6. Human Resources Planning
All businesses need to plan to make sure they have
the right number of employees with the right skill to
meet the anticipated plans of the organization. Once
the firm has the right staff, the firm needs to train and
develop them in order for the organization to meet
their objectives. Overall the firm needs to know the
following things whilst planning their human
resources:
 The labor market in the area they operate in.
 What type of workforce the company will need in order
for them to reach their overall corporate objectives.
 What the long-term aims are of the company.

8. The firm must deal with demand side issues of labour and what is the expected
demand for labour from the firm. They must also deal with supply side issues. Is
there enough supply of staff, internally or externally to meet the expected demand
of staff from the company?.
Supply side – internal supply of labour.
The organization needs to examine if they have enough staff to meet the demand of
labour. Is training available within the firm to meet future labour needs? What
percentage of workers are about to retire and are they going to be replaced? Do
terms and conditions of services currently keep staff motivated?
When examining internal labour needs, these issues do need to be taken into
account.
External Supply of Labour
If the supply of labour is not available internally, then the firm may need to recruit
new staff. Are the staff then available within the local market? Do they have the
required skill? If they are not available within the local market, how do we find
them? Advertise in the next town? Or even overseas?
Human resources planning is a important part of running a business. If a business
wishes to expand and do well, it must take into account current and future needs
of its labour workforce.

9. PLANNING FOR SPECIFIC PURPOSES
 Micro-planning deals with forecasting supply and
demand for specific groups.
 It is especially relevant when dealing with tight
labour markets or where there needs to be a swift
change to meet a new environmental challenge,
such as a new competitor or the introduction of
regulation.

10.  Contingency planning covers the situation where
possible scenarios are examined and the
implications assessed before major decisions are
taken.
 An example here would be the plans for the
development of a major manufacturing plant
where the implications for various levels of
expansion would be considered in terms of shift
systems, labour availability, employee relations
and payment systems.
 These implications would influence the decision
as to whether to expand on site or elsewhere.

11.  Succession planning is a third type where the
objective is to focus HRP activity on the
recruitment and development of individuals to
fill managerial and top positions.

12. A different approach to the subject is taken by Armstrong (1996)
who sees the practical side of HRP as a series of implementation
strategies consisting of the following:
■ Acquisition strategies, defining how the resources required to
meet forecast needs will be obtained.
■ Retention strategies, which indicate how the organisation intends
to keep the people it wants.
■ Development strategies, which deals with skills and competency
requirements.
■ Utilisation strategies, identifying how productivity and cost
effectiveness can be improved.
■ Flexibility strategies, evaluating how various flexible working
practices can lead to improved organisational effectiveness.
■ Downsizing strategies, defining what needs to be done to reduce
numbers to those the organisation needs.

13. PROBLEMS & ISSUES OF HUMAN RESOURCE
PLANNING
Human resources planning involves projecting how many people
will be needed to fill positions in an organization. This planning
occurs in a changing environment. Organizations study their
short-term and long-term needs to hire new employees. Uncertain
economic conditions, such as overseas competition, and changes in
technology are examples of why an organization might adjust its
hiring needs.
 Mismatch Between Applicants and Skills
An organization may find it difficult to fill the positions called for by
HR planners. This might be because there is more demand in the
organization than there is in available talent in the job market.
Another reason is that the organization's recruiting strategies aren't
attracting the right talent. Not being able to fill positions that are
critical to achieving operational goals leaves the organization in a
weak business position. That's why forecasting human resources
needs should be followed up with effective recruitment, replacement
and retention of employees.

14.  Environmental Issues
Environmental issues can occur inside an organization.
Demographic changes affect the internal work climate.
Differences in work values between generations, such as
Baby Boomers and Generations X and Y, mean that
employees want different things to be satisfied with their
work.
Programs must address these different needs in one
culture.
Also, technological changes require workers to
continuously add new technical skills.
If employees' current skills aren't needed, they may become
redundant. HR planning involves planning for
organizational learning, or developing staff skills, to keep
pace with changes in the business market.

15.  Recruitment and Selection
Organizations get better staffing results when they can
count on HR departments and line managers to do their
own jobs effectively.
For example, HR personnel depend on line managers to
use web-based tools to perform recruiting and selection (or
hiring) functions with limited assistance.
The HR department posts the steps in the hiring process,
policies and procedures, and documents on the company
intranet. Although HR personnel may consult about
questions, line managers must be able to follow guidelines
for recruitment and hiring without exposing the
organization to liability.

16.  Training and Development
Line managers must do more than recruitment and hiring.
They must perform other jobs that used to be associated
with personnel departments.
They must address their own employees' training and
development needs. Line managers must find all of the
resources inside and outside the organization to ensure
employees develop the required skills.
This takes place in the context of keeping employees
motivated to perform. Effective communication between
line managers and HR personnel planners can result in
effective identification of training and development needs
exceeding current resources