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HUMAN RESOURCES PLANNING

Introduction

Human resources planning, commonly abbreviated as HRP and sometimes referred to as

workforce planning, or personnel planning, may be defined as the process of anticipating and

making provision for the movement of people into, within, and out of the work organisation. Its

primary purpose is to enable the work organisation to maximise the utilisation of its human

resources by ensuring that the right number of people, of the right abilities, are available to

perform in correspondingly right job positions at the right time. Human resources planning helps

work organisations to implement their short- and long-term business plans. Due to the pivotal

role of human resources to the performance of organisations, human resources planning is a very

important part of the strategic plan of any work organisation.

Human resources management is a modern terminology for what traditionally used to be known

as personnel management or personnel administration

. Definition of Human Resources Planning

Human resources planning is the process of ensuring that human resources requirements of an

organization are identified and plans are made for satisfying those requirements.

Human resources planning is the process of ensuring availability of the right number of people,

doing right thing at the right time in the right place within the right costs.

HRP is concerned with matching resources to business needs in the longer terms although also

deals with shorter terms needs.

1.2 Background of HRP

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In 1960s and 1970s HRP was regarded as a critical tool for business success. In 1980s and

1990s HRP was regarded as a suitable tool for managing downsizing and redundancies. Still at

the current time HRP is an important tool for organization success in our ever changing global

world.

1.3 Scope of HRP

Basically HRP has emerged from manpower planning. Traditional manpower planning was

concerned with number of employees and the levels and types of skills in the organization.

Manpower planning was narrower compared to human resources planning.

HRP is concerned with broader issues about the employment of people than the traditional

quantitative approach of manpower planning.

1.4 Objective of HRP

To attract and retain the number of people required within the appropriate skills, expertise

and competencies.

To anticipate the problems of potential surpluses or deficit of people.

To develop a well trained and flexible workforce hence to be able to adapt uncertain and

changing environment.

Reduces dependence on external recruitment when key skills are in short supply by

formulating retention as well as development strategy. Improve the utilization of people by introducing more flexible system of work.

To foresee the turnover of employees and make arrangement to minimize turnover.

To develop and maintain quality of workforce.

1.5. Importance of HRP

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It enables the organization to economize on its recruitment function

Better planning assignments to develop managers can be done through personal

development plan and succession planning.

Helps to make the best use of the labour market effectively and efficiently.

Leads to the availability of sufficient time to locate talents in an organization.

Provides opportunity of employment for various disadvantaged groups such as women

and disabled.

1.6 Functions of HRP

The importance of any management function can best be discussed from the point of view

of the advantages derived from its effective and efficient performance. Accordingly, a good and

well implemented human resources plan enables the organisation to reap the following major

benefits:

(1) It enables the organisation to maximise the utilisation of its human resources. Almost

all the time, the organisation has the right numbers and quality of employees for its

jobs, thus eliminating idle labour power, and overwork of employees.

(2) It enables a better achievement of the organisation's objectives by ensuring that

management efforts are made in good time to avail the requisite labour power for the

organisation's performance processes.

(3) It enables the organisation to economise on its recruitment function. An organisation

with poor or without human resources planning wastes money hiring the wrong

numbers or quality of employees. Such an organisation also cannot screen and

validate the applicants' qualifications properly and therefore compels the organisationto invest in extravagant additional training for the new recruits before they can work

at anticipated performance standards.

(4) It enables the organisation to organise successful exit plans for the advantages of the

employees and the organisation. Work organisations with poor or without human

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resources planning cannot put in place employee succession programmes that prepare

younger staff to take over from retiring staff; they cannot give retiring staff useful

preparatory counselling; they are also unable to make the right preparations to meet

their financial obligations to retiring employees.

(5) It increases the organisation's information base to the advantage of the human

resources department and other departments. Such information forms a basis for

correct decisions in the implementation of core and non-core human resources

programmes.

(6) It enables the organisation to make a more effective and efficient use of the labour

market. An organisation with good human resources planning, approaches the labour

market at the right time and knows what it is looking for in terms of quantities and

quality. On the internal labour market, the human resources department knows

accurately and at the press of a button the available candidates, their ability

particulars from which to proceed to determine the organisations readiness to spare

them for the vacant jobs. In both the internal and external markets, the human

resources department can accurately describe the human and industrial engineering

requirements of the job so that it is able to attract the right applicants.

(7) It facilitates career or personal development. An organisation with poor or without

human resources planning makes it difficult for its employees to make plans for their

personal development, because they cannot clearly identify clear career paths, career

opportunities, and conditions for their access. As a result the more marketable and

ambitious employees seek employment in other organisations which have clear career

opportunities.

1.7 Types of HRP

Soft HRP This ensures the availability of right people with the right type of attitude and

motivation. The main focus is on qualitative aspect of human resources planning.

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Hard HRP This is qualitative analysis in order to ensure the right number of people is

available.

However according to Jim Franklin who expanded the above two types by relying on

specific activities as types of human resources planning; therefore the following are the

types of human resource.

Workforce Forecasting

To satisfy the organization's strategic objectives, human resources needs to consider what kind

of workforce will be needed in the future. Workforce forecasting is a major component of human

resource planning, and involves analyzing its current workforce and comparing it to future

requirements to discover what gaps and surpluses exist.

Recruiting

Achieving strategic objectives through the human resource element involves attracting and

recruiting quality employees. Benefits, compensation, organizational structure and employee

growth or advancement are key elements for finding and hiring good employees. Planning the

recruiting process with these elements in mind will assist with future employee selection.

Development

Development, or training, is a type of human resource planning that focuses on how it can

improve the current and future workforce. Training and development programs improve both

specific work-related skills and more general skills like customer service or sales training.

Training and retraining programs can also focus on reducing current and future liability issues

related to workplace safety.

Retaining

Planning for the retention of employees can be an arduous task, as it is difficult to prevent

employees from looking at other employment opportunities. Human resources can help to reduce

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this likelihood by planning retention programs that focus on employee recognition, rewards,

advancement or growth, a work-life balance and employee benefits.

1.8. Limitations of HRP

Lack of top management support

Uncertainty of the future

Problems of surplus staff/deficit

Time consuming activity

Poor information base

Expensive process