Human resource planning

Introduction:

HRP is a forward looking function and an organizational tool to identify skill and competency gaps and subsequently develop plans for development of deficient skills and competencies in human resources to remain competitive. HRP is influenced by technological changes and other global business compulsions. HRP ensures benefits to the organisations by creating a reservoir of talent, preparing people for future cost-cutting and succession planning besides creating a back-up plan in case of diversification and expansion.

Human Resource Management is very important for the survival and prosperity of an organization. Procurement of right kind and right number of employees is the first operative function of Human Resource Management. Before selecting the right man for the right job, it becomes necessary to determine the quality and quantity of people required in the organization. This is the primary function of Human Resource Planning. Human resource planning or manpower planning is essentially the predetermining process of getting the right number of qualified people into the right job at the right time.

Human resource planning should be an integral part of business planning. The planning process defines projected changes in the types of activities carried out by the organization and the scale of those activities. It identifies the core competencies required by the organisation to achieve its goals. Human resource planning interprets people requirements in terms of stalls and competencies

Definition of 'Human Resource Planning

The ongoing process of systematic planning to achieve optimum use of an organization's most valuable asset - its human resources. The objective of human resource (HR) planning is to ensure the best fit between employees and jobs, while avoiding manpower shortages or surpluses. The key elements of the HR planning process are forecasting labor demand, analyzing present labor supply, and balancing projected labor demand and supply.

According to E. W. Vetter, Human resource planning is a process by which an organization should move from its current manpower position to its desired manpower position. Through planning, management to have the right number and right kinds of people, at the right places, at the right time, doing things which result in both the organization and the individual receiving maximum long-run benefit.

Features of Human Resource Planning

It is future oriented: Human Resource Planning is forward-looking. It involves forecasting the manpower needs for a future period so that adequate and timely provisions may be made to meet the needs. It is a continuous process: Human Resource Planning is a continuous process because the demand and supply of Human Resource keeps fluctuating throughout the year. Human Resource Planning has to be reviewed according to the needs of the organization and changing environment.

Integral part of Strategic Planning is critical for implementation of the organizations strategic plan. Optimum utilization of resources: The basic purpose of Human Resource Planning is to make optimum utilisation of organizations current and future human resources.

Both Qualitative and Quantitative aspect: Human Resource Planning considers both the qualitative and quantitative aspects of Human Resource Management, Quantitative meaning the right number of people and Qualitative implying the right quality of manpower required in the organization.

Long term and Short term: Human Resource Planning is both Long-term and short-term in nature. Just like planning which is long-term and short-term depending on the need of the hour, Human Resource Planning keeps long-term goals and short-term goals in view while predicting and forecasting the demand and supply of Human Resource.

Objectives of Human Resource Planning

Forecast personnel requirements: To ensure that the organization is well-equipped with the required Quantity and Quality of HR on a sustained basis For Acquisition, utilization, improvement and preservation of an organizations human resources.

Cope with changes: To anticipate the impact of technology on jobs and resources; To ensure readjustment of the Human Resources in terms of strategic changes of the organization to maintain a close fit with its environment Use existing HR productively :Optimum utilization of human resources currently employed in the organization. To reduce imbalance in distribution and allocation of manpower in organization for various activities. To control cost of Human Resources employed, used and maintained in the organization.

Promote employees in a systematic way to ensure optimum contribution and satisfaction of the personnel with reasonable expenditure

The Need for HR Planning. Attract Critical Skills: Organizations have the need for critical skills which are in short supply, creating a stiff competition in the market.. So it is necessary to plan for such skilled people much in advance than when we actually need them. Non-availability of skilled people when and where they are needed is an important factor which prompts sound Human Resource Planning. Manage Labor Turnover: Human Resource Planning is essential because of frequent labour turnover which is unavoidable by all means. Labour turnover arises because of discharges, marriages, promotion, transfer etc which causes a constant ebb and flow in the workforce in the organization. Cope with Changing needs of technology: Due to changes in technology and new techniques of production, existing employees need to be trained or new blood injected into an organization. Identify areas of surplus or shortage of personnel: Manpower planning is needed in order to identify areas with a surplus of personnel or areas in which there is a shortage of personnel. If there is a surplus, it can be re-deployed, or if there is a shortage new employees can be procured. Changes in organization design and structure: Due to changes in organisation structure and design we need to plan the required human resources right from the beginning.

The four phases or stages of HR planning: Situation analysis or environmental scanning Forecasting demand

Analysis of the supply Development of action plans