Introduction to HR Planning 4) Demand Forecasting - is the process of determining future needs for HR in terms of quantity and quality.

ng future needs for HR in terms of quantity and quality. It is done to meet

the future personnel requirements of the organization to achieve the desired level of output. Future human resource needs
SP Robbins (2001) defines HRP as "the process by which an organization ensures that it has the right number and kinds of can be estimated with the help of the organization's current human resource situation and an analysis of organizational plans
people at the right places, at the right time, capable of effectively and efficiently completing those tasks that will help the and procedures. For instance, if a retail company expects a 20% increase in sales during the holiday season, HR would forecast
organization achieve its overall objectives."
the need for additional staff in sales and customer service roles. This could involve analysing historical sales data and trends
Armstrong (2003) defines human resource planning (HRP) as a "both quantitative and qualitative process of ensuring that the to determine the number of temporary employees required.
organization has the right people at the right time doing the right job." The emphasis is on employee competencies and their 5) Supply Forecasting - is concerned with the estimation of the supply of manpower given the analysis of current resources
stability rather than the precision of the numbers obtained through rigorous forecasting techniques. Furthermore, Pattanayak and the future availability of human resources (either internally or externally) in the organization. For example, if a company
(2006) considers HRP as a process of analyzing an organization's human resource needs under changing conditions and has a strong internal talent pool but anticipates a high turnover rate due to retirements, HR might forecast a need to recruit
developing the solutions necessary for satisfying those needs. Therefore, an organizational mission, goals, objectives, externally to maintain workforce levels. The internal source includes promotion, transfer, job enlargement, and enrichment,
strategies, and policies must guide HRP. E.W. Vetter (2012) viewed human resource planning as "a process by which an
whereas the external source includes the recruitment of new candidates who are capable of performing well in the
organization should move from its current manpower position to its desired manpower position."
organization.
HRP Elements from definitions: According to the above definitions, HRP consists of the following elements: a) establishing 6) Matching Demand and Supply - is concerned with forecasting future demand and supply of HR. The matching process refers
and recognizing the future job requirements; b) identifying deficiency in terms of quantity; e) identifying deficiency in terms bringing demand and supply to an equilibrium position so that shortages and staffing positions will be solved. In the event of
of quality and specification; d) identifying the sources of the right type of man; e) ensuring recruitment policies meet the a labour shortage, an organization must hire more workers. Conversely, in the case of overstaffing, it has to reduce the level
present and future number of jobs and qualities; f) developing the available manpower and facilitating personnel procedures of existing employment. Hence, it is concluded that this matching process gives knowledge about the requirements and
for the present and future jobs, e.g. recruitment, placement, training, and career planning; and g ensuring the effective sources of HR. For example, if demand forecasting indicates a need for 50 new sales representatives and supply forecasting
utilization of the workforce HRP is also known by other names such as "manpower planning," "employment planning," "labor shows only 30 qualified candidates available internally, HR must develop strategies to recruit the additional 20 externally from
planning", "personal planning" etc. HRP is a sub-system of total organizational planning. BDJobs portal or LinkedIn. Even we can arrange recruitment campaigns, career/job fair or partnerships with reputed
In other words, HRP is derived from organizational planning, just like production planning, sales planning, material planning, universities such as BUET, DU, JU, BUP, MIST, AUST, NSU, BRACU, Dhaka City College, Dhaka Commerce College etc.
etc. Human resource planning is the joint responsibility of the line and staff managers. The line manager is responsible for 7) Action Plan - is concerned with surpluses and shortages of human resources and the HR plan is executed by designing the
estimating the number of employees needed at different times. The staff manages additional data in the form of records and different HR activities (i.e. recruitment, selection, placement, training and development, socialization etc.). Finally, this step is
projections. followed by control and evaluation of the performance (through KPI) of HR to check whether the HR planning matches the HR
*Feature of HR Planning: The planning of human resources is a major managerial responsibility. It is important because human objectives and policies.
resources provide a firm with a competitive advantage. Human resource planning allows a business to better maintain and 2. *Why is managing people so complex?
target the right kind of talent for employees who have the right technical and soft skills to optimize their function within the
company. In the age of competition, firms are focusing their attention on employee knowledge and skills. Obviously, human  1. Individual Differences: Each employee brings unique skills, personalities, career aspirations, and cultural backgrounds to
resources are going to occupy the central stage of human activities, especially in the fields of industry and business. In view of the workplace. HR must account for these differences to create a productive environment while meeting organizational goals.
