C H A P T E R

Marketing Practices in
Nepal 8
Learning Objectives
After completing this chapter, students will be able to:
Formulation and Implementation of Product Strategies;
Formulation and Implementation of Pricing Strategies;
Formulation and Implementation of Distribution Strategies;
Formulation and Implementation of Promotion Strategies;
Focus on Customer Value and Satisfaction;
 |
Chapter2 Human Resource Planning | 42
Formulation and Implementation of Product Strategies
A product is referred as a set of tangible and intangible physical
attributes. Mostly physical goods are manufactured and found in
Nepalese market. Agricultural product dominate the in the market.
Services products, advocacy, consultancy, event management etc.
intangible product is also emerging. Product strategies in Nepal is
taken as following;
i. Product variety: Big firms has applied various product lines. A
company like CG (Chaudhary Groups) has introduced various product
lines. They have invested in confectionery like noodles, biscuits, floor
etc. Electricity appliances like television, Ac, etc.
ii. Product Quality: Standardization and grading are conducted by
quality control authority of Nepal government. NS (Nepal Standard)
mark certification is necessary to prove quality product. Date of
manufacturing, date of expiry, Ingredients used, method to use etc
are compulsion in the product manufactured in Nepal.
iii. New product Development: Except very few business firms,
Nepalese business house prefer imitating or me too product. So, new
product development is very minimal in Nepal. This is because of less
available research and development budget. Most of product are
copied from Indian and Chinese well marketed product. Nepalese
entrepreneurs follow the concepts and ideas that are being used by
others firms which are being success in that field. They are just
modified products. If one business firm has successful in construction
of apartment and housing, a
number of firm appeared to
follow such trends.
iv. Branding
It refers to name, mark, sign,
symbol or combination of all
used in order to differentiate
products. In Nepalese market
different sorts of branding is
being used. Local brand like juju
curd of Bhaktapur, National
brand like shikar shoes, Nebico
biscuits, etc as well as
International brand like
Samsung, apple, Toshiba are available in Nepal. In Nepalese
marketing individual branding is popular such as firm Surya Tobacco
Company has adopted the individual brand name for its product like
Surya, Shikhar, Khukuri etc. Similarly, HULAS gives same brand or
use umbrella brand to all its products like HULAS biscuit, HULAS
basmati rice, HULAS steal etc.
v. Packaging:
Chapter2 | Human Resource Planning | 43
Packaging
is the one
of the
most
important
product
decision
that
Nepalese
firms

considered. Packaging is considered as tools

or medium of promotion as well. It is also
termed as silent sales person. Most of the product of Nepalese
products are designed such way that it induce the buyers. It is
designed very attractively. Bright colours, eye catching printing,
well-made material such as plastics, tin, aluminium foil, glass etc
which are imported from India and China are the some important
features of Nepalese packaging. Metallic pack is quite popular in
noodles industry.
vi. Labeling
Nepal Bureau of
Standards and
Metrology has
provided a directive
to all the Nepalese
firms that their
product must have
manufacturing
dates, expiry date
of product,
ingredients, market
retail price and
other necessary
information. It quite
mandatory to the
food and
confectionery
industries. Considering this fact most of Nepalese product use
informative label as well as descriptive label. Beside these label,
brand label and grade label are also applied. Consumer awareness is
also increasing in the context labelling. Consumer are now read the
labels before they buy the products.
44 | Foundations of Human Resource Management BBS 2nd Year

Characteristics of Human Resource Planning

Human resource planning ensures right kind of people at the right
time and at the right place. It controls cost of human labour and
formulates policies by balancing demand and supply of workers. Some
of the characteristics of human resource planning are explained
below:
Figure 2.1 Characteristics of HR Planning

On-going Process
Coordination in Demand & Supply
Action Programming
Long-term Strategic Planning
Future Oriented
Characteristics of
Goal Oriented
H.R. Planning
Time Period
Part of Corporate Plan
Productivity Oriented
Environmental Influences

[Source: Bhattrai, A. and Aryal, L.P. (2014), Human Resource Management]

1. OnGoing Process
Human resource planning is the on-going process of functioning
in an organization. The organizational plans, policies, procedures
and other organizational functions are to be used forever till the
existence of the organization rather than being a one shot affairs.
HRP helps an organization to achieve an organizational objective.
Once the objectives are achieved, an organization plans and
initiates for further objectives and again it goes on continuously.
2. Co-ordination in Demand & Supply
Human resource planning helps to determine demand and supply
of human resources in the organization. The co-ordination or
match between demand and supply is necessary to place a right
people at right time and at right number. The optimum level of
manpower is estimated by the coordination of demand and
supply.
3. Action Programming
Human resource plannings are made to keep the organizational
plans and policies into action. The perfect action planning is
necessary to achieve organizational objectives and which is
determined by the human resource planning.
4. Long-term Strategic Planning
The overall organizational strategies, plans and policies are
formulated for long-tern. The long term human resource planning
is necessary for determining the strategic plans and achieving
Chapter2 | Human Resource Planning | 45
objectives in an organization. Human Resource planning focuses
on implementing strategic plans for an organizational goal.
5. Future Oriented
Human resource planning is future oriented that is prepared to
assess the future requirement of manpower in the organization. It
forecasts for the estimation of right number and kind of people at
the right place and at the right time. This future oriented planning
evaluates the future requirement of manpower so that
organizational activities can run efficiently and effectively. There
is no obstacle to achieve the desired organizational objectives.
HRP helps to identify and estimate the size and composition of
human resource for future purpose.
6. Goal Oriented
Human resource planning is related with the organizational goal
achievements. It is goal oriented. The organizations have their
own specific goals to achieve and human resource planning plays
a vital role in achieving the organizational goals. Human resource
planning aims at fulfilling the objectives of manpower
requirements on the basis of organizational objectives.
7. Time Period
Human resource planning considers time period for every
organizational activities. The organizational objectives and
corporate planning of an organizational are based on certain time
frame. The short term and long term plans are made according to
the similar objectives. Short term plans are formulated for short
term objectives and long term plans are formulated for long-term
objectives of an organization.
8. Part of Corporate Plan
Human resource planning is a part of overall corporate plan of the
organization. These corporate plans can be formulated at
strategic, tactical and operational levels. The corporate plans
focus on predetermined objectives of the organization. Human
resource planning is prepared on the basis of corporate planning
of the organization. So it should have relation with corporate plan
to meet the organizational objectives.
9. Productivity Oriented
Human resource planning is productivity oriented. It emphasizes
on maximization of productivity of the organization. The best
utilization of human resources available in the organization
increase productivity. The skilled, efficient, capable and
knowledge human resources are necessary for productivity
increment. The human resource planning helps in proper and
46 | Foundations of Human Resource Management BBS 2nd Year
effective utilization of physical resources i.e. human resources
and that increases productivity.
10. Environmental Influences
Human resource planning is affected by the internal and external
environmental forces. Internal environmental forces can be
controlled by the organization however, external environmental
forces are not under the control of the organization. Human
resource planning is to be updated and formulated as per the
changing environmental forces.
Objectives of Manpower Planning
Human resource planning in an organization is essential to achieve is
necessary to meet organizational goals. Some of the objectives of
human resource planning are as follows:
Figure 2.2 Objectives of HR planning

Forecasting Human Resource Requirement

Effective Management of Change
Realizing Organizational Goals
Objectives of Promoting Employees
H.R. Planning Effective Utilization of Human Resources
Other Objectives

