Human Resource Planning and Management

MBA Gen -III(HR)

Course code-MBAH301
Created by-Ms. Taruni Sharma

COURSE OUTLINE/SYLLABUS
 Manpower planning:
Introduction, Rationale, Manpower Planning phases, Manpower Planning
UNIT 1 Activities. Manpower planning at different levels – National, Corporate,
Unit. Manpower Planning and strategic planning.
One relevant Case Study/ Case let from the unit
Manpower Productivity Management:
Techniques for improving productivity
Work Study: Quantitative determination of Human Resource
requirements,
UNIT 2 The Human Factor in the Application of Work Study
Methods Study: The Approach to Methods Study
Work Measurement: The Purpose and the Basic Procedure
One relevant Case Study/ Case let from the unit.
Forecasting Manpower Needs:
The Forecasting Process, Inventorying available talent, Projecting Future
Talent supply, Forecasting staffing Requirements. Forecasting Models and
UNIT 3
application-Change Models, Optimization Models Integrated simulation
Models. Application of forecasting models.
One relevant Case Study/ Case let from the unit.
Profiling Techniques:
Preparation of Job descriptions & Job Specifications for recruitment drive
and selection. Activity –Comparative study of recruitment
advertisements:
Newspaper &job portals& analysis of the same in the light of Job
UNIT 4 Description / Specification. Documentation for Recruitment and
Selection.
Interviewing:
Study of Interview modes, List of questions for interviewers, Personal &
Telephonic.
One relevant Case Study/ Case let from the unit.
Manpower career planning:
Separation, Retention, Training, Redeployment & Relocation.
UNIT 5 One relevant Case Study/ Case let from the unit
UNIT -1

Human Resource Planning – Meaning:

According to E.W. Vetter human resource planning as “a process by which an

organization should move from its current manpower position to its desired manpower
position. Through planning, management strives to have the right number and right kind
of people at the right places at the right time, doing things which result in both the
organization and the individual receiving maximum long-run benefit.”

Definition-

According to Gordon Mc Beath, “HRP is concerned with two things: Planning of

manpower requirements and Planning of Manpower supplies”.

According to Beach, “HRP is a process of determining and assuming that the

organization will have an adequate number of qualified persons, available at proper
times, performing jobs which meet the needs of the enterprise and which provides
satisfaction for the individuals involved”

Human Resource Planning is the process by which any organization ensures that it has
the right number and right kind of people, at the right place, at the right time, capable of
effectively and efficiently completing those tasks that will help the organization achieve
its overall objectives.” – DeCenzo and Robbins

RATIONALE /Importance-

1. Future Personnel Needs

2. Part of Strategic Planning

3. Creating Highly Talented Personnel

4. International Strategies

5. Foundation for Personnel Functions

6. Increasing Investments in Human Resources

7. Resistance to Change

8. Uniting the Viewpoint of Line and Staff Managers

9. Succession Planning
Future Personnel Needs

Human resource planning is significant because it helps to determine the future personnel
needs of the organization. If an organization is facing the problem of either surplus or
deficiency in staff strength, then it is the result of the absence of effective Human
Resource Planning.

Part of Strategic Planning

Human Resource Planning has become an integral part of strategic planning. HR

Planning provides inputs in the strategy formulation process in terms of deciding whether
the organization has got the right kind of human resources to carry out the given strategy.

Human Resource Planning is also necessary during the implementation stage in the form
of deciding to make resource allocation decisions related to organization structure,
process, and human resources. In some organizations, HRP plays a significant role as
strategic planning and HR issues are perceived as inherent in business management.

Creating Highly Talented Personnel

Even though India has a great pool of educated unemployed, it is the discretion of the HR
manager that will enable the company to recruit the right person with the right skills for
the organization. Even the existing staff hope the job so frequently that organization faces
a frequent shortage of manpower.

Manpower planning in the form of skill development is required to help the organization
in dealing with this problem of skilled manpower shortage.

International Strategies
An international expansion strategy of an organization is facilitated to a great extent by
HRP. The HR department’s ability to fill key jobs with foreign nationals and
reassignment of employees from within or across national borders is a major challenge
that is being faced by international business.

With the growing trend toward global operation, the need for HRP will as well be the
need to integrate HRP more closely with the organization’s strategic plans. Without
effective HRP and subsequent attention to employee recruitment, selection, placement,
and development, career planning, the growing competition for foreign executives may
lead to expensive and strategically descriptive turnover among key decision makers.

