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Human Resource PLANNING

Meaning Assessment of Human Resource requirements and time and stages of requirement. Right Person- Right Place- Right time. Definition HRP process identifies current &future HR needs for an organization to achieve its goals. It serves as link between HRM & overall strategic plan for the organization. systematic analysis of HR needs in order to ensure that correct number of employees with the necessary skills are available when they are required. What is Strategy? A strategy is a step-by-step plan of action prepared by an organization and by which it aims to achieve its plan or plans, thus, ensuring its success and survival.

Human Resource Planning

Human resource planning can be defined as the process of identifying the number of people required by an organization in terms of quantity and quality. Right numbers, Capability, Organization Objectives HRP is a Process, by which an organization ensures that it has the right number and kind of people at the right place, at the right time, capable of effectively and efficiently completing those tasks that will help the organization achieve its overall objectives.

Human Resource Planning

Definition 2: Translation of objectives into HR numbers HRP is a process of translating organizational objectives and plans into the number of workers needed to meet those objectives. MEANING / PURPOSE OF HRP In simple words HRP is understood as the process of forecasting an organizations future demand for and supply of the right type of people in the right numbers. It is only after HRP is done, that the company can initiate and plan the recruitment and selection process. HRP is a sub-system in the total organizational planning. HRP facilitates the realization of the companys objectives by providing right type and right number of personnel. HRP is important because without a clear-cut manpower planning, estimation of a organizations human resource need is reduced to mere guesswork.

Objectives of HRP To ensure optimum use of existing HR. To forecast future requirement for HR. To provide control measures to ensure that necessary HR are available as and when required. To asses the surplus and shortage of HR. (Downsizing). Objectives of HRP Contd. To anticipate the impact of technology on jobs and HR. To determine the level of Recruitment and Training. To estimate the cost of HR and Housing needs of employees. To meet the needs of expansion and diversification programmes.

Forecast future personnel needs: To avoid the situations of surplus or deficiency of manpower in future, it is important to plan your manpower in advance. For this purpose a proper forecasting of futures business needs helps you to ascertain our future manpower needs. Cope with change: HRP enables an enterprise to cope with changes in competitive forces, markets, technology, products and government regulations. Such changes generate changes in job content, skills demands and number of human resources required.


Creating highly talented personnel: Since jobs are becoming highly intellectual and incumbents getting vastly professionalized, HRP helps prevent shortages of labor caused by attritions Technology changes would further upgrade or degrade jobs and create manpower shortages. Only accurate human resource planning can help to meet the resource requirements.


International strategies: International expansion strategies largely depend upon effective HRP. With growing trends towards global operations, the need for HRP further becomes more important. Foundation of personnel functions: HRP provides essential information for designing and implementing personnel functions such as recruitment, selection, personnel development, training and development etc. Increasing investments in HR: Another importance is the investment that an organization makes in human capital. It is important that employees are used effectively throughout their careers. Because human assets can increase the organization value tremendously as opposed to physical assets.


Resistance to change & move: The growing resistance towards change and move, self evaluation, loyalty and dedication making it more difficult to assume that organization can move its employees everywhere. Here HRP becomes very important and needs the resources to be planned carefully. Other benefits: Following are the other benefits of HRP. 1. Upper management has a better view of HR dimensions of business 2. Management can anticipate imbalances before they become unmanageable and expensive. 3. More time is provided to locate talent 4. Better opportunities exists to include women and minorities in future growth plans 5. Better planning of assignments to develop managers 6. Major and successful demands on local labor markets can be made.


SHRM or Strategic human resource management is a branch of Human resource management or HRM. It is a fairly new field, which has emerged out of the parent discipline of human resource management. Definition of SHRM It is linking of human resources with strategic goals and objectives in order to improve business performance and develop organizational culture that foster innovation, flexibility and competitive advantage. In an organisation SHRM means accepting and involving the HR function as a strategic partner in the formulation and implementation of the company's strategies through HR activities such as recruiting, selecting, training and rewarding personnel.