[Source: Bhattrai, A. and Aryal, L.P. (2014), Human Resource Management

1. Forecasting Human Resource Requirement

Human resource planning forecasts the future requirement of
skilled and capable human resources to meet the organizational
objective. HRP develop measures for proper utilization of
manpower and forecasts requirements of skilled and capable
human resources to meet the organizational objective.
2. Effective Management of Change
Human resource planning is fully effective in management
change. HRP helps in balancing the distribution and allocation of
human resources according to the changing management policies
and requirements. The changing environment should be easily
adopted by the organization easily with skilled and capable
human resources.
3. Realizing Organizational Goals
The objective of human resource planning is to maintain and
improve the organization's ability to achieve its goal by
developing strategies that will result in optimum contribution of
human resources. HRP develop procedures and techniques to
Chapter2 | Human Resource Planning | 47
determine the requirements of different types of manpower over
a period of time from the stand point of organizational goals.
4. Promoting Employees
Human resource planning formulates organizational policies to
encourage employees for better performance. If employees are
encouraged and motivated, it increases productivity and meet the
descried goals. HRP promotes employees in required place
according to their skills, knowledge ability and capacities.
5. Effective Utilization of Human Resources
Human resource planning ensures optimum and effective
utilization of human resources available in the organization. It
ensures the organization for the availability of necessary
resources when required. HRP makes arrangement for
procurement, promotion and retention of the effective human
resources.
6. Other Objectives
Human resource planning has many other objectives. It controls
the cost aspect of human resource. It analyze the dynamic
process of recruitment, promotion, and loss to the organization
and control these processes with a view to maximizing individual
and group performance without involving high cost.

Need and Importance of Human Resource Planning

Human resource planning determines right number of person at right
place and at the right time to achieve organizational objectives. The
human resource planning is important to interrelate business
strategies and its operations. It determines the action plan for
acquisition and development of human resource. The development of
globalization, competition, and changing business environment
increases the needs and importance of human resource planning.
Some of the needs and importance of human resource planning are
explained below:
Figure 2.3 Importance of HR planning

Foundation of Personnel Functions

Importance of Human Resource Planning
Future Personnel Needs
Objective Oriented
Utilization of Human Resources
Control of Human Resources
Acquisition of Human Resources
Development of Human Resources
Minimize Future Uncertainty
Demand for Specialist Skills
Environmental Changes
48 | Foundations of Human Resource Management BBS 2nd Year

1. Foundation of Personnel Functions

HR planning mix the program for various HR related activities
such as recruitment, selection, training, development, placement,
etc. It provides tools and procedures to perform various human
resource management functions such as acquisition,
development, motivation and maintenance.
2. Future Personnel Needs
The human resource planning estimates the future requirement of
the employees in an organization. It ensures the future
availability of human resources to carry out organizational
activities efficiently and effectively. It determines the future needs
of manpower in terms of number and quality.
3. Objective Oriented
Human resource planning itself is objective oriented. It is related
with goal achievements. The organization has their own specific
objective to achieve and human resource planning plays a vital
role in achieving those organizational objectives. Human resource
planning aims at fulfilling the objectives of manpower
requirements on the basis of organizational objectives.
4. Utilization of Human Resources
Human resource planning ensures the optimum and effective
utilization of human resources available in the organization. It
provides control measures to ensure better performance. HRP
determines standard for procurement, promotion and retention of
the efficient human resources. The optimum utilization of human
resources in the organization helps in minimizing the overall cost
of production.
5. Control of Human Resources
HR planning fixes standard to evaluate the performance of
individuals and determines the tools for effective control. To carry
out organizational activities, each organization needs people with
necessary qualifications, skills, knowledge, and ability.
6. Acquisition of Human Resources
Human resource acquisition involves the employment or
placement of the right number and right kind of work to the right
job at the right time and place. Human resource planning is the
part of acquisition function. It helps the human resource manager
to estimate human resource requirement in the organization.
7. Development of Human Resources
Chapter2 | Human Resource Planning | 49
HR planning prepare plans and allocate resources for HR
development. Human resource development increase the
competency level of employees to perform assigned task
efficiently and effectively. The training and development helps to
develop working efficiency of the employees. To increase
productivity and functioning in an organization, employees should
be provided with training, management development programs,
career development program, etc.
8. Minimize Future Uncertainty
The business activities should have to run with future uncertain.
Human resource planning helps to minimize future uncertainly by
forecasting the future situation. Environmental factors create
uncertainty in the business operation of an organization.
Globalization, technological changes, organizational restructuring,
diversity of job, legal provisions, etc. brings organizational
uncertainties. HR planning helps in organization to cope with
these environmental factors.
9. Demand for Specialist Skills
The performance and organizational activities increases only
when the organization has highly skilled and capable human
resources. Human resource planning ensures in recruiting and
selecting skilled and knowledgeable human resources in the
organization. The employees with special skill, knowledge and
capacity increase the job efficiency.
10. Environmental Changes
Human resource planning is important to cope up with the
uncertain environmental changes. The external and internal
environmental forces affects the organizational activities. The
technological changes, organizational charges, demographic
changes, political changes, legal changes, economic changes, etc
affects the overall organizational performances.

Problems of HR Planning
Human resource planning is very essential in the decision making and
forecasting employee requirement in an organization HRP is affected
by many factors, some of them are explained below:
Figure 2.4 Factors Affecting HR Planning

Lack of Skilled Resources

Separation of Employees
Factor Affecting Change in Organization Objectives
H.R. Planning Change in Policies

[Source: Bhattrai, A. and Aryal, L.P. (2014) Human Resource Management]

50 | Foundations of Human Resource Management BBS 2nd Year
1. Lack of Skilled Resources
The main problem an organization face is lack of skilled, trained
and capable human resources. Without skilled, well trained and
efficient human resources, an organization would not be able to
formulate proper plans and policies and cannot achieve the
targeted goals. The lack of skilled resources effect in human
resource planning and mainly in organizational activities.
2. Separation of Employees
Employees working in an organization have to be replaced who
have grown old, or who retire, die or become incapable because
of physical or mental aliments. In such situation, there must be a
preplanned human resource planning in the organization. These
uncertain separation of employees may impact overall
organizational planning and activities.
3. Change in Organization Objectives
When there is necessity of certain changes in the organizational
objectives of the organization, their requires new technology,
newly skilled and educated manpower, etc. IN such case, the
importance of proper human resource planning increase. Due to
organizational development, modernization and globalization,
newly skilled manpower is also required. So, human resource
planning affects the overall change in organizational objectives.
4. Change in Policies
The organizational policies and procedures are formulated
according to the necessity of the organization to achieve the
goals. The changes in policies are also make according to the
requirements. The new policies and activities in the organization
helps to enable employees motivation and achieve the
organizational goals. Human resource planning are affected by
the changing policies and procedures of the organization.