its importance in organizational effectiveness, separate HRP departments have been set up in the most important business Example: In a multinational organization, some employees might value autonomy and innovation, while others may prefer
organizations. Certainly, many organizations have voiced the idea that their human resources differentiate them from their structured tasks and clear guidance. HR has to design policies, roles, and training programs that accommodate these varying
competitors. The significance of human resources as a core competency was confirmed in a study of 293 U.S. firms. The study preferences, which can be a challenging balancing act.
found that HR management effectiveness positively affected organizational productivity, financial performance, and stock
value (Huselid, 1997). 2. Changing Workforce Dynamics: The workforce is continuously evolving, influenced by generational differences,
technological advancements, and shifts in work-life balance preferences. Managing a multi-generational workforce with
1. *If you're an HR what steps would you follow to establish HR planning (HR Planning Process)? varying expectations regarding work styles, flexibility, and job stability requires careful HR planning and adaptability. Example:
Millennials and Gen Z employees often prioritize flexible work schedules and work-life balance, while Baby Boomers may value
 Human resource planning is a process through which the company anticipates future business and environmental forces. It
job security and traditional career growth paths. HR planning must consider these differing values to ensure retention and
assesses the manpower requirement for future periods of time. Following are the major steps involved in human resource satisfaction across age groups.
planning:
3. Rapid Technological Changes: Technology continuously reshapes jobs, requiring HR to plan for upskilling, reskilling, and
1) Integration of HR Planning with Corporate Planning - process begins with considering organizational objectives and sometimes even redeployment. This complexity grows as HR must anticipate and respond to technological trends that affect
strategies and is to integrate it with corporate planning. For example, if a company aims to expand into a new market, HR the skills and numbers of employees needed. Example: A company adopting AI technology might find that some roles are
planning would involve identifying the necessary skills and roles required for this expansion. This could mean hiring sales and becoming obsolete, while new tech-related roles are in demand. HR must strategically plan to retrain or transition employees
marketing professionals with experience in that specific market, ensuring that HR initiatives are directly aligned with corporate
to new positions, which can be both time-consuming and resource-intensive.
goals.
4. Unpredictable Market Conditions: Economic fluctuations, competitive pressures, and market trends can dramatically
2) Assessment of Environmental Factors - that affect the demand and supply of labour. Some of the more significant impact workforce needs. HR must respond quickly to these changes, often adjusting recruitment plans, managing layoffs, or
environmental factors are government influences, the economic environment, geographic and competitive conditions, finding alternative roles within the organization. Example: In a downturn, a manufacturing company might need to cut costs,
technological factors, workforce composition, management philosophy, and work patterns. There are a number of techniques leading to downsizing. HR has to make difficult decisions, ensuring essential roles are retained while managing morale and
now available for doing HR forecasts (i.e: the Delphi technique, brain storming, the nominal technique, the committee board, compliance with labour laws.
expert opinion, consulting, trend analysis, regression analysis, and correlation analysis). For example, a new law requiring
additional training for employees could necessitate a shift in training programs. 5. Legal and Regulatory Compliance: Employment laws, labor rights, and organizational policies vary across regions and can
change frequently. HR must ensure compliance to avoid legal risks and maintain a positive employer brand, adding complexity
3) Assessment of Human Resources - includes evaluating the skills, SWOT analysis, competencies, and performance levels of to workforce management. Example: An international company expanding into new regions may face diverse labor laws
existing employees. The assessment of HR begins with environmental analysis, under which the external and internal regarding working hours, benefits, and employee rights.
(objectives, resources, and structure) are analyzed to assess the currently available HR inventory level. For example, if a tech
company finds that its software development team lacks expertise in new Dart programming language critical for upcoming 6. Employee Motivation and Retention: Employees’ motivations and engagement levels are influenced by multiple factors,
projects, it may need to focus on training or hiring to fill this gap. including career growth, rewards, and organizational culture. Example: In competitive industries like tech, employees may
leave if they feel they lack growth opportunities or sufficient recognition. HR must design and implement reward systems,
career development paths, and mentorship programs that meet these motivational needs.

