Assignment Part of PGDBA

Principles, Fundamentals, Objectives, Methodology and Importance of Human Resource

Planning, Acquisition, Auditing and Development.

SUBMITTED BY

DIPANJAN MUKHERJEE

COURSE: POST GRADUATE DIPLOMA BUSINESS

ADMINISTRATION

SEMESTER/YEAR: 2020-21

ENROLLMENT NUMBER: 200755156336

SUBMITTED TO
SINGHANIA UNIVERSITY

Submitted By Dipanjan Mukherjee

Enrollment Number 200755156336
Assignment Part of PGDBA

Principles, Fundamentals, Objectives, Methodology and Importance of Human Resource

Planning, Acquisition, Auditing and Development.

Abstract
Human resource planning in the business practice should represent generally used and
key activity for human resource management because human resource planning helps to make
optimum utilisation of the human resources in the enterprise and it helps to avoid wastage of
human resources. Human resource planning allows to forecast the future manpower requirements
and also to forecast the number and type of employees who will be required by the enterprise in a
near future. In the long term period, success of any enterprise depends on whether the right
people are in the right places at the right time, which is the nature of human resource planning.
The aim of this contribution is to explain the importance of human resource planning and to
outline results of questionnaire survey which it was realized in industrial enterprises.
Keywords: Industrial Relations,Development,Management,Recruitment,Regression
In the present existence, human resource management has been driven by various
principles. The human resources are regarded as one of the crucial aspects of any organization.
When machines are made use of in the production of goods, the human resources are required to
possess the essential skills and abilities to operate the machines. Therefore, the principles of
human resource management are referred to the values and ideologies that the organizations need
to put into practice to manage and administer the tasks and activities of human resources. A
human resource manager is normally vested with the authority and responsibility to manage the
workforce. It is essential for the human resources to define and design their work. This involves
determination of the skills and requirements needed for a certain job position and anticipates the
hiring levels of future. In other words, they need to be aware of human resources that need to be
recruited and selected in future.
Human resource management or the management of human capital is important within
the organizations. The principles of human resource management are the foundations in any
organization and these must be observed. For every organization, whether it is service or
manufacturing, some essential principles need to be implemented by the human resources
department. When selection of human resources takes place, the hiring authorities take into
consideration their educational qualifications, experience and personality traits. They need to
ensure that they select and recruit human resources, which may be able to carry out their job
duties effectively. There should not be any type of discrimination on the basis of any factors,
such as, caste, creed, race, religion, gender, age, ethnicity, and socio-economic background. The
human resources need to be treated in a fair and just manner and equal rights and opportunities
need to be provided to all.

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Assignment Part of PGDBA

Principles of Human Resource Management

The principles of human resource management are regarded as the foundation upon
which the practice human resource management is built and observed. These have been stated as
follows: (Human Resource Management Principles, n.d.).
Grievance Handling
Grievance handling is referred to the management of the employee dissatisfaction or
complaints. These may include even workplace harassment, favouritism or wage cuts. By
establishing formal grievance handling procedures, one makes provision of a safe environment
for the employees to raise their concerns. Within the organization, the members may have certain
grievances with regards to various aspects. These may be working environmental conditions,
infrastructure, technologies, civic amenities, job duties, timings, and other members of the
organization. When they have grievances, they usually redress them to their supervisors.
Providing solutions to the problems of the workforce is an integral part of the job duties of the
supervisors. Managers and supervisors have the responsibility to identify, prevent and address
the problems of the workplace. Wherever possible, grievances will be addressed by a process of
discussion, co-operation and pacification (Human Resource Management Principles, n.d.). When
the workforce redress their grievances to their supervisors, one of the aspects that is of utmost
significance is communication needs to take place in a polite and decent manner. It is vital to
conduct an analysis of the causes and provide solutions to the problems.
A grievance handling system serves as an outlet for employee frustrations and
discontents. Within the organizations in some cases, employees are even provided with the
opportunity to redress their procedures online. When solutions are to be provided to the
grievances of the employees, the supervisors and managers need to be aware of proper grievance
handling procedures. Research has indicated that in organizations, there are formulation of anti-
discriminatory policies and all the members of the organization are provided with equal rights
and opportunities. When they enjoy equal rights and opportunities, they are able to provide
solutions to their grievances through help and support from their supervisors and managers.
When the workforce feel that the materials and equipment are not sufficient or are not in a well-
ordered state to augment productivity, then this problem can be solved by making provision of
materials, equipment and technologies. But problems are of various types and dealing with them
may take more or lesser amount of time.
The main areas that need to be taken into consideration to handle grievances are,
acknowledgment of dissatisfaction, defining the problem, get the facts, analyse and make
decisions and follow up. In some cases, when the supervisors are required to provide solutions to
the grievances of the workforce, they may seek ideas and suggestions from their superiors.
Particularly, when problems such as, changes in the working environmental conditions, or
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Assignment Part of PGDBA