Concept of Human Resource Strategy

Strategy refers to the long term planning which helps in achieving the
organizational goals. Strategy provides a framework to an
organization to achieve organizational goals and objectives. Human
resource strategy helps management to anticipates and manage the
rapidly increasing changes which links with corporate strategy of the
organization. Human resource strategy is concerned with the long
range direction and long term human resource planning which is
prepared by focusing long term objectives and strategies of the
organization. It refers to the broad action plan designed to develop
practices, programs, and policies to accomplish the goals and
Chapter2 | Human Resource Planning | 51
objectives of HRM function in an organization by developing
HR Strategy
Human resource strategy competitive advantages.
helps management to
anticipates and manage Human resource strategy establish relationship between long range
the rapidly increasing human resource direction and business strategy to achieve
changes which links with
corporate strategy of the predetermined objectives. It integrates business strategy with specific
organization. long term scope of business activities, organizational structure,
system and control strategy which is concerned with the philosophy of
managing and mobilizing
human resource in the
organization for long term
goal achievement.
"Human resource strategy
means to accept the
human resource function
as a strategic partner in
the formulation of the
company's strategies, as
well as in the
implementation of those
strategies through human resource activities such as recruiting,
selecting, training and rewarding personnel" Gary Dessler

Characteristics of HR Strategy
Human resource strategy is an important means to implement
strategic plan to achieve predetermined goals and objectives of the
organization. In order to develop human resource strategy, an
organization should develop long term activities and long term
strategies. There are many characteristics of human resource
strategy. Few of the characteristics are explained below:
Figure 2.5 Characteristics of HR Strategy

Objective Oriented
Long term Strategy
Characteristics of HR Strategy Competitive Advantage
Environmental Adaptation

1. Objective Oriented
The human resource strategy formulated by an organization is
objective oriented. It focuses on organizational objectives and
supports the defined objectives of the organization.
Organizational objectives provide guideline to human resource
strategy.
2. Long term Horizon
52 | Foundations of Human Resource Management BBS 2nd Year
The human resource strategy in an organization focus an long
term arrangement of human resources to achieve long term
objectives. The long term strategy is important to specify long
term business activities, organizational structure, and system and
control strategy in an efficient and effective manner.
3. Follower of Corporate Strategy
Human resource managers prepare human resource strategy by
linking with corporate strategy through coordination with line
managers. The proper linkup between corporate strategy and
human resource strategy helps to achieve the organizational
goals. The interrelation with corporate strategy is to achieve long
term objectives along with the development of human resource
strategy.
5. Environmental Adaptation
The human resource strategy is developed for long term planning
and strategy. It helps to adopt and cope up with the changing
environment. The organizational strategies, plans, policies and
procedures are implemented on the basis of the changing
environment.
Relationship of HR Planning to Strategic Planning
Human resource planning is the estimation of demand and supply of
human resources for the accomplishment of desired organizational
goals and objectives in future. Effective human resource planning
involves long range development and utilization of talent of
employees.
Strategic planning is the
process of determining
the road map to pursue
the organizational long
term goals and objectives
with the available
resources in the
organization. It is a
comprehensive master
plan focused on long
range planning and goals.
It is a systematic
approach of analyzing
opportunities and threats in the environment, assessing
organizational internal strengths and weakness and identifying
opportunities of competitive advantages to enhance the efficiency
and organizational productivity.
Chapter2 | Human Resource Planning | 53
Natural resources, technological capacities, products, market share
and position are given close consideration in strategic planning
however human resource planning considers planning of personnel,
programs like training, development and recruitment. Strategic
planning is the basis of determination of human resource planning.
Human resource planning and strategic planning has very close
relationship and are correlated. It is because human resource
planning is an integral part of the overall corporate plan. Therefore,
the relationship between human resource planning and strategic
planning can be discussed under following two aspects:
Figure 2.6 Relationship between HR Planning and Strategic Planning

Follower Relationship
Relationship between HR Planning and Strategic Planning

Partner Relationship

1. Follower Relationship
Human resource planning is the sub-system of organizational
strategic planning. It is not a separate activity from corporate
strategic plan but is an integral part of the overall corporate plan
of the organization. The human resource planning follows the
guidelines provided by the corporate plan to initiate corporate
objectives of the organization and predetermined long term
objectives. Strategic planning is the basis of determination of
human resource planning. It is tailored to meet the overall
mission, vision and corporate strategic plan of the organization.

2. Partner Relationship
Strategic plan is prepared by focusing long term objectives of the
organization whereas human resource plan is a partner in the
formulation of the corporate strategic plan. When the HR plan and
strategic plans are formulated simultaneously, it is supposed that
they have partner relationship. Human resource planning has
strategic relationship with strategic planning because strategic
plans can be implemented only through the support of manpower.
The purpose of this relationship is to link HR activities with the
strategic plans to achieve organizational goals and objectives.
The relationship between an HR Planning and strategic planning can
be more clearly explained by the following diagram:
Figure 2.7 Impact of Business Planning on Human Resource Planning
Strategic Planning (Long-Range)
Operational Planning (Middle Range)
Corporate Philosophy Budgeting (Annual)
Planned Programmes Budgets
Business Planning
Environmental Scan & Constraints Organizational Strategies
Objectives and Goals Plans for entry into new business Performance goals
Programmes & assignments
Monitoring and controlling

Issue Analysis Forecasting Requirements Action Plans

Human Resource PlanningBusiness heads Staffing levels Staffing Authorization
External Factors Staffing Mix Promotion & Transfer
Internal Supply Analysis Organization & Job Design
Organizational Change
Management Implication Available/Projected Resource
Trading & Development
Net Requirements Compensation & Benefits
Labour Relations
54 | Foundations of Human Resource Management BBS 2nd Year

[Source : Casio, 1992 Human Resource Management]

i. Business plan includes strategic plan, operational plan and
budgetary plan which are determined to purse organizational
goals with the available resources.
ii. Human resource planning includes issue analysis, forecasting and
action plans which are incorporated by strategic planning to
achieve the goals and objectives of the organization.
Approaches to Human Resource Planning
Human resource planning is the process of forecasting the required
human resource in the organization to perform a specific task and to
achieve the organizational objectives. It estimates the future demand
and supply of human resources in the organization. HR planning pre
determines the right number of people at right time, and right place.
It establishes job specifications and job descriptions of employees for
future performance. The approaches of human resource planning are
classified in following categories:
Figure 2.8 Approaches to Human Resource Planning

Quantitative Approach/Top-Down Approach

Approach to Qualitative Approach/Bottom-Up Approach
HRP
Mixed Approach

1. Quantitative or Top-Down Approach

This approach is also known as hard approach, top-down
approach, management-driven approach and traditional
approach. It is an approach of human resource planning under
which top level management determines activities of different
Chapter2 | Human Resource Planning | 55
levels and estimates how many employees would be required in
every level in the organization. The basic requirements of

employees such as numbers, skill and efficiency, authority, and

responsibility are determined by the top level management. This
approach is based on human resource management information
system, human resource inventory, succession planning, and job
analysis. The demand for human resource is forecasted using
various demand forecasting tools and techniques such as trend
analysis, mathematical models, econometric models, Markov
analysis, statistical models, work study techniques and so on.
This approach focuses on forecasting human resource shortages
and surpluses. The approach can be more clearly explained by
following figure:
Figure 2.9 Quantitative Approach of HR Planning

Human Resource Planning

Based on:
Company's Goals & Objective
Business Strategies
Required Budget

Estimation of Human Resource Demand Estimation of Human Resource Supply

Estimation of Right Number of Employees in the Right Place at the Right Time
56 | Foundations of Human Resource Management BBS 2nd Year

[Source: Adhikari, D.R. (2009), Human Resource Management]

2. Qualitative or Bottom-up Approach

This approach is also known as soft approach, bottom-up
approach, employee-driven approach and modern approach. This
is an approach under
which employees or sub-
ordinates or lower level
managers formulate
human resource planning
on the basis of their
requirement and
forwarded to upper level
to prepare the draft of HR
planning. This approach
focuses on employee's
training, development, creativity, quality and efficiency rather
than number of employees. The primary focus is given on the
individual employee so, it is considered to be more practical.
Since, this approach is employee based, the human resource
planning are formulated by focusing on specific skill, efficiency,
knowledge, training, ability and experience of employees of the
organization to complete the given task and meet goals and
objectives. This approach gives primary focus on compensation
and incentives, employee safety and welfare, motivation, work
flexibility, promotion, career planning, quality of life, etc. The
demand for human resource is forecasted using managerial
judgement and forecasts by experts techniques. This approach
can more be clear with the help of following diagram:
Figure 2.10 Qualitative Approach of HR Planning

Human Resource Planning

Based on:
Company's Goals & Objective
Business Strategies
Required Budget

Estimation of Human Resource Demand and Supply Employees Related Different Functions
Employees Safety & Welfare
Training & Development
Motivation for Productivity
Career Development
Compensation Management
Reward System etc.