Foundation for Personnel Functions

HRP provides essential information for designing and implementing personnel functions,
such as recruitment, selection, training and development, and personnel movements like
transfers, promotions, and layoffs.

Increasing Investments in Human Resources

Organizations are making increasing investments in human resource

development compelling the increased need for HRP. Organizations are realizing that
human assets can increase in value more than physical assets. An employee who
gradually develops his/ her skills and abilities becomes a valuable asset to the
organization.

Resistance to Change

Employees are always reluctant whenever they hear about change and even about job
rotation. Organizations cannot shift one employee from one department to another
without any specific planning. Even for carrying out job rotation (shifting one employee
from one department to another), there is a need to plan well ahead and match the skills
required and existing skills of the employees.

Succession Planning

Human Resource Planning prepares people for future challenges. The ‘stars’ are picked
up, trained, assessed, and assisted continuously so that when the time comes such trained
employees can quickly take the responsibilities and position of their boss or seniors as
and when the situation arrives.

Uniting the Viewpoint of Line and Staff Managers

HRP helps to unite the viewpoints of line and staff managers. Though HRP is initiated
and executed by the corporate staff, it requires the input and cooperation of all managers
within an organization. Each department manager knows about the issues faced by his
department more than anyone else. So communication between HR staff and line
managers is essential for the success of HR Planning and development.

Benefits of human resource planning:

HRP helps in judging the effectiveness of manpower policies and programs of
management.

It develops awareness of the effective utilization of human resources for the overall
development of the organization.

It facilitates the selection and training of employees with adequate knowledge,

experience, and aptitudes so as to carry on and achieve the organizational objectives.
 HRP encourages the company to review and modify its human resource policies and
practices and to examine the way of utilizing the human resources for better utilization.

Objectives of manpower planning-

1. To ensure the optimum use of current manpower currently working.

2. To avoid imbalance in the distribution and allocation of HR.

3. Forecast future skill requirements.

4. Provide control measures to ensure availability of necessary resource when required.

5. To control the cost aspects of HR.

6. To formulate transfer and promotional strategies.

Scope /Elements of HRP-

1. Listing of current manpower or human resource with the organization.

2. Assessing the extent to which the current manpower is utilized to the advantage of
organization.

3. Phasing out the surplus manpower if any.

4. Analysing the requirement of manpower in future in the light of expansion plans,

retirement of personnel etc.

5. Making manpower procurement plans.

6. Designing Training program for different kind of manpower.

 HRP phases/process-

1.Objective-The objective to be achieved in future in various fields such as production,

marketing, finance, expansion and sales gives the idea about the work to be done in the
organization.

Forecasting of Future HR need

Planning for HR need and supply

2. Current manpower supply-From the updated human resource information storage system,
the current number of employees, their capacity, performance and potential can be analyzed. To
fill the various job requirements, the internal sources (i.e., employees from within the
organization) and external sources (i.e., candidates from various placement agencies) can be
estimated.

3.Forecasting demand and supply

Demand Forecasting-
The human resources required at different positions according to their job profile are to
be estimated. The available internal and external sources to fulfill those requirements are
also measured. There should be proper matching of job description and job specification
of one particular work, and the profile of the person should be suitable to it. The factors
relevant for manpower forecasting are as follow-

Employee Trend-A group of payroll employees is stable or unstable)

Replacement Need- Replacement arises due to death,

retirement, resignation and termination.

Productivity- Enhance the activities and skills of current manpower by the help of flow
chart, activity sampling techniques, work study.

Growth and Expansion-The expansion plans of various plants and division should be
carefully reviewed to assess their probable effect on the number of employees required in
each group. ex -TATA GROUP

Absenteeism- It means a person fail to come for work he is scheduled the rate of
absenteeism can be calculated by this formula-

Absenteeism= Man Day lost /man day work + man day lost

Work Study-How long operation should taken and amount of labor required.

Supply forecasting-

There are two type of supply of manpower –Internal and External

Internal supply is more important because it refers to already working employees on

different positions. Those employees can be promoted and transferred on various
positions in the organization. In order to estimate internal supply of personnel it is
necessary to conduct human resource audit prepare replacement charts in advance. works
done in supply forecasting-

Human Resource Audit-systematic audit of executive personnel would lead to creation

management inventories –Front office executive, Finance manager, accountant, sales
manager, HR manager, registrar etc. Non managerial employees would lead skill
inventories- Computer operator, Electrician, Plumber, painter, Lab technician, Librarian,
Housekeeping.

