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Dr.B.S.Hothi
! Human resource is an important corporate
asset, and the overall performance of
companies depends upon the way it is put to
use.
! n order to realise company objectives, it is
essential to have a human resource plan.
Human Resource Planning (also called
employment or personnel planning) is
essentially the process of getting the right
number of qualified people into the right job at
the right time so that an organisation can meet
its objectives
! t is a system of matching the supply of
people (existing employees and those to
be hired or searched for) with openings
the organisation expects over a given time
frame.
! t tries to assess human resource
requirements in advance keeping the
production schedules, market fluctuations,
demand forecasts, etc., in the background.
!
he human resource plan is subject to
revision, of course, and is tuned to the
requirements of an organisation from time
to time.
! Human resource plans are prepared for
varying time periods, i.e., short term plans
covering a time frame of 2 years and long
term plans encompassing a period of 5 or
more years.


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HR planning is essential to determine the

future manpower needs in an organisation.
n the absence of such a plan, it would be
difficult to have the services of right kind of
people at the right time.
a   

HR planning is required to cope with changes in

market conditions, technology, products and
government regulations in an effective way.

hese changes may often require the services of
people with the requisite technical knowledge
and training. n the absence of an HR plan, we
may not be in a position to enlist their services in
time.
! Y    

 


By keeping an inventory of existing personnel in

an enterprise by skill, level, training, educational
qualifications, work experience, it will be
possible to utilise the existing resources more
usefully in relation to the job requirements.
his
also helps in decreasing wage and salary costs
in the long run.

 
   

HR planning provides useful information on the

basis of which management decides on the
promotion of eligible personnel in the
organisation. n the absence of an HR plan, it
may be difficult to ensure regular promotions to
competent people on a justifiable basis.


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!
he 'stars' can be picked up and kept ready for further

promotions whenever they arise. All multinational
companies for example, have this policy of having a 'hot
list' of promising candidates prepared in advance e.g.,
HLL, Proctor & Gamble, Godrej consumer products etc.
Such candidates are rolled over various jobs and
assessed and assisted continuously. When the time
comes, such people 'switch hats' quickly and replace
their respective bosses without any problem.
  
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! Liberalisation, opening up of banking
sector, capital market reforms, the on-line
trading systems have created huge
demand for finance professionals during
1990-1995 in ndia.
!
he late 90s saw the rise of
manufacturing, FMCG, Pharmaceutical,
Auto-components, Healthcare and
Chemical ndustries in a steady manner.
! Consequently, the demand for
Engineering and Management graduates,
Scientists and Healthcare professionals
has picked Up in recent times.
 





 



! enhanced the worth of technicians and

engineers during the last couple of years.
! double-edged weapon and hence, its impact on
HR plans is difficult to predict
! High technology may compel organisaltions to
go lean and downsize workforce suddenly.
! Employment planning under such situations
becomes complicated.
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f Britannia ndustries Ltd expects higher

demand for biscuits and bread? the long-term
HR plan must take this into consideration.
Likewise, if it tries to venture into other
lucrative fields such as milk based products
and confectionery items, the demand fur
people possessing requisite skills in those
areas in the next couple of years should be
looked into carefully.
 




! Demand is modified by retirements,

terminations, resignations, deaths and
leaves of absence. Past experience,
however, makes the rate of occurrence of
these actions by employees fairly
predictable.
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!  

  
!

  Several mathematical
models, with the aid of computers are also
used to forecast HR needs, e.g.,
regression, optimisation models, budget
and planning analysis.
! 

 
 

he average loss of manpower due to

leave, retirement, death, transfer,
discharge, etc., during the last 5 years
may be taken into account.
he rate of
absenteeism and labour turnover should
also be taken into account.
! 



  

he need for manpower is also determined
on the basis of work-load analysis,
wherein the company tries to calculate the
number of persons required for various
jobs with reference to a planned output -
after giving weightage to factors such as
absenteeism, idle time, etc.
* Ä 
 

! ob analysis helps in finding out the abilities or

skills required to do the jobs efficiently
! ob analysis includes two things: ob description
and job specification. ob description is a factual
statement of the duties and responsibilities of a
specific job.
! ob specification provides information on the
human attributes in terms of education, skills,
aptitudes and experience necessary to perform
a job effectively.
'!

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! (a)  


Ä 

 A profile of
employees in terms of age, sex, education,
training, experience, job level, past performance
and future potential should be kept ready for use
whenever required.
! Requirements in terms of growth/diversification,
internal movement of employees (transfer,
promotions, retirement, etc.) must also be
assessed in advance.
!
he possibilities of absenteeism and turnover
should be kept in mind while preparing the
workforce analysis.
!
hrough replacement charts or succession
plans, the organisation can even find out the
approximate date(s) by which important
positions may fall vacant.
! Frequent manpower audits may be carried out to
find out the available talent in terms of skills,
performance and potential.
(b) ›



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! When the organisation grows rapidly,
diversifies into newer areas of operations
(merchant banking, capital market
operations, mutual funds, etc. in the case
of a bank) or when it is not able to find the
people internally to fill the vacancies, it has
to look into outside sources.
!
o the extent an organisation is able to
anticipate its outside recruitment needs
and looks into the possible sources of
supply keeping the market trends in mind,
its problem in finding the right personnel
with appropriate skills at the required time
would become easier,
 o!#
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!
he existing number of personnel and their skills
(from human resource inventory) are compared
with the forecasted manpower needs (demand
forecasting) to determine the quantitative and
qualitative gaps in the workforce.
! A reconciliation of demand and supply forecasts
will give us the number of people to be recruited
or made redundant as the case may be (
able)
.
!
his forms the basis for preparing the HR plan.
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! „
 

! „  
 Will indicate who is
redundant, when and where; the plans for
retraining, where this is possible; and
plans for golden handshake,
retrenchment, lay-off, etc.
! 
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!
he plans are usually prepared by the

Human Resource Division in consultation
with other corporate heads

! ?

! 
Planning is generally undertaken
to improve overall efficiency.
! n the name of cost cutting, this may ultimately
help management weed out unwanted labour at
various levels , few efficient ones that survive
such frequent onslaughts complain about
increased workload.
! Support from management is equally missing on
more than one occasion.
hey are unwilling to
commit funds for building an appropriate human
resource information system.
he time and effort
involved - with no tangible, immediate gains -
often force them to look the 'other way'.
! VÄ


HRP, in the final analysis, may suffer due

to an excessive focus on the quantitative
aspects.
he quality side of the coin
(consisting of employee motivation,
morale, career prospects, training avenues
etc.) may be discounted thoroughly.
 |


! A comprehensive survey of human

resource planning practices in 45
companies covering a cross-section of the
manufacturing industry has indicated the
scant attention that is being paid to human
resource planning.
! Human resource specialists have pointed out
the fact that most ndian organisations do not
have adequate records and information on
human resources.
! Proper retrieval systems also are not available in
most cases.
!
he computerised personnel information
systems unlike their counterparts in the Western
world, do not play an important role in ndia..
!
o compound the problem further, there are
unpredictable external influences on manpower
planning such as changes in labour market
conditions, technology, market conditions,
economic cycles, changes in social and
economic values, political changes, etc.
! n such a scenario, it becomes difficult to
forecast the personnel available with an
organisation at a future date.
! While vacancies caused by retirements can be
predicted accurately, other factors like
resignations, turnover, deaths, and competitive
attractions are difficult to forecast.
!
his problem becomes mainly acute in respect
of important personnel (especially at the middle
and top level) because their replacements
cannot be arranged in a short span of time.
! At times, top management support may not be
available to the HR planning efforts