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Human Resources Management

Human Resources PlanningHRP is the systematic process of forecasting an organisations future demand for, and supply
of, the right type of people in the right number. It is only after preparing an effective HRP or
manpower plan that the HRM Department can initiate the recruitment and selection process.
HRP is a sub-system in the total organizational planning. HRP facilitates the achievement of
the organizational goals and objectives by providing the right type and quantity of the
manpower required at any point of time by the organization.
Definitions:
HRP is an integrated approach to performing the planning aspects of the personnel
function in order to have a sufficient supply of adequately developed and motivated
people to perform the duties and tasks required to meet organisational objectives and
satisfy the individual needs and goals of organisational members Leon C. Meginson
Manpower planning is the strategy for the ACQUISITION, UTILISATION,
IMPROVEMENT and PRESERVATION of an organisations human resources. It is
aimed at co-ordinating the requirements and the availability of different types of
employees.
G. Stainer
HRP is the process including FORECASTING,DEVELOPING and
CONTROLLING by which a firm ensures that it has the right number of people and
the right kind of people at the right places at the right time doing work for which they
are economically most useful
Geister
HRP is getting Right no. of qualified people into the right job at the right time
Matching the supply of people with the demand
HRP is proactive
Dynamic in nature
Integral part of the overall corporate plan
First stage of recruitment
HRP should emerge from the firms strategic plan
Characteristic Features/ Nature of HRP:
Continuous activity- It is an ongoing activity as the need for assessing the supply and
demand of manpower resources within the organization is a continuous process due to
the dynamism occurring in the external and internal environmental factors of an
organization.
Well defined & clear objectives- HRP objectives are based on the strategic and
operational plans of the organization. The needs of human resources of the firm is
based on the firms objectives. HRP aims at developing human resources, improving
the technical skills, assisting them to plan their career map, retaining them , etc
Determining the personnel needs- HRP provides a clear blue print of the job demand
in the organization and the supply of manpower required to suffice the demand. HRP
focuses on pre-planning the needs and estimates regarding the human resources within

the organization. All the programmes related to recruitment, selection and training are
planned in advance in the HRP.
Maintaining manpower inventory of existing human resources- HRP involves
maintaining proper database of the existing supply of human resources within the
organization. It also includes recording all possible sources of manpower that can be
sought whenever required by the organization. The manager must be aware about the
available manpower supply for fulfilling the higher positions in the future.
Balancing demand & supply equation- The most important purpose of having a HRP
is to maintain a proper balance between the demand and supply of labour in the
organization. At no point of time, there should be excess or deficit of human resources
within the organization
Creating proper work environment- The scope of HRP is not merely to take care of
the procurement of human resources but it also includes maintaining proper and
effective working conditions within the organization.
Formulation of policies, programmes & procedures- HRP helps in formulating the
programmes , procedures & policies in order to procure, utilize, develop , maintain ,
integrate and preserve the human resources of the organization.
Significance of HRP:

