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Alkesh Dinesh Mody Institute for

Financial & Management Studies.

Sr.no. Group name Roll.no.


1 Soniya Rahate 68
2 Ritesh Rathod 71
3 Prashant Rokade 74
4 Kadar Shaikh 83
5 Akhil Sawant 106
.

Subject: Human Resource Management

Project topic: Human Resource Planning.

Submitted to:Prof. Aruna Deshpande.


Human Resource Planning: (Definitions).

• Coleman has defined personnel / manpower planning as “the process


of determining manpower requirements & the means for meeting
those requirements in order to carryout the integrated plan of the
organization.”

• Stainer defines manpower planning as “strategy for the acquisition,


utilization, improvement & preservation of an enterprise’s human
resources. It relates to establishing job specifications or the
quantitative requirements of jobs determining the number of personnel
required & developing sources of manpower.”

Meaning: Personnel planning is the process of forecasting an organization’s


future demand for the supply of right type of people in the right numbers.

Personnel planning is a strategy for the

 Procurement.
 Development.
 Allocation &
 Utilization of an organization’s human resources.

There are four broad areas of human resource planning. These are

 Forecasting the manpower requirements of the enterprise.


 Acquiring the required manpower from different internal & eternal
sources available for recruitment & selection.
 Developing the manpower through education, training &
development programmes with a view to providing the right type of
manpower.
 Maintaining stable manpower through attractive wages, welfare &
other facilities & scientific personnel policies.
Features of personnel / human resources planning.

 Facilitates the control of manpower cost: After raw materials cost,


manpower cost is most important. Overstaffing can make the
organization sick. Manpower planning facilitates recruitment of
manpower as per the manpower requirement of the organization.

 Facilitates recruitment of suitable manpower: Most of the


businesses grow with time. New employees at the lower level and at
the managerial level will be required. Manpower planning helps in
recruiting right type of employees as per the need of the organization.

 Facilitates proper placement: manpower planning facilitates


placement of right people to the right jobs. This means placement is
made as per the qualities of the persons and the requirements of
different jobs.

 Facilitates adjustments of vacancies: every year some employees


retire & some others may leave the employment. Manpower planning
is necessary to fill in such vacancies as & when necessary.

 Promotes cordial industrial relations: effective manpower planning


helps management in developing cordial industrial relations. For this,
suitable persons are recruited & placement, etc. are done in a scientific
manner. Employees take interest in the work on their own. This leads
to cordial industrial relations.

 Facilitates manpower development: manpower development is not


possible without manpower planning. Employees need training to
keep their knowledge & skills uptodate. In addition, career guidance &
facilities of self development should be given to the employees. This
is possible through HRP.
Objectives of HR Planning.

 Optimum use of resources- To ensure optimum utilization of


resources currently employed in the organization is important
objective of manpower planning. For this attention needs to be given
to placement induction training career development

 Meeting future manpower needs- To determine the future manpower


requirements of the org. as per renovation, modernization, expansion
and growth programmes of the enterprise is one objective of
manpower planning It studies the manpower needs of the future and
makes arrangements for the future

 Scientific recruitment- To determine the recruitment needs of the org


and make suitable arrangements for the recruitment of right person is
imp objective of personnel planning

 Provision of adequate manpower- To ensure that necessary human


resources are made available as and when required by the org is one
imp objective of pp It is imp for adjustments of manpower for the
needs of different departments

 Development of manpower- This objective is to design the


management development programmes so as to develop the required
tenants among the employees selected. Manpower development is
possible through HRP
Need of HR planning.

 To meet the manpower needs of business enterprise- Every


organization needs adequate and properly qualified staff for the
conduct of regular business activities. Manpower planning is needed
in order to provide manpower as per the needs.

 To arrange for the replacement of existing manpower- The


existing manpower is affected due to reasons such as retirement,
removal of employees’ labor turnover and so on. HR planning is
needed in order to estimate the shortfall in the manpower requirement
and also for making suitable arrangement for the recruitment

 To meet growing manpower need of the organization- Additional


manpower is needed to org for the expansion and modernization
programme. HRP also act as an aid for manpower training and
development activities.

 To meet the challenges of changing technological environment-


HR requirement changes due to changing technological environments
and other factors It can make arrangement for new staff and also for
providing training to existing employees.

 To adjust staff requirements of departments- a situation may be


develop in an org when there will be surplus staff in one department
and shortage of staff in some other department such situation can be
rectified by HR planning.

 To look after recruitment and selection- HRP suggest the type of


manpower needed in org with necessary details introduction and
appropriate selection is also possible as per the manpower
requirements.

