Human Resource Planning

ARUN KUMAR
Assistant Professor
Department of commerce
Dyal singh evening College
University of Delhi
Human Resource Planning
 Definition of Human Resource Planning.

• Human resource does not own a person as it does

capiplanning is the major task of HRM because it is
concerned with utilizing manpower resources. An
organization tal and physical assets; this HR resource
is seldom given proper attention.
• Robbins (2001) defines HRP as “the process by
which an organization ensures that it has the
right number and kinds of people at the right
places, at the right time, capable of
effectively and efficiently completing those
tasks that will help the organization achieve
its overall objectives”.
According to the above definitions, HRP consists of
the following elements:
• Establishing and recognizing future job
requirements,
• Identifying deficiency in terms of quantity,
• Identifying deficiency in terms of quality and
specification,
• Identifying the sources of the right type of man,
• Developing the available manpower, and
• Ensuring the effective utilization of the workforce
Characteristics of Human Resource
Planning
1 . Future-Oriented
• Human resource planning is prepared to
assess the future requirement of manpower in
the organization. It helps identify the size and
composition of resources for future purposes.
Continuous Process
• Human resource planning is a continuous
process. The human resource planning
prepared today may not be applicable for the
future due to the ever-changing external
forces of the environment. Hence, to address
such changing factors, human resource
planning needs to be revised and updated
continuously.
 Right Kinds and Numbers

• Human resource planning determines the

right number and kind of people at the right
time and right place who are capable of
performing the required jobs. It also assesses
the future requirement of manpower for the
organizational objective.
Determination of Demand and Supply

• Human resource planning is a process of

determining the demand for and supply of
human resources in the organization. Then a
match between demand and supply estimates
the optimum level of manpower.
•
 Optimum Utilization of Human
Resources
• human resource planning focuses on optimum
utilization of resources in the organization. It
checks how employees are utilized
productively. It also identifies employees’
existing capabilities and future potentialities
to perform the work.
 Environmental Influence
• Human resource planning is influenced by
environmental changes; hence, it is to be
updated as per the change occupied in the
external environment.
 Related to Corporate Plan

• Human resource planning is an integral part of

the overall corporate plan of the organization.
It can be formulated at strategic, tactical and
operational levels.
•
 A Part of the Human Resource
Management System
• As a part of the total human resource
management system, human resource
planning is regarded as a component or
element of HRM which is concerned with the
acquisition and assessment of manpower. It
serves as a foundation for the management of
human resources effectively and efficiently.
•
objectives of HR planning
1. Provide Information:
• The information obtained through HRP is highly
important for identifying surplus and unutilized
human resources. It also renders a
comprehensive skill inventory, which facilitates
decision making, like, in promotions. In this way
HRP provides information which can be used for
other management functions.
•
Effective Utilization of Human
Resource:
• Planning for human resources is the main
responsibility of management to ensure
effective utilization of present and future
manpower. Manpower planning is
complementary to organization planning.
•
Economic Development:
• Economic Development:
• At the national level, manpower planning is
required for economic development. It is
particularly helpful in the creating
employment in educational reforms and in
geographical mobility of talent.
Determine Manpower Gap:
• Manpower planning examine the gaps in
existing manpower so that suitable training
programmers may be developed for building
specific skills, required in future.
•
To Forecast Human Resource
Requirements:
• HRP to determine the future human resource
needed in an organization. In the absence of
such a plan, it would be difficult to have the
services of the right kind of people at the right
time.
•
 Analyze Current Workforce:

• HRPA volunteers to assist in analyzing the

competency of present workforce. It
determines the current workforce strengths
and abilities.
 Effective Management of Change:

• Proper HR planning aims at coping with

severed changes in market conditions,
technology products and government
regulations in an effective way. These changes
call for continuous allocation or reallocation of
skills evidently in the absence of planning
there might be underutilization of human
resource.
 Realizing Organizational Goals:

