Hrp Project Doc Full & Final

8/8/2019 Hrp Project Doc Full & Final

1/14


2/14

Human Resource Planning: (Definitions).

Coleman has defined personnel / manpower planning as the process

of determining manpower requirements & the means for meeting

those requirements in order to carryout the integrated plan of the

organization.

Stainer defines manpower planning as strategy for the acquisition,

utilization, improvement & preservation of an enterprises human

resources. It relates to establishing job specifications or the

quantitative requirements of jobs determining the number of personnel

required & developing sources of manpower.

Meaning: Personnel planning is the process of forecasting an organizations

future demand for the supply of right type of people in the right numbers.

Personnel planning is a strategy for the

Procurement.

Development.

Allocation &

Utilization of an organizations human resources.

There are four broad areas of human resource planning. These are

Forecasting the manpower requirements of the enterprise.

Acquiring the required manpower from different internal & eternal

sources available for recruitment & selection.

Developing the manpower through education, training &

development programmes with a view to providing the right type of

manpower.

Maintaining stable manpower through attractive wages, welfare &

other facilities & scientific personnel policies.


3/14


4/14

Objectives of HR Planning.

Optimum use of resources- To ensure optimum utilization of

resources currently employed in the organization is important

objective of manpower planning. For this attention needs to be given

to placement induction training career development

Meeting future manpower needs- To determine the future manpower

requirements of the org. as per renovation, modernization, expansionand growth programmes of the enterprise is one objective of

manpower planning It studies the manpower needs of the future and

makes arrangements for the future

Scientific recruitment- To determine the recruitment needs of the org

and make suitable arrangements for the recruitment of right person is

imp objective of personnel planning

Provision of adequate manpower- To ensure that necessary human

resources are made available as and when required by the org is one

imp objective of pp It is imp for adjustments of manpower for the

needs of different departments

Development of manpower- This objective is to design the

management development programmes so as to develop the required

tenants among the employees selected. Manpower development is

possible through HRP


5/14

Need of HR planning.

To meet the manpower needs of business enterprise- Every

organization needs adequate and properly qualified staff for the

conduct of regular business activities. Manpower planning is needed

in order to provide manpower as per the needs.

To arrange for the replacement of existing manpower- The

existing manpower is affected due to reasons such as retirement,

removal of employees labor turnover and so on. HR planning is

needed in order to estimate the shortfall in the manpower requirement

and also for making suitable arrangement for the recruitment

To meet growing manpower need of the organization- Additional

manpower is needed to org for the expansion and modernization

programme. HRP also act as an aid for manpower training and

development activities.

To meet the challenges of changing technological environment-

HR requirement changes due to changing technological environments

and other factors It can make arrangement for new staff and also for

providing training to existing employees.

To adjust staff requirements of departments- a situation may be

develop in an org when there will be surplus staff in one department

and shortage of staff in some other department such situation can be

rectified by HR planning.

To look after recruitment and selection- HRP suggest the type of

manpower needed in org with necessary details introduction andappropriate selection is also possible as per the manpower

requirements.

To arrange for the replacement of manpower- HRP facilitates

placement of newly selected persons in different departments as per

the qualifications and also as per the need of department.


6/14

ADVANTAGES OF PERSONNEL/HR PLANNING:

Facilitates scientific recruitment: HRP serves as a base for

purposeful recruitment & selection policy for an organization. It

facilitates selection of new manpower as per future personnel needs.

Raises effectiveness of HRD programs: it makes HRD programmes

effective and as per the needs of the organization, this ensures full

utilization of effective & as per the needs of the organization to

develop highly talented personnel required for the management of

business. For example, L&T (an engineering giant) needs large

number of engineers MBAs. Arrangements for meeting such

manpower need are possible due to efficient HRP activity.

Ensures orderly working & growth of an organization: HRP

facilitates orderly working of an organization and also facilitates its

growth and expansion in the future period without any difficulty.

Adequate arrangements are also made for manpower requirement

through HRP.

Regulate3s cost factor: HRP regulates labor costs & production cost

& ensures adjustment between manpower requirement & manpower

available.

Motivates existing employees: HRP creates favorable psychological

climate for motivating the existing employees & also keeping their

morale high through training and manpower development

programmes.