 To arrange for the replacement of manpower- HRP facilitates


placement of newly selected persons in different departments as per
the qualifications and also as per the need of department.
ADVANTAGES OF PERSONNEL/HR PLANNING:

 Facilitates scientific recruitment: HRP serves as a base for


purposeful recruitment & selection policy for an organization. It
facilitates selection of new manpower as per future personnel needs.

 Raises effectiveness of HRD programs: it makes HRD programmes


effective and as per the needs of the organization, this ensures full
utilization of effective & as per the needs of the organization to
develop highly talented personnel required for the management of
business. For example, L&T (an engineering giant) needs large
number of engineers MBA’s. Arrangements for meeting such
manpower need are possible due to efficient HRP activity.

 Ensures orderly working & growth of an organization: HRP


facilitates orderly working of an organization and also facilitates its
growth and expansion in the future period without any difficulty.
Adequate arrangements are also made for manpower requirement
through HRP.

 Regulate3s cost factor: HRP regulates labor costs & production cost
& ensures adjustment between manpower requirement & manpower
available.

 Motivates existing employees: HRP creates favorable psychological


climate for motivating the existing employees & also keeping their
morale high through training and manpower development
programmes.

 Prevents sudden disruption: HRP helps to prevent sudden disruption


in the working of an enterprise. It indicates shortages of particular
types of personnel in advance and this facilitates suitable provision for
meeting the situation. HRP enables an enterprise to cope with changes
in competitive forces, markets, technology and government
regulations and policies.
ROLE/IMPORTANCE OF PERSONNEL/HR PLANNING:

Human resource planning plays an important role at different level,


i.e., national level, industry level and enterprise level. It facilitates full
utilization of resources and ensures orderly and efficient functioning of the
whole business enterprise. It avoids surplus or shortage of human resources
in an organization. Human resources planning also lay an important role in
human resource development in an organization. It acts as an aid to
manpower development programmes. The management gets best
contribution from its employees due to human resource planning. It also
motivates the existing employees. However, human resource planning is like
a double-edged weapon. If used properly, it ensures maximum utilization of
available manpower in the organization. Human resource planning is also
useful for making the training programmes more effective/purposeful.

In short, manpower planning/human resource planning is the core


of manpower management. It is inevitable for every progressive and alert
organization. Such HRP must be integrated with the overall planning of the
organization itself. It should be given continuous attention as the human
resource need goes on changing from time to time due to various factors and
forces. HRP plays an important role in business management as it is multi-
dimensional activity and must be carried on as a continuing process for
stability and prosperity of a business enterprise. HRP is significant as it helps
in determining future personnel need and act as a basis for other personnel
functions.

The following remark of Late SHRi Dhirubhai H. Ambani, Ex-


Chairman of Reliance Industries Ltd. (made in the 21st AGM held on
3/8/1995), is worth noting in this regard: “Our People: People are assets
you can never show on a balance sheet. Our company has a human resources
asset of around 12,500 people; 3,000 of which constitute scientific and
technical manpower. Every year we add over 450 young professionals.
These motivated and well-trained people are the backbone of our business.
The team is young I spirit, conscious of its responsibilities and committed to
building world class assets for the country.”
Limitations:

 Future manpower needs are uncertain--HR makes prediction as


regards future manpower needs of an org. and adjusts acquisition,
utilization, and other activities. However future is uncertain and the
estimates of manpower requirement made may prove to be wrong.

 Surplus manpower makes HRP redundant: HRP exercise is useful


in countries where manpower available is less than the requirement. In
India the situation is just the opposite. Due to such situation many
managers do not give attention to HRP.

 Time consuming and costly: It is urged that HRP is time consuming.


Services of experts are required which makes it costly. Even
recruitment and selection is time consuming.

 Inadequate attention to environmental changes: It is urged that


manpower management, particularly traditional managements do not
give much attention to possible changes in business environment.
They select and appoint additional staff as per their needs and
requirements.

 Shortage of skilled labor and high labor turn over: Shortage of


personnel as per the need and requirement of an enterprise makes
recruitment and selection of staff difficult.
Scope:

1. Estimation of manpower requirements and recruitment:


HRP starts with the estimation of no. & type of personnel required in
different levels of departments as per the job study. This is followed by
recruitment and selection process. For this an inventory of manpower
currently available has to be made. In short establishing staffing as per the
org objectives and plans is the starting pt of HRP process. For this HRF is
necessary. Here possible growth and expansion should also be taken into
consideration. The whole process of HRP would be in trouble of manpower
requirements are not estimated properly.

2. Manpower allocation:
This area deals with the allocation of manpower acc to the requirements,
workload, qualities, qualification, etc. Promotions and transfers are
necessary for suitable adjustments of staff among the departments. The main
purpose of allocation is smooth working of all departments and full
utilization of manpower.