Conformation about Right Employee at a Right Job

Chapter2 | Human Resource Planning | 57

[Source : Adhikari, D.R. (2009), Human Resource Management]

3. Mixed Approach
This is the combination of top-down approach and bottom-up
approach of human resource planning. There is equal
participation of each level of employees of the organization, so,
this approach is also known as participative approach. Corporate
objectives and strategies of the organization are determined by
top level management and provide suggestion, guidance and
information to other employees. This approach tends to produce
the best result that ever produced by either of the methods so, it
can be regarded as an management by objective (MBO) approach
of human resource planning. The efforts and activities are binded
up between all levels of manager in this approach.

Human Resource Planning Process

HR Planning Process The process of human resource planning is one of the most crucial,
HR planning process is a complex and continuing managerial functions through which the
continuous process which organization anticipates future business and environmental forces.
attempts to provide
sufficient manpower Due to the increase in the size of business enterprises, complex
required to perform production technology, and the adoption of professional management
organizational activities technique, the human resource planning process has been important
with identification of
human resource
for the organization. HR planning process is a continuous process
objectives to the which attempts to provide sufficient manpower required to perform
implementation of plans organizational activities with identification of human resource
and policies. objectives to the implementation of plans and policies. This process
has many steps as follows:
Figure 2.11 Process of Human Resource Planning

Understand Organizational Objectives & Strategic Plans

Assessing Current Situation of Human Resources

Forecasting Human Resource Demand

Forecasting Human Resource Supply

Matching Demand and Supply Forecast

Developing Action Plans and Policies

Implementation of Action Plans, Policies & Programmes

Control and Evaluation

58 | Foundations of Human Resource Management BBS 2nd Year

1. Understand Organizational Objectives & Strategic Plans

Human resource planning helps to determine objectives and
strategies of the organization to maximize the future return on
investment in human resources. It ensures in matching
employees abilities to enterprise or organization's requirements
with an emphasis on future instead of present arrangement. The
long term objectives and strategic plans should be planned to run
the organization smoothly and efficiently. Long term planning and
strategic planning help to meet the organizational goals and
objectives with the efficient workforce in an organization.
2. Assessing Current Situation of Human Resources
In this step the planner assesses the present situation of HR
inventory. The assessment of human resource is done within the
parameter of external and internal environment. This step
analyzes the availability of present human resources in the
organization. Human resource inventory, human resource
information system (HRIS) and job analysis techniques are used
to assess current situation of human resource in an organization.
3. Forecasting Human Resource Demand
Human resource demand forecasting is concerned with estimation
of human resource requirement for future in the organization.
Demand forecasting deals with future needs for human resource
in terms of quantity and quality. Forecasting of human resource
demand is done to meet the future personnel requirements of the
organization to achieve goals and objectives. It is the time-bound
process of determining future needs for human resources. There
are various factors affecting human resource demand such as
external environmental forces, organizational objectives,
corporate plans, succession plan, and availability of manpower
and so on.
Some of the techniques used for human resource demand
forecasting are managerial judgment, Delphi technique, statistical
Chapter2 | Human Resource Planning | 59
methods, survey methods, nominal group techniques, financial
statement analysis, etc.
4. Forecasting Human Resource Supply
Forecasting human resource supply is concerned with estimation
of supply of manpower in the organization. It deals with the
availability of workforce inside and outside of the organization.
Internal supply source involves promotion, transfer, emphasis
skills, job enlargement, job enrichment. The external sources
involve the recruitment of new human resources with proper skill,
knowledge and capacity. These human resources are from outside
sources such as employment exchange, vocational institutions,
training institutions, etc. The internal forces and external forces
effect human resource supply forecasting. Some of the
techniques used in forecasting human resource supply are
managerial judgement, Markov analysis, replacement chart,
succession planning, statistical methods skill inventories, etc.
5. Matching Demand and Supply Forecast
The demand and supply forecasting are meet together at a
equilibrium position so that shortages and over staffing position
will be solved. The matching of demand and supply forecast is
done to determine future requirements of human resources. More
employees are hired if there is shortage and if there is over
staffing, employees are reduced the level of existing employment.
6. Developing Action Plans and Policies
This step refers to the development of human resource plans and
policies which consists in finding out the sources of labour supply
with a view to make an effective use of these sources. These
action plans and policies are developed executed through the
designation of different human resource activities. These action
plans include recruitment, development, retention, redeployment,
redundancy, promotion, succession, placement, etc.
7. Implementation of Action Plans, Policies & Programmes
The plans and policies developed are approved from top level
management. After the approval, the action plans, policies and
programmes are implemented to achieve the organizational goals
and objectives. Action plans such as recruitment, selection and
placement, career planning, promotion, transfer, training and
development, motivation and compensation, performance
evaluation, etc. are implemented in this step. All implemented
plans, policies and programmes are to be followed by the
employees to improve performances.
8. Control and Evaluation
60 | Foundations of Human Resource Management BBS 2nd Year
The control and evaluation of performance of human resource are
done at the final step to check whether the human resource
planning matches the human resource objectives and policies.
Once the action plans are implemented, that should be updated
time and again according to change in time, conditions and
environment. The control and evaluation can be done by
reviewing plans, policies, strategies and objectives.

Assessing Current Human Resources

The assessment of current
human resource position in the
organization is the beginning
of human resource planning. It
is done through the analysis of
current HR inventory. It is the
assessment of skill and ability
present available in the
organization. Current situation
of HR inventory is available
through human resource information system (HRIS). Job analysis also
provides information about jobs that are presently done. Strength and
weakness of HR inventory should also be analyzed. The following tools
are used to assess current human resources in an organization:
Figure 2.12 Assessing Current Human Resource