criminal and violent acts, such as, sexual harassment are to be dealt with, then the matter goes to
the higher management and the individuals, who are in top-most positions, i.e. directors, heads or
chief executive officers. Therefore, it can be stated that it is indispensable to implement
grievance handling procedures to generate employee morale and achieve organizational goals.
Human Resources Service Delivery
Within the organizations, the human resources are required to carry out various types of
functions. These include, manufacturing, production, technical, clerical, managerial,
administrative, supervisory, and so forth. In other words, the human resources are required to
perform number of functions in accordance to their educational qualifications, skills, abilities and
experience. When the human resources are recruited, they are required to undergo training and
development programs. Within the programs, they are provided with information in terms of the
organization. These include, history, departments, personnel, infrastructure, job duties, overall
working environmental conditions, and goals and objectives. Through these programs, they are
able to carry out their job duties wholeheartedly to achieve the desired goals and objectives.
Within the course of the performance of job duties also, they undergo training programs, which
enable them to generate information in terms of modern, scientific and innovative methods.
Hence, training and development programs have proven to be beneficial to the workforce.
In the delivery of services as well as in the implementation of job duties, the human
resources need to inculcate the traits of morality and ethics. They need to be honest, ethical and
righteous in the implementation of job duties as well as in dealing with others. When the human
resources are engaged in making provision of services to the clients, they need to be efficient.
Teamwork is also regarded as one of the essential aspects. Human resources need to possess
effective communication and listening skills, only then they will be able to carry out their job
duties well. Teamwork primarily helps in providing solutions to problems experienced by human
resources related to their work. In the human resources delivery, it is vital to take into account
factors such as, efficiency, diligence, resourcefulness, conscientiousness, effective
communication skills, time management skills, decision making skills, morality and ethics,
decency, honesty, and truthfulness. When the human resources are well-aware of these traits,
they are not only able to perform their job duties satisfactorily, but also form good terms and
relationships with other members of the organization and clients.
Induction and On-boarding
Induction or orientation is an event where the employees are introduced to their jobs and
organization. It is an important process for bringing new employees into the business. The
induction process will take into consideration the rights as the employer, employee rights and the
terms and conditions of employment. The induction program must cover any legal and
compliance requirements for working within the organization and pay attention to workplace
health and safety requirements. Any induction program is a part of knowledge management
process that enables the individuals to become a useful and an integrated member of the team.
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Assignment Part of PGDBA

