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Human Resource Planning

Technical Report · November 2016

DOI: 10.13140/RG.2.2.35807.48803

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Monirul Haque Surjya Kanta Roy

Bidhan Chandra Krishi Viswavidyalaya Indian Agricultural Research Institute
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 Human Resource Planning

Submitted to:- Submitted by:-

 Dr. Anindita Saha
 Monirul Haque
Course name:- ELABM-03  Soumavho Hazra
 Surjya Kanta Roy

B.Sc(Ag)Hons Sem-VII
Introduction:Human resource planning is one of the crucial aspects of human
resource management because it helps to ensure the needed manpower for
organizational goal. Due to the globalization movement, the competition to
provide quality and low cost products has been increasing day by day. In this
situation, the HR department has to plan in order to provide the quality
manpower to compete in the market. The supply of manpower must be
sufficient to ensure the healthy operation of the organization. Otherwise, the
stated goals and objectivescannot be accomplished on time.

Human resource planning may be defined as a process of predetermining future

human resources needs and course of action needed to satisfy those needs to
achieve organizational goals.According to E.W. Vetter, human resource
planning is “the process by which a management determines how an
organization should make from its current manpower position to its desired
manpower position. It ensures that organization has right number and kind of
people, at right place, and at right time capable of performing well in the
organization. Human resource planning is a continuous process rather than a
one shot affair. It tries to keep the organization supplied with required and
capable people when they are demanded.

Moreover, human resource planning is a process of knowing that what

kind of people should be recruited to ensure the quality performance of the
organization. It tries to ensure that the required competency is maintain in line
with organizational mission, vision and strategic objectives. It also determines
andorganization's human resource needs. It identifies what is to be done to
ensure the availability of human resources needed to achieve stated goals and
objectives within the given constraints
Thus, human resource planning (HRP) is a complex and continuous
process which helps determine the manpower requirement of the organization.
It helps to translate the organization's objectives and plans into the number of
workers needed to meet the objectives.

Objectives of Human Resource Planning:

 Recruit, retain & minimize the turnover of human resources
 Foresee the impact of technology & improve standards
 Anticipate the impact of technology on jobs & HR
 Determine the level of recruitment and training
 Estimate the cost of Human Resource & housing needs of employees
 Meet the needs of expansion and diversification programmes
Importance of Human Resource Planning: Human resource planning aims
at fulfilling the objectives of manpower requirement. It helps to mobilize
therecruited resources for the productive activities. The human resource
planning is an important process aiming to link business strategy and its
operation. The importance of human resource planning are as follows:

1. Future Manpower Needs: Human resource planning ensures that people

are available to provide the continued smooth operation of
anorganization. It means, human resource planning is regarded as a tool
to assure the future availability ofmanpower to carry on the
organizational activities. It determines the future needs of manpower in
terms ofnumber and kind.

2. Coping with Change: Human resource planning is important to cope

with the change associated with the external environmentalfactors. It
helps assess the current human resources through HR inventory and
adapts it to changingtechnological, political, socio-cultural, and economic
forces.

3. Recruitment of Talented Personnel: Another purpose of HR planning is

to recruit and select the most capable personnel to fill job vacancies. It
determines human resource needs, assesses the available HR inventory
level and finally recruit the personnel needed to perform the job.

4. Development of Human Resources: Human resource planning identifies

the skill requirements for various levels of jobs. Then it organizes
varioustraining and development campaigns to impart the required skill
and ability in employees to perform the taskefficiently and effectively.

5. Proper Utilization of Human Resources: Human resource planning

measures that the organization acquires and utilizes the manpower
effectively toachieve objectives. Human resource planning helps in
assessing and recruiting skilled human resource. Itfocuses on the
optimum utilization of human resource to minimize the overall cost of
production.

6. Uncertainty Reduction: This is associated with reducing the impact of

uncertainty which are brought by unsudden changes inprocesses and
procedures of human resource management in the organization.
Features of Human Resource Planning: From the study of various
definitions, the following features of human resource planning can be derived:

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.

2. Determining Human Resource Reeds: 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. 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 inadvance. 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.

Steps involves in Human Resource Planning: Human resources planning

assess the manpower requirement for future period of time. It attempts to
provide sufficient manpower required to perform organizational activities. HR
planning is a continuous process which starts with identification of HR
objectives, move through analysis of manpower resources and ends at appraisal
of HR planning. Following are the major steps involved in human resource
planning:
1. Assessing Human Resources: The assessment of HR begins with
environmental analysis, under which the external (PEST) and
internal(objectives, resources and structure) are analyzed to assess the
currently available HR inventory level. Afterthe analysis of external and
internal forces of the organization, it will be easier for HR manager to
find out theinternal strengths as well as weakness of the organization

in one hand and opportunities and threats on theother. Moreover, it

includes an inventory of the workers and skills already available within
the organizationand a comprehensive job analysis.

2. Demand Forecasting: HR forecasting is the process of estimating

demand for and supply of HR in an organization. Demand forecasting is a
process of determining future needs for HR in terms of quantity and
quality. It is done to meet the future personnel requirements of the
organization to achieve the desired level of output. Future human
resource need can be estimated with the help of the organization's current
human resource situation and analysis of organizational plans a
procedure. It will be necessary to perform a year-by-year analysis for
everysignificant level and type.

