Human Resource Planning – Concept and need

Factors affecting HRP, HRP Process

Human Resource Planning• Meaning – Assessment of Human Resource

requirements and time and stages of requirement.

• Right person ---At Right place ---At Right time.

• Definition – HRP is defined as the process by which management determines how an organization should move from its current manpower position to its desired manpower position.

• HRP is also called manpower planning, personnel planning or employment planning.

Objectives of HRP

• To ensure optimum use of existing HR.

• To forecast future requirement for HR.

• To provide control measures to ensure that necessary HR are available as and when required.

• To asses the surplus and shortage of HR. (Downsizing).

Objectives of HRP – Contd.

• To anticipate the impact of technology on jobs and HR.

• To determine the level of Recruitment and Training.

• To estimate the cost of HR and Housing needs of employees.

• To meet the needs of expansion and diversification programmes.

Importance of HRP• Future Personnel needs – exa-excess staff, VRS

• Creating highly talented personnel - upgrade

• International Strategies – PCNs, HCNs, TCNs

• Foundation of personnel function – recruitment, selection, promotions

• Resistance to change and move – anywhere,

anytime

• Increasing investment in human resources – Foreign Assignments

Factors Affecting HRP

Type and strategy of

organization

Time horizons

Type and Quality of forecastingInformation

Nature of job

Outsourcing

Environmental

Uncertainties

Organisational growth cycle and planning

HRP

1. The type of organization determines the production process, type of staff, (supervisor and manager). And the strategy plan of the organization defines its HR needs.

2. Organizational growth cycle and planning – start up, growth, maturity, decline

3. Environmental uncertainty – political, social and economical change affect all organizations.

4. Outsourcing – the process by which employees transfer routine or peripheral work to the another organizations.

5. Nature of job – job vacancies, promotions and expansion strategies.

6. Type and quality of forecasting information - organizational structure, budgets, production.

7. Time horizons – long term plans and short term plans, the greater the uncertainty the shorter the plan.

Example computers and university.

HRP Process

HR Needs Forecast

HR Programming

HRP Implementation

Control and Evaluation

ShortageSurplus

Environment

Org objectives and policies

HR Supply Forecast

HRP Process

• Environment - :

1) Economic factors

2) Technological Changes

3) Demographic changes

4) Political and legislative issues

5) Social concerns

HRP Process (Contd.)

• Organizational objectives and policies-:

• HR plans need to be based on organizational objectives.

• Specifics requirements in terms of numbers and characteristics of employees must be derived from organizational objectives.

HRP Process (Contd.)• HR need or demand forecast-:• The process of estimating the future quantity

and quality of people required.• The basis of forecast will be annual budget

and long term corporate plans.• Demand forecasting must consider several

factors like

i. Internal (Budget constraints, employee separations, production level etc.)

ii. External (Competition, laws, change in technology).

HRP Process (Contd.)

• HR Supply forecasting-:

• It determines weather the HR department will be able to acquire the required number of workers.

• Specifically supply forecasting measures the number of people likely to be available from within and outside an organization.

HRP Process

• HR Programming-: • Once the Organization’s HR need and

supply are forecast, • Then vacancies can be filled by the right

employee at the right time.

• HR Plan Implementation-:• Implementation requires converting an HR

plans into action. (Recruitment, Training, etc.)

• Control and evaluation :-

• Surplus – restricts hiring, reduced hours (VRS, lay off etc)

• Shortage – recruitment and selection