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Dr. Smita Choudhary Faculty HR & OB

Introduction Human resource planning Need for human resource

planning Process of human resource

planning Human resource planning

system Responsibility for human

resource planning

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In the previous unit you have studied the evolution of HRM in India. In this unit you will study, how organizations plan for their manpower need.

HRP is both a process and a set of plans◦ a process by which management of an organization determines its future HR requirements◦ a plan to fill the future HR requirements from internal and external sources

Assessment of human resource requirements in advance in relation to organizational objectives, production schedules, and demand fluctuations

HRP relates to ◦ establishing job specifications◦ determining the number of personnel required◦ developing the sources of human resource

And it means you are prepared for And it means you are prepared for the FUTUREthe FUTURE

Planning is an integral part in decision making. Planning tells you the whats?, whens? n howz ?

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Human resource planning means having the right number and right kinds of people at the right place, at the right time.

Recruitment plays an important role in getting young employees in an organization.

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Human Resource Planning is “an effort to anticipate future business and environmental demands upon and organization and to provide personnel to fulfill that business and satisfy that demand”

(Bowey, 1974)

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What you do when you have to organize an event. The first thing well be planning. You need to plan out various activities involved and resources to make the event successful.

Isn't planning a very basic and initial step for performing a task?

- A good plan leads to good outputs.

Through, human resource planning, management of an organization determines its future HR requirements.

Human Resource planning ‘is the process of determining human resource requirements and the means of meeting those requirements in order to carry out the integrated plan of the organization’-‘ Coleman

It is the process by which it is determined how an organization can achieve its desired manpower position i.e. having the right number and right kind of people at the right place and at the right time.

According to Wickstrom, human resource planning consists of the following activities:◦ Forecasting future manpower requirement◦ Making a record of the present manpower resources.◦ Anticipating manpower problems by comparing present resources with

forecasts of requirement.◦ Planning the programmes of selection, training, development, transfer,

promotion, motivation and compensation.

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What are the responsibilities of HR department for effective manpower planning?

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Human resource planning is necessary due to the following reasons:

Every organization needs people with desired qualifications, skills, knowledge, experience and aptitude to perform organizational tasks. Good manpower planning provides effective workforce to the organization.

Good manpower planning is necessary to replace employees who have grown old, retired or have become incapable of working.

HRP is necessary to manage labor turnover due to voluntary quits, discharge, marriage, promotion, etc.

HRP plays an important role in meeting the needs of expansion programmes of an organization.

Manpower planning also helps to find areas where personnel is surplus and areas that are short of personnel.

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According to Tata Electrical Locomotive Company, human resource planning involves organization development, management development, career planning and succession planning.

HRP is a multi step process and includes the following issues:◦ Deciding goals or objectives◦ Estimating future manpower requirements◦ Auditing human resources◦ Planning job requirements and job descriptions◦ Building a plan

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1. Objectives of Human Resource Planning - According to Sikula, “The purpose of HRP is to relate future human resources to future needs of the organization in order to maximize the return on investment in human resources”.

2. Estimating the future organizational structure or forecasting the manpower requirements - The management has to predict the number and type of employees required by the organization. Many factors play a role in this prediction like business forecasts, expansion and growth, management philosophy, government policy, competition, etc.

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3. Auditing human resources – After estimating the future manpower requirements, the present supply of manpower is determined. This is done with the help of “Skills Inventory”. A skills inventory contains data about each employee’s skills, abilities, work preferences, etc.

4. Job analysis – After deciding the personnel requirement, a job analysis is prepared which consists of the details of training, skills, qualification, abilities, experience and responsibilities, etc. which are required for a job.

5. Developing a human resource plan – It refers to finding the sources of labor supply i.e. whether to promote the existing employees of the organization or to hire new employees from an outside source. Generally higher vacancies are filled by promotion and lower level position are filled by external recruitment.

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HRP is useful at different levels: National level – At this level, HRP is done by the

government and covers items like population projections, programmes of economic development, educational facilities, etc.

Sector level – At this level, HRP may be done by the Central or State Governments and covers manpower requirements of agricultural, industrial and service sector.

Industry level – At this level of HRP, manpower requirements are predicted for industries like engineering, heavy industries, consumer goods, etc.

Individual level – At this level, HRP is done to predict manpower requirements for various departments.

Geisler, has given the following responsibilities of the personnel departmentTo assist and counsel the operating management to plan and establish objectives.To collect and summarize data and to ensure consistency with long term objectives.To check and measure performance in comparison to the plan and inform the top management about it.

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