SYBMS - HR HUMAN RESOURCE PLANNING AND INFORMATION SYSTEMS

UNIT 1

OVERVIEW OF HUMAN RESOURCE

PLANNING
 MEANING HUMAN RESOURCE PLANNING:
Human resource is the most important asset of an organisation. Human resources planning are the
important managerial function. It ensures the right type of people, in the right number, at the right
time and place, who are trained and motivated to do the right kind of work at the right time, there
is generally a shortage of suitable persons.

Definition
According to E.W. Vetter, human resource planning is “the process by which a management
determines how an organisation should make from its current manpower position to
its desired manpower position.”

Dale S. Beach has defined it as “a process of determining and assuring that the
organisation will have an adequate number of qualified persons available at the
proper times, performing jobs which meet the needs of the enterprise and which
provide satisfaction for the individuals involved.”

 FEATURES OF HUMAN RESOURCE PLANNING:

Following are the features of human resource planning:

1. Well Defined Objectives:

Enterprise’s objectives and goals in its strategic planning and operating planning may form the
objectives of human resource planning. Human resource needs are planned on the basis of
company’s goals. Besides, human resource planning has its own objectives like developing human
resources, updating technical expertise, career planning of individual executives and people,
ensuring better commitment of people and so on.

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2. Determining Human Resource needs:

Human resource plan must incorporate the human resource needs of the enterprise. The thinking
will have to be done in advance so that the persons are available at a time when they are required.
For this purpose, an enterprise will have to undertake recruiting, selecting and training process also.

3. Keeping Manpower Inventory:

It includes the inventory of present manpower in the organisation. The executive should know the
persons who will be available to him for undertaking higher responsibilities in the near future.

4. Adjusting Demand and Supply:

Manpower needs have to be planned well in advance as suitable persons are available in future. If
sufficient persons will not be available in future then efforts should be made to start recruitment
process well in advance. The demand and supply of personnel should be planned in advance.

5. Creating Proper Work Environment:

Besides estimating and employing personnel, human resource planning also ensures that working
conditions are created. Employees should like to work in the organisation and they should get proper
job satisfaction.

6. A continuous process:

Human Resource Planning is a continuous process because the demand and supply of Human
Resource keeps fluctuating throughout the year. Human Resource Planning has to be reviewed
according to the needs of the organisation and changing environment.

7. Integral part of Corporate Planning:

Manpower planning is an integral part of corporate planning because without a corporate plan there
can be no manpower planning.

8. Optimum utilisation of resources:

The basic purpose of Human Resource Planning is to make optimum utilisation of organisation’s
current and future human resource.

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9. Both Qualitative and Quantitative aspect

Human Resource Planning considers both the qualitative and quantitative aspects of Human
Resource Management, ‘Quantitative’ meaning the right number of people and ‘Qualitative’
implying the right quality of manpower required in the organisation.
10. Long term and Short term
Human Resource Planning is both Long-term and short-term in nature. Just like planning which is
long-term and short-term depending on the need of the hour, Human Resource Planning keeps
long-term goals and short-term goals in view while predicting and forecasting the demand and
supply of Human Resource.

 SCOPE OF HUMAN RESOURCE PLANNING/ MANPOWER PLANNING:

1. To make the list of current manpower.

2. To check how much current manpower is being utilized.

3. To find out how much manpower is required.

4. To make manpower procurement plans.

5. To make the training programmes.

 IMPORTANCE OF HUMAN RESOURCE PLANNING/ MANPOWER PLANNING:

1. Human resource planning/ manpower planning is helpful in finding out surplus/ shortage of
manpower.
2. It is helpful in employee development.
3. It is useful in finding out the deficiencies in existing manpower and providing corrective
training.
4. It is helpful in overall planning process of the organization.
5. Ensure adequate supply of manpower as and when required.
6. Ensure proper use of existing human resources in the organisation.
7. Forecast future requirements of human resources with different levels of skills.
8. Assess surplus or shortage, if any, of human resources available over a specified period of
time.
9. Anticipate the impact of technology on jobs and requirements for human resources.

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10. Control the human resources already deployed in the organisation.