What is Strategic human resource management?

Step-by-step plan of action by which an organization employs, utilizes or manages, develops, and deploys its human resources in order to attain its defined corporate mission and objectives. A human resource strategy is devised in respect of recruitment, employee deployment, motivation and engagement, and employee retention. Strategic human resource management is "human resource management" carried out in a strategic way. To ensure a high probability of success in the implementation of strategic human resource management, a number of things are necessary. Strategic recruitment where the right person is selected to fill the right job and according to organizational needs .

What is Strategic Recruitment

Using the right mix of incentives to motivate and engage employees who then can concentrate improving their performance Appointment of the right HR Head to provide the necessary leadership in making HR as a strategic partner An HR mission statement with well defined HR objectives drawn up in alignment with the overall organizational objectives Provision of the right set of training to every level of employees on an on-going basis Performance management system to identify high-performing employees for the purpose of giving rewards befitting their performance, work quality and output

Importance of SHRM
The organization's "ends" is its financial success. Human resource strategy is one of the means to attain this. Organizations have always tried to comply with legal obligations in the course of carrying out their business activities. Also, finance and technology are important assets. But people are required to make effective and efficient use of them. Effective development and implementation of an HR strategy requires HR professionals who are conversant in finance, negotiation, change management, and the overall operations of the organization. An HR strategic plan aligns the HR function to the corporate plan. Good knowledge about the organization, its objectives, systems and processes, can assist HR people in doing this task well.

The strategic human resource choices involved in low cost of production strategy include: Train some of the employees in the area of time management, material handling at work etc. Retrenchment of surplus employees caused due to superior speed Pay for performance Promotions based on efficiency High quality work environment at the production place. These human resource issues are also known as functional strategies of HRM. Approach to SHRM This is the new way of managing people ensuing from the strategic human resource definition. Human resources with all the competencies and potential are required to attain the HR objectives. These objectives are aligned to the organizational objectives by way of a strategic plan.

HR as Strategic Partner
Recruiting the right employees. Align corporate values to your recruitment strategy. Well-developed competencies of the workforce, and their relevance to organizational core business. Participative culture where HR initiatives fully support the overall strategic plan. Effective use of information technology. Effective leadership through appointment of the right HR Head. Identification of human resource practices that make HR as strategic partner, namely, serving the business needs of your organization. Discard ineffective HR practices that do not contribute to the success of your organization.

Factors affecting HRP

Employment :HRP is affected by the employment situation in the country i.e. in countries where there is greater unemployment; there may be more pressure on the company, from government to appoint more people. Similarly some company may force shortage of skilled labor and they may have to appoint people from other countries.
Technical changes in the society :Technology changes at a very fast speed and new people having the required knowledge are required for the company. In some cases, company may retain existing employees and teach them the new technology and in some cases, the company have to remove existing people and appoint new.


Organizational changes :Changes take place within the organization from time to time i.e. the company diversify into new products or close down business in some areas etc. in such cases the HRP process i.e. appointing or removing people will change according to situation.

Demographic changes :Demographic changes refer to things referring to age, population, composition of work force etc. A number of people retire every year. A new batch of graduates with specialization turns out every year. This can change the appointment or the removal in the company. Shortage of skill due to labour turnover :Industries having high labour turnover rate, the HRP will change constantly i.e. many new appointments will take place. This also affects the way HRP is implemented.


Multicultural workforce :Workers from different countries travel to other countries in search of job. When a company plans its HRP it needs to take into account this factor also.

Pressure groups :Company has to keep in mind certain pleasure. Groups like human rights activist, woman activist, media etc. as they are very capable for creating problems for the company, when issues concerning these groups arise, appointment or retrenchment becomes difficult.

