HUMAN RESOURCE PLANNING Human Resource Planning consists of putting right number of people, right kind of people at the

right place, right time, doing the right things for which they are suited for the achievement of goals of the organization. Human Resource Planning has got an important place in the arena of industrialization. Definition 1:- Need, Availability, Supply = Demand HRP includes estimation of how many qualified people are necessary to carry out the assigned activities, how many people will be available, and what, if anything, must be done to ensure personnel supply equals personnel demand at the appropriate point in the future. Definition 2:- Right numbers, Capability, Organization Objectives HRP is a process, by which an organization ensures that it has the right number and kind of people at the right place, at the right time, capable of effectively and efficiently completing those tasks that will help the organization achieve its overall objectives. PURPOSE OF HRP The basic purpose of having a human resource plan is to have an accurate estimate of the number of employees required, with matching skill requirements to meet organizational objectives. It provides information about the manner in which existing personnel are employed, the kind of skills required for different categories of jobs and human resource requirements over a period of time in relation to organizational objectives. It would also give an indication of the lead time is available to select and train the required number of additional manpower. In simple words HRP is understood as the process of forecasting an organizations future demand for and supply of the right type of people in the right numbers. It is only after HRP is done, that the company can initiate and plan the recruitment and selection process. HRP is a sub-system in the total organizational planning. HRP facilitates the realization of the companys objectives by providing right type and right number of personnel. HRP is important because without a clear-cut manpower planning, estimation of an organizations human resource need is reduced to mere guesswork.

OBJECTIVES OF HRP Forecast personnel requirements: Cope with changes.

Use existing manpower productively. Promote employees in a systematic manner.

IMPORTANCE OF HRP Resource planning is a highly important and useful activity. If used properly, it offers a number of benefits: 1. Reservoir of talent. 2. Prepare people for future(people can be trained, motivate and developed in advance) 3. Expand or contract(ensures supply of skills) 4. Cut costs(facilitates appropriate HR budget) 5. Succession planning(stars,hotlist,switch hats) PROCESS OF HRP 1. 2. 3. 4. 5. Analyzing organizational plans and deciding objectives. Forecasting the manpower requirements (Demand forecasting.) Preparing manpower inventory. (Supply forecasting). Determining manpower gaps Formulating human resource plan.

1) Analyzing organizational plans and deciding objectives The short term and long term plans of the firm should be analyzed before setting human resource objective. The firm objective stated in the economic terms would incorporate expected economic growth , diversification plans, market opportunities, and government policies. e.g. short term objective of a company may be to hire 25 employees in direct sales force and long term objective my start operation I new state or to produce new product.

2) Forecasting the manpower requirements (Demand forecasting) It is a process of estimating the future requirements of manpower, by function and by level of skills. It consist several factor both external as well as internal. External factors are competition( domestic as well as local), laws & regulation , economic climate, change in technology and social factors.

Internal factors include budget constraint, production levels, new product & services, organizational structure & employee separation . In this their two method are use

a) judgemental method b) stastical projection A) Judgmental forecast The forecast based on the judgment of the managers possessing thorough and extensive knowledge of human resource requirement. Judgment forecast are two types -:

a) Managerial estimates In this technique managers across all the levels who are well acquainted with the workload, efficiency and ability of employees, think about the future workload, future capabilities of employee and decide on number and type of human resources required. b) Delphi method Delphi process solicits estimates personnel needs from the different experts usually managers. B) Statistical forecast a) ratio- trend analysis-: Ratio trend is carried out by studying past ratios and forecasting ratios for the future. e.g. the current ratios of number of workers and sales in an organization and forecasting future ratios. An example: 2008-09 2008-09 Production of Units No. of workers Ratio 2009-10 Estimated Production No. of workers required : 5,000 : 100 : 100:5000 : 8,000 : 8000*100/5000=160

If supervisors have span of 20 workers, 8 supervisors are also needed in 2009-10

b) regression anlysis: It is based on the relationship between a business factor and workforce size. However, this method is more statistically sophisticated. E.g. statistical software.

Determining the Relationship Between Hospital Size and Number of Nurses

c) work load analysis: The need for manpower is also determined on the basis of workload analysis, wherein the company tries to calculate the number of persons required for various job with reference to a plane output after giving weight age to factors such as absenteeism ,idle time etc. AN EXAMPLE: Planned output for the year Standard hours per piece Planned hours required Productive hours per person per year No. of workers required 10,000 pieces 3 years 30,000 hours 1,000 hours 30

3)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 to man various positions.Every organization have two major sources of supply of manpower: Internal labour supply and External labour supply A) Internal labour supply : A profile of employees in terms of age, sex, education, training, experience, job level, past performance and future potential should be kept ready for use whenever required. 4) Determinig manpower gap The existing number of personnel and their skills are compared with forecasted manpower needs to determine the qualitative and quantitative gaps in the workforce. A reconciliation of demand and supply forecasts will give us the number of people to be recruited or made redundant as the case may be. This forms the basis for preparing the HR plans 5) Formulating human resource plan a) Recruitment plan: will indicates the number and type of people required and when they are needed . b) Redeployment : will indicates the programmes for transferring or retaining existing employees for new job. c) Redundancy plan : Will indicates who is redundant, when and where; the plans for retraining, where this is possible; and plans for golden handshake ,retrenchment, layoff, etc. d) Training plan : will indicate the number of trainees or apprentices required and the programme for recruiting them or retraining: new course to be developed or changes to be effected in existing courses. Importance of Human Resource Planning 1. Key to managerial functions- The four managerial functions, i.e., planning, organizing, directing and controlling are based upon the manpower. Human resources help in the implementation of all these managerial activities. Therefore, staffing becomes a key to all managerial functions. 2. Efficient utilization- Efficient management of personnels becomes an important function in the industrialization world of today. Seting of large scale enterprises require management of large scale manpower. It can be effectively done through staffing function. 3. Motivation- Staffing function not only includes putting right men on right job, but it also comprises of motivational programmes, i.e., incentive plans to be framed for further

participation and employment of employees in a concern. Therefore, all types of incentive plans becomes an integral part of staffing function. 4. Better human relations- A concern can stabilize itself if human relations develop and are strong. Human relations become strong trough effective control, clear communication, effective supervision and leadership in a concern. Staffing function also looks after training and development of the work force which leads to co-operation and better human relations. 5. Higher productivity- Productivity level increases when resources are utilized in best possible manner. higher productivity is a result of minimum wastage of time, money, efforts and energies. This is possible through the staffing and it's related activities ( Performance appraisal, training and development, remuneration) Need of Manpower Planning Manpower Planning is a two-phased process because manpower planning not only analyses the current human resources but also makes manpower forecasts and thereby draw employment programmes. Manpower Planning is advantageous to firm in following manner: 1. Shortages and surpluses can be identified so that quick action can be taken wherever required. 2. All the recruitment and selection programmes are based on manpower planning. 3. It also helps to reduce the labour cost as excess staff can be identified and thereby overstaffing can be avoided. 4. It also helps to identify the available talents in a concern and accordingly training programmes can be chalked out to develop those talents. 5. It helps in growth and diversification of business. Through manpower planning, human resources can be readily available and they can be utilized in best manner. 6. It helps the organization to realize the importance of manpower management which ultimately helps in the stability of a concern.