Human Resource Planning

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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

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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.

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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
  organizations 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.
• Its 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
  companys overall strategic management as well as
  the human resource management.

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Human Resource Planning- Meaning

• The greatest asset of every organization is its
  human resource. Few organizational leaders
  succeed in capitalising on it while others dont.
  The reason why many leaders fail is because they
  havent 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.

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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.
•  

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Human Resource Planning- Definition by Eminent
Authors

• Edwin Flippo defined 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.

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• 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.

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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.

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• 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.

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• 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.

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Challenges of Human Resource Planning

• While Human Resource Planning is effective in the
  companys 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

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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

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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.

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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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