11. Provide lead time available to select and train the required additional human resource over a
specified time period.

 NEED FOR AND IMPORTANCE OF HRP

1. Human resource planning meets the organisation need for right type of people in right number at
right times.

2. By maintaining a balance between demand for and supply of human resources, human resource
planning makes optimum use of human resources, on the one hand, and reduces labour cost
substantially, on the other.

3. Careful consideration of likely future events, through human resource planning might lead to the
discovery of better means for managing human resources. Thus, foreseeable pitfalls might be
avoided.

4. Manpower shortfalls and surpluses may be avoided, to a large extent.

5. Human resource planning helps the organisation create and develop training and succession
planning for employees and managers. Thus, it provides enough lead time for internal succession of
employees to higher positions through promotions.

6. It also provides multiple gains to the employees by way of promotions, increase in emoluments
and other perquisites and fringe benefits.

7. Some of the problems of managing change may be foreseen and their consequences mitigated.
Consultations with affected groups and individuals can take place at an early stage in the change
process. This may avoid resistance for change.

8. Human resource planning compels management to asses critically the strength and weaknesses
of its employees and personnel policies on continuous basis and, in turn, take corrective measures
to improve the situation.

9. Through human resource planning, duplication of efforts and conflict among efforts can be
avoided, on the one hand, and coordination of worker’s efforts can be improved, on the other.

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 LEVELS OF HR PLANNING IN HUMAN RESOURCE

1. HRP at National Level:

HRP at the national level helps to plan for educational facilities, health care facilities, agricultural
and industrial development, and employment plans etc. The government of the country plans for
human resources at the national level.

National plans for HR forecast the demand and supply of human resources at the national level. It
also plans for occupational distribution, sectoral and regional allocation of human resources.

2. HRP at the Sectoral Level:

HRP at the sectoral level helps to plan for a particular sector like agriculture, industry etc. It helps
the government to allocate its resources to the various sectors depending upon the priority accorded
to the particular sector.

3. HRP at the Industry Level:

HRP at the industry level takes into account the output/ operational level of that particular industry
when manpower needs are considered.

4. HRP at the Unit Level:

HR Planning at the company level is based on the estimation of human resource needs of the
particular company in question. It is based on the business plan of the company.

A manpower plan helps to avoid the sudden disruption of the company’s production since it
indicates shortages of particular types of personnel, if any, in advance, thus enabling management
to adopt suitable strategies to cope with the situation.

5. HRP at the Departmental Level:

HRP at the departmental level looks at the manpower needs of a particular department in an
organisation.

 TYPES OF HUMAN RESOURCE PLANNING

There are two types of manpower planning, on the basis of time span, i.e., short term
manpower planning and long term manpower planning.

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 short term manpower planning as the name suggests is made for a short time,
i.e., for a period of not more than two year.
 long term manpower planning is concerned with all jobs and persons at once- with
matching total available personnel in the organization to total job requirement. it is
concerned with fulfilling future vacancies, rather than matching the present incumbents to
present job requirement.

 HUMAN RESOURCE MANAGEMENT TOOLS AND TECHNIQUES

 Organizational Charts
 Responsibility Assignments Matrix
 Text
 Networking
 Organizational Theory
 Expert Judgement
 SWOT Analysis
 ACTIVITIES INVOLVED IN THE PROCESS OF HUMAN RESOURCE PLANNING

1. Analysing organisational plans and objectives:

The process of human resource Planning begins with analysing the overall plans and objectives of
organisation. The reason being the human resource plans stem from business plans. Analysis of
business plans into sub-sectional and functional plans such as technology, production, finance,
marketing, expansion diversification provides for assessing the human resource requirements for
each activity in each section and department.

Similarly the analysis of organisational objectives also provides for human resources required by an
organisation. For example, if the objective of the organisation is rapid growth and expansion it would
require more human resources for its all functional areas. Thus, it is evident the human resource
planning needs to be made in accordance to the overall organisational plans and objectives.

2. Analysing objectives of Human Resource Planning:

The main purpose of human resource planning is matching employees’ abilities to enterprise
requirements, with an emphasis on future instead of present arrangements. According to Sikula,
“the ultimate mission or purpose of human resource planning is to relate future human resources to
future enterprise need so as to maximise the future return on investment in human resources”. For

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this, managers need to specify the objectives of human resource planning with regard to the
utilization of human resources in the organisation.

3. Forecasting Demand for Human Resources:

The demand for human resources in an organisation is subject to vary from time to time, depending
upon both external and internal factors External factors include competition, economic and political
climate, technological changes, government policy, etc.

Among the internal factors include growth and expansion, design and structural changes,
management philosophy, change in leadership style, employees resignation retirement,
termination, death, etc. Therefore, while forecasting future demand for human resources in the
organisation, these factors need to be taken into consideration.

 EFFECTIVE HUMAN RESOURCES PLANNING

Effective human resource planning can be done on the basis of following elements -
 Proper Organizational Structure

Human resources planning evaluates your current staffing needs, what they might be a year from
now and where they might be beyond that. Using this information, a human resources professional
develops an organization chart that identifies the positions you need, creates detailed job
descriptions for each position and ranks them. This process helps identify current employees who
aren’t being used effectively and considers other work they can do or what training they need to
improve their productivity.

 Better Scheduling

A human resources plan takes into account your sales and production schedules to maximize
employee scheduling. For example, during your busy season, you might reflexively add more
workers or another shift. If you can anticipate your production and inventory needs in advance, a
human resources professional might be able to save you money by showing you that producing
inventory during slow periods and carrying it until you sell it later might be less expensive than
hiring more workers, adding a shift or paying overtime. Human resources planning also takes into
account the fact that you’ll have workers out with sick days and creates contingency plans to deal
with this. This could include having temporary contract help identified or having an infrastructure
ready for short-term telecommuting.

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 Training

Some workers might be just a small amount of training away from being ready to handle more
responsibilities and support other employees and functions. A human resources plan should
evaluate the skills and experience for each position you have and then match the skills and
experience of each person in your organization to their written position needs to determine which
ones need training. When your human resources manager has this information, she can develop in-
house training plans or options such as tuition reimbursement to develop your workers so you can
better utilize them.

 Retention

When workers leave, their peers often have to pick up the slack or have down time while they wait
for a new replacement to be trained and get up to speed. Effective human resources planning ensures
that you hire, train and manage workers effectively to reduce turnover. Creating written job
descriptions during your organizational planning not only helps you ensure all the tasks you need
performed are done but also helps you identify job candidates who are most likely to succeed if they
are brought on board.

 STEPS IN HUMAN RESOURCE PLANNING PROCESS

Human resource planning is a process through which the right candidate for the right job is ensured.
For conducting any process, the foremost essential task is to develop the organizational objective to
be achieved through conducting the said process.

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1. Analysing Organizational Objectives:

The objective to be achieved in future in various fields such as production, marketing, finance,
expansion and sales gives the idea about the work to be done in the organization.

2. Inventory of Present Human Resources:

From the updated human resource information storage system, the current number of employees,
their capacity, performance and potential can be analysed. To fill the various job requirements, the
internal sources (i.e., employees from within the organization) and external sources (i.e., candidates
from various placement agencies) can be estimated.

3. Forecasting Demand and Supply of Human Resource:

The human resources required at different positions according to their job profile are to be
estimated. The available internal and external sources to fulfill those requirements are also
measured. There should be proper matching of job description and job specification of one particular
work, and the profile of the person should be suitable to it.

4. Estimating Manpower Gaps:

Comparison of human resource demand and human resource supply will provide with the surplus
or deficit of human resource. Deficit represents the number of people to be employed, whereas
surplus represents termination. Extensive use of proper training and development programme can
be done to upgrade the skills of employees.

5. Formulating the Human Resource Action Plan:

The human resource plan depends on whether there is deficit or surplus in the organization. Accord-
ingly, the plan may be finalized either for new recruitment, training, interdepartmental transfer in
case of deficit of termination, or voluntary retirement schemes and redeployment in case of surplus.

6. Monitoring, Control and Feedback:

It mainly involves implementation of the human resource action plan. Human resources are
allocated according to the requirements, and inventories are updated over a period. The plan is
monitored strictly to identify the deficiencies and remove it. Comparison between the human
resource plan and its actual implementation is done to ensure the appropriate action and the
availability of the required number of employees for various jobs.