Prevents sudden disruption: HRP helps to prevent sudden disruption

in the working of an enterprise. It indicates shortages of particular

types of personnel in advance and this facilitates suitable provision for

meeting the situation. HRP enables an enterprise to cope with changesin competitive forces, markets, technology and government

regulations and policies.


7/14

ROLE/IMPORTANCE OF PERSONNEL/HR PLANNING:

Human resource planning plays an important role at different level,

i.e., national level, industry level and enterprise level. It facilitates full

utilization of resources and ensures orderly and efficient functioning of the

whole business enterprise. It avoids surplus or shortage of human resources

in an organization. Human resources planning also lay an important role in

human resource development in an organization. It acts as an aid to

manpower development programmes. The management gets best

contribution from its employees due to human resource planning. It also

motivates the existing employees. However, human resource planning is like

a double-edged weapon. If used properly, it ensures maximum utilization ofavailable manpower in the organization. Human resource planning is also

useful for making the training programmes more effective/purposeful.

In short, manpower planning/human resource planning is the core

of manpower management. It is inevitable for every progressive and alert

organization. Such HRP must be integrated with the overall planning of the

organization itself. It should be given continuous attention as the human

resource need goes on changing from time to time due to various factors and

forces. HRP plays an important role in business management as it is multi-

dimensional activity and must be carried on as a continuing process for

stability and prosperity of a business enterprise. HRP is significant as it helps

in determining future personnel need and act as a basis for other personnel

functions.

The following remark ofLate SHRi Dhirubhai H. Ambani, Ex-

Chairman of Reliance Industries Ltd. (made in the 21st AGM held on

3/8/1995), is worth noting in this regard: Our People: People are assets

you can never show on a balance sheet. Our company has a human resources

asset of around 12,500 people; 3,000 of which constitute scientific andtechnical manpower. Every year we add over 450 young professionals.

These motivated and well-trained people are the backbone of our business.

The team is young I spirit, conscious of its responsibilities and committed to

building world class assets for the country.


8/14

Limitations:

Future manpower needs are uncertain--HR makes prediction as

regards future manpower needs of an org. and adjusts acquisition,

utilization, and other activities. However future is uncertain and the

estimates of manpower requirement made may prove to be wrong.

Surplus manpower makes HRP redundant: HRP exercise is useful

in countries where manpower available is less than the requirement. In

India the situation is just the opposite. Due to such situation many

managers do not give attention to HRP.

Time consuming and costly: It is urged that HRP is time consuming.

Services of experts are required which makes it costly. Even

recruitment and selection is time consuming.

Inadequate attention to environmental changes: It is urged that

manpower management, particularly traditional managements do not

give much attention to possible changes in business environment.

They select and appoint additional staff as per their needs andrequirements.

Shortage of skilled labor and high labor turn over: Shortage of

personnel as per the need and requirement of an enterprise makes

recruitment and selection of staff difficult.


9/14

Scope:

1. Estimation of manpower requirements and recruitment:

HRP starts with the estimation of no. & type of personnel required in

different levels of departments as per the job study. This is followed by

recruitment and selection process. For this an inventory of manpower

currently available has to be made. In short establishing staffing as per the

org objectives and plans is the starting pt of HRP process. For this HRF is

necessary. Here possible growth and expansion should also be taken into

consideration. The whole process of HRP would be in trouble of manpower

requirements are not estimated properly.

2. Manpower allocation:

This area deals with the allocation of manpower acc to the requirements,

workload, qualities, qualification, etc. Promotions and transfers are

necessary for suitable adjustments of staff among the departments. The main

purpose of allocation is smooth working of all departments and full

utilization of manpower.

3. Manpower motivation:

Manpower in an org should be loyal, efficient and productive. The employee

must have linking and interest in their job. Every enterprise needs stable

workforce. This is possible on various factors like wages, incentives etc.

Thus full utilization of manpower is possible only when appropriate system

of motivation is introduced.


10/14

STEPS IN HUMAN RESOURCE PLANNING

The Human Resource planning process is very crucial for any

organization & involves many steps. The HRP process is influenced by

overall organizational objectives & environment of the business.

What is HRP?

