Chapter 7 - Human Resourse Management (HRM) BBS 2nd Year

Human Resource Planning:

There has been increasing competition in the market to provide quality and low cost product and services. In this situation the human resource department in the organization has to plan human resource activities in order to ensure quality manpower, however many organization pay less attention to the proper plan and utilization of human resources. HR/ employment/ manpower planning/ human resource planning is the process of acquiring and utilizing human resources in the organization. If the organization has right number of employees at the right time, critical problems can easily be solved.

          HR planning is prepared by human resource department in consultation with line department by determining the right number of people – the demand and supply of manpower. The HR planning and supply of manpower. The HR planning matches the demand and supply of human resources in order to meet future activities.

     1.     According to Schuler, “Personnel and HR planning involves forecasting human resource needs for the organization planning the step necessary to meet those need.”

     2.     According to Decenzo & Robbins, “Employment planning is the process of determining organizations human resources.”

Human Resource Planning Process:-

HRP is the process of anticipating future business and environmental demand on an organization and attempting to provide sufficient manpower. The important phases of HRP are as follows:-

1.     Environmental Analysis:-

Environmental analysis include an analysis of external (PESTEL) and the internal environment (organizational objectives and plans). After an analysis of the internal and external environment, it is possible for top managers and HR manager to find out strength and weakness. On the other hand, it can analyze opportunities and threats.

2.    Determining HR Objectives and Policies:-

After an analysis of internal and external environment, it is important to develop HR objectives and policies. These objectives and policies are important to tap (use) the HR in business opportunities. The human resource information system (HRIS) helps by providing related information in this course of action.

3.    Human Resource Forecast:-

Once the information is analyzed regarding current human resources, the next step is to make a human resource forecast in order to meet the future requirement. It consists of demand and supply forecasting (internal and external supply).

4.    Action Plan:-

Action plan is known as implementation plan. It is the execution of HRP and objectives. The major activities required for the implementation of HRP are recruitment, selection, socialization, training, development, transfer, promotion etc.

5.    Control and Evaluation:-

Once HRP is executed, it is important to monitor and evaluate in order to know how the HRP matches human resource objectives. The best way to monitor and evaluate the effect of human resource planning (HRP) on human resource manager is to develop certain indicators. The result of evaluation is feed-back to the human resource managers.