This program enables the members of the organization to acquire an efficient understanding of
the job requirements. The human resources need to understand how to do their job and how the
performance of their job duties will be beneficial to the organization.
An operative way to counter the figures is to implement an efficient on-boarding process.
New employee on-boarding is usually delivered within the period of at least 90 days is the
process of getting new hires adjusted to the social and performance aspects of their own jobs
rapidly and effortlessly within your business. The new recruits are able to augment their
understanding and render an efficient contribution towards the achievement of organizational
goals. On-boarding will assist in reinforcing relationships, ensuring expectations and employees
need to be made aware in terms of culture of the organization. They are able to reinforce their
commitment through role clarity and self-efficacy (Induction & Onboarding, 2019).
Every member of the organization has the right to expect comprehensive and efficient
induction and on-boarding processes that are put into practice with proper guidance, support and
information that will lead to an increase in the retention rates and will augment their knowledge
and competencies. Staff induction and on-boarding will be governed by the fact that the
members of the organization need to be familiar with the jobs, fellow staff members, job duties
and the overall working environmental conditions. The members are required to be aware of
their job duties and organizational goals. In the implementation of these processes, the members
of the organization are required to put into practice various methods and strategies. These
methods and strategies are required to be useful and beneficial to the members as well as the
organization as a whole. Whereas, on the part of the workforce, it is necessary that they need to
acquire an efficient understanding of these methods and approaches and implement them
appropriately.
Industrial Relations
Within the organizational structure, industrial relations is regarded as an important
aspect. This is comprehensively understood that the management and union are required to
maintain effective terms and relationships with each other. Decision making is an essential part
of the organization. When the decisions are made in terms of the organization as a whole, the
management may seek ideas and suggestions from the managers and supervisors as well. When
the employees are consulted, in other words, when they are provided with the opportunities to
express their viewpoints, they feel contented and will be able to carry out their job duties
satisfactorily. Implementation of job duties in an appropriate manner is an indispensable aspect
in the maintenance of industrial relations.
In order to maintain effective industrial relations, there are number of aspects that need to
be taken into consideration. These include, making provision of equal rights and opportunities to
all the individuals, forming appropriate terms and relationships with others, creating an amiable
working environment, making provision of infrastructure, materials, technologies, etc. Research
has indicated that in some cases, there have been prevalence of discriminatory treatment against
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women in terms of pay. They are paid less as compared to their male counterparts for the same
work performed. This discriminatory treatment needs to be eliminated and women should be
provided with equal rights and opportunities. When gender equality is promoted within the
organization, the employees feel contented and motivated towards the performance of job duties.
On the other hand, there should not be any type of discriminatory treatment on the basis of
factors, such as, caste, creed, race, religion, ethnicity, age, and socio-economic background.
Implementation of wise and meaningful communication and accessible support for
negotiation and resolution of industrial disputes and conflicting situations. In some cases, there
may be occurrence of conflicts and disagreements between the members of the organization. In
such cases, it is vital for them to resolve these industrial disputes and conflicts in a peaceful
manner. For achieving this purpose, they need to put into operation effective dispute settlement
and conflict resolution procedures. In putting into operation these procedures, they need to take
into consideration three main aspects, these are, discussion, co-operation and pacification. When
two or more members of the organization are engaged in conflicting situations or disagreements,
they need to ensure they discuss the matter calmly, listen to each other’s ideas and suggestions,
co-operate with each other in implementing solutions and come to an agreement in a calm and
composed manner. Therefore, in this manner, they are able to not only bring an end to conflicts
and disputes, but also maintain efficacious industrial relations.
Occupational Health and Safety
Occupational Health and Safety (OHS) is concerned with the health, safety and welfare
of the employees within the workplace. The primary objective of the act is to protect the workers
from the hazards that impose risk to their health and safety. Within the workplace, it is essential
for the individuals to maintain occupational health and safety. Some of the jobs are considered
hazardous jobs, particularly in factories and mines. When the individuals are engaged in the
performance of these jobs, they need to take precautions and take care of health and safety.
When the individuals are to work with machines, tools and equipment, they need to acquire
efficient training, as improper utilization may cause accidents. In factories, the individuals are
also required to work with chemicals, and gases may emerge, which may cause health problems.
Therefore, it is essential for them to wear proper attire and take precautions, when working with
chemicals and gases.
Within the organization, it is essential to formulate measures to promote health and safety
of the employees. In order to achieve this goal, it is essential to take into consideration certain
aspects. These are, setting out duties for all the workplace parties and rights for the workers. It
establishes the procedures for dealing with the workplace hazards and makes provision of
enforcement of the law, where the amenability has not been achieved voluntarily. Within the
working environment, it is essential for the individuals to be healthy physically as well as
psychologically. In addition, they need to be safe and secure. Occupational safety is an umbrella
term for the efforts of the organization to prevent injuries and hazards within the working
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environment. When measures and programs will be implemented to prevent injuries and hazards,
the human resources will not only be able to carry out their job duties satisfactorily, but also lead
to well-being.
Improvements made in occupational health and safety have proven to be beneficial to the
employees in number of ways. It could lead to an increase in profitability, competitiveness and
motivate the employees. Through the implementation of an operative and effectual occupational
health and safety system, the human resources could have an efficient and operative framework
that could render a significant contribution in minimizing and preventing the accidents, injuries,
health problems, illnesses and even death. In addition, there have been prevalence of criminal
and violent acts as well within the working environment. Therefore, it also focuses upon treating
employees with respect. This applies particularly to women. The criminal act of sexual
harassment is common against women. It should be eliminated and women need to be treated
with respect and courtesy. Therefore, formulation of laws and programs that focuses upon the
promotion of health and safety of human resources is indispensable for the achievement of
organizational goals and objectives.
Organizational Development
Organizational development is the study of successful organizational change and
performance. Organizational development emerged from the human relations studies in the
1930s, during which the psychologists realized that organizational structure and processes
influence the behaviour of the workers and motivate them towards job performance.
Organizational development is an objective-based approach to systems change within the
organization. It enables the organization to build and sustain a new desired state for the entire
organization. In order to implement organizational development, there are number of factors that
need to be taken into consideration. These include, development of infrastructure, making
provision of civic amenities and facilities, introducing technologies, and modern, scientific and
innovative methods in the implementation of tasks and functions, augmenting leadership skills,
job redesign, setting of goals and objectives, making improvements in training and development
programs, implementing conflict resolution procedures, promoting teamwork and enhancing the
overall working environmental conditions. When the human resources are able to generate
awareness in terms of these aspects, they will render an indispensable contribution in leading to
organizational development.
Organizational development is the practice of planned and systemic change in the beliefs,
attitudes and values for the progression of the individuals and organization as a whole. The
primary aim of organizational development is to enable the organization to respond to the
changes that are taking place in terms of number of aspects, i.e. markets, technologies,
infrastructure, materials, equipment, and external and internal environmental conditions. To
carry out the task of organizational development in an appropriate manner and to achieve the
desired outcomes, the members need to be aware of seven steps. These are, initial diagnosis, data
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collection, data feedback, planning strategy, intervention, team building and evaluation. This is
comprehensively understood that these tasks cannot be carried out in seclusion. In order to
generate the desired outcomes, the individuals need to work in co-ordination and integration.
In the present existence, the members of the organization need to generate awareness and
augment their understanding in terms of modern, scientific and pioneering methods. When the
members of the organization have the main focus of leading to organizational development, they
primarily focus upon the factors, which may be put into practice to enhance productivity and
profitability. The organizational development is making use of resources available to the
organization and making improvements in the efficiency of the organization and augmenting
productivity. It is put into operation for the purpose of providing solutions to the problems and
provides a methodology for conducting an analysis of the methods and strategies involved. The
methods and strategies, which are effectual, only those need to be put into practice. Whereas, the
ones, which are not beneficial need to be eliminated.
Performance Management
Performance management is the process of ensuring that the set of activities and outputs
meets the goals of the organization in an effectual manner. Performance management focuses
upon the performance of the organization, department and human resources. The individuals
acquire educational qualifications, gain experience even by working on an honorary basis, so
they can carry out their job duties within the organization satisfactorily. The individuals are
different from each other on the basis of their educational qualifications, competencies, natures,
behavioural traits, and attitudes. But when they are recruited within the organization, they have
the main objective of carrying out their job duties in an appropriate manner. In some cases, they
may experience problems and challenges, which may prove to be major impediments within the
course of their job duties. Therefore, performance management ensures that members of the
organization at all levels are able to carry out their job duties well and generate the desired
outcomes.