3. Supply Forecasting: Supply is another side of human resource

assessment. It is concerned with the estimation of supply ofmanpower
given the analysis of current resource and future availability of human
resource in the organization.It estimates the future sources of HR that are
likely to be available from within an outside the organization. Internal
source includes promotion, transfer, job enlargement and enrichment,
whereas external source includes recruitment of fresh candidates who are
capable of performing well in the organization.

4. Matching Demand and Supply: It is another step of human resource

planning. It is concerned with bringing the forecast of future demand
andsupply of HR. The matching process refers to bring demand and
supply in an equilibrium position so thatshortages and over staffing
position will be solved. In case of shortages an organization has to hire
morerequired number of employees. Conversely, in the case of over
staffing it has to reduce the level of existingemployment. Hence, it is
concluded that this matching process gives knowledge about
requirements andsources of HR.
 5. Action Plan: It is the last phase of human resource planning which is
concerned with surplus and shortages of humanresource. Under it, the HR
plan is executed through the designation of different HR activities. The
majoractivities which are required to execute the HR plan are
recruitment, selection, placement, training anddevelopment, socialization
etc. Finally, this step is followed by control and evaluation of
performance of HRto check whether the HR planning matches the HR
objectives and policies. This action plan should be updated according to
change in time and conditions.

Fig: Process of Human Resource Planning

Approaches of Human Resource Planning: HRP is created to forecast the

required human resource to perform a specific task. It alsoassesses the skill
requirement of employees for each job. It is a complex task which estimates the
future demand and supply position of HR in the organization. Hence, it gives a
picture of infinite future in advance in terms of human resource requirement for
the company. Here, the approaches to HR planning are as follows:
 1. Quantitative Approach: It is also known as top down approach of HR
planning under which top level make and efforts to prepare thedraft of
HR planning. It is a management-driven approach under which the HR
planning is regarded as a number's game. It is based on the analysis of
Human Resource Management Information System and HR Inventory
Level. On the basis of information provided by HRIS, the demand of
manpower is forecasted usingdifferent quantitative tools and techniques
such as trend analysis, mathematical models, economicmodels, market
analysis, and so on. The focus of this approach is to forecast human
resource surplus andshortages in an organization. In this approach major
role is played by top management.

2. Qualitative Approach: This approach is also known as bottom up

approach of HR planning under which the subordinates make aneffort to
prepare the draft of HR planning.Hence, it is also called sub-ordinate-
driven approach of HRplanning. It focuses om individual employee

concerns. It is concerned with matching organizational needs with

employee needs. Moreover, it focuses on employee's training,
development and creativity. Similarly,compensation, incentives,
employee safety, welfare, motivation and promotion etc. are the primary
concernsof this approach. In this approach, major role is played by lower
level employees.

3. Mixed Approach: This is called mixed approach because it combines

both top-down and bottom-up approaches of HR planning.In fact, the
effort is made to balance the antagonism between employees and the
management. Hence, ittends to produce the best result that ever produced
by either of the methods. Moreover, it is also regardedas a Management
by Objective(MBO) approach of HR planning. There is an equal
participation of each level ofemployees of the organization.

Procedure of Employee Selection: In order to increase efficiency in hiring

and retention of an organization proper recruitment, selection and placement
of employees are the most important steps of Human Resource Planning.

Recruitment: According to Edwin B. Flippo, “It is the process of searching for

prospective employees and stimulating and encouraging them to apply for jobs
in an organization.” He says, “Recruitment is often termed positive in that it
stimulates people to apply for jobs, to increase the hiring ratio, i.e. the number
of applicants for a job.
Selection:Selection is the process of differentiating between applicants in order
to identify and hire those with a greater likelihood of success in a job. Selection
test are only part of the selection procedure. The prospect may be asked to
complete an application form, provide a resume and attend at least one
interview. The process and the information provides by the prospect tell the
employer something about the candidate and helps them to choose the most
appropriate candidate for the vacancy.

Process of Selection:
 Preliminary Interview
 Selection Tests
 Employment interview
 Reference and background analysis
 Physical examination
 Job offer
 Employment contract
 Evaluation of selection programme

Types of Selection Test:

Selection Test

Aptitude Test Intelligence Test Personality Test Performance Test

ↆ
Mental ability/
Intelligence test
ↆ
Medical Aptitude test
ↆ
Psycho motor test

Placement of Employees:Placement is a process of assigning as specific job to

each of the selected candidates.
- It involves assigning a specific rank and responsibility to an individual
 - It implies matching the requirements of a job with the qualifications of
the candidates.

Conclusion:Human resource planning is a vital sub activity of employment

function. It vastly affects the organization thus the planning should have done
with great concern. The human resource planning needs to be flexible enough to
meet short term staffing challenges while adapting to changing conditions in the
business environment over the longer term. The planner of human resources
must be aware of the corporate objectives. The personal records must be
complete, up to date and readily available for the effective HRP. The time
horizon of the plan must be long enough to permit any remedial action and the
plan should be preparing by skill levels rather than by aggregates.
Human Resource Planning should be seen as a strategic function of an
organization. It helps to build a competitive edge for an organization by
positively engaging its employees. Key ingredients of effective Human
Resource Planning are having in place an appropriate leadership style and
effective two way communications with employees. Engaged employees are
more likely to be proud to work for their organization and therefore will believe
in and live out the values of the organization.

References:

- Accounting Management (http://accountlearning.blogspot.com)

- Concept of Human resource planning by Lawrence Bautista
- Human Resources_ Recruitment & Selection Hiring Process
- Wikipedia.com

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