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 FORECASTING OF DEMAND AND SUPPLY

Demand Forecasting:
Demand forecasting is a quantitative aspect of human resource planning. It is the process of
estimating the future requirement of human resources of all kinds and types of the organisation.

 Factors affecting demand forecasting:

1. Forecasting of demand for human resources depends on certain factors such as:

2. Employment trend in the organisation for at least last five years to be traced
to determine the future needs.
3. Organisation has to find out the replacement needs due to retirement, death, resignation,
termination etc.
4. Improvement in productivity is yet another factor. To improve productivity organisation
needs better employees with skills and potential. Productivity leads to growth but depends
on the demands for the product of the enterprise in the market. Higher demand may lead to
more employment of skilled personnel’s.
5. Expansion of the organisation leads to hiring of more skilled persons. The base of human
resource forecast is the annual budget. Manufacturing plan depends upon the budget.
Expansion in production leads to more hiring of skills and technology.

Methods or Techniques of Demand Forecasting:

a. Management Judgment:
This technique is very simple and time-saving. Under this technique, either a “bottom-up’ or a ‘top-
down’ approach is employed for forecasting future human resource requirement of an organisation.
In case of bottom-up approach, lime managers prepare departmental requirements for human
resource and submit it to the top managers for their review and consideration.

In the ‘top-down’ approach, the top managers prepare the departmental forecasts which are
reviewed with the departmental heads or managers. However, neither of these approaches is
accurate. Forecasts based on these approaches suffer from subjectivity. This technique is suitable
only for small firms or in those organisations where sufficient data- base is not readily available.

b. Work-Study Method:
This method can be used when it is possible to measure work and set standards and where job
methods do not change frequently. In this method as used by Fredrick Winslow Taylor in his

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‘Scientific Management’ time and motion study are used to ascertain standard time for doing a
standard work. Based on this, the number of workers required to do standard work is worked out.

c. Ratio- Trend Analysis:

This is one of the quickest forecasting techniques. Under this method, forecasting for future human
resource requirements is made on the basis of time series data. In other words, this technique
involves studying past ratios (e.g., total output/ number volume/ number of sales persons, direct
workers is made for indirect workers) and, based on these forecasting is made for future ratios.

While calculating future ratios, allowances can be made for expected changes in organisation,
methods and jobs. The demand for human resources is calculated on the basis of established ratios
between two variables.

d. Delphi Technique:
Delphi technique is named after the ancient Greek oracle at the city of Delphi This is one of the
judgmental methods of forecasting human resource needs. It is a more complex and time-
consuming technique which does not allow group members to meet face-to-face. Therefore, it does
not require the physical presence of the group members.

e. Regression Analysis:
Regression analysis is used to forecast demand for human resources at some point of time in future
by using factors such as sales, production services provided etc. This method is used when
independent and dependent variables are functionally related to each other. Nowadays computers
are used to solve regression equations for demand forecasting.

Supply Forecasting:
Supply forecasting means to make an estimation of supply of human resources taking into
consideration the analysis of current human resources inventory and future availability.

 Factors affecting supply forecasting:

Forecasting of supply for human resources depends on certain factors such as:

1. Promotion of employees from within the organization

2. Availability of required talent in the external labour market
3. Competition for talent within the industry
4. Population movement trends
5. Enrolment trends in vocational schools and universities

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Methods or Techniques of Supply Forecasting:

a. Skill Inventories
The first techniques in supply forecasting is to take a stock of existing HR inventory as follows.

(a) Head Count:

Count of the total number of people available department-wise, sex- wise, designation-wise, skill-
wise, pay roll-wise etc.

(b) Job Family Inventory:

It consists to number and category of employees of each job family i.e. the jobs related to same
category like office staff, sales and marketing staff, production staff, maintenance and industrial
engineers, quality control engineers etc.

(c) Age Inventory:

It consists of age-wise number and category of employees. This gives us age composition of human
resources. Dynamism, creative abilities innovativeness is present in young employees while making
of proper judgment and display of maturity is shown by elderly employees.

Organisations prefer both young and old employees. Human resource planning should give due
consideration to age-wise human resource mixing young and old employees in due proportions.