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Fig: Performance Management process Mentioned

Performance management is the process that provides feedback, accountability and
documentation for the performance outcomes. It helps the employees to identify the flaws and
inconsistencies and bring about improvements. It is the shared understanding about how the
individuals render a significant contribution towards the goals of the organization. When this
task is to get implemented in a well-organized manner, there are certain aspects that need to be
taken into consideration. These include, aligning workforce, building competencies, improving
employee performance and development and driving business results. The primary objective of
performance management is to bring about improvements in the performance of the employees.
Hence, in order to bring about improvements in the performance, it is necessary to ensure, they
are knowledgeable, competent and proficient. They need to undergo training programs even
within the course of their jobs to generate information in terms of technical and pioneering
methods. This would help them in enhancing productivity and profitability.

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Performance management offers three main stages. These include, coaching, corrective
action and termination. In the stage of coaching, the employees are provided with training in
terms of implementation of job duties. In training, they generate awareness in terms of methods
and approaches, necessary to achieve organizational goals and incur job satisfaction. Corrective
action is the stage which involves implementing measures that would lead to corrections. When
employees are experiencing problems and are unable to carry out their job duties, then through
corrective action the limitations are solved, which are major impediments. Termination is the
stage which applies in case of the employees, who are unable to acquire an efficient
understanding of the performance of job duties. Hence, it can be stated that within the
organization, only those individuals are retained, who are able to provide solutions to problems
and limitations, and contribute effectively in the achievement of organizational goals and
objectives.
Recruitment and Selection
Recruitment and selection are referred to as significant operations in the management of
human resources. To ensure that the organization gets the right individuals, at the right place and
at the right time, the organization has to carry out the tasks of recruitment and selection. These
are designed to make the best use of employee strengths in order to meet the strategic goals and
objectives of the employers and of the organization as a whole. It is a process involving
screening, shortlisting and selecting the right candidates for the vacant positions. In the processes
of recruitment and selection, there are number of factors that need to be taken into consideration.
These include, educational qualifications, competencies, experience, personality traits, job
expectations, and organizational goals. The first and foremost step is analysis needs to be
conducted in terms of job duties, then the processes of recruitment and selection are put into
operation.

Fig: Recruitment and Selection Process Mentioned

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In the recruitment processes, there are seven major steps that need to be taken into
consideration. These are, conducting an analysis of the job requirements, preparing a job
description and person profile, finding candidates, managing the application process, selecting
candidates, making an appointment and induction. After the analysis is conducted in terms of job
requirements, the hiring authorities need to identify what qualifications they need to look for in
candidates that would be best suitable for the job. After the completion of this task, one has to
start looking for appropriate candidates. The application process has to be initiated and selection
of the candidates is made. After they have been selected, they are required to undergo the
training and development programs. The common types of recruitment are, employer branding,
which is attracting talent by working on one’s reputation and brand recognition as employer,
publication, databases, internal recruitment, employee referral, promotion, events and internship.
Selection is the process of picking the right candidate with the prerequisite qualifications
and capabilities to fill the jobs within the organization. The selection process is lengthy and
complex, as it involves a series of steps, before making the final selection. The candidates are
normally required to go through various rounds of interviews and in some cases are even
required to take written tests, before they are selected. The various types of selection methods
that are put into operation are, online screening and shortlisting, interviews, psychometric
testing, ability and aptitude tests, personality profiling, presentations, group discussions and
written tests. When the individuals are to be selected in jobs, involving manual labour, they are
required to undergo medical tests. In such cases, their selection will take place, when they are
medically fit. Therefore, it can be stated that when the individuals are knowledgeable, skilled,
capable and in good health, they are selected.
Training and Development Programs
Training and development programs are regarded as important factors that render a
significant contribution in making provision of knowledge to the employees, so they are able to
augment their skills and abilities. These skills are required to carry out their job duties in an
appropriate manner and achieve organizational goals. The employees are required to undergo
training and development programs upon selection. In these programs, the main areas that have
been taken into account are history of the organization, departments, personnel, infrastructure,
amenities, environmental conditions, job duties, and goals and objectives of the organization. In
most organizations, there are recruitment of skilled trainers, who put into practice pioneering
methods to provide training. It is vital for the trainers to put into practice useful teaching-learning
methods and materials and technologies. Upon completion of training programs, evaluation is
regarded as an important factor that identifies how much the trainers have learned.

