Human Resource Planning important the human resource planning is for an organization along with i definitions. The tems of HR management are suggested to be planned under human resource planning. We will also discuss the planning process andits five steps along with the requisites to make the manpower planning an effective one. Manpower planning” and “human resource planning” synonymous. Previously the phrase “manpower planning” was widely used, But nowt is replaced by the term “human resource planning" which has a broader base than that of manpower planning. Human resource planning determines how an organization should move from its current to the desired position of manpower. 2.3__CONCEPT OF HUMAN RESOURCE PLANNING It fs a known fact that Human Resources are the most important and dynamic resources in an organization. Substituting human resources with other resources is almost impossible. It is the human resources only which makes the best use of other available resources in an organization Proper estimation of manpower requirement and the sources from which they will be acquired is an important function of human resource management and is important for the organization for its long term uplitment. If an organization fails to get the required manpower, than the work will suffer. So for coping up with the human resource requirements, {an enterprise has to plan its needs in advance and also the sources tn simplest words human resource planning can be defined as selecting and allocating the right type people, in the right number, at the right time and place, which are trained and motivated to do the right kind of work at the right time The definitions of Human Resource Planning are as follows: According to Terry L. Leap and Michael D. Crino,” HRP includes estimation ae oo rence ct-sseteatty lo cory ou the esalaneg available and what, if anything, must be at personnel supply equals perso: ee 2Ppropriate time in the future.” ies ‘Human Resource Management Human Resource Planning _ In the words of Beach,” 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 enterprise and which provide satisfaction for the individuals involved.” Eee 2.4__FEATURES OF HUMAN RESOURCE PLANNING Human Resource Planning has many characteristics/ features which are briefly discussed below: 4) Determination of human resource needs: HRP helps in exact determination of human resource needs in an organization. The requirements of human resources are planned well in advance so that the resources are available at time when they are required. One of the important features or 2) Balance in Demand and Suppl characteristics of HRP is that it helps in balancing and adjusting the demand and supply of human resources in an organization. Planning for the demand and supply of personnel should be made well in advance. 3) _ Creating congenial work environment: HRP also helps in ensuring a proper and congenial work environment and conditions of work. HRP helps in recruiting and selecting the right type of people for the right job at the right time which helps in achieving organizational objectives 4) Maintaining proper manpower inventory: HRP includes keeping stock of present as well as future manpower requirements of an ‘organization. It helps in knowing not only the present available resources with the organization but also helps in estimating the future requirement. HRP Is a continuous process: HRP is a continuous process as constant monitoring of the plans is required. Since our external environment keeps on changing and both the external as well as, internal forces affect the business, the manager needs to continuously monitor and review the human resource plans. 5) ‘Haman Resource Managementae eee ee EEE 6) HRP is an intellectual process: HRP is an intellectual process because it requires a lot of thinking and knowledge. Since HRP algo involves forecasting, proper knowledge of the forecasting techniques ‘and understanding the trends requires a lot of thinking. Human Resource Planning technology, px tical and social field affects the business. HRP helps @ business in adapting with the external changes. 2) Intake of talented people: Another major importance of HRP is that, it helps in taking or recruiting the most talented personnel in the organization. It not only helps in determining the present needs f CHECK YOUR PROGRESS of the human resources but also assesses the available HR fo inventory level and final Qt: Whatis meant by Human Resource Planning? helps in recruiting the required personnel Z 3) Utilization of human resources: HRP is framed keeping in view 2: Write four features of Human Resource Planning, a the objectives of the organization. HRP adopts such measures which not only helps in achieving the objectives of the organization but also in the optimum utilization of the human resources employed in the organization. 4) Estimating future manpower needs: HRP, with the help of various forecasting techniques helps in estimating the future manpower requirements properly without hampering the regular activities of the organization. 2.5 OBJECTIVES OF HUMAN RESOURCE PLANNING SS eNRESOURCE PLANNING ‘The major objectives of Human Resource Planning are mentioned o> WUE RESSUB SE SS See below: 2.7__HUMAN RESOURCE PLANNING PROCESS 1) Ensuring adequate supply of manpower as and when required. 2) Helps in ensuring proper use of existing human assets in the organization, HRP process consists of some steps which are discussed below. ‘Analyzing and Evaluating the Organizational Objectives 3) Helps in forecasting future requirements of human resources at different levels in the organization with different skil 4) Determines the effect of technology on jobs and requirements for tmari radon Inventory of present human resource assets 8) Balancing the surplus or shortage of human resources available in the ‘organization. 