(d) Inventory of skill, experience, values and capabilities:

Organisation should take a stock of present inventory of skill, employees with number of years of
experiences (10 yrs, 15-yrs, 20 yrs and more etc.), values and capabilities.

(e) Inventory of Qualifications and Training:

This consists of educational qualifications of the employees academic and technical and special
qualifications if any and the training received by the employees.

(f) Inventory of Salary grades:

This includes pay and allowance-wise and total emoluments-wise stock taking.

(g) Sex wise Inventory:

Inventory of male and female employees of the organisation.

(h) Local and Non-Local-wise Inventory:

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It includes the stock of local employees and the employees belonging to other areas such as different
states of India.

(i) Inventory of Past Performance and Future Potentialities:

There are several human capacities or potentials required for performing jobs at the workplace.
Requirement of these along experience need to be taken into consideration while taking stock of
human resource inventory.

b. Succession Planning
Succession planning is the process of developing talent to replace executive, leadership or other key
employees when they transition to another role, leave the company, are fired, retire or die. It is
relevant to all companies, from the largest to the smallest, in both the for-profit and not-for-profit
sectors. The planning process is meant to create a talent pipeline of successors that will keep the
organization running with little to no interruption when inevitable staff changes occur.

Effective succession planning works by assessing staffing needs that may arise and creating long-
term goals and strategies to manage those gaps, including through leadership development. The HR
department, sometimes referred to as the human resources management (HRM) department, is
typically a key driver in the succession planning, which is sometimes referred to as replacement
planning, although support from top leadership and other stakeholders is critical to success.

c. Replacement Charts

Replacement charts are a forecasting technique used in succession planning to help companies
visualise key job roles, current employees and existing and future vacancies. Positions are mapped
alongside information such as potential replacements, gender and promotion potential. Updates to
replacement charts should be made regularly, at least annually, and especially in response to
fluctuations in economic conditions or business activity.
d. Staffing Table

Staffing tables are graphic representations of all organizational jobs, along with the numbers of
employees currently occupying those jobs and future (monthly or yearly) employment requirements,
which can be derived from demand forecasts.

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 BARRIERS TO HRP(HUMAN RESOURCE PLANNING)

Human Resource Planners face significant barriers while formulating an HRP. The major barriers
are elaborated below:

1) HR practitioners are perceived as experts in handling personnel matters, but are not experts in
managing business. The personnel plan conceived and formulated by the HR practitioners when
enmeshed with organizational plan, might make the overall strategic plan of the organization
ineffective.

2) HR information often is incompatible with other information used in strategy formulation.

Strategic planning efforts have long been oriented towards financial forecasting, often to the
exclusion of other types of information. Financial forecasting takes precedence over HRP.

3) Conflict may exist between short term and long term HR needs. For example, there can be a
conflict between the pressure to get the work done on time and long term needs, such as preparing
people for assuming greater responsibilities. Many managers are of the belief that HR needs can be
met immediately because skills are available on the market as long as wages and salaries are
competitive. Therefore, long term plans are not required, short planning are only needed.

4) There is conflict between quantitative and qualitative approaches to HRP. Some people view HRP
as a number game designed to track the flow of people across the department. Others take a
qualitative approach and focus on individual employee concerns such as promotion and career
development. Best result can be achieved if there is a balance between the quantitative and
qualitative approaches.

5) Non-involvement of operating managers renders HRP ineffective. HRP is not strictly an HR

department function. Successful planning needs a co-ordinated effort on the part of operating
managers and HR personnel.

 STRATEGIC HUMAN RESOURCE PLANNING

The term strategy is frequently being used in the present-day corporate world. It envisages thinking
ahead to survive and grow in a highly competitive environment’. Strategy is concerned with
determining which option will provide maximum benefits.

“Strategy is a unified, comprehensive and integrated plan that relates the strategic advantages of the
firm to the challenges of the environment. It is designed to ensure that the basic objectives of the
enterprise are achieved through proper execution by the organisation.”

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Basically any strategic process can be broken down into two phases:
1. Strategy formulation

2. Strategy implementation

Strategic formulation is concerned with making decisions with regard to defining the organisation’s
vision and mission, establishing long- and short-term objectives to achieve the organisation’s vision
and selecting the strategy to be used in achieving the organisation’s objectives.

