LESSON 2:HUMAN RESOURCE PLANNING

HRP

Four-Phased Process involving gathering and analysis of data, establishing objectives and policies, designing and implementing plans, and control and evaluation of manpower plans.

Forecasting Human Resources Requirements

Essential for determining future HR needs in an organization.

Effective Management of Change

Proper planning required to cope with changes in various aspects that affect the organization.

Realizing the Organizational Goals

HR planning essential for meeting expansion and other organizational activities.

Promoting Employees

HRP provides feedback in the form of employee data for decision making in promotional opportunities.

Effective Utilization of HR

HRP helps identify surplus and deficiency in human resources for maintaining and improving organizational capacity.

Employment-Unemployment Situation

Emphasis on HRP due to shortage of skilled labor despite rising educated unemployment.

Technological Change

Rapid changes in production technologies, marketing methods, and management techniques necessitate intensive and systematic HRP.

Demographic Change

Changing profile of the workforce in terms of age, sex, literacy, and social background has implications for HRP.

Skill Shortage

Organizations face problems when employees with specialized skills leave.

Governmental Influences

Changes in legislation stimulate organizations to engage in systematic HRP.

Legislative Control

Legislation makes it difficult to quickly and cheaply reduce the size of an organization, necessitating foresight in HRP.

Impact of Pressure Group

Pressure groups raise contradictory demands on enterprise management, requiring HRP to address these issues.

Systems Approach

Spread of system thinking and advent of macro computers emphasize planning and handling personnel records.

Lead Time

Long lead time necessary for selection, training, and deployment of employees to handle new knowledge and skills.

Future Personnel Needs

HRP helps determine future personnel needs of the organization.

Part of Strategic Planning

HRP provides inputs in strategy formulation and resource allocation decisions.

Creating Highly Talented Personnel

HRP helps in skill development to deal with the problem of skilled manpower shortage.

International Strategies

HRP facilitates international expansion and integration with strategic plans.

Foundation for Personnel Functions

HRP provides essential information for designing and implementing personnel functions.

Increasing Investments in Human Resources

HRP becomes important as organizations invest more in human resource development.

Resistance to Change

HRP helps plan for job rotation and shift employees between departments.

Uniting the Viewpoint of Line and Staff Managers

HRP requires the input and cooperation of all managers within an organization.

Succession Planning

HRP prepares people for future challenges and ensures smooth transition of responsibilities.

Other Benefits

HRP helps in judging the effectiveness of manpower policies, facilitates selection and training of employees, and encourages review and modification of HR policies and practices.

Organizational Growth Cycles and Planning

Different stages of growth require different approaches to HRP.

Environmental Uncertainties

Political, social, and economic changes affect organizations, and HRP helps deal with uncertainties.

Succession Planning

A process of identifying and developing potential future leaders within an organization to ensure a smooth transition of key positions.

Time Horizons

The duration of HR plans, which can be short term (6 months to 1 year) or long term (3 to 20 years), depending on the level of uncertainty in the organization's environment.

Type and Quality of Information

The information used to forecast personnel needs, which depends on the type and quality of data available, including organizational strategy, structure, budgets, and production schedules.

Nature of Jobs Being Filled

The careful consideration and discretion required when hiring employees for higher-level positions, as compared to lower-level positions that require limited skills.

Outsourcing

The practice of subcontracting non-critical activities to outside parties, often used by organizations with surplus labor instead of hiring additional employees.

Environmental Scanning

The systematic monitoring of external forces that influence an organization, allowing managers to anticipate their impact and make adjustments early.

Organizational Objectives and Policies

The alignment of HR plans with organizational objectives, derived from specific requirements in terms of the number and characteristics of employees.

HR Demand Forecast

The process of estimating the future quantity and quality of people required to meet the organization's needs, based on annual budgets and long-term corporate plans.

HR Supply Forecast

The determination of whether the HR department will be able to procure the required number of workers, considering factors such as internal movements, promotions, and changes in hours.

HR Programming

Balancing the forecasted demand and supply of personnel to ensure vacancies are filled with the right employees at the right time.

HR Plan Implementation

Converting an HR plan into action through various programs such as recruitment, selection, training, retention, and succession planning.

Control and Evaluation

The final phase of the HRP process, involving the evaluation and monitoring of HR plans against established budgets, targets, and standards, to identify areas for improvement and corrective action.

FIRST PHASE

involves the gathering and analysis of data through manpower inventories and forecasts

SECOND PHASE

consists of establishing manpower objectives and policies and gaining top management approval of these.

THIRD

involves designing and implementing plans and promotions to enable the organization to achieve its manpower objectives.

FOURTH

concerned with control and evaluation of manpower plans to facilitate progress in order to benefit both the organization and the individual. The long run view means that gains may be sacrificed in the short run for the future grounds. The planning process enables the organization to identify what its manpower needs is and what potential manpower problems required current action. This leads to more effective and efficient performance.