Human Resource Planning

2. Table of Contents 1) Human resource planning – Introduction 2) What is human resource planning? 3) Human resource planning – Meaning 4) Human resource planning – Definition 5) Human resource planning – Definition by Eminent Authors 6) Steps in human resource planning 7) Challenges of human resource planning 8) Importance of human resource planning 9) Human resource planning – Examples 10) Summary

3. Human Resource Planning - Introduction Human resource planning, in simple words, is a technique that a company uses to employ the right set of people to reach its objectives. It is also called manpower planning. This planning is done while keeping in mind future obstacles that can be overcome with a good team. The work is distributed among diverse individuals that add their own inputs and overall help the organization thrive and be productive for the long run.

4. What is Human Resource Planning? Human resource planning is a continuous process in which systematic planning is done with the purpose of achieving the optimum use of the organization’s most valuable asset- the employees. The main aim of human resource planning is to manage the best fit between the employees and jobs available at hand to help avoid manpower shortage as well as surplus. It’s a process which helps in the identification of current and future human resource needs of the organization to achieve its goals. Human resource planning aids in providing a link between the company’s overall strategic management as well as the human resource management.

5. Human Resource Planning- Meaning The greatest asset of every organization is its human resource. Few organizational leaders succeed in capitalising on it while others don’t. The reason why many leaders fail is because they haven’t been able to master the art and science of human resource planning. HR planning often takes into consideration the employee motivation, organizational design, succession planning and overall increase in investment to retain the existing employees and to remain competitive in the market.

6. Human Resource Planning- Definition A strategic way of employing people into an organisation to optimize its productivity is called human resource planning. HR planning often takes into consideration the employee motivation, organizational design, succession planning and overall increase in investment to retain the existing employees and to remain competitive in the market.

7. Human Resource Planning- Definition by Eminent Authors • Edwin Flippodefined human resource planning as “planning, organizing, directing, controlling of procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organizational and social objectives are achieved.” • Robbins and Coulter says “HR Planning is the process by which manager ensures that they have the right number and right kind of capable people in the right places and at the right times.” • Michael Armstrong (2008) explains the process of Human Resource planning (HRP) that it is not necessarily a linear one, starting with the business strategy and flowing logically through to resourcing, flexibility and retention plans.

8. According to Edwin B. Geisler, Manpower planning is, “the process by which a firm ensures that it has the right number of people and the right kind of people, at the right places, at the right time, doing things for which they are economically mast useful.” • Bruce P. Coleman defined Manpower Planning as, “the process of determining manpower requirements in order to carry out the integrated plan of the organization.” • According to Leon C. Megginson, Human resource planning is “an integrated approach to performing the planning aspect of the personal function in order to have a sufficient supply of adequately developed and excepted people to perform the duties and task required to meet organizational objective and satisfy the individual needs and goals of organizational members.”

9. Steps in Human Resource Planning There are basically six steps in HR planning: 1) Analysis of organizational objectives As there are various fields in the organization like marketing, finance, production and other expansion plans of the organization so the first step in HR planning involves analysis of the objectives to be met in these various fields which gives an idea about the work to be done and hence, manpower required for the same. 2) Assessing the current human resource of the organization The data related to the present number of employees in the organization, their capacity, performance and potential, all can be accessed through the updated human resource information system in the organization. The various job requirements identified in the first step can be fulfilled through the estimation of internal sources as well as external sources of manpower.

10. 3) Demand/Supply forecasting of human resource In this step, estimation of human resource required at various positions is done against their respective job profiles. Internal as well as external sources available to fill the said requirements are also measured. Proper matching of job description and job specification with the profile of the person should be done. 4) Manpower gap estimation The human resource surplus or deficit can be provided by the comparison of human resource demand and supply. Deficit indicates how many people need to be employed whereas surplus means how many should be terminated. Employees’ skills can be upgraded by making extensive use of employee training and development programme.

11. 5) Formulation and execution of final human resource plan The identified deficit or surplus in the organization determines its HR planning. Accordingly the plan is finalised for either recruiting, training, promoting, transferring in case of deficit or voluntary retirement, layoff etc in case of surplus. 6) Evaluation and feedback The HR planning come into action, according to the requirement the human resource is allocated and human inventory is updated over a period of time. The deficiencies are identified strictly and removed according to the human resource plan.

12. Challenges of Human Resource Planning While Human Resource Planning is effective in the company’s workforce management, it can also pose some challenges. Lets have a look at some of the common challenges of HR planning- • Difficulties in predicting the future • Inaccurate Data 3) Diversity of the employees 4) Constant Learning • Changing workforce 6) Efficient management of change 7) Managing the performance of the employees

13. Importance of Human Resource Planning Human Resource Planning is important as it helps the organisation to employ the right talent and people needed to maximise their function and the overall productivity of the company. • Increasing productivity • Keeping the workforce motivated 3) Effective cost management 4) Precise Inputs 5) Overcoming and sustaining change

14. Human Resource Planning – Examples Human resource planning can be for short term, medium or long term depending upon the organizational work goal at hand. For example, HR plan may be to hire five new sales representatives by the end of fiscal year. With the goal to accomplish this short term goal, the HR team will look for identifying channels to market this new position, create and post vacancy ads via these channels, collect and process applications, interview and select candidates and give job offer. In similar fashion, HR planning can be done for other organizational manpower requirement. The HR planning involves not just putting together a road map but also forming a timeline target and managing and allocating manpower and other resources. For example, money to pay for the job ad placement in newspaper or job site, staff to filter, process and contact the job applicants and to arrange their interviews and salary for the new hire.

15. Summary • Strategy used by companies to maintain a stable and constant stream of skilled employees while avoiding employee shortages(lack) or surpluses(excess) is called as human resource planning (HRP). • A good human resource planning strategy aids in helping the company in achieving its optimum productivity and profitability. • In totality, there are four major steps in the HRP process: identification of the current supply of employees, future determination of the workforce, creating steady balance between labour supply and demand, and plan development which support the goals of the company.

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