2.6 IMPORTANCI Forecasting the Demand and ‘Supply of Human Resources E OF HUMAN RESOURCE PLANNING Human Resource Plannit following reasons. 9g is important or significant due to the Fig: 2.1 Human Resource Planning Process St OTS SD ane en ee ee Human Resource Management Human Resource Managementv 2) 3) fos pace ee tional Objectives: Every .d. Every department ind Evaluating the Organiza! ‘own objectives to be achieve rketing, finance etc has its own long ang man resource planning requires land departmental objectives Analyzing a! organization has its such as the production, maf short term objectives and goals. Hu! proper analysis and evaluation of the over of the organization so that the right number and quality of human assets can be allotted and the activities can be carried on smoothly in the organization. Inventory of present human resource assets: Human resource inventory should always be updated so that the current number of employees, their potential and performance can be analyzed. Then to the various job vacancies, the internal as well as external sources can be estimated. Forecasting the Demand and Supply of Human Resources: Human resource requirements at different departments, levels and positions ‘according to the job profile are to be estimated. The sources to fulfill the requirements i.e. intemal and external are to be analyzed and evaluated properly. Proper matching between job description and job specification is also to be done. CHECK YOUR PROGRESS Q3: State any four reasons, why Human Resource Planning is important? Human Resource Planning _ eee eee 2.8 METHODS OF DEMAND FORECASTING IN MANPOWER PLANNING _““eare Ss The various methods of demand forecasting in manpower planning are as follows: 1. Executive Judgment: This method is suitable for smaller enterprises. Here the executives sit together and determine the future requirements of human resources. The proposal adopted by the executives is then conveyed to the top level management for final approval. This is also known as ‘bottom-up’ approach. The method is known as ‘top-down’ approach when the members of the top management estimate the requirement of human resources taking into account the advice of the departmental heads Work Study Technique: This method is also known as work load analysis or work load forecasting. Here working capacity of each employee is calculated in terms of man-hours. After that man hours required to produce a single unit is calculated and then the number of required employees is used for long-term forecasting. The following is an example a) Planned Annual Production (a) = 400000 units b) Standard Man- Hours required for producing each unit (b) ¢) Planned man-hour needed for the year (a*b) = 800000 hours 4) Planned Annual contribution of an employee = 2000 hours e) No. of employees required (c/d) = 800000/2000 = 400 employees Statistical Techniques: The following methods of forecasting are used =2hours under this category. a) Ratio Trend Analysis: Under this method ratios are calculated from the past data related to the number of employees of each category ie. production, sales and marketing, work load levels etc. Future production and sales levels, work load, activity levels are estimated with an allowance of changes in organization, methods and jobs. Future ratios are calculated. Future human resource requirements are calculated on the basis of established ratios.Human Resource Plannin, er ee Rie oning ‘These models are built upon the basis of b) Econometric Model: analysis of past statistical data establishing relationship between variables in a mathematical formula. Variables may be related tg factors such as production, sales, finance and other factors affecting human resource requirements. Regression Analysis: This method is used to forecast demang for human resources taking into account factors such as sales, productions, services etc. This method is used when independent and dependent variables are functionally related to each other. °) 2.9 METHODS OF SUPPLY FORECASTING OF HUMAN RESOURCE aS eee Here estimation of supply of human resources is made taking into account the analysis of current human resources inventory and future availability, a. Existing Inventory: Here a stock of the present HR inventory is taken, b. Head Count: Total number of people available department wise, designation wise, pay-roll wise etc is counted here. ¢ Job Family Inventory: Here number and category of employees of each job family such as office staff, sales and marketing staff, Production staff, maintenance staff and industrial staff etc are counted, ¢. Age Inventory: Proper age composition of human resources is very important in an organisation. Proper combinations of young and old employees play an important role in the success of an organization. This method gives us the age composition of the human resources. experiences, values and capabi ©f present inventory of si fies: Stock Human Resource Planning Qualification and Tr: of educational qualification including technical and special qualifications and the training received by the employees. g. Inventory of Salary Grades: This includes pay and allowance wise ing Inventory: It consist of the inventory and total emoluments wise stock taking. CHECK YOUR PROGRESS Za CET as: whatis Executive Judgment’ and ‘Ratio Trend Analysis’ method of demand forecasting in Manpower Planning Q6: State any four methods of Supply Forecasting of Human Resource 2.10 LABOUR WASTAGE ‘The term wastage of labour is the loss of employees other than by redundancy. Redundancy points out the position of the employee as no longer needed for any available job and therefore liable to dismissal. In an organization, the wastage of labour is mainly caused by the factors like Labor turnover, Idle Time and Absenteeism. While forecasting future manpower requirement labour wastage should be taken into account. Proper actions must be taken to reduce