7. Workplace Culture and Interpersonal Dynamics: Workplace culture impacts productivity, employee satisfaction, and 5. Benefits of HR planning
retention. HR must cultivate a positive culture that aligns with organizational goals while fostering collaboration, diversity, and
inclusion. Example: An organization might face issues if teams from different departments struggle to collaborate due to  Human resource planning anticipates not only the required kind and number of employees but also determines the action
differing approaches or priorities. HR must intervene to facilitate better communication and teamwork, which requires plan for all functions of HRM. The major benefits of human resources planning may be categorized in the following ways:
sensitive handling and tailored strategies. 1) Human resource planning is necessary for all organizations. The corporate strategy regarding expansion, diversification,
8. Globalization and Diversity: Organizations operating globally need to manage diverse teams across cultures, languages, and and technological change should be backed up by the availability of human resources. 2) It offsets uncertainty and change.
time zones. Example: A company with international offices might have employees who speak different languages and follow Sometimes the organization may have machines and money but not men, and consequently, production cannot be started. It
varying cultural norms. HR must create policies that promote inclusivity, such as offering language support, flexible work hours, offsets such uncertainty and changes to the maximum possible level and enables society to have the right men at right time
and diversity training programs. and in the right place. 3) It provides scope for the advancement and development of employees through training and
development. 4) It helps satisfy the individual needs of the employees for promotions, transfers, salary enhancement, better
benefits, etc. 5) It helps in anticipating the cost of salary, benefits, and all the other costs of human resources, facilitating the
formulation of budgets in a society. 6) It helps to foresee the need for redundancies and plans to check human resources and
3. Requirements of HR planning to change the techniques of management. 7) It helps in planning for physical facilities, working conditions, and the volume of
 Human resources planning ensures the best fit between employees and jobs while avoiding manpower shortages or fringe benefits like canteens, schools, hospitals, conveyance, childcare centers, quarters, company stores, etc. 8) It causes the
surpluses. Successful HR planning requires: development of various sources of human resources to meet organizational needs. 9) It helps to take steps to improve
human resource contributions in the form of increased productivity, sales, turnover, etc. 10) It facilitates the control of all
a) HR managers understand the HR planning process. It must be recognized as an integral part of corporate planning. Strategic functions, operations, contributions, and costs of human resources.
planning is the process of figuring out why an organization is in business and what long-term goals it wants to achieve with its
available resources. Human talent is one of those resources, so there's a direct link between strategic and human resources
planning-neither can exist without the other. 6. Sources of HR planning Data
b) Top management support is essential. Human resource planning requires full and wholehearted support from the top  What type of information is necessary for human resource planning, and where do you get it? The data for human resource
management. In the absence of this support and commitment, it would not be possible to ensure the necessary resources, planning is obtained from different sources, but mainly from the organization and individuals. The organization's data includes
cooperation, and support for the success of human resource planning. the vision, mission, strategies, objectives, activities, resources, and time scale of the strategic plan.
c) The communications between HR staff and line management are healthy. HR managers and line managers need to work The individual employee data covers the following: name, date of birth, permanent address, Render, marital status, academic
together to make an effective HR plan. A positive working relationship between HR and line management facilitates easier qualifications, professional qualifications, permanent address, overall performance, length of experience, and the history of
handling of workplace investigations and mediating differences between staff.
their career development as well as status. Other useful data will include reward packages, terms of service, and working
d) The HR plan is integrated with the organization's strategic business plan. HR plans are designed in light of strategic business environment. Baseline data on these areas will be useful not only in forecasting demand and supply but also in supporting
plans. specific decisions to be made and strategies to be adopted in the implementation of the human resource plan.

e) A proper balance should be maintained between the qualitative and quantitative approaches to HRP. The involvement of To attract and retain the right talent, your company needs to take an active role in collecting and utilizing employee data for
the operating manager is necessary. There is generally a tendency on the part of the human resource planners to remain aloof the purpose of improving the overall work experience. In many cases, the needed data is already at HR's fingertips-it's just a
from other operating managers and to become totally absorbed in their own world. To be effective, human resource planning question of using it in the right way. Employees' personal information should be respected, kept private, and not shared with
must be integrated with other management functions. employers, marketers, or creditors. Employees' personal data must be well protected. Regular data collection in the form of
employee surveys, exit interviews, and performance reviews helps HR assess what employees need to succeed at work.
g) The HR plan should have in-built flexibility to adapt to environmental uncertainties. The time period of the HR plan should Employee data is most beneficial when used holistically.
be appropriate to the needs and circumstances of the organization.
h) An adequate information system for human resources should be developed to facilitate human resource planning. The
Human Resource Information System is a system used to collect and store data on an organization's employees, like their 7. a) Why are people the main source of competitive advantage?
name, address, age, salary, and benefits. HRIS systems reduce data duplication and human error. This makes HR operations  "Competitive advantage" is a condition circumstance that puts a company in a favourable or superior business position.
simple, efficient, and productive. More importantly, with the real-time information that an HRIS provides, HR professionals When a company can maintain above-average profits in comparison to its competitors, it is said to have a competitive
can gather and track accurate data to create reports. advantage. It is a company's ability to produce something more efficiently than a rival that leads to higher profit margins. A
i) Human resource plans should be balanced with the corporate plans of the enterprises. The methods and techniques used competitive advantage enables a company to perform better than its competitors. It refers to factors allowing a company to
should fit into the objectives, strategies, and environment of the organization. produce services or goods better or at less expense than the competition, which may generate more sales or higher profit
margin. To be successful, a company's competitive advantage must generate value for its stakeholders and be difficult for
others to reproduce. A competitive advantage is an edge that distinguishes a firm from its competitors. It helps a business to
4. Concept of HR planning distinguish itself from its competitors. It is the attribute that allows an organization to outperform its competitors. These
benefits enable a business to attain and maintain stronger profitability, a better growth profile, strong brand loyalty, and a
 1. Analyzing Organizational Objectives: Understanding the organization’s long-term and short-term goals, such as higher level of customer loyalty. A consistent competitive advantage can help companies continue to be the market leaders in
expansion plans or new projects, which require a particular workforce structure. 2. Forecasting Demand for Labour: Estimating their industries. In any business, a competitive advantage can lead to better profit margins and market control.
the number and type of employees needed in the future based on organizational objectives, past data, and market trends. 3.
Assessing Current Workforce: Evaluating the current workforce in terms of numbers, skills, experience, and competencies.
This includes assessing employee turnover, retirement rates, and any skill gaps. 4. Identifying Gaps: Comparing the current b) How do you maximise competitive advantage through people?
workforce with future needs to identify gaps in skills, numbers, or other workforce attributes. 5. Developing HR Strategies:
Creating action plans to bridge these gaps. Strategies may include recruiting new employees, training existing employees,  Here’s how each of the listed concepts contributes to this goal:
succession planning, or making use of temporary staff or outsourcing options. 6. Implementing the Plan: Putting the strategies 1. Employment Security: Providing job security fosters loyalty and reduces turnover. When employees feel secure in their
into action through recruitment, training programs, or other initiatives to ensure the workforce aligns with organizational positions, they are more likely to invest in their roles and contribute positively to the organization’s success.
needs. 7. Monitoring and Evaluating: Regularly assessing the HR planning process to ensure it remains aligned with the
organization’s goals and adjusts based on any changes in organizational direction or workforce needs.
2. Right Person with Right Skill-Right Job: Ensuring that employees are matched with roles that suit their skills and interests many private universities in Bangladesh rely on adjunct faculties to reduce costs. Similarly, some companies may have a
enhances productivity and job satisfaction. This alignment leads to better performance and innovation, giving the organization shortage of skilled labour, and they may have to appoint people from other companies.
a competitive edge.
Technical changes in the society: Technology changes at a very fast speed and new people with the required knowledge are
3. Incentive Pay: Offering performance-based incentives motivates employees to exceed their targets. This not only boosts required for the company. In some cases, the company may retain existing employees and teach them the new technology; in
individual performance but also drives overall organizational success, as employees are rewarded for their contributions. other cases, the company has to dismiss existing employees and appoint fresh people.
4. Building a Performance-Based Culture: Cultivating a culture that emphasizes performance encourages employees to strive Organizational changes: Change take place within the organization from time to time. For example, a company may diversify
for excellence. This culture can lead to higher productivity, improved quality of work, and a stronger competitive position in into new products or close down business in some areas, etc. Many large organizations reduce their workforce through
the market. downsizing. In such cases, a company may hire or dismiss people according to the situation.
5. Employee Ownership: Involving employees in ownership stakes can increase their commitment to the organization. When Economic: How much money is available for salaries, training, and equipment is the most immediate concern in human
employees have a vested interest in the company’s success, they are more likely to work diligently and innovate. resource planning. However, external economics play an equally critical role. For example, people do not have much money
to spend in an economic recession and tend to be much more selective in what they buy or the services they use. This means
6. Employee Empowerment & Participation: Empowering employees to make decisions and participate in problem-solving some industries, such as those producing luxury items or non-essential services, will sell less and may even have to lay off
fosters a sense of ownership and accountability. This engagement can lead to improved morale and productivity, enhancing some staff. This, in turn, makes the local economy even more difficult.
the organization’s competitive advantage.