Human Resource Inventory

Human Resource Information System

Assessing Current Human Resources

Succession Planning

Job Analysis

1. Human Resource Inventory

Human resource inventory consists overall information about the
quality and quantity of organizational employees, their
qualifications, skills, capacity and experiences. It has a huge
inventory of employees data such as name, age, address,
education, work experience, training and development,
performance, compensation, transfer, language, demotion etc.
while assessing current human resources, HR inventory provides
crucial information for identifying current and future threats and
opportunities to the organizational performances. It is the method
Chapter2 | Human Resource Planning | 61
of describing competencies currently available in the
organization.
2. Human Resource Information System (HRTS)
The human resource information system (HRIS) is one of the
computerized and newly developed system that provides human
resource information timely and accurately. It collects, stores,
maintains, retrieves, analyzes and validates data required by the
organization about their employees and their performances. It is a
huge data base where relevant information about human
resources are stored, analyzed, manipulated, interpreted and
disseminated. Some of the major area of application of HRIS
include training management, risk management, turnover,
performance appraisal, etc. HRTS provides data and facts of the
organizational employees to facilitate human resource planning
HRIS include data of employees such as personal data, skill data
position data compensation data, performance data and many
more.
3. Succession Planning
Succession planning is a process of understanding and
anticipating changes in function and new technologies that
impact on future job requirements. It determines the skill,
knowledge, ability, aptitude, values, motivation, initiative, self-
control, work style and attitude that contribute to exemplary job
performance. Succession planning continually monitor skills and
needs to determine any gaps and develop plans to meet
deficiencies. It identifies the job competencies that will be
required for future positions in the organizations by analyzing the
differences between current employee competencies and future
organizational needs. It helps to prepare competent person for
higher vacant posts.
4. Job Analysis
Job analysis is a procedure of defining jobs within the organization
and behaviour and personal qualities of the employees required
to perform assigned jobs. It is a detailed and systematic study of
information relating to the operations and responsibilities of a
specific job. Job analysis is the determination of the tasks which
comprise the job and of the skills, knowledge, abilities and
responsibilities required of the worker for a successful
performance and which differentiate one job from all other. It is a
complete study of job, embodying every known and determinable
factor, including the duties and responsibilities involved in its
performance, the conditions under which the performance is
carried on, the nature of the task, the qualities required in the
worker, and such conditions of employment as pay, hour,
62 | Foundations of Human Resource Management BBS 2nd Year
opportunities and privileges. (Mamoria, and Gankar, (2011)). The
purpose of job analysis is to prepare job description, job
specification and job design. Job description is a written record of
duties and responsibilities of a particular job which involves job
title, location, post, etc. Job specification is a standard of
employees attribute and qualities required to perform a task. Job
design is a approach in which the total task is divided or specified
into the manageable and efficient units.

The Role of Information System in HR Planning

Information System in HR Human resource information system assists the overall processing
Planning information of human resources planning. The information required
Human resource
information system plays
for human resource planning are stored in a database, system called
a vital role in human information system. The information can be retrieved as requirement.
resource planning. It is designed to acquire, store, retrieve, manipulate, analyze,
interpret, and disseminate relevant information about human
resources. The human resource planning is based on the available
information in HRIS. Human resource information system plays a vital
role in human resource planning. The roles of human resource
information system in human resource planning are explained below:
Figure 2.13 : The Role of Human Resource Information System in HRP

Human Resource Inventory Information Role

Human Resource Forecasting Role

Roles of Human Resource Information System

Human Resource Planning Role

Human Resource Action Role

Human Resource Analytical Role

[Source: Bhattrai, A. and Aryal, L.P. (2014) Human Resource Management]

1. Human Resource Inventory Information Role

Human resource inventory is a database of human resource skills
who are currently employed in the organization. It keeps important
information about employees in central and easily accessible
location. HR inventory stores information of employees such as
name, age, qualification, training, experience, performance salary,
language, specialized skills, job location, etc. These personal
information, skills and position information compensation and
other information of employees makes easier to formulate human
resource planning. Human resource inventory guides for
Chapter2 | Human Resource Planning | 63
considering opportunities for diversification and expansion of
operations.
2. Human Resource Forecasting Role
Human resource information system is used for forecasting future
requirements of human resource demand and supply in the
organization. It forecasts future demand and supply of employees
to ensure the right person, at the right place to perform the
organizational activities. The information started in the HRIS help
to forecast plans accurately so that it helps to meet the
organizational goals and objectives. While forecasting various
forecasting tools are used such as statistical tools, mathematical
tools, econometric tools, Markov analysis, etc.
3. Human Resource Planning Role
To have an effective and efficient human resource, planning, an
organization should have many other planning such as succession
planning, placement planning, training and development planning,
etc. On the basis of the information available about the employees
performance and the organizational working environment, various
plans are formulated and implemented by te organization.
Information system becomes as one of the important part for
human resource planning in an organization. The various planning
formulate help in improving performances of the employees and
organization.
4. Human Resource Action Role
Human resource data is used for implementing the human
resource plans and corporate plans of an organization into action.
Once the human resource plans are developed, they are put into
action for welfare of employees and for improving organizational
performances. HRIS helps human resource planning to implement
in action. The information provided and stored in information
system should be matched with the action plans implemented in
the organization.
5. Human Resource Analytical Role
Human resource information system is important for conducting
job analysis. Job analysis determines the jobs currently being
done. It includes job description, job specification and job
enlargement. Job description includes responsibilities, authority,
accountability, productivity, relationship and environment of a job.
Job specification specializes skills, knowledge and experience of
an employee required for a job.

Techniques of Forecasting HR Demand and Supply

64 | Foundations of Human Resource Management BBS 2nd Year
Human resource demand forecasting refers to the process of
estimating future need of human resource requirement in an
organization. It makes estimation of quantity and quality employees
requirement for future jobs. The demand forecasting changes
according to the change in business activities is an organization.
External environment includes political, legal, economical, socio-
cultural, and technological changes where as internal factors include
organizational objectives, straits, growth, design, leadership style, etc.
There are many factors affecting human resource demand forecasting
such as external environment, organizational objectives, corporate
plans, succession plan, availability of human resources etc.
1. Techniques of Forecasting Human Resource Demand
Some of the techniques used for forecasting human resource demand
are explained below:
Figure 2.14 Techniques of Human Resource Demand Forecasting

Managerial Judgement
Survey Method
Delphi Technique
Techniques of Demand Forecasting Nominal Group Technique
Statistical Methods
Work Study Technique

1. Managerial Judgement
Under this managerial judgement technique, the managers
having knowledge about organizational structure, activities and
performance estimate the demand of human resource in future
for the organization. In this techniques top management decides
volume of HR in terms of quality and quantity. This is the most
typical method which is based on the experience of managers.
The managerial judgements are of following types:
a. Bottom-Up Approach: This is approach under which employees
or subordinates or lower level managers formulate human
resource planning on the basis of their requirement and
forwarded to upper level to prepare the draft of human resource
planning.
b. Top-Down Approach: This is an approach of human resource
planning under which top level management determines activities
of different levels and estimates how many employees would be
required in every level in the organization.
c. Participative Approach: This is an approach in which both top
level managers and lower level managers work together and
Chapter2 | Human Resource Planning | 65
formulate human resource planning to achieve organizational
goals and objectives by linking up HR activities with strategic
plans.
2. Survey Method
In this method, human resource experts
conduct a survey of line managers and
collect information about requirement of
human resource demand in future. The
survey is conducted by using different
means such as questionnaire, interview,
group discussion and so on. The
information collected are analyzed to forecast requirements of
human resources in the organization.
3. Delphi Technique
In this technique, a group of HR experts give their judgements
and opinions about requirements of human resource in near
future to the organization. Experts are not face-to-face. They work
separately and opinions are collected by a mail questionnaire.
These opinions and responses are solicited again and again. The
responses and feedbacks are provided to exports by an
intermediary. The process is repeated up to three to four rounds
to finalize consensus to a final report.
4. Nominal Group Technique
In this technique experts are hired to generate creative
innovative ideas for forecasting human resource demand. In this
experts sit face-to-face in a group. In this techniques, there are
two stages. In the first stage member generate ideas in the
problem forwarded by the coordinator of the group. Similarly, in
the second stage, the generated ideas are interacted in the group
to comment and clarify the ideas. The idea with highest ranking is
selected.
5. Statistical Methods
This is a method of forecast demand of human resource for a
short period of time. Among many techniques of forecasting
human resources, statistical method can be used on the basis of
nature of information. Under this method various tools involve
such as extrapolation, indexation, regression analysis, linear
analysis, econometric models, Markov analysis, work study
techniques, computer programs, etc. these tools are used
depending on the type of information and data of human resource
demand.
6. Work Study Technique
In this technique HR forecasting is made by analyzing the work of
the organization. By analyzing the work, working hours are
66 | Foundations of Human Resource Management BBS 2nd Year
decided on the basis of HR requirement and that is to be
forecasted.
2. Techniques of Forecasting Human Resource Supply
Human resource supply forecasting refers to the process of
estimating future sources of human resources in an organization. It
estimates the availability of human resources in the organization from
inside and outside environment. Internal supply of human resources
involves effective mobilization of present HR inventory. Internal
supply is made through promotion, transfer, training and
development. In the similar way, external supply includes those
human resources who are not currently involved in the organization
and the process of recruiting new employees to fill-up vacancies.
These sources include colleges, universities, training institutions,
labour market, outsourcing, etc. There are various methods and
techniques available in forecasting human resource supply. The
following are the techniques used in forecasting human resource
supply.
Figure 2.15 Techniques of Human Resource Supply Forecasting

