HUMAN RESOURCE PLANNING

(i) CONCEPT OF HUMAN RESOURCE PLANNING

Vetter has defined human resource planning as, The process by which management determines how an organization should move from its current manpower position to the desired manpower position. Through planning management strives to have the right number and the right kinds of people at the right places, at the right time, to do things which result in both the organization and the individual receiving the maximum long-range benefit. Manpower planning can not be rigid or static, it is amenable to modification, review and adjustment in accordance with the needs of the organization of Human Resource Management or the changing circumstances. In The Words Of Coleman Manpower planning is the process of determining manpower requirements and the means for meeting those requirements in order to carry out the integrated plan of the organization. According to Wickstrem Manpower planning consists of a series of activities, viz. : Forecasting future manpower requirements, either in terms of mathematical projections of trends in the economic environment and development in Indian Oil Corporation Ltd., or in terms of judgmental estimates based upon the specific future plans to a company. Making an inventory of present manpower resources and aricising the extent to which these resources are employed optimally. Anticipating manpower problems by projecting present resources into the future and comparing them with the forecast of requirements to determine their adequacy, both quantitatively and qualitatively and planning the necessary programmes of requirement, selection, training, development, utilization transfer, promotion, motivation and compensation to ensure that future manpower requirements are properly met.

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(ii)

OBJECTIVE OF HUMAN RESOURCE PLANNING The ultimate purpose of manpower planning is to relate future human

resources to future Human Resource Management Needs so as to maximize the future return on investment in human resources. The specific objectives of manpower planning are listed below:To ensure optimum use of existing human resources. To forecast future requirements for human resources. To provide central measures to ensure that necessary human resources are available as and when required. To link human resource planning with organizational planning. To assess the surplus and shortage of human resources. To anticipate the impact of technology on jobs and human resources. To determine levels of recruitment and training. To estimate the cost of human resources and housing needs of employees. To provide a basis for management development programmes. To facilitate productivity bargaining. To meet the needs of expansion and diversification programmes.

(iii)

NEED AND IMPORTANCE OF HUMAN RESOURCE PLANNING

Manpower is an important corporate asset, and the economic performance of companies depends upon the extent to which it is effectively utilized so far prosperity of enterprises has largely been due to technological progress and innovations in the different fields of operations. It now appears that efficient utilization of human assets may well become the crucial factor in determining the growth

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and prosperity of business enterprises in the years ahead. A formal manpower plan has become important because of general increase in the size of business enterprise to meet the increasing needs of both domestic and export markets. In the light of the above quotations we can enumerate the following benefits of manpower planning :Right Kinds of Personnel : Manpower planning helps in procuring personnel with the necessary qualifications, skills, knowledge work experience and aptitude for work. Smooth Operations : In Human Resource Management manpower planning helps in personnel selection and development as it ensures that adequate persons are selected well in advance so that they may be developed for anticipated openings. This would ensure smooth operations of the Indian Oil Corporation Ltd.. Full Utilisation of Plant : Manpower forecasting, which highlights critical shortage of important skills, helps management in avoiding disruption of production programmes and under-utilisation of plant capacity by timely corrective action. Large term manpower requirements several years ahead of actual needs, enables management to take timely steps necessary to ensure their timely availability. Redeployment of Personnel : Manpower planning may also help in identifying areas of surplus personnel. If there is surplus manpower in a department. It can be redeployed by transfer to other departments. Replacement Planning : Manpower planning helps in formulating Managerial Succession plans as a part of the Replacement planning process which is necessitated when Job. Change plans for Managers are formulated. Besides, this exercise would provide enough lead time for identifying and developing Managers to move up the corporate ladder. Averment of Training Needs : Manpower Planning enables, through performance Appraisals, identification of the Gaps of the existing Manpower so that Corrective training could be imparted. Thus, the training programme becomes more effective.

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Low wage and Salary Budget : Personnel costs would be less if the Management can anticipate imbalances in the Manpower in various departments before they become unmanageable.

(iv)

PROCESS OF HUMAN RESOURCE PLANNING

(Assessing Human Resource Requirements) The process of human Resource planning is one of the Most Crucial Complex and Continuing Managerial Functions which According to the Tata Electrical Locomotive Company Embraces organization development, Management development, Career planning and succession planning. The Process has gained importance in India with the increase in the size of business enterprises, complex production technology, and the adoption of professional management techniques. Manpower planning consists of the following stages : Analysing Current Skill inventory or Manpwer Supply. Demand forecasting . Gap Analysis Designing Redeployment and Redundancy programme. Drawing up on employment plan for a period of 5 years or so; and Designing training and development programmes. (v) LEVELS OF HUMAN RESOURCE PLANNING

Human Resource Plans may be prepared at the following levels : 1. National level : The central Government plans for human Resources at the National level. It forecasts the demand for and supply of human Resources for the Country as a whole. National level plan covers factors like population projections, economic development programme, educational facilities, occupational distribution of population, mobility of people etc. The Government uses

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population policy etc. to create a match between the demand and supply of human Resources. The Government of India has specified the objectives of human resource planning in successive five-year plans. The major focus has been an employment generation and poverty alleviation though urban and rural development programmes, health, education and training schemes, welfare facilities, etc. As a result India now has the third largest pool of scientific and technical personnel. But certain skills are still scarce and the number of educated unemployed has increased. 2. Sectoral Level : Central and State Governments formulate human resource plans for particular sectors, e.g.

