.
In contrast, a smart human resources plan encourages your organization to keep a longer
view of things and retain talent so that, once this economic upheaval has calmed down,
organization will have a committed team intact.
To retain employees and appoint qualified staff organizations are now more focused on
human resource planning.
13. CONCLUSION
Human Resources planning are one of the strategies to enhance and improve work
performance. This is done by proper planning & removing deficiencies and enabling hindrance
free working in the organization.
Human resources planning include analysis of level of skill, current and expected
vacancies and also provide plans to take care of the vacancies through training, development and
recruiting and hiring new people.
37
The challenging function of Human resources demands matching future organizational

requirement with the supply of right kind of staff. This imperatively necessitate that Human
Resource needs to be focused in meeting the current as well as the future requirement of the
organization.
14. REFERENCE
BIBLIOGRAPHY
Human Resource Management Michael Vaz and Meeta Seta
2.
Human Resource Management Practice Michael Armstrong
WEBLIOGRAPHY
38
www.wipro.com
www.employment-studies.co.uk
15. ANNEXURE
QUESTIONNAIRE
Q1. Is human resource planning carried out in your company?
Yes
No
Q2.Why does u think human resource planning important in an organisation?
39
Q3. How many different posts are to be filled in the organization in a year?
More than 10
Between 5 and 10
Below 5
Q4. Do you want to keep training modules in the planning?
Yes
No
Q5. If answer to question no. 4 is yes, then what would be the nature of training?
Technical
Training Soft-skills training
Both
Q6. To how much extent do you want cost management elements to be included in the HR needs
plans?
Little
Moderate
High
Q7. Do you recommend promotions based on performance?
Always
Most often
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Sometimes
Never
Q8. Which of the following areas HR and organization need to work on?
Employee benefits
Employee retention
Employee training
Employee job needs
Accountability towards employees
41

HRM - HRP

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HUMAN RESOURCE PLANNING

1. OBJECTIVE OF THE STUDY

HUMAN RESOURCE PLANNING

HUMAN RESOURCES PLANNING

HUMAN RESOURCE PLANNING

Human resources planning may be viewed as foreseeing the human resource

3. OBJECTIVES OF HUMAN RESOURCES PLANNING

HUMAN RESOURCE PLANNING

The important objectives of manpower planning in an organization are:-

HUMAN RESOURCE PLANNING

5. NEED FOR PLANNING

HUMAN RESOURCE PLANNING

HUMAN RESOURCE PLANNING

1) Create reservoir of talent.

6. ADVANTAGES AND ROLE OF HRP

HUMAN RESOURCE PLANNING

HUMAN RESOURCE PLANNING

7. CONCEPTS OF HUMAN RESOURCE PLANNING

HUMAN RESOURCE PLANNING

RECRUITMENTRecruitment is the most important function of personnel administration. Recruitment is

HUMAN RESOURCE PLANNING

The action or process of inducting someone to a post or organization. Once an employee

HUMAN RESOURCE PLANNING

HUMAN RESOURCE PLANNING

Example showing a machine or tool how to operate.

HUMAN RESOURCE PLANNING

HUMAN RESOURCE PLANNING

corporate strategies. In a way, HR and corporate strategies function in alignment. Today, HR

HUMAN RESOURCE PLANNING

HUMAN RESOURCE PLANNING

HUMAN RESOURCE PLANNING

Transfer requests may be granted at any time, subject to the

HUMAN RESOURCE PLANNING

8. THE PLANNING PROCESS

HUMAN RESOURCE PLANNING

1. Organizational Objectives and Policies

HUMAN RESOURCE PLANNING

HUMAN RESOURCE PLANNING

EXAMINING EXTERNAL AND INTERNAL ISSUES

HUMAN RESOURCE PLANNING

Technology: Organization is investing so many amounts on information technology during

DETERMINING FUTURE ORGANISATIONAL CAPABILITIES

HUMAN RESOURCE PLANNING

HUMAN RESOURCE PLANNING

DETERMINING FUTURE ORGANISATIONAL NEEDS

HUMAN RESOURCE PLANNING

HUMAN RESOURCE PLANNING

In 1980 Wipro moved in software development and started developing customized

HUMAN RESOURCE PLANNING

HUMAN RESOURCE PLANNING

Forecast manpower requirements.

MODEL OF HRP SYSTEM

HUMAN RESOURCE PLANNING

HUMAN RESOURCE PLANNING

Human Resource Policies : Manpower Planning

Round 2: Technical Interview

HUMAN RESOURCES INFORMATION SYSTEMS (HRIS)

B.N.N. COLLEGE, BHIWANDI

HUMAN RESOURCE PLANNING

Human Resources Information Systems (HRIS) is an integration of HRM and

10. IMPACT OF HRP

HUMAN RESOURCE PLANNING

HUMAN RESOURCE PLANNING