1. Review of Organisation's Objectives The HRD Manager first studies the objectives of the organisation. Then he prepares a list of all the activities (jobs) that are required to achieve the objectives. He also does Job's analysis.
2. Estimation of Manpower Requirements The HRD manager then estimates the manpower requirement of the organisation. That is, he finds out how many people (manager and employers) will be required to do all the jobs in the organisation. Estimation of manpower requirements must be made in terms of quantity and quality.

3. Estimation of Manpower Supply

The HRD manager then estimates the manpower supply. That is, he finds out how many managers, and employers are available in the organisation. 4. Comparison of Manpower

The HRD manager then compares the manpower requirements and manpower supply. 5. In case of no difference If there is no difference between the manpower requirements and the manpower supply, then the HRD manager does not take any action. This is because manpower requirements are equal to the manpower supply.

5. In case of no difference
If there is no difference between the manpower requirements and the manpower supply, then the HRD manager does not take any action. This is because manpower requirements are equal to the manpower supply. 6. In case of difference If there is a difference between the manpower requirements and the manpower supply the HRD manager takes the following actions.

1. Manpower Surplus
If the manpower requirements are less then the manpower supply then there is a surplus. During manpower surplus, the HRD manager takes the following actions :Termination i.e removal of staff. Lay-off. Voluntary retirement. 2. Manpower Shortage If the manpower requirements are greater than the manpower supply then there is manpower shortage.

8. Monitoring Manpower Requirements The HRD manager must continuously monitor the manpower requirements. This is because many employees and managers leave the organisation by resignation, retirement, etc. and new work force must take their place fill the manpower gap. This helps in uninterruptible functioning of the organisation. During manpower shortage, the HRD manager takes the following actions Promotions Overtime Training to improve quality. Hire staff from outside, etc. 7. Motivation of Manpower HRP also motivates the employers and managers by providing, financial and non-financial incentives.

How to Forecast Your Workforce? Step 1: Scan the External Job Market Start developing a workforce strategy by looking outside of your company at whats going on in work and employment in your community. External Factors Affecting Labor Supply Unemployment rate Graduation rates Demographic make up of local market Knowledge of direct competitors

Step 2: Take an Internal Scan Now you have to analyze the jobs that need to be done in your organization and the skills of your current employees available to do them. Its important to take a look at the whole business and get a sense for all of your human resources needs. Jobs and skills required by the organization

Step 3: Jobs that exist now Number of employees doing each job Importance of each job Characteristics of anticipated jobs Forecasting Workforce Demand Now that you know what you have available to you both inside and outside of you start by gathering some basic supply and demand information. First, gather information about the possible demand for replacement of positions.

Retirement trends Turnover rate Internal fill rates Once youve gained a sense of Step 4: Forecast Workforce Supply At this point, you have a good idea of what resources are available to you and what needs may come up. Now you can drill down to the details of a plan for hiring for the coming years. Remember that workforce forecasting should be done for the short term, intermediate and long term. Here are the practical steps:

Set a Realistic Timetable That Includes Fill time for open positions. Economic conditions and availability of labor. Needed ramp time. Take an Assessment of Internal Workforce Supply Whos in line to step up? What are the training needs? Are there succession plans in place?

Adjusting to Unexpected Changes in Workforce Supply and Demand Once you have completed the steps above for forecasting your workforce supply and demand, you cannot sit back and just hope that everything goes smoothly in the roll out of the plan. You next need to know how to deal with unexpected changes to your workforce plans and how to keep consistent, company-wide interest in following through with this HR plan. In our future post, I will discuss dealing effectively with HR surplus, how to maintain support for your HR workforce plan and give you a list of things to keep in mind so that you achieve success with forecasting workforce supply and demand no matter what changes come.

Why make HR as Organizational Strategic Partner...

To increase productivity of the labor force Competency and talent management Onset of information technology and the vast amount of knowledge used in the course of the activities of organizations The changing business environment Effect of globalization on the business landscape