Cox’s Bazar International University

Assignment On:
“Impact of Human Recourse planning on organization’s performance”

Submitted By:

Name: Md. Imrul Khan

Id: 200112000142

Batch: 11th (RMBA)

Submitted To:

Adita Barua

Lecturer

Faculty of Business Administration

Cox’s Bazar International University

Submission Date: 23.05.2020

 Abstract

Human resource planning is one of the growing areas of academic research. Organizations regard its human
resource as their core competency because it would lead towards better organizational performance. This
research focuses on impact of human resource planning on the organizational performance. Objective of this
research is to determine key determinants of formal human resource planning that contributes towards
performance in the organization. The data collected from secondary resources, internet and books. The results
from the factor analysis on HRP measures selection, training, and incentives and the organizational performance
measures which are job satisfaction, efficiency, employee motivation and technology constitutes significant and
a positive relationship with other.

Introduction

Organizations need to know how many people and what sort of people they should have to meet present and
future business requirements. This is the function of human resource planning, or workforce planning as it is
sometimes called, especially in the public sector.

The purpose of this assignment is to describe impact of human resource planning on Organizational
Performance, bearing in mind that it is not as straightforward as it was presented when the notion of manpower
planning became popular in the 1960s and 70s. Human resource planning may be well established in the HRM
vocabulary but it does not seem to be embedded as a key HR activity.

Human Resource Management

Human resource management is a set quantity of work in an organization that focuses on the management of
staffing, giving direction to the people who work in the organization and issues related to the people such as
hiring, employee motivation, remuneration, communication, wellness, safety administration and
training. Human resource management also focuses on the personal management and organizational
development. It is mandatory for every organization to have a formal human resource department in their
organization and now a day’s human resource management is seen strategically by the top management.

Human resource planning

In simple words, HRP is understood as the process of forecasting an organization's future demand for supply of
the right type of people in the right number. After this only the HRM department can initiate the recruitment
and selection process. It’s called by manpower planning, personal planning or employment planning.

As defined by Bulla and Scott, human resource planning is the process for ensuring that the human resource
requirements of an organization are identified and plans are made for satisfying those requirements. Reilly
defined workforce planning as a process in which an organization attempts to estimate the demand for labor and
evaluate the size, nature and sources of supply which will be required to meet the demand.

HRP is the process by which management determines how an organization should move from its current
manpower position to its desired manpower position.
 Objective of HRP

 Forecasting Human Resources Requirements: HRP is essential to determine the future needs of HR
in an organization. In the absence of this plan it is very difficult to provide the right kind of people at the
right time.
 Effective Management of Change: Proper planning is required to cope with changes in the different
aspects which affect the organization. These change needs continuation of allocation/ reallocation and
effective utilization of HR in organization.
 Realizing the Organizational Goals: In order to meet the expansion and other organizational activities
the organizational HR planning is essential.
 Promoting Employees: HRP gives the feedback in the form of employee data which can be used in
decision-making in promotional opportunities to be made available for the organization.
 Effective Utilization of HR: The data base will provide the useful information in identifying surplus
and deficiency in human resources.

Types of planning

Succession Planning: According to Taylor, succession planners are mainly interested in ensuring that their
employer has enough individuals with the right abilities, skills and experience to promote into key senior jobs,
as they become vacant.

According to Jackson and Schuler, succession planning differs from traditional H RP in the sense that, the
succession planning process covers a narrower group of employees but does so with a higher degree of
intensity.

Career Planning: According to Taylor, career planning emphasizes much more on the individual responsibility
for his/her own career development. Mentoring' and 'coaching' systems whether formal or informal, may be
introduced to assist in this.

Contingency Planning: Contingency planning involves planning possible responses to a variety of potential
environmental scenarios, and the result is that HRP effectively switches from being a reactive process to a
proactive process undertaken in order to assist the organization in achieving its aims.

Competency Planning: The basic principle of this method is to shift away from a focus on planning of people
and instead concentrate mainly on skills.

Difference between HRP vs HRD

Basis for Comparison HRP HRD

Meaning Human resource planning which helps Human Resource Development means
to ensure the organization has a continuous development function
sufficient human resource to meet the that intends to improve the
future requirements of the performance of people working in the
organization. organization.
What is it? Planning function. Subset of Human Resource
Management.
Function Reactive Proactive
Objective To improve the performance of the To develop the skills, knowledge and
employees. competency of employees.
Process Routine Ongoing
Dependency Independent It is a subsystem.
Concerned with People only Development of the entire
organization.

Human Resource Planning Process

The Human Resource Planning is a process of forecasting the organization’s demand for and supply of
manpower needs in the near future.

Human Resource Planning Process

1) 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.
2) 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 future vacancies can be estimated, so as to plan for the manpower from both the internal and the
external sources. Thus, it is to be ensured that reservoir of talent is maintained to meet any vacancy arising in
the near future.

3) 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.

4) 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.

5) 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.

6) Training and Development: The training is not only for the new joiners but also for the existing employees
who are required to update their skills from time to time.

After the employment plan, the training programs are conducted to equip the new employees as well as the old
ones with the requisite skills to be performed on a particular job.

7) 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 Organization has to decide the success of the plan and control the deficiencies, if any.

Thus, human resource planning is a continuous process that begins with the objectives of Human Resource
planning and ends with the appraisal or feedback and control of the planning process.

Impact of HRP on Organizational Performance

Empirical researches have presumed connection between human resource management practices and
organizational performance. There is a growing body of work on human resource practices and
organizational performance which shows linkage between human resource practices and organizational
performance. Haiti posits that human resource planning have a positive relationship with organizational
performance. Human resource planning contributes to organizational success because it ensures that
organizations always have a concept of the job market and how it relates to its failure. A company that refuses
to engage in human resource planning in order to be proactive may find itself with a number of unfilled
positions. Human resource management practices significantly contribute to organizational performance.
Human resource management practices are set of practice used by organization to manage human resources
through facilitating the development of competencies that are firm specific, produce complex social
relation and generate organization knowledge to sustain competitive advantage. Human resource functions such
as motivation process, human resource planning, education program, employees relation, compensation,
rewards and benefits, performance appraisal, education and development affect organizational performance
from various aspects such as replacement, productivity and financial performance.

Organizational performance can be measured through financial stability and productivity, but when we have to
relate human resource planning with the organizational performance, than we consider some of other variables
like efficiency and effectiveness, employee motivation, job satisfaction, trust on employees Human resource
planning is surrounded by three basic level practices which can increase the organizational performance:
1) To increase the knowledge, skills and abilities among employees.

2) To enhance their empowerment like giving them employment security and organize some
participation programs for employees.

3) To give them motivation through both incentive means like giving them compensation and benefits, and also
through internal promotion like promoting them with their job status.

Conclusion

Human resource planning has a strong influence on organizational performance in forecasting future demand of
business and environmental factors which help to manage human resource demand as required. Having a
required number and qualified personnel in organization helps to achieve Organization success. Implementation
of human resource planning has led to employee productivity, machine efficiency, customer alignment and
satisfaction, quality and quantity of service.

From the result of the analyses, it was concluded that the dimensions of human resource planning has a
significant correlation with organizational performance. The following specific conclusions were made that
forecasting manpower demand has a positive significant influence on customer satisfaction and productivity.
Also, strategic action has a positive significant influence on customer satisfaction.