Human Resource Plan

ning

Human Resource Planning

It is the process by which organization ens
ures the right number and right kind of peo
ple at the right place, at the right time to at
tain the organization goal.
HRP is also called manpower planning, pe
rsonnel planning or employment planning.

HRP Definition
The process of determining manpower
requirements and the means for meet
ing those requirements in order to car
ry out the integrated plan of the organ
ization.
--- P. Bruce Colemn

Definition
Human resource planning is a process of
determining and assuring that the organiz
ation will have an adequate number of qua
lified persons available at the proper time
s, performing jobs which meets the needs
of the enterprise and which provide satisfa
ction for the individuals involved.
------ Dale S Beach

Objectives of HRP
Forecast personnel requirements.
Cope with changes
Use existing manpower productively.
Promote employees in a systematic mann
er.

Need for HRP

Replacement of persons
Labour Turnover
Expansion plans
Technological changes
Assessing needs

Importance of HRP
Reservoir of talents
Prepare people for the future( training, motivation,
development)
Expand or contract ( advance planning ensures a
continues supply of people with requisite skills who
can handle challenging jobs easily
Cut costs: ( planning facilitates the preparation of a
n appropriate HR budget for each dept )
Succession planning: prepares people for future c
hallenges. The stars can be picked up and kept re
ady for further promotions whenever they arise.

Factors affecting HRP

Type and Strategy of organisation

Organisational Growth Cycles and Planning
Environmental Uncertainities
Time Horizons
Type and Quality of Information
Labour Market
Outsourcing

Type and Strategy of the Organization

The type of the organization determines the prod
uction process involved and the number of staff r
etained.
Manufacturing organization
Service organization
Long term strategy
Short term strategy

Type and strategy of the organisation

Proactive or reactive approach to HRP
Determine the breadth of the plan(narrow/broad)
Formal/Informal plan

Organizational Growth Cycles and Plan

ning
Small organisations in the embryonic stag
e may not have personnel planning.
Growth organisation
HR forecasting becomes essential.Internal
development is also needed

Organisational Growth Cycles and Plan

ning
Mature Organisation:
Mature organisation experiences less flexibility ,gr
owth slows down
Planning becomes more formalised
Less flexible and innovative
Declining stage
Layoff
Retirement

 Layoff (in British and American English), is the t

emporary suspension or permanent termination
of employment of an employee or (more commo
nly) a group of employees (collective layoff) for
business reasons, such as when certain position
s are no longer necessary or when a business sl
ow-down occurs

Environmental Uncertainities
Personnel planners deal with environment
al uncertainities by carefully formulating re
cruitment,selection and training and devel
opment policies.
Flexitime
Job sharing
VRS

Time Horizons
Short term plan(6 months 1 year)
Long term plan(3 -20 years)
The exact time span depends on the degr
ee of uncertainty prevailing in an organizat
ion's environment.

Short planning period

Many new competitors

Unstable product/service demand patterns
Small organisation size.
Poor management practices

Long Planning Period

Strong competitive position
Stable demand patterns
Strong management practices

Type and Quality of Information

HRIS
Good quality of the information stored
Strategic information:product mix,custome
r mix,geographic limits
General organisational information: Organi
sational structure,Production process etc
Specific information: Turnover data,skills d
ata

Labour Market
Labour market comprises of people with s
kills and abilities
Confederation of Indian Industry(CII) estim
ates that by 2020 ,India will be requiring 3
0 million additional skilled workers in secto
rs like banking, financial services, retail,au
to and construction

Outsourcing
Most organisations have surplus labour an
d they do not want to worsen the problem
by hiring more people.
Several organisations outsource part of th
eir work to outside parties in the form of su
b-contracting.

Effective HRP

Objectives:HR plan must fit into the

Top management support
Employee skills inventory: Up-to -date
HRIS
Co-ordination

The Process of HRP

1. Analyzing Organizational Objectives:

The objective to be achieved in future in various fiel
ds such as production, marketing, finance, expansio
n and sales gives the idea about the work to be don
e in the organization.
2. Inventory of Present Human Resources:
From the updated human resource information stora
ge system, the current number of employees, their c
apacity, performance and potential can be analysed.
To fill the various job requirements, the internal sour
ces (i.e., employees from within the organization) an
d external sources (i.e., candidates from various pla
cement agencies) can be estimated.

3. Forecasting Demand and Supply of Human Resource:

The human resources required at different positions accor
ding to their job profile are to be estimated. The available i
nternal and external sources to fulfill those requirements ar
e also measured. There should be proper matching of job
description and job specification of one particular work, an
d the profile of the person should be suitable to it.
4. Estimating Manpower Gaps:
Comparison of human resource demand and human resou
rce supply will provide with the surplus or deficit of human r
esource. Deficit represents the number of people to be em
ployed, whereas surplus represents termination. Extensive
use of proper training and development programme can be
done to upgrade the skills of employees.

5. Formulating the Human Resource Action Plan:

The human resource plan depends on whether there is defi
cit or surplus in the organization. Accordingly, the plan may
be finalized either for new recruitment, training, interdepart
mental transfer in case of deficit of termination, or voluntary
retirement schemes and redeployment in case of surplus.
6. Monitoring, Control and Feedback:
It mainly involves implementation of the human resource ac
tion plan. Human resources are allocated according to the r
equirements, and inventories are updated over a period. Th
e plan is monitored strictly to identify the deficiencies and r
emove it. Comparison between the human resource plan a
nd its actual implementation is done to ensure the appropri
ate action and the availability of the required number of em
ployees for various jobs.