This Study Resource Was

CHAPTER 2
HUMAN RESOURCE PLANING
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Questions:
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1.Explain in detail the concept of Human Resource
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Planning. rs e
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2.Discuss the need and importance of Human
Resource Planning.
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3.Examine the Objectives of HR Planning.

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4.What are the main types of Human Resource

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Planning?
5.Long Range Human Resource Planning is merely a
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wiseful thinking. Do you agree with this statement?

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Explain.
6.Examine the reasons for the Current Interest in HR
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Planning.
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7.What is Human Resource Planning? Explain the steps

in human resource planning.
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1. Explain in detail the concept of Human

Resource Planning.
Answers:
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Human Resource planning is the process by which a
management determines how an organization should move from its
current manpower position to its desired manpower position.
 According to Coleman, Human Resource Planning is the process
of determining manpower requirements and the means for
meeting those requirements in order to carry out the integrated
plan of the organization.
 According to Wikstrom, Human Resource Planning consists of a
series of activities, these are:
 Forecasting future manpower requirements, either in

terms of mathematical projections of trends in the economic
environment and developments in industry, or in terms of
judgmental estimates based upon the specific future plans
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of a company.
 Making an inventory of present manpower resources
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and assessing the extent to which these resources are
employed optimally.
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 Anticipating manpower problems by projecting present
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resources into the future and comparing them with the
forecast of requirements to determine their adequacy, both
quantitatively and qualitatively.
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 Planning the necessary programs of requirements,

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selection, training, development, utilization, transfer,

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promotion, motivation and compensation to ensure that

future manpower requirements are properly met.
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2. Discuss the need and importance of Human

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Resource Planning.
Need for Human Resource Planning.
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 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.
 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.
 Human Resource Planning is required to meet the requirements of

diversification and growth of a company.
 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
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Importance of Human Resource Planning
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 It gives the company the right kind of workforce at the right time
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frame and in right figures.
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 In striking a balance between demands-for and supply-of resources,
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HRP helps in the optimum usage of resources and also in reducing
the labor cost.
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 It helps the organization to develop a succession plan for all its

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employees. In this way, it creates a way for internal promotions.

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 It compels the organization to evaluate the weaknesses and

strengths of personnel thereby making the management to take
remedial measures.
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 The organization as a whole is benefited when it comes to increase in

productivity, profit, skills, etc., thus giving an edge over its
competitors.
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3. Examine the Objectives of HR Planning.

Answers:
sh
The major objectives of Human Resource Planning in an organization

are to:
(i) Ensure optimum use of human resources currently employed;

(ii) Avoid balances in the distribution and allocation of human resources;
(iii) Assess or forecast future skill requirements of the organization’s
overall objectives;
(iv) Provide control measure to ensure availability of necessary resources
when required;
(v) Control the cost aspect of human resources;
(vi) Formulate transfer and promotion policies.’
4. What are the main types of Human Resource

Planning?
Answers:
There are 2 main types of Human Resource
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Planning these are Aggregate Planning and Succession
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planning.
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Aggregate Planning
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 The aggregate planning is done for the group of employees at
specific level, usually the low level jobs.
 Aggregate planning is forecasting the demand for employees.
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 The greatest indicator of the demand for employees is demand

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for organizations product or service.

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 Aggregate planning is done through unit furcating method.

 In this method, each individual unit, department or branch of the
organization estimated its future needs for employees.
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 Anticipating the needs for groups of employees in specific, usally

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lower level jobs and the general skills employees will need to
ensure sustained high performance.
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Succession Planning
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 Succession planning involves identifying the key management

positions that the organization cannot afford to have vacant.
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 These are generally senior management positions that the

organizations feels difficult to fill
 It focuses on ensuring that key individual management positions
in the organization remain filled with individuals who provide the
best fit for these critical positions.
5. Long Range Human Resource Planning is
merely a wiseful thinking. Do you agree with
this statement? Explain.
Answers:
I agree in this statement because long-range HR planning
is significant for every company and ultimately to its success. Without
a long term vision, a culture cannot form that benefits the goals and
overall vision of the company. Without a long-term vision, a culture that
benefits the company's objectives and overall vision cannot be
created. The culture of a company starts at the top, usually with the
CEO or the Board of Directors. This culture is being introduced by
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recruiting, promotion, and flexibility activities that are usually
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implemented by the HR department. If the vision of the HR department
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is too short-sighted, workers can also concentrate on short-term
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objectives that clash with the long-term mission of the organization.
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6. Examine the reasons for the Current Interest
in HR Planning.
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Answer:
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Major reasons for the present emphasis on manpower planning

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include the following:

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1. Employment-Unemployment Situation: Though in general

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the number of educated unemployed is on the rise, there is an acute

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shortage of a variety of skills. This emphasizes the need for more

effective recruitment and retaining people.
2. Technological Change: The changes in production technologies,

sh
marketing methods and management techniques have been extensive

and rapid. Their effect has been profound on job contents and
contexts. These changes can cause problems relating to redundancies,
retraining and redeployment.
3. Organizational Change: In a turbulent environment marked by

cyclical fluctuations and discontinuities, the nature and pace of
changes in organizational environment, activities and structures affect
human resource requirements and require strategic consideration.
4. Demographic Changes: The changing profile of the work

force in terms of age, sex, literacy, technical inputs and social
background have implications for human resource planning.
5. Skill Shortages : Government control and changes in

legislation with regard to affirmative action for the disadvantaged
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groups, working conditions and hours of work, restrictions on women
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and child employment, casual and contract lab our, etc. have
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stimulated the organizations to become involved in systematic human
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resource planning.
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6. Legislative Controls: Now legislation makes it difficult to reduce
the size of an organization quickly and cheaply. It is easy to increase
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but difficult to reduce the numbers employed because of recent

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changes in labor law relating to lay-offs and closures. Those

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responsible for managing human resources must look far ahead and
attempt to foresee human resource position.
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7. Impact of Pressure Groups: Pressure groups such as unions,

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politicians and persons displaced from land by location of giant

enterprises have been raising contradictory pressures on enterprise
management in areas such as internal recruitment and promotions,
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preference to employees ‘children, displaced persons, sons of soil, etc.

