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Concept of HRP (Employment Planning) HRP is the starting point of HRM Essential part of the

acquisition function of HRM HRP translates the organization's objectives & plans into the
number of workers needed to meet the objectives The purpose of HRP is to access where
the organization is, where it is going, & what implications these assessments have on
future supplies of & demands for human resources 2
3 Concept of HRP It is how organizations assess the future supply of & demand for human
resources The number of HR in demand & supply is derived from environmental &
operational analysis Determines the numbers & types of employees to be recruited or
phased out of an organization Required readjustments as labor market conditions change 3
4 Definition of HRP Human resource planning is a process by which an organization
ensures that it has the right number & kinds of people at the right place at the right time
capable of effectively & efficiently completing those tasks that will help the organization
achieve its overall strategic objectives. Decenzo, Robbins 4
5 Relationship of HRP to Strategic Planning Employment planning must be linked to the
organizations overall strategy HRP must be responsive to the changes both within & outside
the organization To ensure that appropriate personnel are available to meet the
requirements set during the strategic planning process, HRM engage in employment
planning 5
6 Dynamic









-Environmental scan -Strengths & constraints -Objectives & goals Operational Planning
(Middle Range) -Planned programs -Resource required -Organizational strategies -Plan for
entry into new businesses Issues Analysis -Business needs -External factors -Internal Supply
analysis -Management implications Forecasting Requirements -Staffing levels -Organization
& job design -Available projected resources Budgeting (Annual Perspective) -Budgets
-Unit/individual performances -Program scheduling & assignment -Monitoring & control of
results Action Plans -Staffing authorizations -Recruitment -Promotions & transfers
-Organizational changes -Training & development -Compensation & benefits -Labor relations
HRP Process Business Planning Process 6

Purpose Effective human resource planning allows management to recruit, develop and
deploy the right people at the right place at the right time, to meet organizational internal
and external service level commitments. Firms are constantly looking out for strategies to
cope with skill shortages that are particularly acute in the knowledge intense industries
due to high staff turnover. The purpose of this paper is to describe how system dynamics
modeling allows management to plan to hire and develop right level of skills and
competencies in the organizational inventory to meet desired service level targets.

Design/methodology/approach An integrated system dynamics framework is used to

develop various feedbacks and feed forward paths in the context of competence planning
and development. The model is mapped onto an overseas process industry company's
recruitment and attrition situations and tested using real data.
Findings Strategies for human resource planning are developed by conducting timebased
dynamic analysis. Optimum design guidelines are provided to reduce the unwanted scenario
of competence surplus and/or shortage, and therefore, to reduce disparity in between
service level needs and availability of right competencies.
Research limitations/implications System dynamics type of modeling is usually suited for
medium to long range timescale (two to five years scenarios). There is a need for the model
to be tested in a high turnover industry such as IT to test its efficacy in short term time
scale, where shortage in required talent is more acute. Also this model is tested for
measuring the generic skillsets in here. There is a need to test the model for a mixture of
generic and specialized skillsset in a specific business operation.
Practical implications The authors anticipate that system dynamics modeling would help
the decision makers and HR professionals to devise medium to longterm human resource
planning strategies to anticipate and meet the service level expectations from the internal
and external customers.
Social implications Such planning exercise will avoid the situation of customer
dissatisfaction due to right competence shortages. Also this will reduce the staff surplus
scenario that usually leads to kneejerk reaction to layoff unwanted skills, which is usually a
costly exercise and impacts negatively on staff morale.
Originality/value Use of the systems dynamics model introduced here is a novel way to
analyze human resource planning function to meet the target service level demands. The
idea that an organization can estimate the service level requirements for medium to long
term situations, and conduct whatif scenarios in a dynamic sense, can provide valuable
information in strategic planning purposes.
A process of searching for prospective employees and stimulating, encouraging them to
apply for jobs in the organization.
Steps in Recruitment
Identifying the different sources of labor supply.
Assessing the validity of different sources.
Choosing the most suitable source.
Inviting applications from the prospective candidates for the vacant jobs.

Sources of recruitment
There are two sources of recruitment: Internal source (from inside the enterprise).
External source (from outside the enterprise).
Internal Source
Filling vacancies in higher jobs from inside the enterprise.
They are: Transfer and Promotion.
Merits of Internal Recruitment

Motivates the employee to improve their performance.

Reduces the labour turn-over.
Increases the employee morale.
Sense of security.
Better employee-employer relationship.

Demerits of Internal Recruitment

Reduces the scope for fresh talents.

Hampers the spirit of competition.
Overall productivity of the enterprise reduces on account of frequent transfers of

External Source
Process of filling vacancies in entry level jobs fromoutside the organization.
They are:

Recruitment or factory gate.

Employment exchange.
Educational institutions.
Casual callers.
Unsolicited applicants.
Labour contractors.

Merits of External Recruitment

Wide choice.
Brings new ideas.

Demerits of External Recruitment

Lack of co-operation.
Danger of mal-adjustment.


The process of choosing the best person for a particular job.

