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Human Resource Planning:

With the lapse of time changes do occur in organizations. But adapting to these changes requires all organizational members to understand where the organization is going and to support what the enterprise is about to do. We understand that before we can depart on a journey we have to know your destination. Suppose we have some holidays and we want to go for outing. First we have to decide where to go? Whether we have to go to Lahore or Islamabad, Murree or NathiaGali. This is we are deciding our destination. Secondly we have to decide how we have to go there mean by train, Daewoo, by air or by own car and we also apply some budget for it. This is what we can say all about planning. In simple words we can say that HRP is the systematic approach through which we assess the future human resource needs and determine the actions required to meet those needs. First challenge of HRP is to translate the organizational plans and objectives into a time schedule of employees requirements, after determining the employ requirements we have to device plans to for securing necessary employees. The long term success of any organization depends on having right people in the right jobs at right time. The organizational objectives and the strategies for achieving that objective are meaningful only when people with appropriate talents, skills, and desires are available to carry out those strategies. Effective HRP can also help to reduce turnover by keeping employees apprised of their carrier opportunities.

Steps in HRP Process


Determining the organizational objectives.
Objectives are actually written statements of expected results that are designed to give the organization and its members direction and purpose. For designing objectives we can also follow cascade approach. An objective setting process designed to involve all the levels of management in the organizational planning process. The objective setting process begins at the top of the organization with statement of mission, which defines the organizations current and future business. Long term objectives and strategies are formulated based on the organization mission statement. These can then be used to establish short term performance objectives. Short term performance objectives generally are time bounded and

expressed quantitatively. Divisional and departmental objectives are then derived from the organizations short term performance objectives. This approach leads to an upward and downward flow of information during planning. This also ensures that objectives are communicated and coordinated through all levels of organization.

Determining the skills and expertise required(demand)


After establishing organizational, divisional and departmental objectives, operating manager should determine the skills and expertise required to meet their respective objectives and to translate the needed skills and abilities into types and number of employees. Suppose an objective of production department is to increase total production by ten percent. Once this objective has been established, the production manager must determine precisely how this translates into human resource needs. A good starting point is to review and analyze current job descriptions. By doing this managers are in a better position to determine the skills and expertise to meet their objectives. Methods of forecasting human resource needs: Two methods are used for forecasting human resource needs, judgmental or mathematical. Judgmental methods: In this approach management make the decision for forecasting the demand on the basis of their accumulated judgment. This approach includes three methods Managerial estimates: In managerial estimates, managers estimate future human needs based on past experience. These estimates can be made by top level management and pass down. Delphi Technique: It is also judgmental approach. In this approach we forecast through panel of experts who make initially independent estimates of future demand. Then an intermediary presents each experts forecast to the other members of panel. Each

expert is then allowed to revise his forecast if required. This process leads to some mutual consensus. Scenario analysis:

Mathematical methods: Statistical methods use historical data to project the future demand. These Statistical methods are relatively more sophisticated and give more scientific results but these takes relatively more time than judgmental techniques. Some statistical methods are as follows Time series analysis. Personnel ratios. Productivity ratios. Regression analysis

Benchmarking: Despite of judgmental and mathematical approaches, there is another technique that is benchmarking. In this technique we thoroughly examine internal practices and procedures and measure them against the ways other successful organizations operate. A major advantage of benchmarking is that we aware some different new ways of doing things.

Determining Net human resource requirements:


Once the manager has determined the future demand, he analyzes these estimates in light of current and future human resource needs of the organization. Skills inventory: It is a profile of skilled human inventory which contain biographical data on all employees even at a simple lower level. Skills inventory is used as input into promotion and transfer decisions because it consists information about the versatile skills of employees, not just those relevant to the employees current job.

Management inventory: Management inventory is an extended form of skills inventory which contains information about managerial employees. In addition to biographical data management inventory also contains brief assessment of manager past performance and potential for advancement. Developing Action plans Once the net human resource requirements have been determined, managers must develop action plans for achieving the desired results. If the requirements are positive, the organization implements recruitment, selection, training and development. If the requirements are negative, human resource cost must be reduced through downsizing or through approaches that do not result in employees leaving the organization. Downsizing can be reduced through attrition, layoffs, termination, early retirements or voluntary resignation. Approaches that do not result in employees leaving the organization include reclassification, transfer or sharing.

Tools and techniques of HRP:


Many tools are available to assist the HRP process. One of which we have already discuss in determining the net human resource inventory, others will be discussed now. Succession planning: The technique that identifies specific people to fill future vacancies in key positions throughout the organizations. In this technique we before time plan for future by using replacement chart. A replacement chart is predetermined database chart that shows both incumbents and potential replacements for given positions within the organizations. Commitment manpower planning A systematic approach to HRP which is designed to get managers and their subordinates participating and involving in HRP. CMP generates three types of reports providing the following information.

The supply of the employees and their promotability and placement status. The organizations demand arising from new positions and turnover and projected vacancies. The balance or status of supply verses demand. Ratio Analysis: A tool in human resource planning to measure the organization human resource vitality by measuring the promotable personnel and their performance backup.