HUMAN RESOURCE PLANNING

Dr B.N.BISWAL Professor, HRM IISWBM ,KOLKATA

DEFINITION OF PLANNING:
Quinn Mills (1983) indicates human resource planning is a decision making process that combines three important activities.

According to Bulla and Scott (1994) it is the process for ensuring that the human resource requirements of an organization are identified and plans are made for satisfying those requirements.

 According to Gary Dessler (2004) HR planning is the process of deciding what positions the firm will have to fill and how to fill them In the words of Colman (1970) Manpower Planning is the process of determining manpower requirement and the means of meeting those requirements in order to carry out the integral plan of the organization

The following points emerge after the analysis of various definitions:

HR planning aims at ascertaining the manpower needs of the organization both in number and kind. HRP presents an inventory of existing manpower of the organization. Analysis of this resource helps in ascertaining the status of the available personnel and to discover untapped talent presently available with the organization. HRP helps in determining the shortfall or surplus of the resource by comparing the total resource needs with the present supply. It also helps in projecting future HR needs.

 HRP is concerned with the initiation of various organization programs depending upon the demand and supply of human resources. Effective manpower planning must encompass the acquisition, utilization, improvement and preservation of the organizations human resources. Human resource planning cannot be rigid or static. It is amenable to modification, review and adjustments in accordance with the needs of the organization or the changing circumstances.

OBJECTIVES OF HRP
The main objectives of HRP in an organization is to ensure optimum use of human resources currently employed; avoid imbalances in the distribution and allocation of human resources; assess or forecast future skill requirements of the organizations overall objectives; provide control measures to ensure availability of necessary resources when required;

Control the cost aspect of human resources ; Formulate transfer and promotion policies; foresee employee turnover and make arrangements for minimizing turnover and filling up of consequent vacancies; meet the needs of the programmes of expansion, diversification etc; foresee the impact of technology on work; improve the standards, skill,

LIMITATIONS / SCOPE OF HRP

Listing of current human resources Assessing the context in which the current manpower is being utilized to the advantage of the organization. Planning out the surplus human resource, if any, Analyzing the requirements of manpower in future in the light of expansion plans, retirement of personnel etc. Forecasting Human Resource requirements. Designing training program for different categories of human resources.

NEED FOR HRP

HRP helps in proper recruitment and selection so that right types of people are available to man various positions in the organization. ii) HRP also facilitates designing of training program for the employees to develop the required skills in them. iii) HRP provides lead time for procuring personnel as the lead time given is a time-consuming process.

BENEFITS OF HRP:
HRP is an integral part of HRM and it helps in the following ways: HRP results in reduced labor costs as it helps the management to anticipate shortages and/or surpluses or HR, and correct these imbalances before they become unmanageable and expensive. HRP is the scientific way for planning employee development that is designed to make optimum use of workers skill within the organization. More time is provided to local talent HRP leads to improvement in the overall Business Strategy Planning process. The organizational Succession Planning process derived its driving force from HRP (ref. Diagram 3). HRP helps in formulating managerial succession plan as a part of the replacement planning process.

 HRP leads to a greater awareness of the importance of sound manpower management throughout the organization. HRP serves as a tool to evaluate the effect of alternative manpower actions and policies. HRP offers better opportunity to include women and minority groups in future growth plans. HRP enables identification of gaps in skill and number of existing manpower so that corrective training would be impaired

HRP AT DIFFERENT LEVELS:-

At Corporate Level : At Divisional Level At Plant Level:

FACTORS AFFECTING HRP:

Type and Strategy of Organization Organizational Growth Cycles Planning Environmental Uncertainties Time Horizons Type and Quality of Forecasting information Nature of Jobs being filled Off-loading the work.

HUMAM RESOURCE PLANNING (HRP) AND MANPOWER PLANNING:-

Business Strategic Plans: Resourcing Strategy Scenario planning: Demand / supply forecasting Labour turnover analysis: Work environment analysis: Operational effectiveness analysis:

The process of HRP involves the following steps: HRP PROCESS:

Determination of HRP objectives of HR planning Current HR inventory Demand Forecasting Job requirements Employment plan Training and Development program

1. 2. 3. 4. 5. 6.

Objective of HR Planning: Current HR inventory Demand forecasting: Job requirement: Employment Plans Training and Development Program:

METHODS TO PREDICT HR NEEDS

Trend Analysis Ratio Analysis: The Scatter Plot Computerized Forecast: Managerial Judgment: Work study Technique: Statistical techniques:

QUANTITATIVE ASPECTS OF HRP & Workforce Analysis

EXISTING HUMAN RESOURCES: & LABOUR WASTAGE:

SUPPLY FORECASTING:
Markov Analysis : Simulation: Renewal Analysis: Goal programming:

LABOUR TURNOVER INDEX:

The traditional formula for measuring wastage is the labour turnover index: (Number of leaves in a specified period usually one year / Average number of employees during the same period.) * 100

LABOUR STABILITY INDEX;

One measure which is considered by many to be an improvement is the labour stability index: (Number of employees with one years service or more / Number of employees one year go.) * 100

 INTERNAL PROMOTION AND TRANSFERS: CHOICE OF MEASUREMENT: SURVIVAL RATE LENGTH OF SERVICE ANALYSIS:

COMPUTERISED INFORMATION SYSTEMS:

Work Experience Code Product knowledge: Industry experience Formal education: Training Courses: Foreign Language skills Relocation limitation: Career interest Skills: Performance Appraisals :

EFFECT OF CHANGING WORK CONDITIONS AND ABSENTEEISM:

1}Internal sources 2}External sources

Local Factors:
Population density within reach of the company Current and future competition for labour from other employers Local unemployment levels The traditional pattern of employment, locally, and the availability of people with the required qualifications and skills. Output from the local educational systems and Government or other training institutes. The pattern of immigration and exigration within the area The attractiveness of the area as a place to live The attractiveness of the company as a place to work in The availability of part time labour such as married women Local housing, shopping and transport facilities.

National Factors:
Trends in the growth of the working population National demands for special categories of manpower, graduates, professional staff, technologists, technicians, craftsmen, secretaries. The output of the universities, polytechnics and professional institutions. The effect of changing educational patterns - children staying longer at schools or different emphasis in university or school curricula. The impact of Govt. training schemes The impact of Govt. employment regulations

REASONS FOR EMPLOYEES LEAVING THE ORGANIZATION

More pay; Better prospects (career move ); More security; More opportunity to develop skills ; Better working conditions ; Poor relationship with manager/team leader ; Poor relationship with colleagues ; Bullying or harassment

Cost of employees leaving the organization

Leaving costs pay roll costs and personnel administration of leaves ; Direct cost of recruiting replacements (advertising, interviewing, testing etc) Opportunity cost of time spent by HR and line managers in recruitment Direct cost of introducing and replacements (induction course, cost of induction manual Direct cost of training replacements in the necessary skills

 Opportunity cost of time spent by line managers and other staff in providing training. Loss of the input from those leaving before they are replaced in terms of contribution , output, sales, customer satisfaction and support etc ; Loss arising from reduced input from new starters until they are fully trained.

PROBLEMS IN HRP
Identity crisis Support of Top Management: Size of Initial Effort: Coordination with other Management Functions: Integration with organizational plans: Involvement of Operation Managers