Agricultural Sector, Industrial Sector, Tertiary Sector etc. Projections are based on government policy, projected output/operations, etc. 5. Industry Level : Human resource plans for specific industries like textiles, cement, iron and steel, petrochemicals, computers, etc. are prepared on the basis of projected operations/output of the particular industry. 6. Unit Level : Human resource requirements of a particular ent3rprise are forecast at this level. These may be estimated department wise, job category wise etc. The process of human resource planning should begin at the plant/branch level. So as to reap the benefits of thinking of operating personnel who are in direct touch with day-to-day problems.

(vi)

MANPOWER PLANNING COMPONENT

Manpower plan can be broken down into three components :Forecasting estimating future needs and stock taking of available resources in the organization. Recruitment plan to meet the gap between the internal resource and estimated need by external recruitment.

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Training and development plan to utilize fully the human resources of the Human Resource ManagementAnd to develop the potential resources.

(vii)

CAREER PLANNING AND DEVELOPMENT

The term Career denotes all the jobs that are held during ones working life. Edwin B. Flippo defined A Career as a sequence of separate but related work activities that provide continuity. Order and meaning in a persons life. Career planning in the systematic process by which one selects career goals and the path to these goals from the Indian Oil Corporation view point it means helping the employees to plan their career in terms of their capacities within the context of organisations needs. It involves designing an organizational system of career movement and growth opportunities for Human Resource Management employees from the employment stage to the retirement stage. Individuals who can fill planned future position are identified and prepared to take up these positions. It is a managerial technique for mapping out the entire career of young employees. It requires discovery, development, planned employment are reemployment of talents. The main characteristics of career planning are as follows :Career planning is a process of developing human resources rather than an events. It is not on end in itself but a means of managing people to obtain optimum results. Career planning is a continuous process due to an ever changing environment. Basically career planning is an individuals responsibility. But it is the responsibility of an Human Resource Managementto provide guidance and counseling to its employees in planning their careers and in developing and utilizing their knowledge and skills. Goals of employees should be integrated with the organizational goals. The basic aim of career planning in integration of individuals and organizational needs.

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(viii)

PROBLEM IN HUMAN RESOURCE PLANNING

Human resource planning is not always successful. Some of the major stumbling blocks are described below : Identity Crisis : There are generally identity crises and many managers as well as human resource specialists do not fully understand the total human resource planning process. There can be little doubt that unless the human resource planning specialists develop a strong sense of purpose, they are more likely to fail. Lack of Support of Top Management : Manpower planning requires full and wholehearted apart from the top management. In the absence of this support and commitment, it would not be possible to ensure the necessary resources, cooperation and support for the success of the manpower planning. Insufficient Initial Efforts. : Successful human resource planning flourishes slowly and gradually. Sometimes sophisticated technologies are forcefully introduced just because competitors have adopted them. These may not be successful unless matched with the needs and environment of the particular enterprise. Resistance from Employees : Employees and trade unions often resist manpower planning. They feel that his planning increases their overall workload and regulates them through productivity bargaining. They also feel that it would lead to wide spread unemployment, especially of unskilled labour. Coordination with other Managerial Functions : There is generally a tendency on the part of the Manpower planners to Remain aloof from other operating Managers and to become totally absorbed in their own world. To be effective Manpower planning must be integrated with other management functions. Expensive and time Consuming : Manpower planning is an expensive and time consuming process. Employers may Resist Manpower planning feeling that it increases the cost of Manpower.

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Uncertainties : Labour absenteeism, labour turnover, trade cycles, technological changes and Market functions are the uncertainties which serve as constraints to human Resource planning. It is Risky to depend upon General estimates of Manpower in the face of Rapid changes in environment. Insufficient Information : In most of the Indian organizations human Resource information system has not been fully developed. In the absence of Reliable data it may not be possible to develop effective human Resource Plans.

(ix) PLANNING

GUIDELINES

FOR

EFFECTIVE

HUMAN

RESOURCE

Some of the steps that be taken to improve the effectiveness of human Resource planning are given below : Organised Effort : Human Resource planning function should be properly organized. A separate cell, section or committee may be constituted within the human Resource department to provide adequate focus, and to coordinate the planning efforts at various levels. Support of Top Management : To be effective in the long-run, human Resource planning must have the full support of Top Management the support from top Management is essential to ensure the Necessary Resources, cooperation and support for the success of human Resource planning. Size of Initial Effort : Human Resource planning fails because of lack of sufficient initial effort. To be successful, human Resource planning should start slowly and expand gradually. Development of Accurate Skills inventory, and preparation of Replacement chart are an integral part of Manpower planning. Coordination with other Management Functions : To be effective human Resource planning must be coordinated with other management functions. Unfortunately there is a tendency on the part of

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Manpower planners to become totally absorbed in their own world keeping aloof from the other operating managers. Integration with Organisational Plans : Human Resource planning must be based an organizational objectives and plans. This Requires development of Good Communication Channels between organization planners and the human Resource planners. In Indian Oil Corporation Ltd., such a communication is lacking and the human Resource plans are prepared in Isolation of the fundamental organizational plans. Involvement of Operating Managers : Human Resource planning is not a function of Manpower planners only. Successful human Resource planning requires a coordinated effort on the part of personnel department and the operating managers to develop human resource plans.

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