Unit II

Human Resource Planning

HRP seeks to place the right employees in the right jobs at the
right time, so that an organization can meet its objectives
HRP tries to forecast personnel demand, assess supply and
reconcile the two in a systematic manner
When developing HR plans, it is important for managers to scan
the external environment to identify the effects of economic
conditions, regional and competitive pressures, governmental
influences and workforce composition and patterns

Meaning and Nature of human resource

planning
What is human resource planning?
According to Decenzo and Robbins, Human resource
planning is the process by which an organization ensures that
it has the right number and kind of people, at the right place,
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 a continuous process

Nature of HRP
HRP is the process of forecasting a firms future demand for,
and supply of, the right type of people in the right number
It is only after this that the HRM department can initiate the
recruitment and selection process
HRP is a sub-system in the total organizational planning
Organizational planning includes managerial activities that set
the companys objectives for the future and determines the
appropriate means for achieving those objectives

Traditional Vs Evolving Scope of HRP

Traditional Scope of HRP

Evolving Scope of HRP

Narrow, and reactive

Broad and proactive

Done once in a year

Carried on a quarterly basis

Administrative activity carried on in isolation

Strategic
strategy

activity

integrated

with

business

Co-ordination with local newspapers, agencies Strategic alliances with recruiting firms, and
and relationships
targeted university, leveraging internet as a tool

Hire considering current skills and experience

Hire focusing
potential

on

assessment

of

individual

Importance of HRP
Personnel needs taken care of
Part of strategic planning
Creating highly talented personnel
International strategies
Foundation for personnel functions
Increasing investments in human resources
Resistance to change and move
Unite the perspectives of line and staff managers
Other benefits

Factors Affecting HRP

1. Type and strategy of organization
2. Organizational growth cycles and planning
3. Environmental uncertainties
4. Time horizons
5. Type and quality of forecasting information
6. Nature of jobs being filled
7. Off-loading the work

The Planning Process

ENVIRONMENT
Organizational Objectives
and Policies
HR Supply Forecast

HR Needs Forecast
HR Programming
HRP Implementation

Surplus
Restricted Hiring
Reduced Hours
VRS, Lay off etc

Control and Evaluation of

Programme
Shortage
Recruitment
Selection, etc.

Present employees
Analysis of present employees is greatly facilitated by HR
audits
HR audits summarize each employees skills and abilities
The audits of non-managers are called skill inventories and
those of the management are called management inventories
Whatever name is used, an inventory catalogues each
employees skills and abilities
This summary gives planners a comprehensive understanding
of the capabilities found in the organizations workforce

 Skill Inventories: Skill inventories consolidate information about nonmanagers in the organization. Because the information from skills
inventories is used as input for transfer and promotion decisions they
should contain information about each employees current job. Seven broad
categories of information are included in each skills inventory. They are:
1. Personal data- age, sex, marital status.
2. Skills- education, job experience, training.
3. Special qualifications-membership
achievements.

in

professional

bodies,

special

4. Salary and job history- present and past salary, dates of pay rises, various
job held.
5. Company data- benefit plan data, retirement information, seniority.
6. Capacity of individual- scores on psychological and other tests, health
information.
7. Special preference of individual- geographic location, type of job.

Human Resource Planning and the

Government

Manpower planning has come to be recognized in India as one

of the adjuncts of socio-economic planning since the early
years of the planning era
GOI set up the Institute of Applied Manpower Research (IAMR)
in 1962
To conduct empirical research in manpower, to provide advisory
and consultancy services to government departments and
industry, and to impart training in methods and techniques of
manpower planning
Training is now a major activity of the institute

Requisites for successful HRP

1. HRP must be recognized as an integral part of corporate
planning. The planner of human resources must therefore, be
aware of the corporate objectives
2. Backing of top management for HRP is absolutely essential
3. HRP responsibilities should be centralized in order to coordinate consultation between different management levels
4. Personnel records must be complete, up-to-date and readily
available
5. The time horizon of the plan must be long enough to permit
any remedial action
6. 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
The impact of external forces like technological changes,
changes in labor market compositions and the like needs to be
considered while developing the human resource plan
HRIS should be used as decision support system and should
alert managers to problems and opportunities

Barriers to HRP
Planners face significant barriers while formulating an HRP. The
major ones are the following
People question the importance of making HR practices future
oriented and the role assigned to HR practitioners in
formulation of organizational strategies
HR practitioners are perceived as experts in handling
personnel matters, but are not experts in managing business
HR information often is incompatible with the information
used in strategy formulation
Conflicts may exist between short-term and long-term HR
needs
There is conflict between quantitative and qualitative

Job Analysis and

Design

Job Analysis- Meaning and Definition

It is the process of collecting job related information
Such information helps in the preparation of job
description and job specification

The Process of Job Analysis

Strategic Choice

Gather Information
Uses of Job Description and
Job Specification
Process Information

Job Description

Job Specification

Personnel Planning
Performance Appraisal
Hiring
Training and Development
Job
Evaluation
and
Compensation
Health and Safety
Employee Discipline
Work Scheduling
Career Planning

Methods of Collecting Job Data

1. Observational method
2. Interviews
3. Questionnaire
4. Checklists
5. Technical conferences
6. Diary

Potential Problems with Job Analysis

Support from top management
Single means and source
No training or motivation
Activities may be distorted

Job Design
Job design involves conscious efforts to organize tasks,
duties and responsibilities into a unit of work to achieve
certain objectives. Job design follow job analysis.

Factors Affecting Job Design

Feedback

Organizational
Factors
Environmental
Factors

Behavioral Factors

Job Design

Productive and
Satisfying Job

Approaches/Techniques of Job
Design
Job Design
Positive Outcome
Negative Outcome
Approach/Technique
Work Simplification

Job is highly specialized, so that Over simplification results in

less trained and less paid boredom with attendant risks of
employee can perform
errors and resignations

Job Rotation

Jobs intrinsic reward potential Jobs do not improve. Workers

is
likely
to
increase. may feel rootless and alienated.
Organization too stands to gain
because of the versatility of its
employees. workers self-image
will grow. There is enhanced
interdepartmental co-operation

Job Enlargement

Claims to
impact.

have

motivational Mere adding one zero to

another zero-adding one more
boring task to another. Likely to
be resisted by employees.

Job Enrichment

Increased
motivation,
reduced
absenteeism,
psychological
needs
of
employees are met. Brings
about empowered teams.

People may not like to

accept new responsibilities.
Union resistance adds to the
problems. Job enrichment, if
not accompanied by other
job inputs, will fall in its
goal.

Autonomous Work Team

There
is
a
greater There is a resistance from
involvement of employees in employees,
unions
and
decision-making.
managers and supervisors.
Involvement
brings
in
commitment.

High Performance Work Works in an environment of May not work in large

Design
high rate of innovation and bureaucratic organizations.
Operational Freedom.