Human resource planning involves getting the right number of qualified

people into the right jobs at the right time.

It is a process of deciding what positions the firm will have

to fill, and how to fill them.

It is a process of determining HR needs of the organization

in the context of its strategic planning.

Why is it important?

A] Often long lag times to fill positions.

B] Often influences both turnover and productivity.

C] The demographic imperative demands more such planning

It works best when it is tied to: a. the organizations strategic planning

process b. all available forecasts (technological, economic, market, etc.)

The Need for HRP:

o To ensure that HR is available: provide the information and data to

an organization on when, where and how many employees need to be

recruited.

o To assess the future supplies of and demands for HR: reduce

shocks and disturbances within the employment patterns of large

organizations.o To match supplies and demands, making them compatible with the

achievement of the organizations future goals.


11/14

Needs determined by:

o Assessing current human resources

o Analyzing corporate plans

o Forecasting staffing level and categories in the light of

corporate objectives

o Assessing availability of HRo Determining HR needs

o Formulating HR programs to address the needs.

STEPS INVOLVED IN PERSONNEL/HR PLANNING:

1. Deciding the goals & objectives of human resource

planning:

Goals & objectives need to be decided fore hand. Critical review

of objectives enables an organization to decide the activities which

need to be undertaken for achieving organizational objectives.

Adequate workforce is necessary for undertaking different

activities at the organizational level.

2. Estimating the overall (future) human resource

requirements:

It is also described as HR Needs Forecast. Such forecast should

be in relation to quantity & quality of manpower required by theorganization. The HRD Manager has to decide the type of

manpower/ human resources required for different activities within

the organization.

3. Taking inventory of HR currently available in the

organization:

It may be described as HR Supply Forecast. The required

manpower may be availavable within the organization or may be

recruited from external sources. This is done by the HRDManager.

4. Determining actual HR requirement:

It is described as HR Programme. It helps HRD Manager to take

suitable follow-up measures, such as if there is shortage of


12/14

manpower measures will be necessary to remove such shortfall

through new recruitment, promotion, training, etc. Secondly if

surplus measures would be to remove manpower through VRS,

Layoff, etc.

5. Preparing a HR recruitment & selection plan:

It is described as HRP Implementation. It is done for filling

additional HR requirements.

6. Developing appropriate manpower development plan to

meet future manpower requirements:

For this suitable training programmes will have to be prepared.

Motivation of employees of employees is necessary to raise their

efficiency & initiative. Monitoring of HR requirement is also

necessary for adjusting the existing manpower & the required

manpower in an orderly manner.HR plans must be derived from

organizational objectives.

ORGANIZATIONAL DOWNSIZING & VOULANTARY

RETIREMENT SCHEME:

Downsizing is the conscious use of permanent personnel

reductions in an attempt to improve efficiency and/or

effectiveness

Downsizing is regarded by management as one of the

preferred routes to turning around declining organisations, cutting

cost and improving organisational performance most often as a

cost-cutting measure.

Examples :Sony Ericcson, Delta Airlines


13/14

VRS/GOLDEN HANDSHAKE:

VRS is a type of voluntary separation of old & unproductive

employees from the organization.

It is an economical & time saving method for reducing

surplus staff. Most of the times use of replacing manpower with

technology is the main cause behind VRS.

Basic pay plus DA only is to be taken into account for

computation of ex-gratia under VRS.

EMPLOYEE STOCK OWNERSHIP PLAN (ESOPs):

Under ESOPs companys shares are offered to employees at

concessional price.

MERITS:

1. Enables company to retain efficient/capable employees.2. Links compensation packages closely to employee

performance.

3. This scheme encourages employees to work efficiently

4. It develops a sense of ownership & responsibility among

employees


14/14

DEMERITS:

1. Can only ne used by profit making organizations.

2. Employees may suffer loss if share prices fall.

3. Unsound market fluctuations cause inconvenience to

employees.

Examples:

Notable employee-owned corporations include the John Lewis

Partnership retailers in the UK, and the U.S. news/entertainmentfirm Tribune company. The Mondragon Cooperative Corporation

is a multi-national corporation based wholly on worker-ownership

principles.

Documents

Hrp Project Doc Full & Final