SECOND CHAPTER Human Resource Planning

Manpower planning is the process by which an organization ensures that it has Right number of people, Right kind of people, At the right places, At the right time, capable of effectively and efficiently completing those tasks that will help the organization achieve its overall objectives.

Human resource planning is the process of anticipating and carrying out the movement of people into, within, and out of the organization. Human resources planning is done to achieve the optimum use of human resources and to have the correct number and types of employees needed to meet organizational goals.

Uses of HRP
Improve the Utilization of human resources. Match human resource related activities and future organization objectives efficiently. Achieve economies in hiring new workers. Coordination between various HR Programs

Importance of HRP
y To ensure optimum use of manpower and capitalize on the strength of HR.

The organization can have a reservoir of talent at any point of time. People skills are readily available to carry out the assigned tasks, if the information is collected and arranged beforehand with the help of effective HR Planning. y To forecast future requirements and provides control measures about availability of HR labor time.

If, for example the organization wants to expand its scale of operations, it can go ahead easily. Advance planning ensures a continuous supply of people with requisite skills who can handle challenging jobs easily. y HRP enables an enterprise to cope with changes in competitive forces, markets, technology, products, and government regulations.

International expansion strategies depend upon HRP. With the growing trend towards global operation, the need for HRP will grow, as will the need to integrate HRP more closely in to the organization's strategic plans. Manpower planning provides essential information for designing and implementing personnel functions, such as recruitment, selection, personnel (transfers, promotions, layoffs) and Training and Development. There is growing resistance among employees to change and move. Now it has become more difficult for the organization to assume that it can move its employees around anywhere and anytime it wants, thus increasing the importance and necessity of planning ahead. Human assets, as opposed to physical assets, can increase in value. An increasing no. of executives are acknowledging that the quality of the work force can be responsible for significant differences in short-run and long run performances. One facet of the high-talent personnel is management succession planning. who will replace the retiring chief executives? From what pool of people will top executives be selected and how will these individuals be groomed for their increased responsibilities? HRP is an answer to these and other related questions A well conceived Personnel Planning programmed would protect the interest of physically handicapped in matters of employment and promotion.

Objectives of Human Resources Planning (HRP)

y y y y y y y y y To achieve more effective and efficient use of employees / human resources. To better recruit employees who possess the necessary skills and competences. To achieve a higher rate of satisfied and better developed employee. To facilitate training and development programmers. To facilitate the roll-out of strategic plans / missions. To achieve more effective equal opportunity planning. To relieve the organization of unnecessary / unneeded labor. Ensure organization is responsive to changes in environment. Based on above discussion we may conclude that objective of HR planning is to guarantee availability of the HR needs of the organization at specified times in the future. Or, Right people in right place at right time. It is a systematic HR process to help the organization meet its business objectives.

Factors Affecting HRP

y HRP Organizational Growth Cycle & Planning

y y y y y y y

Environmental Uncertainties Outsourcing Nature of Jobs Being Filled Time Horizons Type & Strategy of Organizations Time and quality of Information Organizations growth can have considerable influence on HRP. Need for planning is felt when the organization enters the growth stage.HR Forecasting becomes essential. Internal development of people also begins to receive attention in order to keep up with the growth Personnel planners deal with environmental uncertainties by carefully formulating recruitment, selection, training and development policies and programmers. Outsourcing is a regular feature both in the public sector as well as in the private sector. Most organization off load part of their work to outside parties either in form of subcontracting. It is easy to employ shop-floor workers, but a lot of sourcing is required for hiring managerial personnel. It is therefore necessary to anticipate vacancies, in advance as possible, to provide sufficient lead time to ensure that suitable candidates are recruited. The exact, time span however, depends on the degree of uncertainty prevailing in an organizations environment. In general greater the uncertainty, the shorter the plans time horizon and vice versa. The type of Organization is an important consideration because it determines the production processes, no. and type of staff needed, supervisory and managerial personnel required. Strategic plan of the organization defines the organizations HR needs. E.g.: Internal Growth, Mergers A major issue in personnel planning is the type of information which should be used in making forecasts. Organizations operating in stable environments are in better position to obtain comprehensive, timely and accurate information bcs of longer planning horizons, clearer definition of strategy and objectives, and fewer disruptions.

The Planning Process

y y y y Organizational Objectives & Policies HR Supply Forecast &HR Needs Forecast HR Programming HRP Implementation

y y

Control & Evaluation of Programme Surplus (Restricted Hiring, Reduced Hours, VRS, Lay off, etc) Shortage (Recruitment, Selection, etc)

Organizational Objectives & Policies

y 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 resource.HR plans need to be based on organizational objectives.

HR Demand Forecast
y It is the process of estimating the quantity and quality of people required to meet future needs of the organization. The basis of the forecast must be the annual budget and the long term corporate plan, translated in to activity levels for each function and department. Importance of conducting demand forecast: Quantify the jobs necessary for producing a given number of goods. Determine what staff mix is desirable in the future. Assess appropriate staffing levels in different parts of the organization so as to avoid unnecessary costs. Prevent shortages of people where and when they are needed most

y y y y

Monitor compliances with legal requirements with regard to reservation of jobs

HR Supply Forecast
y It determines whether the HR department will be able to procure the required number of personnel and the sources for such procurement. Specifically supply forecast 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 Reason for supply forecast : Helps quantify no. of people and positions expected to be available in future to help org. realize its plans and objectives Helps clarify staff mixes that will exist in the future Assess existing staffing levels in different parts of the org Prevent shortages of people where and when they are needed most Monitor expected future compliances with legal requirements of job reservations.

y y

y y y y

HR Programming
y Once an organizations personnel and supply are forecast, the two must be reconciled or balanced in order that vacancies can be filled by the right employees at the right time.

HR Plan implementation
y Implementation requires converting an HR plan in to action. A series of action programmers are initiated as a part of HR plan implementation. E.g. : Recruitment, Selection, Placement, T&D, Retraining and Redeployment, Retention Plan and Downsizing Plan

Control and Evaluation

y Clarify responsibilities for implementation and control, and establish reporting procedures which will enable achievements to be monitored against the plan.

Requisites for Successful HRP

y y HRP must be recognized as an integral part of corporate planning. Backing of top management is absolutely essential.

HRP responsibilities should be centralized in order to co-ordinate consultation between different management levels. Personnel records must be complete, up to date and readily available. The time horizon of the plan must be long enough to permit any remedial action. The techniques of planning should be those best suited to the data available and the degree of accuracy required. Data collection, analysis, techniques of planning and the plans themselves need to be constantly revised and improved in the light of experience.

y y y

Barriers to HRP
y There are people when needed. Offer attractive packages of benefits to them to quit when you find them in surplus. HR Practioners are perceived as experts in handling personnel matters, but are not experts in managing business. The personnel plan conceived and formulated by the HR practioners when enmeshed with organizational plan, might take the overall strategic plan itself defective. Conflicts may exist between short term and long term HR needs. 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. HRP is not strictly an HR deptt. Function. Successful planning needs a co-ordinated effort on the part of operating managers and HR personnel.