labour wastage and control losses. For forecasting the rate of potential loss, causes of loss ete, HR managers have to calculate the rate of labour turnover and conduct exit interviews. Potential losses can be classified into the following categories. a) Permanent Total Loss: It may be due to deaths, voluntary quits, retirement, dismissals, retrenchment, demotions etc. ‘Human Resource ManagementHuman Resource Planning) = — _ -— an a Permanent partial Loss: some Skills, potentials and capabi Temporary Total Loss: This loss i chance in outlook and attitude of existing employees towards their jobs. Employee absenteeism may also be a reason for this. Temporary Partial Loss: This loss is due to consultancy or advice offered by the employees of the organisation to others. This loss of | labour hours has to be there because many organisations | encourage this practice as there is revenue to the organisation also. | This loss may be in the form of toss of ies due to ill health or accidents | due to loss of aptitudes. values, 2.44 ESSENTIALS FOR THE SUCCESS OF HUMAN RESOURCE PLANNING Some of the essentials for the success of Human Resource Planning in an erganization are listed out and discussed below. > = => =a j j j Plans: i Organisational plans focus on achieving the objectives and goals | of production, finance, sales and marketing departments. The HRP | should be integrated and coordinated with the overall business pian | of the organization. Support and motivation from Top Management: Success of any plans in an organization depends upon the support | and motivation from the top tevel management of an organization. | Top management should provide all the helping hand and resources | for the proper implementation of the Human Resource Planning in | an organization. Existence of a full fledged HR Department: There must be a full fledged HR department which takes care of acquisition and development of human assets of the organization. Proper formutation of HR Policies: Various HR Policies such as promotion, transfer, training. | compensation etc should be prepared and formulated in coordination | with the HR Planning of the organization. ;‘© outline the various types of selection tests @ define interviews, evaluation, placement and induction 3Z_INTRODUCTION We know that, any organization cannot run by its own without any Human Resource. The work of any organization cannot be done by machines. In fact the machines are run by the humans. So, human, resources are the most important resource than any other resources. There are so many works to be done in an organization and the ‘organization should know what skills are needed in an employee to do a certain job. So, there should be right person in the right job for the smooth running of the organization Acquisition of human resource takes place through recruitment and selection. Recruitment and Selection are the two ways of hiring people for the organization as per need. Let's discuss the concepts in detail in the following sections 3.3 CONCEPT OF RECRUITMENT TOP RECRUITMENT Recruitment is the process of searching prospective employees and stimulating them to apply for jobs in the organisation. When more and ‘more people are attracted and invited to apply for jobs then there is better Scope for recruiting and selecting better manpower in the organisation. In today’s competitive environment choice of the right candidates for jobs has {" reaching implications on an organization's functioning. Employees ‘selected with right kind of. skills, knowledge and potentials contribute a lot towards smooth functioning and effective performance of a firm's objectives and tasks. A firm suffers heavily oo as it encourages people to apply fos According to Flippo, Recruitment and Selection 3.4 FACTORS AFFECTING RECRUITMENT Recruitment has two important aspects. Firstly to find out the number of vacancies to be notified and the type of applicants required to fill them. Secondly, to approach the potential applicants to apply for such vacancies. The factors affecting recruitment can be broadly discussed as under- A External factors: The following are some of the external factors of recruitment: 4. Supply and Demand: The availability of manpower both within and outside the organization is an important determinant in the recruitment process. If the company has a demand for more professionals and there is limited supply in the market for the professionals demanded by the company, then the company will have to depend upon internal sources by providing them ‘special training and development programs. 2. Labour Market- Employment conditions in the community where the organization is located will influence the recruiting efforts of the organization. If there is surplus of manpower at the time of recruitment, even informal attempts at the time of recruiting like notice boards display of the requisition attract more than enough or announcement in the meeting etc. wil 3. Goodwill / Image of the organization- Image of the organization is another factor having its influence on the recruitment process of the organization. An organization with positive image and goodwill as an employer finds it easier to attract and retain employees than an organization with negative image. 4. Political-social-legal environment: Various government regulations prohibiting discrimination in hiring and employment have direct impact on recruitment practices. For example, Government of India has introduced legislation for reservation in employment for scheduled castes, scheduled tribes, physically handicapped etc. 5. Unemployment rate: One of the factors that influence the av: applicants is the growth of the economy (whether economy is growing or not and its rate). When the company is not creating new jobs, there is often ‘oversupply of qualified labour which in turn leads to unemployment. lability of ‘Human Resource Management