HRP Human Resource Planning is a process of forecasting an organizations future demand for human resource and supply of right type of people in right numbers. Employment or personnel planning• The process of deciding what positions the firm will have to fill, and how to fill them . Personnel planning covers all the firm ’s future positions, from low position to Top level. H owever, the term Succession planning is used to refer to the process of d ecid ing how to fill the com pany’s m ost im portant executive jobs.
• Staffing Planning:• Projected turnover (as a result of resignations or term inations)• 2. Q uality and skills of your em ployees (in relation to the changing need s of your organization)• 3. Strategic d ecisions to upgrad e the quality of prod ucts or services or enter into new m arkets• 4. Technological and other changes resulting in increased prod uctivity• 5. The financial resources available to your org.
Features of Human Resource Planning• It is future oriented: –It involves forecasting the manpower needs for a future period so that adequate and timely provisions may be made to meet the needs.• It is a continuous process: – Human Resource Planning is a continuous process because the demand and supply of Human Resource keeps fluctuating throughout the year.• Optimum utilization of resources: – The basic purpose of Human Resource Planning is to make optimum utilization of organizations current and future human resources.
• Both Qualitative and Quantitative aspect: – ‘Quantitative’ meaning the right number of people and ‘Qualitative’ implying the right quality of manpower required in the organization.• Long term and Short term: –, Human Resource Planning keeps long-term goals and short-term goals in view while predicting and forecasting the demand and supply of Human Resource.• Involves study of manpower requirement: – Human Resource Planning involves the study of manpower availability and the manpower requirement in the organization.
• Objectives of Human Resource Planning• Optimum utilization of human resources currently employed in the organisation.• To reduce imbalance in distribution and allocation of manpower in organisation for various activities.• To ensure that the organisation is well-equipped with the required Quantity and Quality of manpower on a sustained basis.• To anticipate the impact of technology on jobs and resources.• To control cost of Human Resources employed, used and maintained in the organisation.• To provide a basis for management development programmes.• To ensure optimum contribution and satisfaction of the personnel with reasonable expenditure.• To recruit and retain human resource of required Quantity and Quality.
• Need for Human Resource Planning• Shortage of Skills: –Necessary to plan for skilled people much in advance than when we actually need them. Non-availability of skilled people when and where they are needed is an important factor which prompts sound Human Resource Planning.• Frequent Labour Turnover: – Human Resource Planning is essential because of frequent labour turnover which is unavoidable by all means. Labour turnover arises because of discharges, marriages, promotion, transfer etc.• Changing needs of technology: – Due to changes in technology and new techniques of production, existing employees need to be trained or new blood injected into an organisation.
• Identify areas of surplus or shortage of personnel: – Manpower planning is needed in order to identify areas with a surplus of personnel or areas in which there is a shortage of personnel. If there is a surplus, it can be re- deployed, or if there is a shortage new employees can be procured.• Changes in organisation design and structure: – Due to changes in organisation structure and design we need to plan the required human resources right from the beginning.
• Factors affecting Human Resource Plans• External factor:• They are the factors which affect the Human Resource Planning externally. They include:-• Government policies: – Policies of the government like labour policy, industrial policy, policy towards reserving certain jobs for different communities affect Human Resource Planning.• Level of economic development: – Level of economic development determines the level of human resource development in the country and thereby the supply of human resources in the future in the country.• Information Technology: – Information technology brought amazing shifts in the way business operates.
• Business Environment: – Business environment means the internal and external factors influencing the business. Business environmental factors influences the volume of mix of production and thereby the supply of human resources in the future in the country.• International factors: – International factors like the demand and supply of Human resources in various countries also affects Human Resource Planning .
• Internal factors:• Company Strategies: – The organizations policies and strategies relating to expansion, diversification etc. determines the human resource demand in terms of Quantity and Quality• Human Resource policies: – Human Resource policies of the company regarding quality of human resources, compensation level, quality of working conditions etc. influence Human Resource Planning.• Job analysis: – Job analysis means detailed study of the job including the skills needed for a particular job. Human Resource Planning is based on job analysis which determines the kind of employees to be procured.
Methods to predict.• Trend analysis Trend Analysis means studying variations in your firm’s employment levels over the last few years to predict future needs.• Ratio Analysis Another approach, ratio analysis, means making forecasts based on the ratio between (1) some causal factor (like sales volume) and (2) the number of employees required (for instance, number of salespeople).• The Scatter Plot A scatter plot shows graphically how two variables.such as a measure of business activity and your firm’s staffing levels.are related. If they are, then if you can forecast the level of business activity, you should also be able to estimate your personnel requirements.
• Managerial Judgment Whichever forecasting method you use, managerial judgment will play a big role. It’s rare that any historical trend, ratio, or relationship will simply continue unchanged into the future. You’ll therefore have to modify• the forecast based on factors. such as projected turnover or a desire to enter new markets.you believe will be important.
Forecasting Inside candidate• Qualifications inventories Manual or computerized records listing employees’ education, career and development interests, languages, special skills, and so on, to be used in selecting inside candidates for promotion Replacement chart• Personnel replacement charts Company records showing present performance and promotability of inside candidates for the most important positions• Personnel inventory & development record help track employee qualifications• Personnel replacement charts are often used for filling a company’s top positions
• Position replacement card A card prepared for each position in a company to show possible replacement candidates and their qualifications Skill Inventory : Biography profiling about the job incumbent. Management Inventory.Profilling about the managers of the organisation. Secession planning.
Computerized system• Work experience codes. A list of work experience titles, or cod es d escribing the person’s jobs within the com pany.• Product knowledge. The em ployee’s level of fam iliarity with the em ployer’s prod uct lines or services.• Industry experience. The person’s ind ustry experiences, since for som e positions work in related ind ustries is very useful.• F ormal education. Each postsecond ary ed ucational institution attend ed , field of stud y, d egree granted , and year granted .• Training courses. Those taken or cond ucted by the em ployee, includ ing courses taught by outsid e firm s like the Am erican M anagem ent Association.• F oreign language skills. Which languages; d egree of proficiency, spoken and written.• Relocation limitations. The em ployee’s willingness to relocate and the locales he or she would prefer.• Career interests. Work experience cod es to ind icate what the em ployee would like to be d oing for the em ployer in the future.• Performance appraisals. U pd ated period ically, along with a sum m ary of the em ployee’s strengths and d eficiencies.• Skills. Skills such as “d esign graphic interface” (num ber of tim es perform ed , d ate last perform ed , tim e spent), as well as skill level, perhaps ranging from level 1 (can lead or instruct others) to level 3 (has som e experience: can assist experienced workers).
Commitment Manpower Planning:• 1. Supply of employees and promotability and placement status of each.• 2.The organization demands, arising from new positions and turnover and projected vacancies for each job title.• 3.The balance or status of supply versus demand, including the name, job, location of all those suitable for promotions.
Ratio analysis: A tool used in human resourceplanning to measure the organizations humanresource vitality as indicated by the presenceof promotable personnel and existing backup.