3. Manpower motivation:
Manpower in an org should be loyal, efficient and productive. The employee
must have linking and interest in their job. Every enterprise needs stable
workforce. This is possible on various factors like wages, incentives etc.
Thus full utilization of manpower is possible only when appropriate system
of motivation is introduced.
STEPS IN HUMAN RESOURCE PLANNING
The Human Resource planning process is very crucial for any
organization & involves many steps. The HRP process is influenced by
overall organizational objectives & environment of the business.

What is HRP?
Human resource planning involves getting the right number of qualified
people into the right jobs at the right time.

• It is a process of deciding what positions the firm will have


to fill, and how to fill them.
• It is a process of determining HR needs of the organization
in the context of its strategic planning.

Why is it important?

A] Often long lag times to fill positions.

B] Often influences both turnover and productivity.

C] The “demographic imperative” demands more such planning

It works best when it is tied to: a. the organization’s strategic planning


process b. all available forecasts (technological, economic, market, etc.)

The Need for HRP:

o To ensure that HR is available: provide the information and data to


an organization on when, where and how many employees need to be
recruited.
o To assess the future supplies of and demands for HR: reduce
shocks and disturbances within the employment patterns of large
organizations.
o To match supplies and demands, making them compatible with the
achievement of the organization’s future goals.
Needs determined by:

o Assessing current human resources


o Analyzing corporate plans
o Forecasting staffing level and categories in the light of
corporate objectives
o Assessing availability of HR
o Determining HR needs
o Formulating HR programs to address the needs.

STEPS INVOLVED IN PERSONNEL/HR PLANNING:

1. Deciding the goals & objectives of human resource


planning:

Goals & objectives need to be decided fore hand. Critical review


of objectives enables an organization to decide the activities which
need to be undertaken for achieving organizational objectives.
Adequate workforce is necessary for undertaking different
activities at the organizational level.

2. Estimating the overall (future) human resource


requirements:

It is also described as HR Needs Forecast. Such forecast should


be in relation to quantity & quality of manpower required by the
organization. The HRD Manager has to decide the type of
manpower/ human resources required for different activities within
the organization.

3. Taking inventory of HR currently available in the


organization:

It may be described as HR Supply Forecast. The required


manpower may be availavable within the organization or may be
recruited from external sources. This is done by the HRD
Manager.

4. Determining actual HR requirement:

It is described as HR Programme. It helps HRD Manager to take


suitable follow-up measures, such as if there is shortage of
manpower measures will be necessary to remove such shortfall
through new recruitment, promotion, training, etc. Secondly if
surplus measures would be to remove manpower through VRS,
Layoff, etc.

5. Preparing a HR recruitment & selection plan:

It is described as HRP Implementation. It is done for filling


additional HR requirements.

6. Developing appropriate manpower development plan to


meet future manpower requirements:

For this suitable training programmes will have to be prepared.


Motivation of employees of employees is necessary to raise their
efficiency & initiative. Monitoring of HR requirement is also
necessary for adjusting the existing manpower & the required
manpower in an orderly manner.HR plans must be derived from
organizational objectives.

ORGANIZATIONAL DOWNSIZING & VOULANTARY


RETIREMENT SCHEME:

• Downsizing is the ‘conscious use of permanent personnel


reductions in an attempt to improve efficiency and/or
effectiveness’
• Downsizing is regarded by management as one of the
preferred routes to turning around declining organisations, cutting
cost and improving organisational performance most often as a
cost-cutting measure.
• Examples :Sony Ericcson, Delta Airlines
VRS/GOLDEN HANDSHAKE:

• VRS is a type of voluntary separation of old & unproductive


employees from the organization.
• It is an economical & time saving method for reducing
surplus staff.
• Most of the times use of replacing manpower with
technology is the main cause behind VRS.
• Basic pay plus DA only is to be taken into account for
computation of ex-gratia under VRS.

EMPLOYEE STOCK OWNERSHIP PLAN (ESOPs):

• Under ESOPs company’s shares are offered to employees at


concessional price.

MERITS:

1. Enables company to retain efficient/capable employees.


2. Links compensation packages closely to employee
performance.
3. This scheme encourages employees to work efficiently
4. It develops a sense of ownership & responsibility among
employees
DEMERITS:

1. Can only ne used by profit making organizations.


2. Employees may suffer loss if share prices fall.
3. Unsound market fluctuations cause inconvenience to
employees.

Examples:

Notable employee-owned corporations include the John Lewis


Partnership retailers in the UK, and the U.S. news/entertainment
firm Tribune company. The Mondragon Cooperative Corporation
is a multi-national corporation based wholly on worker-ownership
principles.