Balancing employment- unemployment situation through appropriate skill


development- HRP is significant in developing a balance between the unemployed
skilled youth of the nation and skill requirements in the industry.
Technological upgradations- Due to dynamic changes in managerial or process
skills, upgradation of job profiles, it is important to effectively plan manpower needs to
avoid redundancy, re-training & re-deployment.
Changes in organizational environment- Due to dynamic changes in the business
environment, organizations are subjected to variations and breaks in their systems. It is
imperative for organizations to rely on HRP to strategically plan their manpower
requirements.
Estimating future personnel needs Strategic planning- downsizing or expansion- HRP plays a significant role in
strategic planning in situations of expansion or downsizing. In case of expansion, the
organization has to grow dynamically, hence lots of changes is involved in the HRP
with respect to hiring, job redesigning, training etc. In case of downsizing, the
company has to reduce its workforce size by removing insignificant employees , which
requires proper planning through HRP.
Replacement of persons- Proper planning is required for replacement of persons in
terms of eliminating, retirements, transfers etc, hence HRP is crucial.
Adjusting for skill shortages through talent retention- HRP has an important task of
not only attracting the required potential but also ensuring to retain them in the
organization.
Strategic alliances- Strategic alliances like mergers and acquisitions involves
formation of a completely new entity which involve lots of changes in management
structure, policies , systems and workforce. Hence HRP is crucial in proper planning of
the required changes in the new entity.
Government interference- Various governmental legislations like working hrs,
working shifts, compensation, reservations of minorities, women & child employment,
contract labor, casual labor, apprentices require proper HRP to be maintained
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Offers a Systematic concept of planning- With the growth of the concept of people
management, there has been a need to maintain the transparency in the system which
can be fulfilled by maintaining the systematic and transparent record by HRP.
Structured employee development- Involves proper planning to be done through
effective HRP.
Change management- Any changes in the organization structure, management
policies, systems, culture, jobs etc involves effective planning through proper HRP.
Facilitates economic development- HRP facilitates in the economic development of
the company through optimum utilization of the resources specially human resources
and avoiding any wastages.
Diverse workforce- The issues of diverse workforce can be tackled and solved
through proper planning regarding their training, job assignments, job designing,
working conditions, HR policies etc by effective formulation and implementation of
HRP.
Factors affecting HRP:
EXTERNAL FACTORS
1. Legislative provisions- various provisions regarding labor laws, reseravations in
recruitment and legal provisions of the government related to employment practices
influence HRP
2. Level of economic development- level of Human resources development in the
country is determined by the level of economic development. Economic development
also results in more jobs and better jobs ie, higher demand for skilled manpower. This
helps to determine the future supply of manpower.
3. Business environment- The business environment factors impact the demand, jobs
and also supply of human resources.
4. Technological advancements- technological changes bring about changes in jobs as
well as skill requirements. This calls for recruitement of required skilled professionals
and appropriate training to be given to existing employees , hence influencing relevant
changes in the HRP.
5. Global influences- The various global factors that impact the supply and demand of
manpower in various regions all across the globe and sharing of human resources also
influence HRP.
6. Labour market- the demography of potential candidates in the labor market,
employment- unemployment rates, supply sources etc influence HRP to a large extent.
Higher Umemployment rate indicates more unskilled labor and scarcity of required
skills , which means that HRP should include provisions to adjust for the dearth in
skilled labour. Changing demographics in the labor population indicates changes in
HRP.
INTERNAL FACTORS:
1. FIRMS plans and guidelines- The companys strategy for growth, expansion &
diversification dictates the need for human resources in terms of quality and quantity
within the organization.
2. Rules and regulation for Human resources- The specified rules and regulations for
the human resources within the organization regarding skills required, amount of
compensation , provisions for workforce etc affect HRP.
3. Job analysis- It is a comprehensive study of a particular job with reference to the
nature of the job, tasks and duties involved in it and skills required to accomplish a
particular task. Job analysis influence HRP by specifying the job description and job
specification of a particular job, indicating the number and type of hires to be done.
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4. Perspective of timeframe- HRP of an organization depends upon the situation and the
time frame for which it is designed. If the environment is relatively stable , it can go
for long term planning, but if the environment is dynamically changing or organization
is rapidly growing, it is recommended for the company to opt for short term planning.
5. Reliability and credibility of information- Effective planning is based on accurate
data about related factors. HRP is based on the data related to the factors like the
capital budget, organizational structure, level of technology, functional area objectives,
job analysis, sources of recruitment, retirement plans etc.
6. Policies regarding the operational & production system of firm- HRP of the firm is
based on the companys decisions regarding the production schedule. It decides the
number of persons required for fulfilling the production schedule .
7. Trade union demands and expectations regarding working hrs, shifts,safety and
welfare standards, sources for recruitment influences HRP8. Phases of organisational life cycle- also influences HRP. HRP is usually long term in
the maturity phase of the organizational life cycle as not much changes happen in the
organization during this stage. However the HRP tends to be short term , flexible and
dynamic in the introduction stage and growth stage due to numerous changes that
happen with respect to the organizational structure, jobs, policies and human resources
in the organization.
PROCESS OF HRP:

1.Analysis of objectives & strategic plans of the org.


2.Review the HR objectives & strategies
3.Assessing current HR needs or demand forecasting
4.Manpower forecasting
5.Gap analysis
6.Manpower plan
7.Training & development
8.Evaluation & feedback of manpower plan
9.Control measures