According to Coleman, “Human Resource Planning is the process of determining manpower requirements of an organization and the means for meeting those requirements in order to carry out the integrated plan of the organization”
According to Stainer, “Human Resource Planning is the strategy for acquisition, movement and preservation of human resources in an organization”
It is basically the process of getting the right number of qualified people into the right job, at the right time so that organizational objectives can be met.
Objectives of Human Resource planning
- Forecast personnel needs and requirements
- Cope up with changes in market conditions, technology, government regulations
- Using existing manpower efficiently and productively
- To promote employees in a systematic manner
- To maintain a balance between distribution and allocation of employees
- To ensure adequate supply of manpower as and when required
- To assess surplus and shortages in workforce
Process of Human Resource Planning
(1) Environmental Scanning – It involves analysis of the external environment of business to identify issues and opportunities that will influence the organization`s strategic plan. It involves analysis of Economic developments, scanning of the political, legal and technical changes, Competition etc.
(2) Studying Organization`s Objectives and Policies – It involves analysis of the objectives, plans and polices of the organization and understanding the Workforce Factors operating in the organization. The volume of future activity, time horizon, organizational structure, various departmental plans etc. all are taken into consideration while estimating manpower requirements.
(3) Forecasting the Demand for Human Resources – It involves Workforce Analysis, Workload Analysis, Demand forecasting and Job Analysis
(4) Human Resource Supply Forecasts – It involves evaluation of various sources of Supply for the organization. If the organization wishes to hire people from within the organization or its previous employees, the company is said to recruit from Internal Labour Supply. External Labour Supply sources are used by an organization when it wishes to hire people from outside the organization.
(5) Determining Manpower Gaps – It involves determination of Qualitative and Quantitative Gaps in Workforce. The strength and skills of the existing workforce are compared with the forecasted manpower demands of the organization and the number of people to be recruited or made redundant is determined. It forms the basis for formulating HR Plans.
(6) Formulating HR Plans –
It is necessary to formulate plans regarding recruitment, selection, transfer, training, retirement, promotion etc. according to changing needs of the organization. The following plans are prepared by and HR manager –
Recruitment Plan – It indicates the number and type of people required and when and where they are required.
Redundancy Plan – It indicates redundant employees and plans regarding their retraining or retrenchment.
Redeployment Plan – It indicates plans for transfer and training of existing employees for new jobs.
Training Plan – It indicates the number of trainees requires and the training methods and programmes used to train them.
Productivity Plan – It indicates reasons for employee productivity and plans regarding reduction of employee costs through job redesign, work simplification, incentives etc.
Retention Plan – It indicates the employee turnover ratio and suggests strategies to reduce employee turnover and wastages through better compensation management, changes in work environment and improving in working conditions.
Control Plan – It indicates plans for monitoring surplus or deficiencies in performance of employees and changes in manpower inventory. It also provides solutions to HR problems and future manpower needs of the organization.
Importance of Human Resource Planning:
- Forecasting future demand of human resources in an organization
- To hire the right number of people at the right time at the right place
- Helps to avoid manpower surplus
- Aids in expansion and growth plans
- Helps in setting working standards
- Helps to monitor and measure job performance
- Helps the top management with workforce problems
- Links job seekers to job providers
Problems associated with Human Resource Planning:
- Conflict between ideas
- Inadequate HR information system
- Poor image of company
- Restrictive policies of the government
- Limited budget
- Conservative organizational policies
- Changes in Political and Legal environment
- Conflict between short-term and long-term plans
- Nature of Top management