Social: Social factors may influence an organization’s HR planning. Where there is a clear discrepancy in one social group, it is
7. Information Sharing: Transparent communication about organizational goals, challenges, and successes helps build trust a good idea to build ways of opening up new opportunities.
and alignment among employees. When employees are informed, they can contribute more effectively to achieving strategic
objectives. Legal: Employment law is the most significant sector of the legal system that affects human resource planning, and it changes
all the time. HR managers must keep themselves up-to-date and have an employment law specialist available to consult if
8. Employee Training & Development: Investing in continuous training and development equips employees with the skills necessary. Employment law changes must be reflected in company policy.
needed to adapt to changing market conditions. This not only enhances individual capabilities but also strengthens the
organization’s overall skill set. Environmental: Environmental factors might include where the business is located in relation to finding sufficient, appropriate
staff or changes to the environment that mean a need for more or fewer employees. A simple example of environmental
9. Keeping People with Respect: Treating employees with respect and dignity creates a positive work environment. This factors affecting human resource planning is the consideration of how the employees get to work safely during extreme
respect fosters loyalty and reduces turnover, which is crucial for maintaining a stable and experienced workforce. weather; the firm's plan may need to include the possibility of telecommuting in order to keep everything going.
10. Wage Compression: Addressing wage compression—where long-term employees earn similar wages to new hires—can Labour Market The labour market comprises people with skills and abilities that can be tapped as and when the need arises.
help retain talent. Ensuring fair compensation reflects the value of experience and loyalty, which can enhance employee Although Bangladesh is a country with surplus labour, there is a shortage of skilled people. We should take measures to make
satisfaction and retention. more skilled workers available in the country. When one talks about labour supply, the following deserve due consideration:
11. Promotion from Within: Prioritizing internal promotions boosts employee morale and motivation. It shows that the the size, age, gender, and educational composition of the population; the demand for goods and services in the country: the
organization values its employees and is committed to their career growth, which can lead to higher retention rates. nature of production technology; and the employability of the people.

12. High and Lucrative Wages: Offering competitive salaries attracts top talent and reduces turnover. When employees feel From a shift in local public opinion to a change in government or even a new industrial world superpower entering the market,
they are compensated fairly, they are more likely to be engaged and committed to the organization. politics influence how much funding is available, how much tax must be paid, minimum wage rates, how markets are
controlled, and the quality and quantity of staff available for hire. When planning, HR managers need to consider likely changes
to markets, budgets, and the availability of suitable applicants as a result of recent or anticipated political influences. For
8. Ways to create an effective HR plan example, if a change of government is possible in the coming year, understand the new administration's priorities in relation
to markets, industries, and businesses. Company policies and strategies relating to expansion, diversification, alliances, etc.
a) The development of an efficient HR plan is crucial. HRP requires close consideration. If done correctly, the organization determine the human resource demand in terms of quality and quantity.
may guarantee that it has the right personnel who can carry out their assigned duties effectively. Business owners that lack a
documented HR plan risk costly employee turnover, administrative bottlenecks, and inconsistent productivity. b) An HR plan Additionally, HRM is influenced by several considerations. The more important of them are (i) type and strategy of the
is a useful and strategic tool that can assist HR departments in preparing for impending changes. An HR plan addresses organization, (ii) organizational growth cycles and planning, (iii) environmental uncertainties, (iv) time horizons, (v) the type
everything from hiring staff to encouraging them to be productive. To create a successful HR plan, many skill sets must be and quality of forecasting formation, and (vi) the labour market.
evaluated. This will aid in gap analysis for the organization. Organizational design should be covered in the HR plan. It is
necessary to specify the job description, salary, and reporting structure. c) Training is another part of an HR plan. An HR plan
will help an organization map out its right training strategies. An HR plan will outline the key strategies to motivate employees
and maintain their loyalty. d) A sound HR plan is incomplete without clear succession planning strategies. Succession planning
is a talent management strategy that helps to cultivate a pool of talented employees. Effective succession planning can make
all the difference for employee engagement and morale. Every employee is important. A few important strategies for
succession planning are being aware of personal bias, letting employees know what is required of them to advance, keeping
the selection process fair, and reviewing the succession plan regularly.

9. Factors affecting human resource planning in an organization

A manager should consider the following factors when making human resource planning decisions:
Employment: HRP is affected by the employment situation in a country. In countries where there is greater unemployment,
there may be more pressure on the company from the government to appoint more people. For example, public-sector
enterprises in Bangladesh are highly overstaffed, while few private enterprises are understaffed. It has been observed that

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