HUMAN
RESOURCE PLANNING
Introduction:
HRP is the
process os forecasting, developing and controlling human resources in an
organization. It identifies what must be done to ensure the availability of
human resources needed by the organization to meet its goal. According to
French " HRP is the process of assessing the organization's human
resources need in light of organizational goals and making phase to ensure that
a competent stable workforce is employed." It ensures that the organization
has the right number of employee at the right place at the right time so that
human resource e problem will be solved when it occur. It provides information
about the existing strength and weakness of the people in the organization as
well as the kinds of skills to be developed.
Characteristics
of HRP:
i)
Assessing current human Resource: HRP is an internal analysis that includes an
inventory of the employee or workers and skills already available within the
organization.
ii) Human
Resource Needs: It estimate right number of employee needed with right skills
and competencies. Hence it is future oriented.
iii)
Matching Demand and supply of human resources for future.
iv)
Acquisition Function: HRP is the continuous process that tries to keep the
organization supplied with the right people when they are needed. It concerned
with the acquisition function of HRM.
v) Time
Horizon: HRP can be the shot term or long term planning as per requirement.
Importance of HRP
The human
resource is the primary resource of organization. For the proper HRM, HRP is
the first factor which determines the HRM system of any organization needs HRP
to meet its future human resource requirements. The importance of HRP can be
defined in following grounds:
i) Future
Personnel Needs: HRP plays the vital role in determining the future need of
human resource in an organization. It minimize the future risks and
uncertainties, shortage and excess staff problems. HRP maintains balance
between demand and supply of human resource in the dynamic environment. It
fulfills the organization need for right type of people in right numbers at
right time.
ii)
Environmental Adaptation: HRP enables an organization to adopt with changes in
competitive forces, market, technology, product and government regulation. Such
changes directly affect to the HRM factor, such as job content, skills and
organizational environment.
iii)
Function for Personnel function: HRP provides essential information for
designing and implementing human resource function such as recruitment,
selection, training and development and perso......
nnel movement. It provides better means for managing human
resource in the organization.
iv)
Utilization of Human Resource: HRP ensures that the organization acquires and
retains the quality and quantity of human resources it requires. It helps to
utilize the HR of organization effectively and efficiently.
v) HR
development: HRP provides the better lead time for training and development
program. this often lead to greater employee satisfaction, lower turnover and
higher quality of work. It also helps to adopt with environmental dynamics
through training and development.
vi) Investment in HR: Organizations
make investment in their human resource either through training and
development. The cost can be controlled to achieve efficiency through planning.
Human
resource Strategy:
Strategic
human resource management can be defined as the linking of HRM with strategic
goals and objectives in order to improve business performance and develop
organizational culture that foster innovation and flexibility. HR and top
management gathered in one table to craft the company’s business strategy.
Strategy provides the framework for specific HR activities such as recruitment
and training. Strategy helps organization to achieve the organizational
objectives in competitive environment. HR strategies are the course of action
to help the company in achieving its strategic aims. In short the HR strategies
ultimately provides the direction for HR activities for its proper development
and management. HR strategies are the foundation to HRP as well as HRP is
directed to the HR strategy.
Relationship
between HRP and Strategic
planning: (Important Question)
Strategic
planning can be defined as the process of indentifying organization objectives
and the action needed to achieve those objectives. It directs the whole
organization and give motion to organization. Where as HRP is the process by
which an organization achieve its overall strategic objectives. This means that
HRP can not be separated from organizational objectives. It must be linked to
the organization’s overall strategic planning. The strategic planning are made
always in consideration of that the organization has appropriate personal are
available to complete the action. Thus to ensure that appropriate personal are
available to meet the requirement set during strategic planning. Human resource
managers engage in HRP. So HRP operates within the strategic planning process
and interlinked.
HRP
Process:
The HRP
process consist of following five step given below:
1) Assessing current HR:
The first step of HRP is
to assess the current status of the organization’s human resource. This is an
internal analysis that includes the inventory of employees and skill already
available within the organization and job analysis. Thus the assessment of HR
includes the following steps:
a) HR
Inventory:
HR inventory is the common method to
assess the current status of the organization’s human resource. It prepares
report on the basis of forms completed by employee and then checked by
supervisor. Such report includes the list of employee, education, training,
prior experience, current position, performance rating, salary rating and
specialized skills etc. It helps HRP for determining the skill, training and
development program and number of people should be hired on future. This
inventory can also provide crucial information for identifying current or
future threat to the organization ability to perform. The assessment of current
HR situation is based on following two techniques.
i) HR
information (HRIS):
The most
effective device to provide the current state of HR in the organization is
HRIS. A HRIS is the method by which organization collects, maintains, analysis
and report information on people on job. HRIS is typically designed to
quickly fulfill the HRM informational needs of the organization. HRIS include
the mgmt of basic records, benefits administration and planning, skills
inventories, training and development data, performance appraisal and job evaluation information. It
facilitates both planning and identifying person for current transfer or
promotion.
ii)
Succession Planning:
Succession
planning is the process of identifying future managerial staffing needs and
making plans for the development of managers to meet those needs. It focus on
the development of competitive employee and takes the long term view of the
organization’s human resource needs. Succession planning fetch the information
from HR inventory specially expand the information of current performance,
promotability , development needs and take plans for long term growth
potential. It is directly directed to the HRP to helps for future needs of HRM.
(Note:
This should be include only when the Assessing current HR is asked in 10
marks.)
2. Job
Analysis:
Job analysis is the process of identifying the job and skills, abilities, and
responsibilities that are required for an individual to accomplish the task or job. It provides the information on the
task should be complete and the qualification needed to accomplish the job. Job analysis outcomes are job description , job specification and
job evaluation.
3.
Analyzing the Organizational plans:
The organizational plan and strategies directs the whole activity
of the organization. It also determines the future HR needs. Specially based on
its estimate of total revenue the organization can attempt to establish the
number and mix of human resource needed to reach this revenue. Therefore
various components in organization’s plan such as production plan, marketing
plan, sales plan, plan for expansion etc. determines the activity of HRM,
needed to achieve those objectives.
4.
Forecasting HR Demand:
Once information about the current status of human resource is analyzed and HR
objectives are determined, future HR needs are forecasted. Job analysis and
forecast about he HR mix facilitate demand forecasting. This step analyze the
HR needs for future in terms of skill, value, compabilities with no. of HR
ultimately based on the organization’s plan and strategies.
5. Supply
forecasting:
This step analyzed the source of HR supply needed
for future to ensure the availability at right time at right place. It analyzed
the HR inventory and determined the addition and reduction in HR. Specially
there are two sources of HR supply first is internal and second is external
supply. Internal supply which can be ensure from promotion, transfer and
demotion and external supply which is done with new recart of employee.
6.
Matching Demand and supply of HR:
This step
ensure the balance between HR demand and supply. It results that the balance,
shortage and overstaffing. If the organization is in the stage of shortage,
then demand is increased and if overstaffing is predicted then the HR should be
transferred or can be cut the no. of employee ( If anyone wants to quit). In
this step the HR manager should play the vital role in analyzing and balancing
the HR demand and supply as well as the right action plan should be taken for it.
Here is the complete notes on Human Resource Management => FOUNDATION OF HUMAN RESOURCES MANAGEMENT COMPLETE NOTES
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