Human Resource Planning[/b]
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Human [/b]Resource Planning is the planning of Human Resources. It is also called manpower planning/ personnel planning/ employment planning. It is only after Human Resource Planning that the Human Resource department can initiate the recruitment and selection process. Therefore Human Resource Planning is a sub-system of organisational planning.
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“Human Resource Planning is a strategy for the acquisition, utilisation, improvement and preservation of an organisation’s human resource”[/i][/b] - Y.C. Moushell.[/b]
Features of Human Resource Planning[/b]
1. It is future oriented: It involves forecasting the manpower needs for a future period so that adequate and timely provisions may be made to meet the needs.
2. It is a continuous process: Human Resource Planning has to be reviewed according to the needs of the organisation and changing environment.
3. Integral part of Corporate Planning: - Manpower planning is an integral part of corporate planning because without a corporate plan there can be no manpower planning.
Optimum utilisation of resources: - The basic purpose of Human Resource Planning is to make optimum utilisation of organisation’s current and future human resources.
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Objectives of Human Resource Planning[/b]
1. Optimum utilisation of human resources currently employed in the organisation.
2. To reduce imbalance in distribution and allocation of manpower in organisation for various activities.
3. To ensure that the organisation is well-equipped with the required Q[/b]uantity and Q[/b]uality of manpower on a sustained basis.
To anticipate the impact of technology on jobs and resources.
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Need for Human Resource Planning[/b]
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1. Shortage of Skills: Non-availability of skilled people when and where they are needed is an important factor which prompts sound Human Resource Planning.
2. Frequent Labour Turnover: Labour turnover arises because of discharges, marriages, promotion, transfer etc which causes a constant ebb and flow in the workforce in the organisation.
3. Changing needs of technology: - Due to changes in technology and new techniques of production, existing employees need to be trained or new blood injected into an organisation.
4. Changes in organisation design and structure: - Due to changes in organisation structure and design we need to plan the required human resources right from the beginning.
Factors affecting Human Resource Plans[/b]
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External factors Internal factors
Government policies Strategies of the company
Level of economic development Human Resource policy
Information Technology Job Analysis
Level of Technology Time horizon
Business Environment Type and quality of information
International factors Company’s production and operation policy
Trade unions
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Process of Human Resource Planning[/b]
1 Analysing the Corporate Level Strategies: - Human Resource Planning should start with analysing corporate level strategies which include expansion, diversification, mergers, acquisitions, reduction in operations, technology to be used, method of production etc.
2. Demand forecasting: - Forecasting the overall human resource requirement in accordance with the organisational plans is one of the key aspects of demand forecasting.
3. Analysing Human Resource Supply: - Every organisation has two sources of supply of Human Resources: Internal & External. Internally, human resources can be obtained for certain posts through promotions and transfers
4.Estimating manpower gaps: - Manpower gaps can be identified by comparing demand and supply forecasts. Such comparison will reveal either deficit or surplus of Human Resources in the future. Deficit suggests the number of persons to be recruited from outside, whereas surplus implies redundant employees to be re-deployed or terminated.
5. Action Planning: - Once the manpower gaps are identified, plans are prepared to bridge these gaps. Plans to meet the surplus manpower may be redeployment in other departments and retrenchment.
6. Modify the Organisational plans: - If future supply of human resources form all the external sources is estimated to be inadequate or less than the requirement, the manpower planner has to suggest to the management regarding the alterations or modifications in the organisational plans.
7. Controlling and Review: - After the action plans are implemented, human resource structure and the processes should be controlled and reviewed with a view to keep them in accordance with action plans.