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Question1. Discuss the Factors Affecting Human Resource Planning

Human Resource Planning(HRP) is influenced by several considerations. The moreimportant of them are: (i) type and strategy of organization, (ii) organizational growthcycles and planning, (iii) environmental uncertainties, (iv) time horizons, (v) type and

quality of forecasting information, (vi) labor market.Type and Strategy of Organization

The type of organization is an important consideration because it determines theproduction processes involved, number and type of staff needed, and the supervisoryand managerial personnel required. Manufacturing organizations are more complex inthis respect than those that render services.

The strategic plan of the organization defines the organizations HR needs. Forexample, a strategy of organic growth means that additional employees must be hired.

Acquisitions or mergers, on the other hand, probably mean that the organization will

need to plan for layoffs, since mergers tend to create, duplicate or overlapping positionsthat can be handled more efficiently with fewer employees.

Primarily, the organization decides either to be proactive or reactive in human resourceplanning. It can either decide to carefully anticipate the needs and systematically planthem to fill them far in advance, or it can simply react to needs as they arise. Of course,careful planning to fill HR needs better helps ensure that the organization obtains theright number of HR people with proper skills and competencies when they are needed.

Similarly, the organization must determine the breadth of the plan. Essentially, theorganization can choose a narrow focus by planning in only one or twoHR areas,such

as recruitment or selection, or it can choose a broad focus by planning in all areasincluding training, remuneration and so on.The organization must also decide upon the formality of the plan. It can decide to havean informal plan that lies mostly in the minds of the managers and personnel staff.

Alternatively, the organization can have a formalized plan which is clearly spell out inwriting, backed by documentation and data.

Finally, the organization must make a decision on flexibility- the ability of the HR plan toanticipate and deal with contingencies. No organization likes high levels of uncertainty.Organizations seek to reduce uncertainty by planning, which includes forecasting andpredicting possible future conditions and events. Human resource planning can contain

many contingencies, which reflect different scenarios thereby assuring that the plan isflexible and adaptable.

Organizational Growth Cycles and Planning

The stage of an organizations growth can have considerable influence on humanresource planning. Small organizations in the embryonic stage may not have personnelplanning.

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Need for planning is felt when the organization enters the growth stage. HR forecastingbecomes essential. Internal development of people also begins to receive attention inorder to keep up with the growth.

A mature organization experiences less flexibility and variability. Growth slows down.

The workforce becomes old as few younger people are hired. Planning becomes morefonnalised and less flexible and innovative. Issues like retirement and possibleretrenchment dominate planning.

Finally, in the declining stage, human resource planning takes a different focus.Planning is done for layoff, retrenchment and retirement. Since decisions are oftenmade after serious financial and sales shocks are experienced by the organization,planning is often reactive in nature.

Environmental Uncertainties

HR managers rarely have the privilege of operating in a stable and predictableenvironment. Political, social and economic changes affect all organizations. Personnelplanners deal with environmental uncertainties by carefully formulating recruitment,selection, and training and development policies and programmes. Balancingmechanisms are built into the HRM programme through succession planning, promotionchannels, layoffs, flexitime, job sharing, retirement, VRS and other personnel relatedarrangements.

Time Horizons

Yet another major factor affecting personnel planning is the time horizon. A plan cannot

be for too long on a time horizon as the operating environment itself may undergocharges. On one hand, there are short-term plans spanning six months to one year. Onthe other hand, there are long-term plans -which spread over three to twenty years. Theexact time span, however, depends on the degree of uncertainty prevailing in anorganizations environment.

Plans for companies operating in an unstable environment, computers for example,must be for a short period. Plans for others where environment is fairly stable, forexample a university plan, may be long-term. In general, the greater the uncertainty, theshorter the plans time horizon and vice-versa.

Type and Quality of Information

The information used to forecast personnel needs originates from a multitude ofsources. A major issue in personnel planning is the type of information which should beused in making forecasts.

Closely related to the type of information is the quality of data used. The quality andaccuracy of information depend upon the clarity with which the organizational decision

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makers have defined their strategy, organizational structure, budgets, productionschedules and so forth. In addition, the HR department must maintain well-developed

job-analysis information and HR information systems (HRIS) that provide accurate andtimely data. Generally speaking, organizations operating in stable environments are in abetter position to obtain comprehensive, timely and accurate information because of

longer planning horizons, clearer definition of strategy and objectives, and fewerdisruptions.

Labor Market

Labor market comprises people with skills and abilities that can be tapped as and whenthe need arises. Thanks to the mushrooming of educational, professional and technicalinstitutions adequately trained human resource is always available on the market.Nevertheless, shortages do occur. For example, the Confederation of Indian Industry(CII) estimates that by 2015, India will be requiring 30 million additional skilled workersin sectors such as health care, banking and financial services, retail, auto and

construction. It is doubtful whether so many skilled workers would be available in thecountry.

When one talks about labor supply, the following deserve due consideration:

The size, age, sex and educational composition of the population

The demand for goods and services in the country

The nature of production technology

Employabilityof the people

Question2 : Write an essay on Human Resource Planning using suitable example.