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Fig: Training and Development Programs for the Employee

When the employees are selected within the organization, they are required to go through the
training and development program. On the other hand, within the course of performance of their
job duties as well, they are required to undergo the training and development program. With
advancements taking place and with the advent of technologies and innovative methods, the
employees need to be aware, so they can contribute effectively towards the performance of job
duties and achievement of organizational goals. In these programs, there are various types of
training methods that are used, vestibule training, role playing, lecture methods, case studies,
field visits and so forth. The job duties, background of the employees, and organizational goals
are the primary factors that determine what types of training methods need to be used. It needs to
be ensured that training methods are beneficial in imparting knowledge to the employees and
facilitating in the achievement of desired outcomes.
The duration of the training and development programs differ. They can be one or two
days or a month. It is vital to ensure that employees are able to obtain solutions to all their
problems. Research has indicated that when employees experience problems in the
implementation of job duties and experience difficulties, their supervisors recommend them to
attend the training and development programs for the second time. These programs are important
and would help the workforce to augment their understanding and carry out job duties
appropriately. The organization needs to ensure that when initiation of training and development
programs takes place, they spend adequate resources, provide infrastructure, materials,
technologies and equipment and recruit well-qualified and experienced trainers. Therefore, it can
be stated that effective training and development programs are the key aspects to achievement of
organizational goals.
Importance of Human Resource Planning
Human Resource Planning is considered as the way by which management can overcome
problems relating to Human Resource by identifying the future requirements of Human Resource
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of an organization and the estimates of Human Resource supply. Organization can ensure the
smooth functioning through placing the right individual at the right time at the right job. Human
Resource Planning is important as it helps to determine future personal needs. Surplus or
deficiency in manpower strength is the result of the absence of an effective planning mechanism
working in an organisation. The following are the significances of Human Resource
Management:
1. Forcing Top Management to involve in HRM
Systematic HRP forces top management of an organization to participate actively in total HRM
functions ,an area that has been neglected by most of the companies until recently. If there is
active involvement of top management in the preparation of human resources plans.
2. Coping with Change
Human Resource Planning enables an enterprise to cope with changes in competitive Human
Resource market place , technology and government regulations. Such Changes generate
changes in job content, skill demands and number and type of personnel.
3. Providing base for developing talents
Jobs are becoming highly intellectual all over the world and individuals are getting vastly
professionalized. The Human Resource manager must use his Skill to attract and retain qualified
personnel within the organisation.
4. Protection of weaker section of society
In employment sector sufficient representation need to be given to SC/ST candidates, physically
handicap and backward class citizen. A well conceived personnel planning Programme would
protect the interests of such groups.
5. Resistance to change
There is chance of increasing resistance among employees to change . There is also a growing
emphasis on self – evolution of loyalty and dedication to the Organisation. A sound
Human Resource management can predict the possible resistance from employees and to develop
suitable strategies for Human Resource development.
Process of Human Resource Planning
The following are the major steps involved in Human Resource Planning.
1. Analysis of Organizational Plans and Objectives Human Resource planning is a part of
overall plan of a business organisation. Plans relating to technology, production,
marketing, finance, expansion and diversification give an idea about the volume of future
work activity. Each plan can further be analyzed into sub-plans and detailed programmes.
It is also important to decide the time horizon for which Human Resource plans are to be