The process of offering jobs to one or more candidates from among those who have
applied for the jobs in the concern.

After selection, a candidate should be placed on a suitable job with rank and responsibilities
attached to it. This process is called Placement.
Orientation / Induction

A process through which a new employee is introduced to the job and the

Purpose of Orientation

1. Removes fear.
2. Creates a good impression.
a. Adjust and adapt.
b. Get along with people.
c. Get off to a good start.
3. Acts as a valuable source of information.
Steps in Orientation

Introduced to key personal and informed about company profiles, procedures and
Training opportunities and career prospects are explained.
Doubts are clarified, encouraged.

Process through which a new recruit begins to understand and accept the values, norms and
beliefs held by others in the organisation. Helps the employee to learn about the job and
perform things in a desired way.
To offer guidance to employees on various general as well as job related matters.
Legal framework
The legal framework governing human resource development in organizations can be as
important as other human resources laws, but it is seldom fully reviewed. Factors defining
this framework are presented, followed by a model for identifying the domains of HRD for
which laws and regulations can apply. Legal mandates for training, particularly in the areas
of drugs, safety, and for certain occupational training, are examined. Rules governing
apprenticeship programs are reviewed in this context, too. The features of intellectual
property law, ethics, and privacy as they relate to the practice of human resource
development are presented. Tax laws and regulations also impact human resource
development; those rules are reviewed. Laws covering employee compensation are then
examined. Finally, the regulations that govern training in employee benefits are discussed.

Recruitment is a progressive process. Although the human resources managers in an

organization make the final hiring decision, their choice is based heavily on the opinions and
scores provided by recruitment specialists. With this in mind, managers need to understand
the purpose, goals and benefits of effective recruitment to avoid hiring the wrong people
and wasting company revenue.
The most basic purpose of recruitment is to add new staff to the organization or internally
recruit employees for new and better positions. When employees leave due to dismissal,
voluntary separation, retirement or temporary absence, recruiters need to fill these positions
as quickly as possible, either internally or externally. The same applies if the company
expands, again requiring new, qualified staff to join the team.
While almost anybody can apply for a job, recruiters must determine which candidates are
the best choice in terms of skill and compatibility with the organization's culture, mission
and values. This involves a process of resume screening, followed by at least one interview
and reference checking. Critical-thinking skills are essential in this role, because a recruiter
needs to gauge as much as possible about the candidate's personality and skills. During
resume screening, this requires meticulous attention to the resume's detail. The layout, word
choice, grammar and errors -- if any -- on a resume can quickly qualify or disqualify an
applicant. In an interview, recruiters must ask a set of pre-written questions involving things
such as past work experience, real or hypothetical situations and relevant skills. During this
process, the interviewer -- or interviewers -- takes notes and scores the applicant based on
her answers. Finally, the recruiter contacts the candidate's references to verify her
employment history and ascertain the honesty of her answers. Once all the information is
gathered, it is forwarded to the HR manager, who chooses which person to hire.
Turnover Prevention
While turnover is greatly influenced by the organization's policies, reward systems, culture
and values -- to name a few -- recruitment is just as important for preventing voluntary or
involuntary separations. Recruiters who incorrectly assess a candidate's skills or personality
could allow an incompetent or incompatible employee to join the staff. In turn, this can
result in costly errors, wasted training and disruptions, especially if the employee's attitude
and behaviors are not a proper "fit" for the company. On the other hand, effective
recruitment will ensure that most new hires are the right people for the job.
Seeking Talent
A simple job posting, while quick and convenient, is not enough to recruit the best
candidates. Some recruiters put too much emphasis on experience, missing chances to hire
qualified staff, such as university graduates. These individuals who are fresh in the job
market can bring new perspectives and approaches that seasoned workers may not have. In
cases like these, recruiters actively seek talent elsewhere, such as campus job fairs and
advertisements in educational institutions.
Purpose of Training and Development
The quality of employees and their development through training and education are major
factors in determining long-term profitability of a small business. If you hire and keep good
employees, it is good policy to invest in the development of their skills, so they can increase
their productivity. Training often is considered for new employees only. This is a mistake
because ongoing training for current employees helps them adjust to rapidly changing job
requirements. Purpose of Training and Development Reasons for emphasizing the growth
and development of personnel include Creating a pool of readily available and adequate

replacements for personnel who may leave or move up in the organization. Enhancing the
company's ability to adopt and use advances in technology because of a sufficiently
knowledgeable staff. Building a more efficient, effective and highly motivated team, which
enhances the company's competitive position and improves employee morale. Ensuring
adequate human resources for expansion into new programs. Research has shown specific
benefits that a small business receives from training and developing its workers, including:
1.Increased productivity. 2.educed employee turnover. 3.Increased efficiency resulting in
financial gains. Decreased need for supervision.
Employees frequently develop a greater sense of self-worth, dignity and well-being as they
become more valuable to the firm and to society. Generally they will receive a greater share
of the material gains that result from their increased productivity. These factors give them a
sense of satisfaction through the achievement of personal and company goals