Strategic implementation is concerned with aligning the organisation structure, systems and
processes with the chosen strategy. It involves making decisions with regard to matching strategy
and organisational structure and providing organisational leadership pertinent to the strategy and
monitoring the effectiveness of the strategy in achieving the organisation’s objectives.

Objective Strategic HRM, therefore, is concerned with the following:

1. Analyse the opportunities and threats existing in the external environment.

2. Formulate strategies that will match the organisation’s (internal) strengths and weaknesses with
environmental (external) threats and opportunities. In other words, make a SWOT analysis of
organisation.

3. Implement the strategies so formulated.

4. Evaluate and control activities to ensure that organisation’s objectives are duly achieved.

 LINK BETWEEN STRATEGIC PLANNING AND HUMAN RESOURCE

PLANNING

The link between SHRM and HRP can be clearly explained based on the element of Technology,
Finance and Human Resource.

The Technology Resource

The technology resource refers to the tools or objects used to create and/or deliver an organization’s
product or service. This resource could be as simple as a pen used to write invoices or as
sophisticated as a computer system that is used to design a product. The management team within
an organization identifies the appropriate technology that is needed to achieve the mission of the

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organization. The type and amount of technology is determined by how much of a service or product
the organization wants to create or deliver. An amount is identified by the goals outlined in the vision
statement of the organization and in the strategic plan. The type is identified by what is currently
used in the industry and what would be most effective for the organization and its mission.

There are three areas where strategies are developed for the technology resource. The technology
strategic plan is the plan that identifies how to: obtain the technology; maintain the technology; and
adapt the technology. Once the type and amount of technology is identified, plans on where to
purchase them or build them are developed. Once obtained, this resource must be maintained to
provide optimum performance. As an organization competes in the marketplace, products and
services change. In addition new methods are created that are more efficient. To effectively manage
these new requirements, some technology may need to be adapted to deliver the product or service
in the new way. If adaptation of the technology does not sufficiently address the need, organizations
may resort to obtaining new technology.

The Finance Resource

The finance resource refers to the money or capital that is used to pay for or fund all the
organization’s activities. This resource includes money that is generated by sales, loans, grants, or
donations. It also includes any capital assets that could be sold or used as collateral toward further
loans or grants. Just like the technology resource, there are three areas where actions are identified
for the finance resource. The finance strategic plan is a plan that identifies how to effectively:
generate the money; manage the money; and, forecast the revenue and expenses.

The amount of money required to successfully run an organization is calculated by the managers as
they determine their needs for the accomplishment of their departments’ goals and objectives. This
typically includes identifying the costs of running the business and developing a budget for the
ongoing expenses of the department. These expenses include all those required for purchasing,
maintaining and adapting technology and compensating all employees for the time spent working.

The Human Resource

The human resource refers to the people whose knowledge, skills, and abilities are utilized to create
and deliver the product and service. This resource is considered to be an organization’s greatest
resource. This is due to the fact that an organization could not be managed or products and services
created and delivered without the use of the KSAs of people. Technology and money are also

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required to achieve the goals of the organization, but these resources cannot be utilized without
some assistance from people.

There are three areas where plans are developed for effectively utilizing the human resource. The
human resource strategic plan identifies how to: attract the right types and numbers of people;
develop the knowledge, skills and abilities of employees; and, retain the employees within the
organization.

Successful organizations have the right types and amount of people to perform the required duties
to achieve the organizations’ objectives. Initially this involves finding the right type and amount of
people in the market place. Once these people are working for the organization, their KSAs need to
be kept current for the technology they are using or the clients with whom they are interacting. Time
and money is spent on regularly developing the KSAs. Since organizations don’t usually want to lose
a resource in which they have made an investment, they develop and implement systems that retain
this resource. These systems include identifying appropriate human resource management
techniques to motivate the performance of the employees.

 HR POLICY

Mostly refers to codified documents that set out the company’s stance on issues, such as internet use
or dress code, but can also mean a stance communicated verbally. Policies are crucial to effective
functioning of the HR department as they help define the relationship between employer and
employee. Employees must understand what the company’s position so there’s a benchmark for
behaviour. Without this benchmark, businesses can’t discipline employees or set goals for
improvements, and it becomes much harder to improve company processes and values.