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prepared. The future organization structure and job design should be made clear and
changes in the organization structure should be examined so as to anticipate its Human
Resource requirements in future.
2. Forecasting Demand for Human Resources Human Resource planning starts with the
estimation of the number and type of Human Resource required at different levels and in
different departments. The main steps involved in Human Resource Planning process are
a) to determine and to identify present and prospective needs of Human Resource,
b) to discover and recruit the required number of persons.
c) to select the right number and type from the available people.
d) to hire and place in the positions for which they are qualified,
e) to provide information to the selected people about the nature of work assigned to
them,
f) to Promote or to transfer as per the needs and the performance of employees,
g) to denote if the employees are disinterested or their performance is not up to the
mark,
h) to terminate if they are not needed or their performance is below standard and
shows no hopes of improvement. It is the most crucial area of Human Resource
Development. Human Resource Development manager must give attention to
place right individual to the right job Human Resources, recruitment,
selection ,Training and Placement of employees. This calls for the adoption of a
systematic procedure to complete recruitment and selection.
3. Forecasting Supply of Human Resources One of the important functions of Human
Resources planning is to deal with allocation of persons to different departments
depending upon the work-load and requirements of the departments in future. While
allocating Human Resource to different departments, care should be taken to consider
appointments based on promotions and transfers. Allocation of Human Resource should
be so planned that available manpower is put to full use.
4. Estimating Manpower Gaps Net Human Resource requirements gaps can be identified by
comparing demand and supply forecasts. Such a comparison will reveal either deficit or
surplus of Human Resources in future. Deficits suggest the number of persons to be
recruited from outside whereas surplus implies redundant to be redeployed or terminated.
Similarly, gaps may occur in terms of knowledge, skills and aptitudes. Employees
deficient in qualifications can be trained whereas employees with higher skills may be
given more challenging jobs as a part of job enrichment.
5. Matching Demand and Supply It is one of the objectives of Human Resource planning to
assess the demand for and supply of Human Resources and match both to know shortages
and surpluses on both the side in kind and in number. This will enable the Human
Resource department to know overstaffing or understaffing. Once the manpower gaps are
identified, plans are prepared to bridge these gaps. Plans to meet the surplus manpower
may be redeployment in other departments and retrenchment in consultation, with the
trade unions. People may be persuaded to quit voluntarily retirement. Deficit can be met
through Human Resource planning ,recruitment, selection, transfer, promotion, and
training plans. Realistic plans for the procurement and development of manpower should
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be made after considering the macro and micro environment which affect the manpower
objectives of the organization.
Problems of Human Resource Planning
Effective human resource planning is a pre requisite for successful human resource
management practices. However, there are certain factors-internal to organization and
external to it- which affect the effectiveness of human resource management adversely.
1. Improper linkage between HRP and corporate strategy In the absence of proper
linkage between HRP and corporate strategy ,neither HRM nor any of its subsystem
will contribute effectively.HRP Is the basis of further activities for HRM and
therefore must be linked to corporate strategic management process at the initial
stage.
2. Inadequate appreciation of human resource management Another problem that comes
in the way of effective human resource planning is the lack of adequate realization of
HRP. Many organization which have not realized the importance of human assets in
this competitive environment believe that people are available when they are needed
because of increasing unemployment .
3. Rigidity of attitudes The third factor responsible for ineffective HRP is the rigidity of
attitudes on the part of top management as well as human resource managers. In the
old culture human resources have been considered as subordinate factors.
4. Conflict between short term and long term plan Another source from where in
effectiveness in human resource planning emerges is the conflict between long term
and short term plans. Long term planning offers more flexibility at the same time
short term planning is more subjected to inflexibility.
5. inappropriate human resource information system The effectiveness of human
resource information depends on the timely availability of relevant information
regarding contingent factors which are considered while formulating human resource
planning. If the human resources information has not been well developed in an
organization the projections for the future may at best be in the form of some pluses
and minuses.
HUMAN RESOURCE DEMAND AND SUPPLY FORECASTING
Labour forecasting is key to an organization’s ability to achieve its operational, production, and
strategic goals.
Forecasting Human Resource Supply
The objective of identifying future Human Resource supply requirements is to determine the
number of employees in each job and their knowledge, skills, abilities, and other characteristics .
In addition, forecasting Human Resource supply is essential in determining the characteristics of
hiring sources within the predetermined planning horizon in order to establish whether future
Human Resource supply is sufficient to match future Human Resource demands. For this , an
organization needs to evaluate both their internal and external labour force. This step is
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dependent on an accurate assessment of the current workforce situation. Forecasting Human

Resource supply involves an understanding of internal and external potential Human Resource
supplies.
Forecasting External Human Resource Supply
There are multiple levels at which external Human Resource supply can be predicted.
Information that will help to develop an understanding of external Human Resource supply
includes:
 Supply and demand of jobs or skills
 Educational attainment levels within a region
 Compensation patterns based on experience, education, or occupation
 Immigration and emigration patterns within an area
 Forecasts of economic growth or decline
 Competition for talent
 Industry or occupational expected growth levels.
Forecasting Internal Human Resource Supply
By reviewing the data in the Human Resource audits, projections can be made for future Human
Resource supply. The internal labour force may be affected by temporary absences such as
leaves , permanent absences or turnover etc.
Turnover refers to the termination of an individual’s employment with an organization. Total
turnover is the total number of employees leaving an organization divided by the total number of
employees in an organization. Turnover can be classified into two sub groups—voluntary and
involuntary. Voluntary turnover is defined as employee-initiated turnover, mainly in the form of
quits or resignations. In this instance, the decision to terminate employment with the firm is
made by the employee, without management enticement. Involuntary turnover is defined as
employer initiated turnover, mainly in the form of dismissals or layoffs.
Trend Analysis
Trend analysis is considered one of the simplest methods of forecasting future Human Resource
supply. It assumes that past trends and ratios in employee movement are stable and indicative of
future trends and ratios in employee movement. The information collected in the Human
Resource audit is used to identify labour patterns—hiring patterns, retirement patterns,
productivity patterns, and turnover patterns. By examining the trends of the past, the Human
Resource department can predict the effect of the same activity on the future of the organization,
because it is assumed that these patterns will remain stable.
Skills/Competency Models
Competency models focus on matching the right skills or competencies needed for each job with
the skills available within the organization. The competency models focus on identifying the
skills/competency supply within the organization, and helping focus future recruitment,
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selection, retention, and training activity in core areas of key competencies needed for the
organization to succeed.
A competency is a set of behaviours that encompass skills, knowledge, abilities, and personal
attributes, that taken together, are critical to successful work accomplishment.
The competency model is a future-oriented model that first reviews competencies that are
aligned with an organization’s mission, vision, and strategy, and then aims to identify an ideal
workforce in terms of those competencies.
Replacement Charts
A replacement chart is used to estimate vacancies in higher level jobs and identify how potential
Human Resource supply can fill these vacancies via internal movements from lower levels jobs.
A comprehensive replacement chart will include information regarding possible replacements for
vertical or horizontal movement. Generally, a replacement chart includes information about
employees’ performance, readiness to fill the position, and education.
Staffing Tables
A staffing table provides a clear graphical view of all organizational jobs and the current number
of employees at each job. It presents a simple visual understanding of an organization’s staffing
level within each department and the organization as a whole, in an effort to help understand the
combination of employees that make up an organization’s internal workforce. This information
is useful in evaluating staffing levels by department, branch, the types of staff at each level and
the combination of staff in all categories.
Forecasting Human Resource Demand Analysis
Demand analysis identifies the future human resource requirements needed to maintain the
organization’s mission and goals. The end result of a demand analysis is the identification of the
required number of employees in an organization and the necessary functions that the employee
must perform to meet organizational objectives. Due to the high number of factors that influence
demand, demand is often more difficult to predict than supply.
Factors that need to be considered when forecasting demand include the following:
1. Environmental scanning, including economic, legislative, and competitive pressures
2. The organization’s future strategic goals and plans
3. Expected demand for products or services, including expected sales (across the
organization or at the business unit level)
4. Estimated productivity measures of workforce (can be stable, increase, or decrease)
5. Organizational design or job design, including technological advancements and
administrative changes
6. Projected budgets or financial resource availability
7. New products/processes/ventures that the organization will be launching in the future.

