HUMAN RESOURCE PLANNING
- Human Resource Planning is a process of determining and assuring that the organisation will have an adequate number of qualified and skilled people available at the proper time at the proper places to perform tasks which would result in the organisation and the individual gaining maximum long-range benefit.
- Human Resource planning is the beginning step of all Human Resource processes.
- Human resource planning is a process which plans how an organisation should shift from its current manpower position to its desired manpower position.
- As Human Resource planning deals with human beings, it involves a considerable amount of uncertainty and mistakes are bound to occur.
- It ensures sufficient supply of qualified and motivated people required to perform the tasks and duties in order to achieve the organisational as well as individual goals and objectives.
NEEDS OF HUMAN RESOURCE PLANNING
- Determining the number of persons to be employed at a location
- If there is overstaffing, it will lead to underutilisation of staff.
- If there is understaffing, work deadlines cannot be met and performance will fall.
- Human Resource Planning ensures the optimum number of staff required in an organisation to ensure maximum productivity.
- Retaining the highly skilled staff
- Rate of employee turnover should be analysed and also information about the reasons for high employee turnover should be gathered.
- Highly skilled and performing employees are always an asset to the organisation. Losing them will cause huge trouble to the organisation.
- Through proper Human Resource Planning, highly skilled employees can be retained and can reduce employee turnover rates.
- Managing an effective downsizing programme
- Another question that the management faces is how to cut or downsize the workforce painlessly while at the same time protecting the long term interest of the organisation.
- Human Resource Planning analyses the cost-benefit of various methods of reduction so that it won’t cause any harm to both the organisation as well as the worker.
- Proper Succession Planning
- Who should occupy a key position once the existing staff leaves? This is a major issue most of the organisations face.
- Key positions are the most important positions in an organisation, which should be occupied by highly skilled and efficient staff as these positions have the capability to make or break an organisation.
- Human Resource Planning, plans for the future. It helps in moulding future managers who could take up key positions in the future.
OBJECTIVES OF HUMAN RESOURCE PLANNING
- Assessing future manpower requirements.
- Making plans for recruitment and selection.
- Assessing the skill requirements for the future.
- Making sure that there is optimum use of human resources in the organisation.
- Avoiding understaffing and overstaffing.
- Determining training and development programmes for the organisation
- Controlling salary and wages costs.
- Helping the organisation adapt to technological development and modernisation.
- Ensuring higher labour productivity.
- Ensuring proper succession planning.
PROCESS OF HUMAN RESOURCE PLANNING
1- Analysis of the various objectives and strategic plans of the organisation.
- Manpower planning should be closely integrated with the objectives of the organisation, as regards to its profitability, sales, production etc.
- Any change in the objectives of the organisation will certainly affect manpower planning as well.
- The aim of human resource planning should be to relate future human resources to future organisational needs so as to maximise future return on investment in human resources.
2- Preparation of Manpower inventory.
- The main objective of Human Resource Planning is to avoid overstaffing and understaffing.
- For this purpose, the stock of the existing manpower is to be assessed.
- Manpower inventory refers to the assessment of existing and the potential qualification of existing employees both quantitatively as well as qualitatively.
- Creation of a manpower inventory results in a systematic appraisal of the manpower in the organisation, their qualities, abilities and skills which helps in making possible adjustments when needed.
3- Manpower Forecasting
- Future manpower requirement is forecasted through sales and production budgets, workload and workforce analysis, estimated absenteeism, turnover etc. Future manpower requirement depends on several factors such as:
- Future employment trends can be forecasted by analysing past employment data.
- Replacement needs - Replacement needs arise due to retirement, death, resignation and termination of employees. This can be ascertained to a great extent through analysing past data.
- Productivity - Plans to improve productivity in the future has a huge impact on the manpower required. Another aspect of manpower requirement is the computerisation of work, which has a huge impact on the quality as well as quantity of manpower required.
- Absenteeism - Absenteeism is a situation wherein a person fails to come to work when he is scheduled to work. Current absenteeism rate should be considered in future manpower forecasting.
- Expansion and growth prospects of the organisation also have a huge impact on the manpower forecasting.
- Workload analysis can be conducted to understand into detail about individual works. This information is helpful in manpower forecasting.
4- Manpower Plans
- Once the future manpower requirements are properly forecasted, the next step is to plan how the organisation can obtain these people.
- Strategies and programmes are developed for recruitment, selection, transfer, promotion etc.
- Manpower plans are developed in such a way that it ensures a constant supply of qualified manpower as and when required.
5- Training and development programmes
- Training is needed for the development of both new and old employees.
- The problem is not about whether to implement training or not; The real problem is about the method of training to be implemented.
6- Appraisal of Manpower Planning
- Once the training and development programmes are implemented, an appraisal must be made of the effectiveness of manpower planning.
- If there are any deficiencies, review of manpower planning should be conducted.
- Corrective action should be taken at the right time to remove deficiencies.
- Appraisal of existing manpower planning acts as a guide for future manpower planning.
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