Introduction HRP : concepts and aim HRP at macro and micro levels

Definition Human Resources Planning is defined as the process of assessing an organizations human resources needs in the light of organizational goals and changing condition and making plans to ensure that a competent, stable workforce is employed. The actual planning process will vary a great deal from organization to organization. HRP has 4 steps : ATMM Acquisition , Training And Development, Motivation And Maintenance. Why important? Linking business strategy with operational strategy Human Resource Planning (HRP) may be defined as strategy for acquisition, utilization, improvement and preservation of the human resources of an enterprise.

The major activities of HRP include: forecasting (future requirements), inventorying (present strength), anticipating (comparison of present and future requirements) and planning (necessary programme to meet future requirements).

OBJECTIVES OF HRP
The objectives of HRP are mainly to: a) b) c) d) e) f) g) ensure optimum utilization of human resources currently employed; assess or forecast future requirements; cope up with the changing scenario; attaching with business plans of organization; anticipate redundancies; provide basis for human resource development (HRD); and assist in productivity bargaining.

Benefits of HRP Proper HRP results into a number of benefits. Some of them are: a) Create reservoir of talent. b) Preparation for future HR needs. c) Promote employees in a systematic manner. d) Provide basis for HRD. e) Help in career and succession planning.

HRP AT MACRO LEVEL AND MICRO LEVEL

Macro HRP Assessing and forecasting the demand for and availability of skills at the national or global level

HRP The process of analysis and identifying the need for & availability of human resources for a firm, an industry, a country, or at a global level

Micro HRP Process of forecasting demand for and supply of HR for a specific organization

Government

HRP
Industry

Educational policy

Macro HRP refers to assessing and forecasting demand for skill and availability of skills at national or global level. It considers industrial and economic growth of the country, industry shifts, and the changing nature of jobs. Example: IT industry, fashion designers etc The macro HRP seeks to bridge the demand-supply gap through professional and technical courses in colleges and university. The policymakers have the responsibility for ensuring that educational institutes are geared to the present and future demands of the industry.

Micro HRP refers to a firms strategy to optimize its human resources. The process of forecasting demand for and supply of human resources for a specific organization At micro level HRP is influenced by technology changes, organizational restructuring, competency gap, strategic objectives, trade unions pressure, lead time for manpower procurement. HRP has become an important enterprise wide strategic function not only to achieve goals and objectives but also to maintain consistent level of performance of organization. Globally, skill shortages, competency gaps, redundancies, downsizing, rightsizing are the major issues in todays organization.

Different activities performed are: - Forecasting future manpower requirements - Preparing an inventory of present manpower - Anticipating problems of manpower - Meeting manpower requirements

OBJECTIVES OF HRP

MACRO HRP
To forecast economic and business environment. To estimate future demand of numbers and types of skills by various industries To ensure effective labour supply to different industries through activities such as interacting with educational institution To ensure effective utilization of HR

MICRO HRP
To prevent overstaffing and understaffing To ensure employee availability To ensure that the firm is responsive to the environment

To provide direction to all HR activities

To build line and staff partnerships

Steps in HRP:
Job analysis process of determining the nature of a specific job through a detailed and systematic study.

Job description and job specification Job description is recording of duties, responsibilities and conditions needed for satisfactory performance of a particular job. The term description covers job content(conditions, tasks, responsibilities) and specification to denote job requirements (i.e, qualities necessary) in the worker for satisfactory performance of the job.
Developing work rules - pre determined decisions about certain course of action to be taken when contingencies arise - documented form and used as control device

Application of IE techniques work study, method study and work measurement techniques

MANPOWER DEMAND FORECASTING

Manpower demand forecasting is influenced by two factors : Volume of output Level of productivity Manpower requirement may change due to change in output volume which calls for analysis of performance Similarly, as the level of productivity alters over time, it also affects manpower requirements. this calls for analysis of productivity

ANALYSIS OF PERFORMANCE To derive manpower demand, it is necessary to estimate the manpower requirements in relation to the workload. -Each unit of manpower or man-hours or man days required for different categories of job to accomplish the job in its entirety, are determined. After such determination the total workload is related with the manpower units of different categories and then finally the total requirement of manpower of different categories is determined. Two types: direct and indirect Direct analysis is to review past performance to derive a ratio between two variables (workload and manpower of certain category). Example
category A Manufacturing 1 ton of saleable steel requires 10 skilled workers. 2 tons require 20 skilled workers category B Manufacturing 1 ton of saleable steel requires 10 skilled workers. 2 tons requires 15 skilled workers

Company A has a constant ratio, while company B has a variable ratio, as it can double the rate of production, adding relatively less number of manpower and therefore, can achieve the economy of scale. Indirect analysis is based on the estimates of past experience. For short range forecasts, indirect analysis is more preferred.

Analysis of productivity Two components: technological change and manpower utilization As technological changes requires huge capital investment, organizations look for better manpower utilization to increase productivity. Also productivity substantially vary the level of performance. Thus manpower demand forecasting can be made more effective by considering both the variables ,i.e, the performance and productivity

BUSINESS PLAN
A business plan is a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals. Business plans may be internally or externally focused. Externally focused plans target goals that are important to external stake holders, particularly financial stakeholders. They typically have detailed information about the organization or team attempting to reach the goals. With for-profit entities, external stakeholders include investors and customers. External stakeholders of nonprofits include donors and the clients of the non-profit's services. For government agencies, external stakeholders include tax-payers, higher-level government agencies, and international lending bodies such as the IMF, the World Bank, various economic agencies of the UN, and development banks.

 Internally focused business plans target intermediate goals required to reach the external goals. They may cover the development of a new product, a new service, a new IT system, a restructuring of finance, the refurbishing of a factory or a restructuring of the organization.
Business plans are decision-making tools. There is no fixed content for a business plan. Rather the content and format of the business plan is determined by the goals and audience. A business plan represents all aspects of business planning process; declaring vision and strategy alongside sub-plans to cover marketing, finance, operations, human resources as well as a legal plan, when required. A business plan is a bind summary of those disciplinary plans