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8. Systems Concept: The spread of systems thinking and the advent

of microcomputer as part of the on-going revolution in information
sh
technology emphasizes planning and adopting newer ways of handling

voluminous personnel records.
7. What is Human Resource Planning? Explain
the steps in human resource planning.
Answer:
Human resource planning refers to a process by which
companies ensure that they have the right number and kinds of people
at the right place, at the right time; capable of performing different
jobs efficiently. Planning the use of human resources is an important
function in every organization.
STEPS IN HUMAN RESOURCE PLANNING
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 Analysis of Organizational Plans and Objectives:
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Plans concerning technology, production, marketing,
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finance, expansion, and diversification give an idea about the volume
of future work activity. Each plan can further be analyzed into sub-
plans and detailed programs. It is also necessary to decide the time
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horizon for which human resource plans are to be prepared.

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 Forecasting Demand for Human Resources:

Human resource planning starts with the estimation of the
number and type of personnel required at different levels and in
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different departments. The main steps involved in HRP process are:

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a. To determine and to identify present and prospective needs of

human resource,
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b. To discover and recruit the required number of persons.

c. To select the right number and type from the available people.
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d. To hire and place in the positions for which they are qualified,
e. To provide information to the selected people about the nature
of work assigned to them,
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f. To Promote or to transfer as per the needs and the performance

of employees,
g. To denote if the employees are disinterested or their
performance is not up to the mark,
h. To terminate if they are not needed or their performance is
below standard and shows no hopes of improvement.
It is the most crucial and critical area of HRD. These HRD

manager must pay attention to place right man to the right job through
recruitment selection Training and Placement of employees. This calls
for the adoption of a systematic procedure to complete recruitment
and selection.
 Forecasting Supply of Human Resources:

One of the important areas of human resources planning is
to deal with allocation of persons to different departments depending
upon the work-load and requirements of the departments. While
allocating manpower to different departments, care has to be taken to
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consider appointments based on promotions and transfers.
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 Estimating Manpower Gaps:
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Employees deficient in qualifications can be trained
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whereas employees with higher skills may be given more enriched
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jobs. Deficits suggest the number of persons to be recruited from
outside whereas surplus implies redundant to be redeployed or
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terminated. Similarly, gaps may occur in terms of knowledge, skills and

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aptitudes.
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 Matching Demand and Supply:

It is one of the objectives of human resource planning to
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assess the demand for and supply of human resources and match both
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to know shortages and surpluses on both the side in kind and in

number. This will enable the human resource department to know
overstaffing or understaffing.
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CHAPTER 2

HUMAN RESOURCE PLANING

3.Examine the Objectives of HR Planning.

4.What are the main types of Human Resource

wiseful thinking. Do you agree with this statement?

7.What is Human Resource Planning? Explain the steps

1. Explain in detail the concept of Human

 Forecasting future manpower requirements, either in

 Planning the necessary programs of requirements,

selection, training, development, utilization, transfer,

promotion, motivation and compensation to ensure that

2. Discuss the need and importance of Human

 There is a need for Human Resource Planning when there is an

 Human Resource Planning is required to meet the requirements of

 There is a need for Human Resource Planning in downsizing the

 It helps the organization to develop a succession plan for all its

employees. In this way, it creates a way for internal promotions.

 It compels the organization to evaluate the weaknesses and

 The organization as a whole is benefited when it comes to increase in

3. Examine the Objectives of HR Planning.

The major objectives of Human Resource Planning in an organization

(i) Ensure optimum use of human resources currently employed;

4. What are the main types of Human Resource

 The greatest indicator of the demand for employees is demand

for organizations product or service.

 Aggregate planning is done through unit furcating method.

 Anticipating the needs for groups of employees in specific, usally

 Succession planning involves identifying the key management

 These are generally senior management positions that the

Major reasons for the present emphasis on manpower planning

include the following:

1. Employment-Unemployment Situation: Though in general

the number of educated unemployed is on the rise, there is an acute

shortage of a variety of skills. This emphasizes the need for more

2. Technological Change: The changes in production technologies,

marketing methods and management techniques have been extensive

3. Organizational Change: In a turbulent environment marked by

4. Demographic Changes: The changing profile of the work

5. Skill Shortages : Government control and changes in

but difficult to reduce the numbers employed because of recent

changes in labor law relating to lay-offs and closures. Those

7. Impact of Pressure Groups: Pressure groups such as unions,

politicians and persons displaced from land by location of giant

preference to employees ‘children, displaced persons, sons of soil, etc.

8. Systems Concept: The spread of systems thinking and the advent

technology emphasizes planning and adopting newer ways of handling

STEPS IN HUMAN RESOURCE PLANNING

horizon for which human resource plans are to be prepared.

 Forecasting Demand for Human Resources:

different departments. The main steps involved in HRP process are:

a. To determine and to identify present and prospective needs of

b. To discover and recruit the required number of persons.

f. To Promote or to transfer as per the needs and the performance

It is the most crucial and critical area of HRD. These HRD

 Forecasting Supply of Human Resources:

terminated. Similarly, gaps may occur in terms of knowledge, skills and

 Matching Demand and Supply:

to know shortages and surpluses on both the side in kind and in

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