UNIT- II: HUMAN RESOURCE PLANNING

1. Introduction: Meaning and

2. Definition of HRP,
3. Importance of HRP,
4. Objectives of HRP,
5. Human Resource Planning Process- Meaning and Steps Involved

1. Meaning

Human resource (HR) planning or manpower planning is the process by which the
organization ensures that it has the right kind of people, at right time, at right place and they
are working effectively and efficiently and help the organization in achieving the overall
objective. It is a continuous process. Of developing and determining objectives, policies that
will procure, develop and utilize human resources to achieve the goal of the organization.

2. Definition

i) According to beach:

“Human resource planning is a process of determining and assuming that the organization
will have an adequate number of qualified persons, available at the proper times, performing
jobs which meet the needs of the enterprise and which provide satisfaction for the individuals
involved.

ii) According to Gordon Macbeath:

manpower planning involves two stages. The first stage is concerned with the detailed
“planning of manpower requirements for all types and levels of employees throughout the
period of the plan,” and the second stage is concerned with” planning of manpower supplies
to provide the organisation with the right types of people from all sources to meet the
planned requirements.

3. IMPORTANCE OF HRP

Human resource planning or manpower planning is necessary for ail organisations because
of the following reasons:

1. To meet up requirements of the organization: 

To do work in the organisation, every organisation needs personnel of desired skill,

knowledge, and experience. This human resources requirement of organisation can be
effectively fulfilled through proper human resource planning. It helps in defining the number
of personnel as well as kind of personnel required to satisfy its needs. It ensures the
reservoir of desired human resources as and when required.

2. Counterbalance insecurity and change: 

There must be proper utilisation of human and non-human resources in the organisation.
Sometimes the organisation may have adequate non-human resources e.g. machines,
materials and money but inadequate human resources as a result, manufacturing
process/production cannot be started. Human resource planning helps to offset uncertainties
and changes as far as possible and enables to ensure availability of human resources of the
right kind, at right time and at right place.

3. It helps in checking labour imbalance: 

Human resource planning helps to anticipate shortages and/or surpluses of manpower in the
organisation. The shortage of manpower as well as surplus of manpower is not good for the
organisation. It proves very expensive for the organization. In case of shortage of human
resources, physical resources of the organization cannot be properly utilized. In case of
surplus of human resources, this resource may remain under-utilized It helps in
counterbalancing the problem of shortage and surplus employees very comfortably. Human
resource planning helps in correcting this imbalance before it becomes unmanageable and
expensive.

4. Right-sizing the human resource requirements of the organization: 

In an existing organization, there is a constant need for right-sizing the organization. In the
organization, some posts may fall vacant as a result of retirement, accidents, resignations,
promotions or death of employees. Consequently, there is constant need of replacing
people. Human resource planning estimates future requirements of the organisation and
helps to ensure that human resources of right kind, right number, in right time and right
place.

5. To meet expansion and diversification needs of the organisation: 

It helps to execute future plans of the organisation regarding expansion, diversification and
modernization. Through human resource planning it is ensured that employees in right
number and of right kind are available when required to meet these needs of the
organisation. It ensures that people of desired skills and knowledge are available to handle
the challenging job requirements.

6. Training and Development of Employees: 

There is constant need of training and development of employees as a result of changing

organization of the organisation. It provides scope for advancement and development of
employees through training and development etc. Thus, it helps in meeting the future needs
of the organisation of highly skilled employees.

7. Fulfill Individual Needs of the Employees: 

It helps to satisfy the individual needs of the employees for promotions, transfer, salary
encashment, better benefits etc.

8. Helps Formulation of Budgets: 

It helps in anticipating the cost of human resources e.g. salary and other benefits etc. It
facilitates the formulation of human resource budget for various departments/divisions of the
organisation. So, it may also help in, the formulation of suitable budgets in an organisation.

9. To Check Joblessness: 

In the exercise of right-sizing of employees by the organisation, some of the employees may
become surplus. It means their services are no more required in the organisation. It tries to
 foresee the need for redundancy. It plans to check job loss or to provide for alternative
employment in consultation with various concerned parties and authorities.