Managerial Judgement
Succession Planning
Markov Analysis
Techniques of Human Resource Supply Forecasting
Statistical Methods
Replacement Chart
Skill Inventories

1. Managerial Judgement
Managerial judgement is such technique in which decision about
human resource supply is made by experience of manager or
management experts. The skills, knowledge, experiences, and
ability of managers make easy to judge human resource supply
forecasting. These managerial judgements are based on the data
and information collected from business activities and experience
which provides easy assess to forecast human resource supply for
future requirement. This may not be the accurate means of
judging since it is the traditional one and based on rule of thumb
approach.
2. Succession Planning
Under this technique a person prepared to hold higher vacant
position by providing opportunities to learn and exposure the
candidate is prepared for future requirement of higher position.
3. Markov Analysis
Chapter2 | Human Resource Planning | 67
In this method, the human resource supply is forecasted in a flow
model which shows the percentage of employees who remain in
each job from one year to the next and continuous. This helps to
know the placements or movements of employees from one job to
another. Markov analysis determine time horizon of human
resource planning for estimating the probability of transitions
from one category to another based on past trends. It determines
overall movement of employees that occur due to promotion,
transfer, resignation and termination which helps to estimate
human resource supply forecasting.
4. Statistical Methods
The various kinds of statistical and mathematical tools are used to
determine human resource supply forecasting being based on the
nature of information available. The supply of human resource is
forecasted by using various tools such as extrapolation,
indexation, regression analysis, linear programming, econometric
models, Markov analysis, work study techniques, computer
programs, etc. These tools are used being based on the
appropriate data and information to deterring human resource
supply forecasting in an organization.
5. Replacement Chart
Replacement chart helps to know the work profile of the
employees on the basis of the department they are involved in. it
describes the organizational structure along with various
managerial and professional positions. The process of filling the
vacancies from internal sources can be determined from
replacement charts. The replacement is made on the basis of skill,
knowledge and ability of the employees in the required vacant
post so that it can estimate future requirement of human resource
supply in an organization.
6. Skill Inventories
The skills, abilities, experience, knowledge and career desire of the
employees are assessed in skill inventory. The skill inventory
includes information of employees such as new skills, additional
qualifications, changed job duties, etc. These data and
information should be updated at the end of each fiscal year.
According to the data and information available in skill inventory,
the supply of human resource forecasting are determined so the
information should be confidential. Skill inventory helps to place
the right number and kind of people at the right time and at the
right job according to the requirement.
68 | Foundations of Human Resource Management BBS 2nd Year

Human Resource
Inventory
HR Inventory Human resource
inventory
The human resource consists
inventory stores the up-
of data
to-date information of
and
information
their employees for the of
future purpose.
employees working
in an organization.
The human resource
management stores
the up-to-date
information of their
employees for the
future purpose. The
HR department
keeps the record of employees which include name, age, sex,
education, training and development, experiences, skills, ability,
knowledge, language, performance, special skills, etc. These
information are of all managerial and technical level employee
working in the same environment of an organization. The data and
information stored helps to utilize people according to their ability.
Human resource information system (HRIS) helps HR managers to
understand the position of HR inventory. HR inventory includes
following information about the employees.
1. Personal Information
It includes personal information of the employees such as name,
age, sex, marital status, address family members, date of birth,
children, etc.
2. Academic information
It includes information of formal education of employees, schools
and colleges.
3. Experience information
It includes information of job experiences of the employees.
4. Training and Development Information
It includes employees training and development programs
attended information.
5. Compensation Information
It includes current salary, salary history, bonus, overtime
payments, tax information of the employees.
6. Other Information
It includes other information of employees such as language,
hobbies, interest, beliefs, religion, etc.
Chapter2 | Human Resource Planning | 69
These all information of the employees help the HR manager to
plan in a better and in an effective way.

Benefi ts of Human Resource Inventory

As human resource inventory being a place to store data and
information of employees such as personal information, academic
experience, training and development information etc, it has many
benefits to an organization. Some of the benefits regarding HR
inventory are listed below:
1. HR inventory helps to easy assess of current human resource
position of the organization.
2. HR inventory facilitates HR managers to forecast human resource
demand requirement for future performance for the organization.
3. HR inventory facilitates HR managers to estimate and determine
human resource supply in the organization.
4. HR inventory helps in better and effective human resource
planning.
5. It helps HR manage to make appropriate decisions regarding
utilization of available human resources.
6. HR inventory helps to find out opportunity and threats from the
changing external environment.
7. In overall, HR inventory facilitates efficient employees retention in
order to support the business sustention and development.

Human Resource information System (HRIS)

HR Information System HRIS is designed to provide quick information about the employees
HRIS is designed to working in the organization. It includes information on all employees
provide quick information (locally and across the national) currently in the organization and
about the employees
working in the provides computerized information about the positions and skill
organization. available. HRIS has been implemented to assist HR inventory of looks:
Jobs currently being done: Job requirement People doing those job:
people requirement HRIS is designed to collect, analyze, state,
retrieve and disseminate information about jobs and employees.
Contents of HR information System
1. Personal Data: Name, address, date of birth, marital status,
children, next of kin etc.
2. Skills Data: Educational qualifications, training receives,
language spoken, capabilities, special skills etc.
3. Position Data: Current position, occupational history, various
jobs held in other organization, work location etc.
4. Compensation Data: Current salary, salary history, bonus
overtime payments, deductions from salary, tax information,
award received etc.
5. Performance Data: Current & past performance appraisal data.
70 | Foundations of Human Resource Management BBS 2nd Year
Uses of HR Information System
1. Human resource inventory development
HRIS saves as data-base for developing HR inventory. This
inventory provides data about the skill of HR employed by the
organization.
2. HR Forecast
HRIS data can be useful for forecast of future HR demand and
supply of provides data for different statistical and mathematical
looks. They are trend analysis, extrapolation, econometric etc.
3. HR Development
HRIS data can be used for identifying persons for training,
development, promotion and transfer. It can also be used for
succession planning.
4. Job Analysis
HRIS is the basis for conducting job analysis. Job analysis consist
of defining:
Works that make up the job: Job description
Knowledge, skill and abilities needed to accomplish the job
specification.
Succession Planning
Succession planning is
Succession Planning
Succession planning is the process of
the process of forecasting forecasting future
future demand of
managerial HR. demand of managerial
HR. it ensures that the
organization has
individuals ready to
move into position of
higher responsibility.
This is a special type of
planning used to force-
cast potential
managerial for future
promotion in the higher management level. To fulfill managerial
vacancies in the organization potential middle and upper level
managers are selected for future promotion. This type of planning
generally done for middle and top level managers.
Anticipating managerial staffing needs in future for key position.
Making plans for the development of managerial to meet those
needs internally.
Vacant will be made in fluency due following reasons:
Chapter2 | Human Resource Planning | 71
Retirement, resignation, promotion, transfer, death succession
planning identifies high potential employees as a success to key
jobs. It is a proactive (controlling a situation by making things
happen rather than waiting for things to happen) process. it
builds on employee bank.
Management succession plan shorts probability vacancies in future.
So it helps to develop the people to meet that vacancy. To develop the
people following programme can be conducted.
Training & management development
Special assignment
Job rotation
Under study manage
Others means: Workshop, seminar, to provide opportunity to put
his idea in the group, classroom lector, etc.