HR should have policies for as many different eventualities as possible because if a situation arises
that isn’t referenced then there’s no precedent or starting ground for how to deal with it.

Clarity is fundamental in codifying HR policies. Everything must be crystal clear – this is particularly
important as company policies will be scrutinised in the case of an employment tribunal. Whether a
company has a consistent policy in place is often important in determining where liability lies.

 IMPORTANCE OF HR POLICIES
Operating a business without HR policies is essentially saying to employees that you aren't
interested in creating a framework that shows them how to be successful in their jobs. Employees

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might not perceive it quite that harshly, but absent the structure that HR policies provide for an
organization and its employees, running your company will be quite challenging. The importance of

 It ensures that the employees dedicate themselves to total quality and constant, never ending
improvement of the organization
 It helps in hiring people on the basis of skills, training, attitude, ability and character.
 It helps to pay all the employees according to their effort and contribution to the success of
the business
 Provide an operating and economically successful business so that a consistent level of
significant work is available
 Helps in review wages, employee benefits and working conditions, constantly with objective
of providing maximum benefits in these areas, consistent with business practice.
 Provide paid vacations and holidays to all eligible employees
 Provide eligible employees with medical and other benefits
 Helps in developing competent people who understand and meet the organization’s
objectives and accepts ideas, suggestions and constructive criticism.
 It helps in addressing complaints which may arise in everyday conduct of the business,
promptly in a practical way
 It helps in respectable individual rights and treat all employees with courtesy and
consideration
 HR PROGRAMME

An effective, comprehensive human resource program is the one of the most challenging
management functions. There are a number of variables that contribute to the overall success of a
well-managed human resource program.

An agency’s human resource program must undergo a process of continual, regular review and
revision to stay current with a dynamic blend of legislation, case law and accepted employment
practices.

Human interactions within in an organization are of special concern to human resource program
managers.

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 CONTENTS OF HR PROGRAMME

Based on the study of Human Resource Policies following functions of Human Resource
Management can be taken into consideration as contents of Human Resource Programme –

Organizational Culture

Organizational culture is the collection of values, working norms, company vision, habits and beliefs
that the business espouses. The HR management system plays a large part in shaping the
organizational culture. Setting policies, procedures and company standards dictates to employees
the behaviors that are acceptable in the workplace. For example, a policy may state that time
management is important to the business, which fosters timeliness among employees, or HR may
adapt a looser time management policy that values employees' freedom to manage their own
schedules. In essence, the organizational culture affects the way people do their work and interact
with one another and with customers.

Planning for Change

The business world changes rapidly. New technology is introduced, employees come and go, and the
finances of the company fluctuate. HR's role in helping to stabilize the company for change cannot
be understated. Planning for change means helping employees understand their roles in the larger
picture of the company. It's about building bridges between departments and managers and getting
people to talk about "what-if" situations. HR takes this information and develops a management
plan for disasters, for changes in workflow and for reassuring employees in times of crises or
frightening change.

Training and Development

Almost all employees, even ones that are highly educated or skilled, require some level of training
because each organization runs things in a different way. Policies and procedures need to be firmly
communicated to employees as part of their on-boarding process. The HR management system is
also responsible for ongoing employee development. This continuing education keeps employees'
skills fresh so they bring new and innovative ideas to the workplace.

Health and Safety

The HR management system plays a key role in ensuring health and safety in the workplace. This
can be achieved through policies and procedures, but the HR function may go a step further to make
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sure employees understand the risks of certain activities. For example, if there is heavy machinery
in the office, HR can post warning signs and posters listing the steps to take in case of an emergency.
This minimizes the possibility that an accident will occur and helps to eliminate any subsequent
legal action that might be taken against the company.

Recruitment and Retention

While recruitment and retention may seem like a given for HR management systems, it is the anchor
of all HR's policies and systems. Finding qualified workers, keeping them engaged with the
company, training them to effectively do their jobs and providing incentives for further education,
benefits and compensation are all drivers to organizational success and should be constantly on the
minds of HR managers.

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