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Quantitative Techniques for Forecasting Human Resource Demand

The following are the different techniques available for human resource planning. Trend
Analysis Just like trend analysis used to forecast internal Human Resource supply, past trends
and ratios can also be used to forecast Human Resource demand.
Trend analysis
predicts the demand for labour based on projections of past relationship patterns over a number
of years. As one of the simpler methods of forecasting Human Resource demand, trend analysis
assumes that an organization’s past employment needs are indicative of future needs when linked
with an operational index.
Ratio Analysis
Ratio analysis estimates future Human Resource demand based on ratios between assumed
casual factors and the number of employees needed. Ratio analysis is very similar to trend
analysis, but the primary difference is that there is no requirement for significant historical data
collection. This allows organizations that do not have easy access to multiple years’ worth of
data to use current ratios to help estimate future demand
Regression Analysis
Regression analysis is a method of estimating Human Resource demand, but allows for
adjustment of seasonal fluctuation, long-term trends, and random movement when forecasting.
This provides statistical projections using mathematical formulas to determine the correlation
between multiple measureable output factors (independent variables) and an organization’s
employment level (dependent variable). A regression analysis is useful in predicting the strength
and direction of a linear relationship between two variables, but in situations of a non-linear
relationship, estimates would not be valid. When there is one independent variable, there is one
regression. When there are multiple independent variables, there are multiple regressions. A
correlation depicts a value between _1 and 1. The closer the value is to 0, the less predictive of
the relationship between the two variables. The closer the value is to either -1 or 1, the more
predictive the relationship between two variables. The positive or negative sign in front of the
correlation number indicates the nature or direction of the relationship. .
Qualitative Techniques for Forecasting Human Resource Demand
Delphi Method
Delphi method process involves a panel of experts using their judgements to make estimates of
short-term future demands. Experts use a variety of factors to make their judgements, including
economical, demographical, technological, legal, and social conditions outside of the
organization, as well as production, sales, turnover, experiences, and education levels of the
workforce within the organization. This method involves a number of stages . During the
process, experts are not permitted to engage in direct face-to-face contact or communication.
This is in an effort to prevent groupthink, influence of others, or confrontation of experts, which
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can influence the results. First, experts must be identified to participate in this task. Second, each
expert is asked to submit Human Resource demand forecasts, including specification of sources
of information and assumptions used to estimate demand. In the Next stage , each submission is
gathered by the Human Resource planning group, which then summarizes the results. The
aggregated results are sent back to the experts, who are given an opportunity to adjust their
forecasts based on the information provided in the summaries. These steps are repeated until the
expert opinions converge. Each feedback loop provides an opportunity for experts to understand
their position relative to others and the reactions of others to the summaries provided. One of the
problems of the Delphi method is that it is subjective in nature, and thus may be difficult for
those who prefer quantitative approaches to fully commit to. Moreover, the organization should
be explicit with experts not to discuss their estimates with others, something that can happen
when experts have strong working relationships or work in close proximity to others.
Benefits
1. Human Resource Planning ensures a smooth supply of right type & right number of
employees with adequate knowledge, experience and aptitudes at all levels and at all
time.
2. It identifies Human Resource gaps, if any, & helps in the implementation of corrective
action plans to avoid any loss of work or money to the organisation.
3. Human Resource Planning helps in the optimum utilization of the available Human
Resource & helps reduce any wastage.
4. HRP anticipates any future manpower gaps & motivates the employees by chalking out
plans like a career planning & succession planning.
5. Human Resource Planning also facilitate the provisions the provision of infrastructure in
the organization by giving an estimate of the future head count.