Benefi ts of Succession Planning

1. It encourage hiring from within the organization for management
parts that are likely to be account.
2. Career planning is done for employees. Employees have careers,
not mealy jobs.
3. Managerial shortages and skill deficiencies are predetermined
plans can be prepared for developing managers.
4. Qualified people are systematically placed in the right jobs.

Management Succession Plan

Organization: Date:
Probability of Vacancy
Within 1 year A
Within 1-3 years B
Within 3 years C

Position incumbent A B C Contingenc

(Name of Manager) y Plan

Source: French Wendels (1997) Human Resource Management

Human Resource Planning in Nepalese Organization

The practice of human resource planning is not in effective in most of
the Nepalese organizations. The use and effectiveness of human
resource planning has not been prioritized. The huge industrial and
investment sectors have not been able to be well opened and settled.
Many organizations have been established in cooperation with either
government fund or international donations, due to lack of proper
human resource planning they have been facing many problems such
72 | Foundations of Human Resource Management BBS 2nd Year
as overstaffing. Nepalese organizations are suffering from over
appointment of unskilled manpower through political parties and
higher level authorities. Nepalese organizations are formulating the
HR plan in
temporarily basis.
There is a practice
of recommending
for jobs form
powerful
promoters,
members of
management
committee, higher
level authorities
and other
favoritism. Many
government offices and public enterprises are suffering due to
overstaffing. Such referred over-appointment of unskilled employees
has suffered and badly affected the Nepalese organization. But still
some Nepalese organizations have been better in human resource
planning. Organizations such as banks, finance companies, hospitals,
hotels, telecommunications, etc. have system of human resource
planning. The common human resource planning practices in
Nepalese organizations can be explained in following:
Figure 2.16 Techniques of Human Resource Supply Forecasting

Poor Human Resource Planning

Lack of Assessment of Current Human Resource

Lack of Demand Forecasts

Assessing Current Human Resources Lack of Supply Forecasts

Mismatch of Demand and Supply

Over Staffing

Political Interferences

Neglected by Private Organization

1. Poor Human Resource Planning

The human resource planning system is poor in most of the
Nepalese organizations. They are not formulating human resource
planning properly. There is no connection between strategic
planning and human resource planning for decision making in the
Chapter2 | Human Resource Planning | 73
Nepalese organization. Most of the private organizations of Nepal
are managed by family member of the owner. They are not
paying any interest on HR planning. Most of the public enterprises
are suffering from over staffing they are neglecting HR planning.
The public enterprises of Nepal are pressurized by over supplied
by unskilled manpower.
2. Lack of Assessment of Current Human Resource
Assessment the current HR inventory is essential for effective HR
planning but there is no proper system to asses present HR
inventory in Nepalese organization. It identifies the current
availability of skilled and knowledge human resources. The
Nepalese organization lack human information system for storing,
retrieving and collecting, required information about the
employees. An organization need up-to-date information of their
employees but Nepalese organization lack effective human
resource information system for assessing the current availability
of human resources. Effective job analysis, job descriptions,
specifications and job enrichment lacks in Nepalese organization.
3. Lack of Demand Forecasts
The Nepalese organizations lacks forecasting quality and quantity
demand of employees. It is difficult to predict the human resource
requirement in terms of number and skills of people required.
Forecasting of human resource demand is done to meet the
future personnel requirements of the organization to achieve
goals and objectives. Nepalese organizations lack determination
of future needs for human resources. This effects in developing
strategic plans and human resource plans in the organization.
4. Lack of Supply Forecasts
In Nepalese organizations there is lack of proper forecasting of
human resources supply. It estimates the supply of manpower or
deals with the availability of workforce inside and outside of the
organization. There is lack of proper system of promotion, transfer
and addition of job responsibility among the existing employees
on the basis of their skill and efficiency.
5. Mismatch of Demand and Supply
It is necessary to match both demand and supply so that
shortages and over staffing position will be solved. Most of the
Nepalese organization suffer from over staffing so it is necessary
to match demand and supply. Most of the Nepalese organizations
do not have proper human resource planning so that there occur
mismatch between demand and supply of human resources.
6. Over Staffing
74 | Foundations of Human Resource Management BBS 2nd Year
Most of the government offices and public enterprises of Nepal
are suffering from over staffing. The reason of over staffing is to
appoint manpower from political parties when the government
changes the worker of political parties are entered in the
organization.
7. Political Interferences
The political situation of Nepal is unstable it keeps on changing
time and again. In most of the Nepalese organizations, the
appointment of new employees is done under the influence of
those executives who are appointed through the government
recommendation. This recommended employees with less skills
and less knowledge makes the human resource planning passive.
There has been a tendency of recruiting employees through
recommendation of political leaders or any political particles. This
type of government and political intervention hampers in human
resource planning of the organization.
8. Neglected by Private Organization
Most of the private organizations of Nepal think that human
resource planning is time consuming and costly, so they ignore it.
They recommend their close relatives as their company
employees which lessens the recruitment from outside of the
organization. Due to the neglected implementation of human
resource planning by the private organizations in Nepal, it has
affected the overall productivity and performances of the
organization.
Chapter2 | Human Resource Planning | 75
CHAPTER SUMMARY
Concept of Human Resource Planning
Human resource planning is also known as manpower planning. Human
resource planning is the process by which a management determines how an
organization should move from its current manpower position to its desired
manpower position. It is concerned with predetermination of the number and
kind of human resources required in an organization, for a specific time period
in the future. Human resources are utilized to the maximum possible extent in
order to achieve individual and organizational goals. An organization's
performance and resulting productivity are directly proportional to the
quantity and quality of its human resources. Human resource planning
forecasts future demand of an organization and supply the right type and
right number of employees, at the right time, at the right place to perform the
organizational functions effectively and efficiently.

