In this Chapter….
Introduction
Human Resource Planning (HRP)
Definition of Human Resource Planning
Nature of HRP
Objectives of Human Resource Planning
Need for HRP in Organizations
Importance of HRP
Factors Affecting HRP
HRP Process
Requisites for Successful HRP
Barriers to Human HRP
Introduction
As told at the previous chapter HRM has started to play a significant role in the
overall strategic development of the organization. At present HR strategies are
designed in tune with the overall business strategy of the organization. HR
strategy should sub serve the interest of the organization, translating firm’s goals
and objectives into a consistent, integrated and complimentary set of programs
and policies for managing people.
First part of HR strategy is Human Resource Planning. All other HR activities
like employee hiring, training and development, remuneration, appraisal and
labor relations are derived from HRP.
HR planning is important in a wide variety of industries and firms. HR planning
affects what employers do when recruiting, selecting, and retaining people, and
of course these actions affect organizational results and success. The challenges
caused by changing economic conditions during recent year’s show why HR
workforce planning should occur.
Human Resources planning mean different means to different organizations. To
some companies, human resources planning mean management development. It
involve helping executives to make better decisions, communicate more
effectively, and know more about the firm. The purpose of HRP is to make the
manager a better equipped for facing the present and future.
Human Resource Planning (HRP)
Human resource planning is important for helping both organizations and
employees to prepare for the future.
The basic goal of HRP is to predict the future and based on these predictions,
implement programs to avoid anticipated problems.
Very briefly HRP is the process of examining an organization’s or individual’s
future human resource needs for instance, what types of skills will be needed
for jobs of the future compared to future human resource capabilities (such as
the types of skilled employees you already have) and developing human
resource policies and practices to address potential problems for example,
implementing training programs to avoid skill deficiencies.
Definition of Human Resource Planning
According to Vetter, “HRP is the process by which management determines how
the organization should move from its current man power position to desired
manpower position.
According to Gordon Mc Beath,“HRP is concerned with two things: Planning of
manpower requirements and Planning of Manpower supplies”.
According to Beach, “HRP is a process of determining and assuming that the
organization will have an adequate number of qualified persons, available at proper
times, performing jobs which meet the needs of the enterprise and which provides
satisfaction for the individuals involved.
Simply HRP can be understood as the process of forecasting an organization’s
future demands for and supply of the right type of people in the right number.
HRP is a Four-Phased Process
The first phase involves the gathering and analysis of data through manpower
inventories and forecasts.
The second phase consists of establishing manpower objectives and policies and
gaining top management approval of these.
The third phase involves designing and implementing plans and promotions to
enable the organization to achieve its manpower objectives.
The fourth phase is 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.
Nature of HRP
HRP is the process of analyzing and identifying the availability and the
need for human resources so that the organization can meet its
objectives.
The focus of HRP is to ensure that the organization has the right
number of human resources, with the right capabilities, at the right
times, and in the right places.
In HR planning, an organization must consider the availability and
allocation of people to jobs over long periods of time, not just for the
next month or the next year.
HRP is a sub system in the total organizational planning. Actions
may include shifting employees to other jobs in the organization,
laying off employees or otherwise cutting back the number of
employees, developing present employees, and/or increasing the
number of employees in certain areas.
Factors to consider include the current employees’ knowledge,
skills, and abilities and the expected vacancies resulting from
retirements, promotions, transfers, and discharges. To do this, HR
planning requires efforts by HR professionals working with
executives and managers.
Objectives of Human Resource Planning
The objectives of human resource planning may be summarized as below:
Forecasting Human Resources Requirements: HRP is essential to
determine the future needs of HR in an organization. In the absence of
this plan it is very difficult to provide the right kind of people at the
right time.
Effective Management of Change: Proper planning is required to cope
with changes in the different aspects which affect the organization.
These changes need continuation of allocation/ reallocation and
effective utilization of HR in organization.
Realizing the Organizational Goals: In order to meet the expansion
and other organizational activities the organizational HR planning is
essential.
Promoting Employees: HRP gives the feedback in the form of
employee data which can be used in decision-making in promotional
opportunities to be made available for the organization.
Effective Utilization of HR: The data base will provide the useful
information in identifying surplus and deficiency in human resources.
The objective of HRP is to maintain and improve the organizational
capacity to reach its goals by developing appropriate strategies that
will result in the maximum contribution of HR.
Need for HRP in Organizations
Major reasons for the emphasis on HRP at the Macro level:
1) Employment-Unemployment Situation: Though in general the number
of educated unemployment is on the rise, there is acute shortage for a
variety of skills.
2) Technological Change: The changes in production technologies,
marketing methods and management techniques have been extensive
and rapid.
3) Demographic Change: The changing profile of the work force in terms
of age, sex, literacy, technical inputs and social background has
implications for HRP.
4) Skill Shortage: Unemployment does not mean that the labour market is
a buyer’s market.
5) Governmental Influences: Government control and changes in
legislation with regard to affirmative action for disadvantages groups,
working conditions and hours of work, restrictions on women and child
employment, causal and contract labor, etc.
6) Legislative Control: The policies of “hire and fire” have gone. Now the
legislation makes it difficult to reduce the size of an organization quickly
and cheaply.
7) Impact of the Pressure Group: Pressure groups such as unions,
politicians and persons displaced from land by location of giant enterprises
have been raising contradictory pressure on enterprise management such as
internal recruitment and promotion, preference to employees’ children,
displace person, sons of soil etc.
Factors Affecting HRP
HRP is influenced by several factors. The most important of the factors
that affect HRP are :
(1) Type and strategy of organization
(2) organizational growth cycles and planning
(3) environmental uncertainties
(4) time horizons
(5) type and quality of forecasting information
(6) nature of jobs being filled and off loading the work.
Barriers to HRP
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.
2) HR information often is incompatible with other information used in
strategy formulation.
3) Conflict may exist between short term and long term HR needs.
4) There is conflict between quantitative and qualitative approaches to
HRP.
5) Non-involvement of operating managers renders HRP ineffective.
Reference Books
K. Aswathappa (1999), Human Resource and Personnel Management (2nd
edition), Tata McGraw-Hill Publishing Company Ltd., New Delhi.
Michael Armstrong (1999), A Handbook of Human Resource Management
Practice (7th edition), Kogan Page Limited, 120 Pentonvelle Road, London.
P. Subba Rao (2004), Management and Organisational Behaviour (First
edition), Himalaya Publishing House.
Lloyd L. Byars and Leslie W. Rue (1997), Human Resource Management (5th
edition), The McGraw-Hill Companies, USA.