Aswer : Human resources planning is a process that identifies current and futurehuman resources needs for an organization to achieve its goals. Human resourcesplanning should serve as a link between human resources management and the overallstrategic plan of an organization. Aging worker populations in most western countriesand growing demands for qualified workers in developing economies have underscoredthe importance of effective Human Resources Planning.

As defined by Bulla and Scott, human resource planning is the process for ensuringthat the human resource requirements of an organization are identified and plans aremade for satisfying those requirements.

[1]Reilly defined workforce planning as: A

process in which an organization attempts to estimate the demand for labour andevaluate the size, nature and sources of supply which will be required to meet thedemand.[2]Human resource planning includes creating an employer brand, retentionstrategy, absence management strategy, flexibility strategy, talent managementstrategy, recruitment and selection strategy.

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Following are the major steps involved in human resource planning

1. Assessing Human ResourcesThe assessment of HR begins with environmental analysis, under which the external (PEST) and

internal (objectives, resources and structure) are analyzed to assess the currently available HR

inventory level. After the analysis of external and internal forces of the organization, it will beeasier for HR manager to find out the internal strengths as well as weakness of the organization

in one hand and opportunities and threats on the other. Moreover, it includes an inventory of the

workers and skills already available within the organization and a comprehensive job analysis.

2. Demand ForecastingHR forecasting is the process of estimating demand for and supply of HR in an organization.

Demand forecasting is a process of determining future needs for HR in terms of quantity andquality. It is done to meet the future personnel requirements of the organization to achieve the

desired level of output. Future human resource need can be estimated with the help of the

organization's current human resource situation and analysis of organizational plans an

procedures. It will be necessary to perform a year-by-year analysis for every significant level andtype.

3. Supply ForecastingSupply is another side of human resource assessment. It is concerned with the estimation of

supply of manpower given the analysis of current resource and future availability of human

resource in the organization. It estimates the future sources of HR that are likely to be available

from within an outside the organization. Internal source includes promotion, transfer, jobenlargement and enrichment, whereas external source includes recruitment of fresh candidates

who are capable of performing well in the organization.

4. Matching Demand And SupplyIt is another step of human resource planning. It is concerned with bringing the forecast of future

demand and supply of HR.The matching process refers to bring demand and supply in anequilibrium position so that shortages and over staffing position will be solved. In case of

shortages an organization has to hire more required number of employees. Conversely, in the

case of over staffing it has to reduce the level of existing employment. Hence, it is concluded

that this matching process gives knowledge about requirements and sources of HR.

5. Action PlanIt is the last phase of human resource planning which is concerned with surplus and shortages of

human resource. Under it, the HR plan is executed through the designation of different HRactivities. The major activities which are required to execute the HR plan are recruitment,

selection, placement, training and development, socialization etc. Finally, this step is followed by

control and evaluation of performance of HR to check whether the HR planning matches the HRobjectives and policies. This action plan should be updated according to change in time ans

conditions

Question : Compare and contrast human relation to industrial relation.

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AnswerThe term Industrial Relations is differentfrom Human Relations. Industrial relations

refer tothe relations between the employees and the employer in an industry. Human relationsrefer to a personnel-management policy to be adopted in industrial organizations to develop a

sense of belongingness in the workers improves their efficiency and treat them as human beings

and makea partner in industry.Industrial relations cover the matters regulated by law or bycollective agreement betweenemployees and employers. On the other hand, problems of humanrelations are personal incharacter and are related to the behavior of worker where morale

and social elements predominated. Human relations approach is personnel philosophy which can

be applied by themanagement of an undertaking. The problem of industrial relations is usuallydealt with a threelevelsthe level of undertaking, the industry and at the national level. To sum

up the termIndustrial Relations is more wide and comprehensive and the term Human

Relations is a partof it.

Commonalities

1. Focus on employment and workplace issues.2. Gives attention to management, unions, and government policy.

3. Recognizes the humanness of labor.4. Seeks positive-sum solutions to labor problems.

5. Are largely applied, multidisciplinary fields.

6. Have normative blind spots.

Differences

1. HR emphasizes employers solution to labor problems; IR emphasizes workers and

communitys solutions.

2. HR largely takes an internal perspective on employment problems/research; IR largely

takes an 'external perspective.3. HRs primary goal is organizational effectiveness/efficiency; IRs goal is a combination of

organizationaleffectiveness/efficiency and employee well-being.

4. HR takes a instrumental approach to promoting employee interests; IR treats employee

interests as an largelyimportant independent end goal.

5. HR focuses on creating a unity of interest between employer and employees; IR focuses on

mediating a conflict of interest.

6. HR views management power as necessary for organizational effectiveness/efficiency; IRassumes management power needs checks and balances.

7. HR assumes conflict not inevitable and can be minimized by management; IR sees conflict asinevitable and requiring third-party intervention.

8. HR sees management as primary contributor to positive employment outcomes and unions andgovernment as occasionally necessary but often burdensome constraints; IR also sees

management as key contributor but only if supplemented by strong unions and government

legislation.