Hrp Homework

7/31/2019 Hrp Homework

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Human resource planning

Planning the right man for right job and developing him into effective team member is animportant function of every manager. It is because HR is an important corporate asset and

performance of organisations depends upon the way it is put in use. HRP is a deliberate strategy

for acquisition, improvement and preservation of enterprises human resources. It is a managerial

function aimed at coordinating the requirements, for and availability of different types of

employees. This involves ensuring that the organisation has enough of right kind of people at

right time and also adjusting the requirements to the available supply.

HRP is a forward looking function and an organisational tool to identify skill and competency

gaps and subsequently develop plans for development of deficient skills and competencies in

human resources to remain competitive. HRP is influenced by technological changes and otherglobal business compulsions. HRP ensures benefits to the organisations by creating a reservoir of

talent, preparing people for future costcutting and succession planning besides creating a back-up

plan in case of diversification and expansion.

Human resource planning should be an integral part of business planning. The planning process

defines projected changes in the types of activities carried out by the organisation and the scale

of those activities. It identifies the core competencies required by the organisation to achieve its

goals. Human resource planning is a decision making process that combines three important

activities

(1) identifying and acquiring the right number of people with the proper skills,

(2) motivating them to achieve high performance, and

(3) creating interactive links between business objectives and resource planning activities.

Definition

Human resource planning is the process by which an organisation ensures that it has the right

number and kind of people, at the right place, at the right time, capable of effectively andefficiently completing tasks that will help the organisation achieve its overall objective. Human

resource planning, then translates the organisations objectives and plans into the number of

workers needed to meet those objectives.


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Features of Human Resource Planning

1. It is future oriented:Human Resource Planning is forward-looking. It involves forecasting themanpower 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 is a continuous process because thedemand and supply of Human Resource keeps fluctuating throughout the year. 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 corporateplanning because without a corporate plan there can be no manpower planning.

4. Optimum utilisation of resources: The basic purpose of Human Resource Planning is to makeoptimum utilisation of organisations current and future human resources.

5. Both Qualitative and Quantitative aspect: Human Resource Planning considers both thequalitative and quantitative aspects of Human Resource Management, Quantitative meaning

the right number of people and Qualitative implying the right quality of manpower required in

the organisation.

6. Long term and Short term: Human Resource Planning is both Long-term and short-term innature. Just like planning which is long-term and short-term depending on the need of the hour,

Human Resource Planning keeps long-term goals and short-term goals in view while predicting

and forecasting the demand and supply of Human Resource.

7. Involves study of manpower requirement: Human Resource Planning involves the study ofmanpower availability and the manpower requirement in the organisation.

Objectives of Human Resource Planning

Optimum utilisation of human resources currently employed in the organisation. To reduce imbalance in distribution and allocation of manpower in organisation for

various activities.

To ensure that the organisation is well-equipped with the required Quantity and Qualityof manpower on a sustained basis.

To anticipate the impact of technology on jobs and resources.


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To control cost of Human Resources employed, used and maintained in the organisation. To provide a basis for management development programmes. To ensure optimum contribution and satisfaction of the personnel with reasonable

expenditure.

To recruit and retain human resource of required Quantity and Quality.Importance Human Resource Planning

1. Shortage of Skills:These days we find shortage of skills in people. So it is necessary to planfor such skilled people much in advance than when we actually need them. 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:Human Resource Planning is essential because of frequent labourturnover which is unavoidable by all means. 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 ofproduction, existing employees need to be trained or new blood injected into an organisation.

4. Identify areas of surplus or shortage of personnel: Manpower planning is needed in order toidentify areas with a surplus of personnel or areas in which there is a shortage of personnel. If

there is a surplus, it can be re-deployed, or if there is a shortage new employees can be procured.

5. Changes in organisation design and structure: Due to changes in organisation structure anddesign we need to plan the required human resources right from the beginning.

Process of Human Resource Planning

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. Therefore

Human Resource Planning should begin with analysing the corporate plans of the organisationbefore setting out on fulfilling its tasks.

2. Demand forecasting: Forecasting the overall human resource requirement in accordance

with the organisational plans is one of the key aspects of demand forecasting. Forecasting of

quality of human resources like skills, knowledge, values and capabilities needed in addition to

quantity of human resources is done through the following methods: -


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a. Executive or Managerial Judgement:Here the managers decide the number of employees in

the future. They adopt one of the three approaches mentioned below: -

Bottom-Up approach:Here the concerned supervisors send their proposals to the top officialswho compare these with the organisational plans, make necessary adjustments and finalisethem.

Top-Down approach: Here the management prepares the requirements and sends theinformation downwards to the supervisorylevel who finalises the draft and approves it.

Participative Approach: Here the supervisors and the management sit together andprojections are made after joint consultations.

Drawbacks

The chief drawback of these methods is that estimation of manpower is made using guesswork.

b. Statistical Techniques: These methods use statistical methods and mathematical techniques

to forecast and predict the supply and demand of Human Resources in the future.

Ratio-Trend analysis: In this method depending on the past data regarding number ofemployees in each department, like production department, sales department, marketing

department and workload level, etc ratios for manpower are estimated. Past values are plotted

and extrapolated to get fairly accurate future projections.

c. Work Study method: This technique is suitable to study the correlation between volume ofwork and labour i.e. demand for human resources is estimated based on the workload. Work

study method is more appropriate for repetitive and manual jobs when it is possible to measure

work and set standards.

d. Delphi Technique:DelphiTechnique is named after the Greek Oracle at the city of Delphi.

In this method, the views of different experts related to the industry are taken into consideration

and then a consensus about the Human Resource requirement is arrived at. Delphi technique is

used primarily to assess long-term needs of human resource.

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. In order to judge the internal supply of human resources


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in future human resource inventory or human resource audit is necessary. Human resource

inventory helps in determining and evaluating the quantity of internal human resources available.

Once the future internal supply is estimated, supply of external human resources is analysed.

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. Employees estimated to be

deficient can be trained while employees with higher, better skills may be given more enriched

jobs.

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. People may be persuaded to quit voluntarily through a golden handshake. Deficit

can be met through recruitment, selection, transfer and promotion. In view of shortage of certain

skilled employees, the organisation has to take care not only of recruitment but also retention of

existing employees. Hence, the organisation has to plan for retaining of existing employees.

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.

Kismat Timilsina

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