Replacement chart - Making the chart of all skilled and Non skilled staff
5. Estimating Manpower Gaps:

Comparison of human resource demand and human resource supply will provide with the
surplus or deficit of human resource. By this process HR planner come to the conclusion
that where is the Gap of HR or requirement.

6. Formulating the Human Resource Action Plan: Redeployment/redundancy

The human resource plan depends on whether there is deficit or surplus in the
organization. Accordingly, the plan may be finalized either for new recruitment, training,
interdepartmental transfer, promotion in case of deficit of termination, or voluntary
retirement schemes and redeployment in case of surplus.

6.Training and Development-

Training is important not only new employees but also existing employees. All types of
jobs usually require some sort of training for their efficient performance training is
necessary for updating of knowledge and skill of employees for particular job /area.

7.Appraisal/evaluation of effectiveness of manpower planning-

Once the human resources plan is implemented, the plan should be monitored
continuously to ensure the alignment of the plan to the objectives of the departments. The
necessary controls should be put in place and the feedback at each level should be
obtained to measure any defects in the implemented human resources plan. The
necessary changes should be implemented according to the feedback obtained in the
ongoing process in order to make the human resources plan a success.

Manpower planning at different levels-

HRP at National Level:

HRP at the national level helps to plan for educational facilities, health care facilities,
agricultural and industrial development, and employment plans etc. The government of
the country plans for human resources at the national level.

National plans for HR forecast the demand and supply of human resources at the national
level. It also plans for occupational distribution, sectoral and regional allocation of human
resources.

2. HRP at the Sectoral Level:

HRP at the sectoral level helps to plan for a particular sector like agriculture, industry etc.
It helps the government to allocate its resources to the various sectors depending upon the
priority accorded to the particular sector.

3. HRP at the Industry Level:

HRP at the industry level takes into account the output/ operational level of that particular
industry when manpower needs are considered.

4. HRP at the Unit Level:

HR Planning at the company level is based on the estimation of human resource needs of
the particular company in question. It is based on the business plan of the company.

HRP for a particular department/sector of an industry is prepared at this level. It again

includes the following levels.

i) Plant level; ii) Department level; and iii) Divisional level.

Human resource planning and Strategic planning-

In the beginning of the planning process with identified strategic objectives,

managers can develop human resource plans that will help them accomplish
those objectives. These plans provide a sound basis for justifying budget and
staffing requests, as there is a clear correlation between objectives, the
budget, and the human resources needed to accomplish them.
HR planning must relate to other planning efforts of the organization.
Human resource planning done in a vacuum cannot be successful. For the
proper implementation of HRP, one must be aware of organizational
direction. Also, achieving organizational goals requires a competent
workforce.
Human resource planning naturally supports and is a follow-up to strategic
planning. Just as strategic planning helps an organization outline its plans, a
human resource plan lays out the specific tasks and measures needed to
ensure that the organization has the necessary man power to accomplish its
mission.

There is a close link between HR planning and strategic planning of an

organization.

Those working in HR departments should always remember that HR

planning (and HR functions) do not exist as ends in themselves, but exist to
serve the rest of the organization in achieving the business goals of the
organization. Often HR functions and human resource planning get
accidentally de-linked from business goals.

Since human resource functions and strategies are a means to achieve

corporate ends, they need to be aligned to, and driven by the corporate role,
mission, vision and strategic goals, or else they simply end up as processes
that add overhead, but decrease return. The solution is obvious. Human
resource planning needs to refer the details of the overall strategic plan of
the organization. In effect, it serves the strategic plan.

Technically, it’s possible to do short term human resource planning that is a

bit different from strategic human resource planning, in the same sense one
can plan strategically. However, in basic terms, planning within human
resources should be done strategically, since long-term thinking is required
to effectively manage human resources over time.

Considering the complexity of any human resource planning process, it

seems obvious that the process needs to be strategic in nature. Unfortunately,
many companies do not allocate enough time or resources to develop long
term strategic HR plans.
All HR planning should be strategic. In practice, many companies plan their
human resources in a shorter term, or bandaid type fashion that involves
reacting to short term forces, rather than being proactive and long term.