Human Resource Planning: In simple terms, human resource planning means deciding the number and type of the

human resource required for each job, unit and the total company for a particular future date in order to carryout organisational activities. Importance of HRP: Planning for human resource is more important than planning for any other resource as demand for the latter depends upon the size and structure of the former. Human resource plan provides the clear picture of human resource supply from various sources and enables the organisation to recruit the prospective employees. For implementation of any task or strategies without risks and uncertainty we need to have a well organised plan. Rapid changes will be occurring in environment due to globalisation and information technology that is change in technology, marketing, production, business processes and management practices. So, a proper plan will help or assist you to project all the successive events and prevent any kind of uncertainties (for instance, changes like changing profile of work force in terms of age, sex, education etc.) Thus HRP plays an important role in having right human resources in right time for right job. HRP aids to plan for the following: Future personnel needs Coping with change Creating highly talented personnel Protection of weaker sections International strategies Foundation for personnel functions Increased value of human resources Make process efficient Succession planning

Benefits of HRP: HRP anticipates not only the required kind and number of employees but also determines the action plan for all the functions of personnel management.

Major benefits: It checks the corporate plan of the organisation. It offsets uncertainty and change. It provides scope for advancement and development of employees through training. It helps to anticipate the cost of salary enhancement, better benefits etc.

 To foresee need for redundancy and to provide alternative employment. To foresee changes in values, aptitude and attitude of the human resources. To plan for physical facilities, working conditions and the volume of fringe benefits (canteen, school, hospital, conveyance, child care centres, quarters, cab etc.) It gives an idea of techniques to be used in hiring process. It improves productivity, sales, turnover etc. It facilitates the control of all the functions & operations. Steps involved in HRP: 1. Analysing the Corporate & unit level strategies, objectives & policies: The initial step of human resource planning process should start with deriving objective of HRP from the strategy opted by the organisation. These strategies include expansion, diversification, mergers, acquisitions, reduction in operations, low cost and differentiation. The process of HRP ends with anticipating the required number and kind of employees. Main concern here is to plan human requirement according to the future anticipation. 2. Demand Forecasting: Generally every HR manager should design & analyse the jobs reflecting the future human resources. Different methods of forecasting demand are (a) Managerial Judgement: Here forecast will be made based on the past experience of the manager in charge. It can be either Top down approach or Bottom up approach. In the Top down approach decision about the future requirements of human resources will be influenced by the top management. This approach is generally undertaken during unusual times for example at time of recession or any other external uncertainty or because of decreasing fund flow. In the bottom up approach decision about the requirements will be made by the low level manager and the detailed report on forecast will be sent to senior manager & top management for approval. Companies use this approach during normal circumstances.

(b) Statistical techniques: Ratio trend analysis: Under this ratios are calculated for the past data and these ratios are used for the estimation of the future human resources requirements. For example:

If present level of production for the year 2010 (past) is = 2000 units And, no of foreman employed for production is = 4 Then the Ratio is = 2000 / 4 = 500 And if estimated production for 2012(future) is = 5000 units Then, Ratio 5000 / 500 = 10 Therefore, no of foreman needed for production of 5000 units is = 1 Econometric Models: Regression analysis includes a large group of methods that can be used to predict future values of variable using information about other variables. Equation of regression is as shown below: Y = a*X + b Where X is independent variable Y is dependent variable And a and b are constants Here the value of dependent variable can be calculated once the data of the dependent variable is got from past data. (c) Work Study techniques:

Under this method, total production and activities in terms of clear units are estimated in a year. Then man-hours required to produce each unit is calculated. Later the required number of employees is calculated. For example: If units produced in 2010 is = 1, 60,000 units And, the standard man-hour needed in 2010 (to produce 1, 60,000 units) is = 0.25 Man-hours per year (2010) is = 1, 60,000 units * 0.25 (25 minutes) = 40, 000 hours/year The working hours per employee in man-hours in 2010 = 2, 000 hrs Then, number of employees required in 2010 = 40, 000 / 2, 000 = 20

Environment

Organisational objective & policies

HR Need Forecast

HR Supply Forecast

HR Programming

HRP implementation

Control & Evaluation

Surplus i. ii. iii. Redeployment Retrenchment Redundancy i. ii. iii.

Shortage Outsourcing Employment Training & Development

Modify plan according to requirements

Problems in HRP: (i) Resistance by employees and employers: Employers generally resist HRP as they think that it increases the cost of manpower as trade unions demand for employees based on the plan(with more facilities & benefits including training and development.) Employees will resist as they view that it increases the workload of employees. (ii) Uncertainties: Changes occurring due to absenteeism, seasonal employment, labour turnover etc. And also the changes in the external environment (physical, economic, social, technological) (iii) Inadequate information system: In under developed and developing country the past data available may not be adequate compared to the past data available in the developed country. Recent trends in HRP: Outsourcing Time bound projects Fast delivery Conclusion: HRP aims at controlling the employees through productivity maximisation. It is a vital sub activity of employment function in an organisation. It is never ending process.