Human Resource Forecasting

Human Resource Forecasting refers to the interaction between the decision maker’s perceptual
and cognitive processes and the objective characteristics of their environment. There are a
number of important elements to consider in order to successfully forecasting labour demand and
supply: identifying stakeholders who will be involved, determining the appropriate planning
horizon, and defining the internal and external labour force.
The Human Resources Planning Team
The Human Resource Planning team should include all relevant stakeholders across multiple
functional areas and organizational levels. Explicitly developing a team for the Human Resource
Planning process helps to ensure success of the strategies within the plan and holds those who
are not meeting the goals accountable. It is critical not only to align the Human Resource plan to
the organization’s strategic plan, but to also communicate how the plan will affect future
operations, financial goals, and market position of the company. Doing so will build the
confidence of the leaders and convince them that the change is required.
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Determining the Appropriate Planning Horizon

The appropriate planning horizon is a judgement about how far into the future predictions can be
made, taking into consideration acceptable levels of operational, organizational, and
environmental uncertainties. This is very subjective as it is based on the decision maker’s
cognitive processes and perceptions of the organization’s position in the market.
Human Resource Skill Inventory
A skills inventory is a system designed to take stock of information about current employees’
experience, education, compensation history, and/or unique abilities. A skills inventory can be
useful in revealing what skills are immediately available in an organization by providing a
snapshot view of the existing talent in an organization. Identifying current workforce dynamics is
a critical step in the development of a Human Resource plan.
Human Resource audit
Human Resource audit is a systematic examination and analysis of an organizational workforce
to develop an understanding of the current staffing situation. The Human Resource audit
compares the past with the present labour specifications to identify trends and patterns in
multiple aspects, including turnover, training, absence, and diversity. It helps to identify key
information about Human Resource operations, including how well they work, and where
improvement may be needed. It is a useful tool in Human Resource planning. The information
provided in an audit or skills inventory can be useful in identifying a number of workforce
trends.
The Management Inventory
It is not common for enterprises to keep an inventory of available Human Resources, particularly
managers, despite the fact that the required number of competent managers is a vital requirement
for success. Keeping abreast of the management potential within a firm can be done by the use of
an inventory chart which is simply an organization chart of a unit with managerial positions
indicated and keyed as to the promotebility of each incumbent. At a glance, the controller can see
where he or she stands with respect to the staffing function. The controller's successor is
probably the manager of general accounting, and this person in turn has a successor ready for
promotion. Supporting that person, in turn, is a subordinate who will be ready for promotion in a
year, but below that position are one person who does not have potential and two newly hired
employees.
The need for managers is determined by enterprise and organization plans and, more specifically,
by an analysis of the number of managers required and the number available as identified Human
Resource through the management inventory. But there are other factors, internal and external,
that influences the demand for and supply of managers. The external forces include economic,
technological, social, political, and legal factors. The economic growth may result in increased
demand for a product, which in turn requires an expansion of the work force, thus increasing the
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demand for managers. At the same time, competing companies may also expand and recruit from
a common labor pool, thus reducing the supply of managers. One should also consider the trends
in the labor market conditions , the demographics, and the composition of the community with
respect to knowledge and skills of the labor pool and the attitude toward the company.
Information about the long-term trends in the labor market may be obtained from several
sources.
External Labour Force
The external labour force refers to potential sources of Human Resources outside of an
organization that can affect the future supply of employees. Evaluation of the external labour
force relies on labour market estimates based on regional and global economic, environmental,
and demographic changes. Economic and environment factors include interest rates,
unionization, economic growth, unemployment rates, and political climate. Demographic factors
include population-based information such as retirement rates, birth/mortality rates, educational
attainment, primary language, labour shifts (location), etc. Since the external labour force
provides designated group members from which the employer can reasonably be expected to
recruit.
Succession planning
Succession planning is a conscious decision by an organization to foster and promote the
continual development of employees, and ensure that key positions maintain some measure of
stability, thus enabling an organization to achieve business objectives. Succession planning has
sometimes taken a replacement approach, often focusing on executive-level positions. One or
two successors might be identified and selected, probably based on the exclusive input of their
immediate supervisor, and then placed on the fast-track into a senior position. However,
succession planning has evolved into a process that can be used to:
 Replenish an organization’s Human Resource at a broad or specific level;
 Identify, assess and develop employee knowledge, skills and abilities to meet the current
and future staffing needs of the organization; and
 Ensure a continuous supply of talent by helping employees develop their potential.

Conclusion

The principles of human resource management are regarded as indispensable in leading

to progression of the organization. The main principles are, grievance handling, human resources
service delivery, induction and on-boarding, industrial relations, Occupational Health and Safety,
organizational development, performance management, recruitment and selection, training and
development programs and workforce planning. Grievance handling signifies the ways that are
needed to handle the grievances that are experienced by the employees within the organization.
Human resources service delivery deals with augmentation of efficiency and competencies
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among the employees, so they can carry out their job duties well. Induction and on-boarding is
referred to aspects that help in augmenting the competencies among the employees and retain
them within the organization. Industrial relations deals with the factors that are implemented to
reinforce terms and relationships between union and management. Occupational Health and
Safety takes into account the aspects that are necessary to maintain good health and safety of the
workforce within the organization.

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