           
HR planning can become part of strategic planning at two ends. At the beginning of strategic
planning, HRP provides a set of inputs into the strategic formulation process in terms of
deciding whether the types and numbers of people are available to pursue a given strategy.

SUMMARY

          The need for and importance of human resource planning is explained by the fact that
it maintains a fine balance between demand for and supply of human resources required to
effectively complete those tasks that help organization achieve its objectives.

4. Objectives of Human Resource Planning (HRP)

1. To recruit and maintain the HR of requisite quantity and quality.

2. To predict the employee turnover and make the arrangements for minimizing turnover and filing up of
consequent vacancies.
3. To meet the requirements of the programmes of expansion, diversification etc.
4. To anticipate the impact of technology on work, existing employees and future human resource
requirements.
5. To progress the knowledge, skill, standards, ability and discipline etc.
6. To appraise the surplus or shortage of human resources and take actions accordingly.
7. To maintain pleasant industrial relations by maintaining optimum level and structure of human
resource.
8. To minimize imbalances caused due to non-availability of human resources of right kind, right number
in right time and right place.
9. To make the best use of its human resources; and
10. To estimate the cost of human resources.

5. Human Resource Planning Process- Meaning and Steps Involved:

Human resource planning is a process through which the right candidate for the right job is ensured.
For conducting any process, the foremost essential task is to develop the organizational
objective to be achieved through conducting the said process.

Six steps in human resource planning are presented :

1. Analysing Organizational Objectives:

The objective to be achieved in future in various fields such as production, marketing,
finance, expansion and sales gives the idea about the work to be done in the organization.

2. Inventory of Present Human Resources:

From the updated human resource information storage system, the current number of
employees, their capacity, performance and potential can be analysed. To fill the various job
requirements, the internal sources (i.e., employees from within the organization) and
external sources (i.e., candidates from various placement agencies) can be estimated.

3. Forecasting Demand and Supply of Human Resource:

The human resources required at different positions according to their job profile are to be
estimated. The available internal and external sources to fulfill those requirements are also
measured. There should be proper matching of job description and job specification of one
particular work, and the profile of the person should be suitable to it.

4. Estimating Manpower Gaps:

Comparison of human resource demand and human resource supply will provide with the
surplus or deficit of human resource. Deficit represents the number of people to be
employed, whereas surplus represents termination. Extensive use of proper training and
development programme can be done to upgrade the skills of employees.

5. Formulating the Human Resource Action Plan:

The human resource plan depends on whether there is deficit or surplus in the organization.
Accordingly, the plan may be finalized either for new recruitment, training, interdepartmental
transfer in case of deficit of termination, or voluntary retirement schemes and redeployment
in case of surplus.

6. Monitoring, Control and Feedback:

It mainly involves implementation of the human resource action plan. Human resources are
allocated according to the requirements, and inventories are updated over a period. The plan
is monitored strictly to identify the deficiencies and remove it. Comparison between the
human resource plan and its actual implementation is done to ensure the appropriate action
and the availability of the required number of employees for various jobs.

Need for Human Resource Planning

The need of HRP may arise because of the following reasons:

1. In India, unemployment is a grave concern. Scarcity of manpower and that too with the
required skill sets and competence, has given rise for need of Human Resource
Planning.
2. It comes handy for smooth and continuous supply of workers when a huge number of
employees is retiring, or leaving the company or maybe they are incapable of working
due to psychological or physical ailments.
3. There is a need for Human Resource Planning when there is an increase in employee
turnover, which is obvious. Some examples of this turnover are promotions, marriages,
end of contract, etc.
4. Technological changes lead to a chain of changes in the organization, right from skill
sets product methods and administration techniques. These changes lead to an overall
change in the number of employees required and with entirely different skill set. It is
here that the Human Resource Planning helps the organization deal with the necessary
changes.
5. Human Resource Planning is required to meet the requirements of diversification and
growth of a company.
6. There is a need for Human Resource Planning in downsizing the resources when there
is a shortage of manpower. Similarly, in case of excess resources, it helps in
redeploying them in other projects of the company.