HUMAN RESOURCE PLANNING

DEFINITION OF HRP

“A process by which an organisation should move from its current manpower position to desired manpower position. Through planning the management strives to have the right number, right kind of people at right place and at right time, doing things which results both organisation and individual receiving maximum long run benefits.” - E.W. Vetter

Human resource planning is a process of determining and assuming that the organization will have an adequate number of qualified persons, available at the proper times, performing jobs which meet the needs of the enterprise and which provide satisfaction for the individuals involved”. - Beach

IMPORTANCE OF HRP

Future Personnel Needs-Planning is significant as it helps determine future needs i.e. VRS

Coping with change-HRP enables an enterprise to cope with changes in competitive forces , markets, technology, products and government regulations

Creating Highly Talented Personnel-Creation of highly specialized Workforce leading to frequent shortages in the organization

Protection of Weaker Sections-A well conceived personnel planning programme would protect the interest of special class of Personnel i.e. SC/ST/PH

 Labour Laws-To cope with labour laws we need HRP.

OBJECTIVES OF HRP

To ensure optimum use of existing H R

To forecast future requirements of H R

To provide control measures for demand and supply

To link HRP with organizational planning

To identify the gap between ,the existing HR and required HR and fulfill that GAP

To anticipate the impact of technology on jobs & HR

To determine the level of recruitment and training to meet the needs of expansion and diversification programs

BENEFITS OF HRP

Top management has a better view of the HR Dimensions of business decision

Cost saving as the management can anticipate imbalances before they become unmanageable and expensive

Time available to locate talent

Helps to take steps to improve human resource contribution.

Helps to foresee changes in values and attitude of human resources

Helps to foresee the need for redundancy and to provide alternative employment in consultation with trade unions.

It provide the scope for advancement and development of employees through training.

FORECASTING TECHNIQUES

  1. MANAGERIAL JUDGEMENT
  2. WORKSTUDY TECHNIQUES
  3. STATISTICAL TECHNIQUE
  4. DELPHI TECHNIQUE
  1. Managerial Judgment

In this technique the managers sit together, discuss and arrive at a figure which would be the future demand for labour.The technique may involve ‘bottom-up’ or ‘ top down’ approach’

  1. Work study Technique

This technique can be used when it is possible to apply work measurement to calculate the length of operations and the amount of labour required.

Planned output for Next year- 50,000 Units

Standard hours per unit -2

Planned hours required 50,000*2=1,00,000

Productive hours per worker in the year=2,000

Number of workers required= 1,00,000/2,000=50

  1. Ratio Trend Analysis

Example-:

Level of production in present yr = 2000 unit

Present no. of employees = 50

Ratio is 1:40

Estimated production for next yr = 3000 unit

Employees required relative to present ratio

= 3000 / 50

No. of employees = 1/40 * 3000

  1. Delphi Technique

It seeks estimates of personnel needs from a group of experts. The HRP experts act as intermediaries, summarize the various responses and report the findings back to the experts. Summaries and surveys are repeated until the experts opinion begin to agree. the agreement reached is the forecast of the personnel needs. No Interaction among experts

HR SUPPLY FORECAST

Supply forecasting measures the number of people likely to be available from within an outside an organization, after making allowance for absenteeism, internal movements and promotions, wastage and change in hours and other conditions of work. The supply analysis covers:

(1) Existing Human Resources

(2) Internal sources of supply

(3) External sources of supply

(1)Existing Human Resources

Analysis of present employees is greatly facilitated by HR audits. HR audits summarizes each employee’s skills and abilities. The audits of non-managers are called skill Inventories and those of the management are called management Inventories.

Skills Inventories-

Information about non-managers. They are :

Personal Data-Age, sex, marital status

Skills-Education, job experience, training

Special Qualifications-membership in professional bodies, special achievements.

Company Data-Benefit plan data, retirement information, seniority

Capacity of an individual-psychological test score, health

Management Inventories

These include:

Work History

Strengths

Weaknesses

Promotion potential

Career goals

Personal data

Number and types of employees supervised ,total budget managed

Previous management duties

(2)INTERNAL SUPPLY

Inflows and outflows

Turnover rate:

Number of separations during one year/ Average Number of Employee during the year*100

Conditions of work and Absenteeism-Working hours, overtime, timing of holidays, shift system

Absenteeism

man days lost due to absenteeism

man days worked +man days lost

Productivity level-any change in productivity would affect the number of persons required per unit of output

Movement among jobs

(3)EXTERNAL SUPPLY

Colleges and Universities

Consultants

Advertisements-applications

BARRIERS TO HRP

Time Consuming

Financial forecasting takes precedence over HRP

Uncertainties

Non-involvement of operating managers

Inadequate Information system

Trade unions

Employers

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