Human Resource Planning(HRP)

• E.W Vetter viewed human resourse planning as “ a process by which an organization should move from its current manpower position to its desired manpower position.

• Through planning, management strives to have the right number and right kind of people at right places at the right time, doing things which result in both the organization and individual receiving maximum long run benefit.”

Human resource planning may be viewed as

• Foreseeing the human resource requirement of an organization and the future supply of human resources

• Making necessary adjustments between these two organizational plans

• Foreseeing the possibility of developing the supply of human resources in order to match with requirements by introducing necessary changes in the functions of

human resource management.

Need and importance of Human resource planning

• It checks the corporate plan of the organization. If it is anticipated that the required manpower will not be available, then HRP suggests the need for modification of corporate plans.

• It offsets uncertainty and change – without HRP everything regarding requirement of availability of an internal moves of human resource would be in liquid state and all the managers would be in dilemma about securing suitable personnel until they get them

• Sometimes the organization may have machines material and money but not men and consequently the production cannot be started –thus HRP offsets uncertainties and changes ,enables the organization to have right men at right time and right place

• It provides scope for advancement and development of employees through training, development etc.

• It helps to satisfy the individual needs of the employees for promotion, transfers, salary enhancement, better benefits, etc.

• Its helps to satisfy in anticipating the cost of salary, benefits and all the cost of human resources facilitating the formulation of budgets in the organization

• It tries to foresee redundancy and plan to check it or to and plan to check it or to provide for alternative employment in consultation with trade union, other organizations and government through remodeling organizational, industrial and economic plans.

• It helps in planning for physical facilities, working conditions, the volume of fringe benefits like canteen, schools, hospitals ,conveyance ,childcare centre, quarters ,company stores etc.

• It causes the development of various sources human resources to meet the organizational needs.

• It gives an idea of type of tests and interview techniques to be used in selection process based on the level of skills, qualifications, intelligence values etc., required for future human resource.

• It helps to take steps to improve human resources contribution in the form of increased productivity, sales , turnovers etc.

• It facilitates the control of the functions, operations, contribution and cost of human resources.

Objectives of HRP1. To recruit and retain human resource of required quality and

quantity2. To foresee the employee turnover and make the

arrangements for minimizing turnover and filling up consequent vacancies

3. To meet the need for programmes of expansion, diversification, etc.

4. To foresee the impact of technology on work, existing employees and future human resource requirement

5. To improve the standards ,skills, knowledge, ability, discipline etc.

6. To assess the surplus or shortage of human resources and take the measures accordingly

7. To maintain congenial industrial relationships by maintaining optimum level and structure of human resource.

8. To minimize imbalance caused due to non availability of human resource of right kind , right number in right time and right place.

9. To make the best use of human resources10. To estimate the cost of human resources.

Levels of Human resource planning

o National levelo Sect oral level o Industrial levelo Unit levelo Department levelo Job level

1Analyzing the organizational plans

• be ensured.• Production plan, technological plan, plans for expansion,

diversification etc. marketing plans, sales plans, financial plans

• Each plan can be further analyzed into subunits• Detailed programmes should be formulated on the basis of

unit wise plans• Practibilty of each program should

2.Forecasting the overall human resourcerequirements• Managerial Judgment• Statistical techniques• Economic metric models• Work study techniques

Steps of Human Resource Planning

3.Supply forecasting

4. Estimating the net Human resource requirement

5.Action plans to cope with surplus shortage

6.In case of future surplus, plan for redeployment, retrenchment and layoff

Steps of Human Resource Planning

Steps of Human Resource Planning

7.Incase of future deficit, forecast the future supply of human resources from all sources with reference to plans of other companies.

8.Plan for recruitment , development and internal mobility so that in future ,supply is more than or equal to net human resource requirement

9.Plan to modify or adjust the organizational plan, if future supply likely to be inadequate

Limitations of HRP

• Resistance by Employers and employees

• Uncertainties• Inadequacies of information.

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