Professional Documents
Culture Documents
(Theme Two)
Jayendra Rimal
What is HR Planning ? The process by which the management of an organization determines its future HR requirements and how the existing HR can be effectively utilized to fulfill these requirements. Hence it is the strategy for the acquisition, utilization, improvement and preservation of HR for optimum utilization. Why HR Planning ? To have an accurate estimate of the number of employees required with the matching competencies to meet organizational goals.
Hence an organization that does not plan its human resources will often find that it is not meeting either its personnel requirements or its overall goals effectively.
Planning for Future Needs by deciding how many people with what skill the organization will need. Planning for Future Balance by comparing the number of needed employees to the number of present employees who can be expected to stay with the organization, which leads to:
Manpower plans: Recruitment & selection; training & development; retrenchment; redundancy; retention and productivity
Significance of HR Planning
Assist in strategic implementation Ensure optimum utilization of HR currently employed Focuses on short & long term people requirements Anticipate redundancies Uncertainties can be managed through planning Cope up with the changing and uncertain scenario Helps the organization develop action plan for achievement of companys objective for future Minimize destruction/ disruption of organization process Helps to focus at your competitive posture or position Provide basis for human resource development
Employee turnover
Absenteeism rate
Productivity levels
Information technology
Facilitates the implementation of organizations strategy - HR functions as a strategic partner to senior management Assesses the readiness of the workforce to implement the strategy - HR identifies knowledge gaps, study the organizational structure etc Involves itself in the communication of the strategy Measures the result HR assists in determining and evaluating the success.
Environment Scanning (PESTLE) Scanning helps planners to be aware of the changes in the environment to identify and anticipate sources of problems, threats and opportunities that should drive the organizations strategic planning. This provides a better understanding of the context in which HR decisions are/will be made. Gap Analysis The existing number of skilled personnel to be compared with the forecasted HR needs to determine the qualitative and quantitative gaps in the workforce. A reconciliation of demand and supply forecast provides the basis for the number to be recruited or made redundant.
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