Characteristics of Human Resource Planning

Human resource planning ensures right kind of people at the right time and at
the right place. It controls cost of human labour and formulates policies by
balancing demand and supply of workers. Some of the characteristics of
human resource planning are explained below:
OnGoing Process
Co-ordination in Demand & Supply
Action Programming
Long-term Strategic Planning
Future Oriented
Goal Oriented
Time Period
Part of Corporate Plan
Productivity Oriented
Environmental Influences

Objectives of Manpower Planning

Human resource planning in an organization is essential to achieve is necessary to
meet organizational goals. Some of the objectives of human resource planning are as
follows:
Forecasting Human Resource Requirement
Effective Management of Change
Realizing Organizational Goals
Promoting Employees
Effective Utilization of Human Resources
Other Objectives

Need and Importance of Human Resource Planning

It determines the action plan for acquisition and development of human
resource. The development of globalization, competition, and changing
business environment increases the needs and importance of human resource
planning. Some of the needs and importance of human resource planning are
explained below:
Foundation of Personnel Functions
Future Personnel Needs
Objective Oriented
Utilization of Human Resources
76 | Foundations of Human Resource Management BBS 2nd Year
Control of Human Resources
Acquisition of Human Resources
Development of Human Resources
Minimize Future Uncertainty
Demand for Specialist Skills
Environmental Changes

Problems of HR Planning
Human resource planning is very essential in the decision making and
forecasting employee requirement in an organization HRP is affected by many
factors, some of them are explained below:
Lack of Skilled Resources
Separation of Employees
Change in Organization Objectives
Change in Policies

Concept of Human Resource Strategy

Human resource strategy establish relationship between long range human resource
direction and business strategy to achieve predetermined objectives. It integrates
business strategy with specific long term scope of business activities, organizational
structure, system and control strategy which is concerned with the philosophy of
managing and mobilizing human resource in the organization for long term goal
achievement.

Characteristics of HR Strategy
Few of the characteristics are explained below:
Objective Oriented
Long term Horizon
Follower of Corporate Strategy
Environmental Adaptation

Relationship of HR Planning to Strategic Planning

The relationship between human resource planning and strategic planning
can be discussed under following two aspects:
Follower Relationship
Partner Relationship

Approaches to Human Resource Planning

It establishes job specifications and job descriptions of employees for future
performance. The approaches of human resource planning are classified in
following categories:
Quantitative or Top-Down Approach
Qualitative or Bottom-up Approach

Human Resource Planning Process

HR planning process is a continuous process which attempts to provide
sufficient manpower required to perform organizational activities with
identification of human resource objectives to the implementation of plans
and policies. This process has many steps as follows:
1. Understand Organizational Objectives & Strategic Plans
2. Assessing Current Situation of Human Resources
3. Forecasting Human Resource Demand
4. Forecasting Human Resource Supply
5. Matching Demand and Supply Forecast
Chapter2 | Human Resource Planning | 77
6. Developing Action Plans and Policies
7. Implementation of Action Plans, Policies & Programmes
8. Control and Evaluation
Assessing Current Human Resources
Strength and weakness of HR inventory should also be analyzed. The
following tools are used to assess current human resources in an
organization:
Human Resource Inventory
Human Resource Information System (HRTS)
Succession Planning
Job Analysis

The Role of Information System in HR Planning

The roles of human resource information system in human resource planning
are explained below:
Human Resource Inventory Information Role
Human Resource Forecasting Role
Human Resource Planning Role
Human Resource Action Role
Human Resource Analytical Role

Techniques of Forecasting HR Demand and Supply

There are many factors affecting human resource demand forecasting such as
external environment, organizational objectives, corporate plans, succession
plan, availability of human resources etc.
1. Techniques of Forecasting Human Resource Demand
Managerial Judgement
Survey Method
Delphi Technique
Nominal Group Technique
Statistical Methods
Work Study Technique
2. Techniques of Forecasting Human Resource Supply
Managerial Judgement
Succession Planning
Markov Analysis
Statistical Methods
Replacement Chart
Skill Inventories

Human Resource Inventory

Human resource information system (HRIS) helps HR managers to understand
the position of HR inventory. HR inventory includes following information
about the employees.
Personal Information
Academic information
Experience information
Training and Development Information
Compensation Information
78 | Foundations of Human Resource Management BBS 2nd Year
Other Information

Benefits of Human Resource Inventory

Some of the benefits regarding HR inventory are listed below:
1. HR inventory facilitates HR managers to forecast human resource
demand requirement for future performance for the organization.
2. HR inventory helps in better and effective human resource planning.
3. It helps HR manage to make appropriate decisions regarding utilization of
available human resources.

Human Resource information System (HRIS)

HRIS has been implemented to assist HR inventory of looks: Jobs currently
being done: Job requirement People doing those job: people requirement
HRIS is designed to collect, analyze, state, retrieve an disseminate
information about jobs and employees.
Contents of HR information System
Personal Data
Skills Data
Position Data
Compensation Data
Performance Data

Succession Planning
Succession planning is the process of forecasting future demand of
managerial HR. it ensures that the organization has individuals ready to move
into position of higher responsibility. This is a special type of planning used to
force-cast potential managerial for future promotion in the higher
management level. To fulfill managerial vacancies in the organization
potential middle and upper level managers are selected for future promotion.
This type of planning generally done for middle and top level managers.

Human Resource Planning in Nepalese Organization

The common human resource planning practices in Nepalese organizations
can be explained in following:
Poor Human Resource Planning
Lack of Assessment of Current Human Resource
Lack of Demand Forecasts
Lack of Supply Forecasts
Mismatch of Demand and Supply
Over Staffing
Political Interferences
Neglected by Private Organization
Chapter2 | Human Resource Planning | 79
Questions
Brief Answer Questions

1. Explain human resource planning.

2. What is human resource strategy?
3. Explain briefly about human resource inventory.
4. What is human resource information system?
5. What is succession planning?
6. What is strategic planning?
7. Explain any five importance of human resource planning.
8. Explain factors affecting human resource planning.
9. List the techniques for forecasting human resource demand and supply.
10. List the human resource planning process.

Short Answer Questions

11. Explain human resource planning. State the importance of HRP.

12. Describe the different approaches to human resource planning.
13. Explain the role of information system in human resource planning.
14. Explain the process of human resource planning.
15. Describe the approaches to human resource planning and identify the relationship of HRP to
strategic planning. [T.U. 2056]
16. Human resource planning is deciding in advance the future requirements of human resource
in organization. Discuss the method and techniques adopted by organizations in forecasting
and determining the future need of human resource. [T.U. 2057]
17. What role information system occupies in Human Resource Planning? Show the relation of
human resource planning with strategic planning. [T.U. 2059]
18. One of the aims of human resource planning is to ensure that the organization is able to
anticipate the problems arising from future HR surpluses and deficits. Discuss such problems
and suggest the methods and techniques to overcome. [T.U. 2061]
19. Why organizations prepare Human Resource Plan? Explain the role of information system in
human resource planning. [T.U. 2063]
20. Human resource planning systematically forecasts an organizations future supply and
demand for employees. As human resource management of organization what methods and
techniques would you apply in determining human resource requirements? [T.U. 2064]
21. Enumerate the approaches to HRP and explain the role of information system in HRP.
[T.U. 2065]
22. Define Human Resource Planning. Discuss the techniques of determining human resource
requirements for an organization.
[T.U. 2067]
23. What is human resource planning? Describe the importance of human resource planning for
an organization. [T.U.2068 ]
24. What is human resource planning? Explain the relationship between human resource
planning and strategic planning. [T.U. 2069]
25. Explain the importance of human resource planning organizations. [T.U. 2070]
80 | Foundations of Human Resource Management BBS 2nd Year

Comprehensive Answer Questions

26. Success in formulating right type of human resource planning very much decides the
success career of human resource manager. In line with this perspective, discuss the
characteristics of human resource planning and the methods of forecasting demand for
human resources. [T.U. 2069]

27. Human resource planning is the major activity of human resource manager and indeed an
indicator of success it formulated rightly. In the light of this statement, discuss the human
resources planning process. [T.U. 2071]