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Human resource planning. DEFINITION: the systematic study for an organization to forecast the future demands and supply of employees in order to keep fill the vacancies. HR Planning is required to meet the following objectives:

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human resource planning
Human Resource Management

Human resource planning

DEFINITION:the systematic study for an organization to forecast the future demands and supply of employees in order to keep fill the vacancies.

the objectives of hrp
Human Resource Management

HR Planning is required to meet the following objectives:

1) Forecast personnel requirements: HR planning is essential to determine the future manpower needs in an organization. In the absence of such a plan it will be difficult to have the services of right kind of people at the right time.

The objectives of HRP:

objectives of human resource planning
Human Resource Management

2) Cope (manage, handle) with change: HR planning is required to cope with changes in the market condition, technology, products and government regulation in an effective way. These changes may require the services of people with the require technical knowledge and training. In the absence of an HR plan, we may not in a position to enlist their service in time.

Objectives of Human Resource Planning:

objectives of human resource planning1
Human Resource Management

3) Use existing manpower productively: By keeping an inventory of existing personnel in an enterprise by skill, level, training, educational qualifications, work experience; it will be possible to utilize the existing resources more usefully in relation to the job requirements.

Objectives of Human Resource Planning:

objectives of human resource planning2
Human Resource Management

4) Promote employees in a systematic manner: HR planning provides useful information on the basis of which management decides on the promotion of eligible personnel in the organization. With the help of employees’ skill inventory system, the manager can promote their employees on systematic way.

Objectives of Human Resource Planning:

the process of human resource planning
Human Resource Management

The process of Human Resource Planning:

1) Forecasting the Demand for Human Resources: most firms estimates how many employees they require in future. The demand for human talent at various levels is important due the following factors:a) External Challenges: b) Organizational decision::

external challenges
Human Resource Management

External challenges

1) Economic development: after world war second, as industrialization take place, economic development start. new innovation comes to the market. that’s why every organization needs highly skillful and up-to-date employees to face these challenges.

2 political legal social and technological change
Human Resource Management

2) POLITICAL, LEGAL, SOCIAL, AND TECHNOLOGICAL CHANGE:

most organization need to forecast skillful human resource due to political, legal, social and technological change. these are major external environmental forces that effect the organization. if some changes occur in these factors it will force the organization to bring change.

3 competition
Human Resource Management
  • Due to strong competition among different firms, every firm want to create a unique product from their competitor to capture the market, that’s why they work hard and always try to bring new changes and innovation in their product. For this purpose they want to hire highly skillful employees for their organization that create something unique for them.

3) Competition:

b organizational decision
Human Resource Management

b) Organizational decision

the demand for human talent is also important due to organizational decision. if the organization wants that they will open new branches to expand their business so for this purpose they will forecast human resource.

conti
Human Resource Management

Conti…

when employee’s requirements and availability have been analyzed after that the firm can determines whether it will have a surplus or shortage of employees.

conti1
Human Resource Management

Conti…

if firm have shortage of employees than they hire new employees. the firm must obtain the proper quantity and quality of workers from outside the organization. in this case external recruitment and selection is required. if firm have surplus of employees than they reduce workforce by restricted hiring, early retirement, layoffs (temporary dismissal), job sharing etc.

c workforce factors
Human Resource Management

c) Workforce factors:

Forecasting the demand for human resource is important because of termination, resignation, retirement, death of current employees.

2 preparing manpower inventory supply forecasting

The basic purpose of preparing manpower inventory is to find out the size and quality of personnel available within the organization. Every organization will have two major sources of supply of manpower.

Human Resource Management

2)Preparing Manpower Inventory (Supply Forecasting ):
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1) Internal labor supply:

2) External labor supply:

Human Resource Management

Conti
1 internal labor supply

A profile of employees in term of age, sex, education, training, experience, job level, past performance should be kept ready for use whenever required. Requirements in term of internal movement of employees (transfer, promotion, retirement, termination etc). For internal supply they count the number of employees and try to collect information about the workforce capabilities.

Human Resource Management

1) Internal labor supply:
following are the methods through which they collect information

a) Human Resource Audits: Human Resource audit shows each employee skills, knowledge and abilities. Audits of non managers are called skills inventories, audits of managers are known as management inventories. The inventory represents each employee skills and abilities. Simply we can say it is a brief summary regarding each employee which shows strong and weak point of an employee. Through this the planner can easily adjust a person in future.

Human Resource Management

Following are the methods through which they collect information.
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b) Succession planning: It is the process in which the planers convert information about current employee into decisions about future internal job placement. For this purpose they keep the record of every employee in human resource information system. To find suitable candidate human resource department provide different type of training to their employee to accept future job opening.

Human Resource Management

Conti
conti4

c) Replacement charts: It is a visual representation of who will replace whom if there is a job opening. To construct this type of chart HR audit will provide information

Human Resource Management

Conti
2 estimate of external supply

This is the second major source of labor supply. when an organization grows rapidly, introduce new technology than it is difficult to fill all the vacant position from internal source than the organization need for external supplies of human resource.

Human Resource Management

2) Estimate of external supply:
the important indicators for external labor supply

Education level of workforce.

  • Demographic changes in population.
  • Technical development.

Human Resource Management

The important indicators for external labor supply:
3 determine manpower gaps

The existing number of personnel and their skills (from Human Resource inventory) are compared with the forecasted manpower needs ( demand forecasting) to determine the qualitative and quantitative gaps in the workforce.

Human Resource Management

3) Determine Manpower Gaps
4 formulating hr plans

After determining manpower gaps than we will formulate HR plan for the organization that how many employees required and which type of employees.

Human Resource Management

4) Formulating HR Plans: