Chapter 2 -HUMAN RESOURCE PLANNING (HRP) Human Resourse Management (HRM) BBS 2nd Year



HRP is the process os forecasting, developing and controlling human resources in an organization. It identifies what must be done to ensure the availability of human resources needed by the organization to meet its goal. According to French " HRP is the process of assessing the organization's human resources need in light of organizational goals and making phase to ensure that a competent stable workforce is employed." It ensures that the organization has the right number of employee at the right place at the right time so that human resource e problem will be solved when it occur. It provides information about the existing strength and weakness of the people in the organization as well as the kinds of skills to be developed.

Characteristics of HRP:

i) Assessing current human Resource: HRP is an internal analysis that includes an inventory of the employee or workers and skills already available within the organization.

ii) Human Resource Needs: It estimate right number of employee needed with right skills and competencies. Hence it is future oriented.

iii) Matching Demand and supply of human resources for future.

iv) Acquisition Function: HRP is the continuous process that tries to keep the organization supplied with the right people when they are needed. It concerned with the acquisition function of HRM.

v) Time Horizon: HRP can be the shot term or long term planning as per requirement.

Importance of HRP

The human resource is the primary resource of organization. For the proper HRM, HRP is the first factor which determines the HRM system of any organization needs HRP to meet its future human resource requirements. The importance of HRP can be defined in following grounds:

i) Future Personnel Needs: HRP plays the vital role in determining the future need of human resource in an organization. It minimize the future risks and uncertainties, shortage and excess staff problems. HRP maintains balance between demand and supply of human resource in the dynamic environment. It fulfills the organization need for right type of people in right numbers at right time.

ii) Environmental Adaptation: HRP enables an organization to adopt with changes in competitive forces, market, technology, product and government regulation. Such changes directly affect to the HRM factor, such as job content, skills and organizational environment.

iii) Function for Personnel function: HRP provides essential information for designing and implementing human resource function such as recruitment, selection, training and development and perso......
nnel movement. It provides better means for managing human resource in the organization.

iv) Utilization of Human Resource: HRP ensures that the organization acquires and retains the quality and quantity of human resources it requires. It helps to utilize the HR of organization effectively and efficiently.

v) HR development: HRP provides the better lead time for training and development program. this often lead to greater employee satisfaction, lower turnover and higher quality of work. It also helps to adopt with environmental dynamics through training and development.

vi) Investment in HR: Organizations make investment in their human resource either through training and development. The cost can be controlled to achieve efficiency through planning.

Human resource Strategy:

Strategic human resource management can be defined as the linking of HRM with strategic goals and objectives in order to improve business performance and develop organizational culture that foster innovation and flexibility. HR and top management gathered in one table to craft the company’s business strategy. Strategy provides the framework for specific HR activities such as recruitment and training. Strategy helps organization to achieve the organizational objectives in competitive environment. HR strategies are the course of action to help the company in achieving its strategic aims. In short the HR strategies ultimately provides the direction for HR activities for its proper development and management. HR strategies are the foundation to HRP as well as HRP is directed to the HR strategy.

Relationship between HRP and Strategic planning:                 (Important Question)

Strategic planning can be defined as the process of indentifying organization objectives and the action needed to achieve those objectives. It directs the whole organization and give motion to organization. Where as HRP is the process by which an organization achieve its overall strategic objectives. This means that HRP can not be separated from organizational objectives. It must be linked to the organization’s overall strategic planning. The strategic planning are made always in consideration of that the organization has appropriate personal are available to complete the action. Thus to ensure that appropriate personal are available to meet the requirement set during strategic planning. Human resource managers engage in HRP. So HRP operates within the strategic planning process and interlinked.

HRP Process:

The HRP process consist of following five step given below:

1) Assessing current HR:  
               The first step of HRP is to assess the current status of the organization’s human resource. This is an internal analysis that includes the inventory of employees and skill already available within the organization and job analysis. Thus the assessment of HR includes the following steps:

a) HR Inventory: 
              HR inventory is the common method to assess the current status of the organization’s human resource. It prepares report on the basis of forms completed by employee and then checked by supervisor. Such report includes the list of employee, education, training, prior experience, current position, performance rating, salary rating and specialized skills etc. It helps HRP for determining the skill, training and development program and number of people should be hired on future. This inventory can also provide crucial information for identifying current or future threat to the organization ability to perform. The assessment of current HR situation is based on following two techniques.

i) HR information (HRIS):  
                    The most effective device to provide the current state of HR in the organization is HRIS. A HRIS is the method by which organization collects, maintains, analysis and report information on people on job. HRIS is typically designed to quickly fulfill the HRM informational needs of the organization. HRIS include the mgmt of basic records, benefits administration and planning, skills inventories, training and development data, performance appraisal and job evaluation information. It facilitates both planning and identifying person for current transfer or promotion.

ii) Succession Planning:  
                    Succession planning is the process of identifying future managerial staffing needs and making plans for the development of managers to meet those needs. It focus on the development of competitive employee and takes the long term view of the organization’s human resource needs. Succession planning fetch the information from HR inventory specially expand the information of current performance, promotability , development needs and take plans for long term growth potential. It is directly directed to the HRP to helps for future needs of HRM.
(Note: This should be include only when the  Assessing current HR is asked in 10 marks.)

2. Job Analysis:
                Job analysis is the process of identifying the job and skills, abilities, and responsibilities that are required for an individual to accomplish the task or job. It provides the information on the task should be complete and the qualification needed to accomplish the job. Job analysis outcomes are job description , job specification and job evaluation.

3. Analyzing the Organizational plans:
                           The organizational plan and strategies directs the whole activity of the organization. It also determines the future HR needs. Specially based on its estimate of total revenue the organization can attempt to establish the number and mix of human resource needed to reach this revenue. Therefore  various components in organization’s plan such as production plan, marketing plan, sales plan, plan for expansion etc. determines the activity of HRM, needed to achieve those objectives.

4. Forecasting HR Demand:
                        Once information about the current status of human resource is analyzed and HR objectives are determined, future HR needs are forecasted. Job analysis and forecast about he HR mix facilitate demand forecasting. This step analyze the HR needs for future in terms of skill, value, compabilities with no. of HR ultimately based on the organization’s plan and strategies.

5. Supply forecasting: 
                                This step analyzed the source of HR supply needed for future to ensure the availability at right time at right place. It analyzed the HR inventory and determined the addition and reduction in HR. Specially there are two sources of HR supply first is internal and second is external supply. Internal supply which can be ensure from promotion, transfer and demotion and external supply which is done with new recart of employee.

6. Matching Demand and supply of HR:
                     This step ensure the balance between HR demand and supply. It results that the balance, shortage and overstaffing. If the organization is in the stage of shortage, then demand is increased and if overstaffing is predicted then the HR should be transferred or can be cut the no. of employee ( If anyone wants to quit). In this step the HR manager should play the vital role in analyzing and balancing the HR demand and supply as well as the right action plan should be taken for it.