• HRP helps the organization in its effectively

meeting the needs of expansion,
diversification and other growth strategies.
•
 Factors Affecting Human Resource
Planning
1. Type and Strategy of Organization:
2. Organizational Growth Cycles and Planning:
3. Environmental Uncertainties:
4. Time Horizons:
5 Nature of Jobs being Filled:
6. Off-Loading the Work:
Human Resource Planning Process
Determining the Objectives of Human
Resource Planning:
• The foremost step in every process is the
determination of the objectives for which the
process is to be carried on. The objective for which
the manpower planning is to be done should be
defined precisely, so as to ensure that a right number
of people for the right kind of job are selected
• The objectives can vary across the several
departments in the organization such as the
personnel demand may differ in marketing, finance,
production, HR department, based on their roles or
functions.
•
 Analyzing Current Manpower
Inventory:
• The next step is to analyze the current
manpower supply in the organization through
the stored information about the employees
in terms of their experience, proficiency, skills,
etc. required to perform a particular job.Also,
the fut
 Forecasting Demand and Supply of
Human Resources:
• Once the inventory of talented manpower is
maintained; the next step is to match the
demand for the manpower arising in the future
with the supply or available resources with the
organization.
• Here, the required skills of personnel for a
particular job are matched with the job
description and specification.
 Analyzing the Manpower Gaps:
• After forecasting the demand and supply, the
manpower gaps can be easily evaluated. In case
the demand is more than the supply of human
resources, that means there is a deficit, and thus,
new candidates are to be hired.
• Whereas, if the Demand is less than supply, there
arises a surplus in the human resources, and
hence, the employees have to be removed either
in the form of termination, retirement, layoff,
transfer, etc.
 Employment Plan/Action Plan:
• Once the manpower gaps are evaluated, the
action plan is to be formulated accordingly. In a
case of a deficit, the firm may go either for
recruitment, training, interdepartmental transfer
plans whereas in the case of a surplus, the
voluntary retirement schemes, redeployment,
transfer, layoff, could be followed.
•
 Training and Development:
• The training is not only for the new joinees but also
for the existing employees who are required to
update their skills from time to time.After the
employment plan, the training programmes are
conducted to equip the new employees as well as
the old ones with the requisite skills to be performed
on a particular job.
• After the employment plan, the training programmes
are conducted to equip the new employees as well
as the old ones with the requisite skills to be
performed on a particular job.
Appraisal of Manpower Planning:
• Appraisal of Manpower Planning: Finally, the
effectiveness of the manpower planning
process is to be evaluated. Here the human
resource plan is compared with its actual
implementation to ensure the availability of a
number of employees for several jobs.At this
stage, the firm has to decide the success of
the plan and control the deficiencies, if any.
 Human resource management (HRM)
includes:
• Job design and analysis
• Workforce planning
• Training and development
• Performance management
• Compensation and benefits
• Legal issues
Problems & Issues of Human Resource
Planning
#1 Compliance with Laws and
Regulation
• Keeping up with changing employment laws is a
struggle for business owners. Many choose to
ignore employment laws, believing they don’t
apply to their business. But doing so could mean
audits, lawsuits, and possibly even the demise of
your company.
•
Solution:
• No matter how large or small your business, it’s
important to make sure you’re in compliance
with local, state, and federal labor laws. There are
regulations on everything from hiring practices,
to wage payment, to workplace safety. Take a few
minutes to read through the U.S. Department of
Labor’s Employment Law Guide.
#2 Management Changes
• As a business grows, its strategies, structure, and
internal processes grow with it. Some employees
have a hard time coping with these changes. A lot of
companies experience decreased productivity and
morale during periods of change.
•
Solution:
• Business owners should focus on communicating the
benefits of the change for everyone. Regular staff
meetings are a good place to start. When your team
understands the why, how, and when of the change,
they’ll be more likely to get on board.
•
#3 Leadership Development
• A recent study showed more than a third of companies are
doing an average job, at best, at implementing leadership
development programs. Thirty-six percent of companies
surveyed in Brandon Hall Group’s State of Leadership
Development Study admitted that their leadership
development practices are below average.
• Solution:
• Leadership development is critical in keeping your
management team engaged and motivated, and prepares
them to take on more responsibilities in the future. Make it
part of the culture. Create opportunities for them to use their
strengths every day. Accomplishing goals will motivate them
and give them a chance to develop their skills.

•
#4 Workforce Training and
Development
• Investing in the training and development of lower-
level employees is another common HR problem. Some
businesses have trouble finding the resources to do so.
Employees on the front lines are some of your hardest
workers, and may not have the time to take a training
course.
Solution:
Training and development doesn’t have to take a lot of
time or money. Recruit managers and senior leadership
in mentoring their subordinate employees. You could
also provide online training courses so people can go at
their own pace. Invest in your workforce and you will
have a loyal, productive team.
#5 Adapting to Innovation
• Technology is constantly changing. Businesses
must be quick to adapt, or risk being left in the
dust by their competitors. The challenge for small
business owners is getting employees to embrace
innovation and learn new technology.
• Solution:
• Communication is critical. With any change, make
sure your team understands the why, when, and
how. Set clear goals for the adoption of
initiatives, and provide employees with the
training they need to get comfortable with it.
#6 Compensation
• Many companies are struggling with how best to structure
employee compensation. Small businesses have to
compete not only with businesses of a similar size, but also
with corporations with big payroll budgets. Plus, you have
to factor in the cost of benefits, training, taxes, and other
expenses, which can range from 1.5 to 3 times the
employee’s salary.
• Solution:
• Even though salary is important, it isn’t always the most
important factor for job candidates. Creating a system to
reward employees for excellent performance is one way to
make up for a lower salary. In addition, consider offering
incentive programs such as profit sharing or bonuses, which
can be a win-win for the employee and the company.
•
#7 Understanding Benefits Packages
• The Affordable Care Act has been a pain point
for many small businesses in the past few years.
Rising healthcare costs mean companies must
either pass these costs on to employees, or take
a hit to their bottom line. Since good benefits
packages can be a deciding factor for potential
hires, understanding them is key.
• Solution:
• For small business with fewer than 50
employees, there are many options for offering
healthcare benefits. One option is purchasing a
plan through the Small Business Health Options
Program (SHOP) marketplace. Doing this gives
you the opportunity to take a tax
#8 Recruiting Talented Employees
• Attracting talent is a huge investment of time and
money. It’s difficult for entrepreneurs to balance
between keeping a business running, and hiring
the right people at the right time. In addition, it’s
impossible to know whether a candidate will
actually be a good fit until they’ve worked for you
for a period of time.
• Solution:
• One of the best ways to find the right people for
your business is to use a staffing company. They
provide temp-to-hire solutions that allow you to
try out new employees with little to no risk. You’ll
save time, money, and frustration, and maybe
even find a future executive or business partner.
Workplace Diversity
• Multiple generations. Ethnic and cultural
differences. These are just a few of the many
factors that make workplace diversity a continual
challenge for small businesses. The risk of
lawsuits for failing to protect employees from
harassment is real.
• Solution:
• Creating a culture of teamwork and respect will
keep the work environment positive and
productive. In addition, implementing a diversity
training program is a must. Employers are
responsible for setting standards of behavior in
the workplace. Standards and a system of
accountability should be set up early on.
Thank you