Human Resource Planning

Chapter 3
Human Resource Planning

Human Resource Planning

Introduction
Comparison of the present human resources to future needs of an organization, duly identifying skill and competency gaps and subsequently developing plans for building the human resources needed in future is the basic process of Human Resource Planning (HRP).

HRP tries to ensure that the required competency is maintained in line with organizational mission, vision and strategic objectives. HRP provides a strategic basis for taking HR decisions, and anticipating change.
HRP helps to plan replacement and changes in manpower competencies in a systematic manner.

Human Resource Planning

1. What Is HRP? HRP is a planning process by which an organization can move from its current manpower position to its desired manpower position. Through manpower planning, an organization strives to have the right number and the right kinds of people at the right places at the right time. More appropriately manpower planning may be defined as a strategy for acquisition, utilization, improvement and retention of human resources.

Human Resource Planning

Optimum manpower planning aims at:
1.Balancing demand, supply, distribution and allocation of manpower, 2.Controlling cost of human resources
3.Formulating policies on transfer, succession, relocation of manpower.

Human Resource Planning

Activities required for HRP 1.Forecasting future manpower requirement
1) Mathematical projections
a) Economical environment b) Development trends in industry 2) Judgmental estimates Future managerial decision Factors influence manpower forecasting a) Volume of output (Analysis of performance) b) Level of productivity (Analysis of productivity)

Human Resource Planning

2.Preparing an inventory of manpower a) Employees skill b) Abilities c) Work preferences

3. Anticipating problems of manpower a) Project present resources into the future b) Compare with the forecast of manpower requirement

Human Resource Planning

4. Meeting manpower requirement
a) Planning b) Recruitment & selection

c) Training & development

d) Induction & placement e) Promotion and transfer f) Motivation and compensation
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Human Resource Planning

Responsibilities of HR Department in HRP
a) To put pressure on operating management to establish goal and objectives b) Collect data in total organization terms, Provide information on manpower utilization in the present and in the past. c) Ensure that manpower planning carried out and keep pace with long term objectives of the organization d) Measure and monitor performance against plan and provide feedback to the top management. e) To carry out research for effective manpower, organizational planning and forecasting techniques
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Human Resource Planning

Steps for HRP A. Job Analysis
Job Analysis provides the following information:
a) Job identification, done by providing a title or code number for each job. Job characteristics, location, physical setting, hazards and discomforts of a job b) Job assignment, specific operations and tasks which make an assignment, its importance, simplicity, complexity, and the responsibility c) Materials, tools and equipments required for a job. d) Job performance, nature of operations (lifting, handling, drilling etc.) e) Personal attributes, like experience, training, physical strength, mental capabilities, aptitudes, other skills etc. required for efficient performance of the job. f) Job relationship, scope for advancement, patterns of promotions, direction or leadership form etc.
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Human Resource Planning

Sources of Information for Job Analysis Information on a job is usually obtained from four principal sources as follows:

a) From supervisors and foreman.

b) From job analyst c) From technology vendors, who define jobs in their literature.
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Human Resource Planning

Purposes of Job Analysis
Apart from HRP, job analysis serves the following important purposes of Human Resource Management: a) Recruitment and Selection b) Wage and Salary Administration

c) Job Re-engineering/Job Design

d) Industrial Engineering Activity

e) Employees Training and Management Development

f) Performance Appraisal

g) Health and Safety

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Human Resource Planning

Job Description and Job Specification
a) It is appropriate to distinguish the term description to cover job content (conditions, tasks and responsibilities) b) And specification to denote job requirements (qualities necessary) in the worker for satisfactory performance of the job. c) Thus, job specifications translate job descriptions into human qualifications, required for successful performance of a job.

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Human Resource Planning

Objectives of HRP
a) First objective of HRP is to integrate planning and

control of manpower with organizational planning to ensure best possible utilization of all resources. b) Next objective is to coordinate manpower policies of the organization. c) Achieve efficiency of work in all spheres of the corporate body. d) Ensure cost minimization e) Eliminate all types of wastages including of time f) Maintain required level of skill and competency, matching present and future needs of the organization.
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Human Resource Planning

Need for Manpower Planning
a) Manpower planning is deemed necessary for all organizations for one or the other of the following reasons: To carry on its work, each organization needs employees with necessary qualifications, skills, knowledge, work experience and aptitude for work. These are provided through effective manpower planning. There is constant need for replacing employees due to retirement, death and other constraints. HRP can make an effective assessment of the situation and bridge-up the gap.
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b)

c)

Human Resource Planning

Need for Manpower Planning
d) To address external factors among the employees like voluntary quits, discharges, change of place due to marriage, seasonal and cyclical fluctuations in business/economy. To meet the needs of expansion programs of the organization. To meet the challenges of new and changing technologies. To assess the optimum strength of different units and make necessary adjustment. To adhere to the cost aspects of various units and optimization of resources.
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e)
f) g) h)

Manpower Demand Forecasting

Analysis of Performance a) Direct Analysis (using two variables workload &
certain manpower category)

b) Indirect Analysis ( Using past experience & less systematic) Analysis of Productivity: two major components like
technological change and manpower utilization.

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Manpower Demand Forecasting

Analysis of Performance- In order to
calculate manpower calculation in relation to workload, first organizations each unit of manpower requirement for different job categories of job to be determined. After that total workload is related with manpower units of different categories and finally the total requirement of manpower of different categories is determined. is determined.

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