Human Resource

Planning

Chapter-4

Human Resource Planning

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 What Is HRP?
HRP is a planning process by which an
organization can move from its current manpower
position to its desired manpower position.
Through manpower planning, an organization
strives to have the right number and the right kinds
of people at the right places at the right time. More
appropriately manpower planning may be defined
as a strategy for acquisition, utilization,
improvement and retention of human resources.

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Optimum manpower planning aims at:

1.Balancing demand, supply,

distribution and allocation of manpower,

2.Controlling cost of human resources

3.Formulating policies on transfer,

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 Activities required for HRP
1.Forecasting future manpower
requirement
1) Mathematical projections

a) Economical environment
b) Development trends in industry

2) Judgmental estimates
Future managerial decision
Factors influence manpower forecasting
a) Volume of output (Analysis of performance)
b) Level of productivity (Analysis of productivity)
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2.Preparing an inventory of manpower
a) Employees skill
b) Abilities
c) Work preferences

3. Anticipating problems of manpower

a) Project present resources into the future
b) Compare with the forecast of manpower
requirement

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4. Meeting manpower requirement
a) Planning

b) Recruitment & selection

c) Training & development

d) Induction & placement

e) Promotion and transfer

f) Motivation and compensation

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 Responsibilities of HR Department in
HRP
a) To put pressure on operating management to
establish goal and objectives
b) Collect data in total organization terms,
Provide information on manpower utilization in the
present and in the past.
c) Ensure that manpower planning carried out
and keep pace with long term objectives of the
organization
d) Measure and monitor performance against
plan and provide feedback to the top management.
e) To carry out research for effective manpower,
organizational planning and forecasting techniques

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 Steps for HRP
oStep 1 Job Analysis
Job Analysis provides the following information:

a) Job identification, done by providing a title or code number for each job.
Job characteristics, location, physical setting, hazards and discomforts of a
job
b) Job assignment, specific operations and tasks which make an assignment,
its importance, simplicity, complexity, and the responsibility
c) Materials, tools and equipments required for a job.
d) Job performance, nature of operations (lifting, handling, drilling etc.)
e) Personal attributes, like experience, training, physical strength, mental
capabilities, aptitudes, other skills etc. required for efficient performance of
the job.
f) Job relationship, scope for advancement, patterns of promotions, direction
or leadership form etc.

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Sources of Information for Job Analysis
Information on a job is usually obtained from
four principal sources as follows:

a) From supervisors and foreman.

b) From job analyst

c) From technology vendors, who

define jobs in their literature. 9

Purposes of Job Analysis
Apart from HRP, job analysis serves the following
important purposes of Human Resource Management:
a) Recruitment and Selection

b) Wage and Salary Administration

c) Job Re-engineering/Job Design

d) Industrial Engineering Activity

e) Employees Training and Management Development

f) Performance Appraisal

g) Health and Safety 10

Job Description and Job Specification

a) It is appropriate to distinguish the term

“description” to cover job content (conditions, tasks and
responsibilities)
b) And “specification” to denote job
requirements (qualities necessary) in the worker for
satisfactory performance of the job.
c) Thus, job specifications translate job
descriptions into human qualifications, required for
successful performance of a job.

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 Step 2
Developing Work Rules

Developing work rules are some pre determined

decisions about certain courses of action that
may be taken when certain contingencies arise.

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 Step 3 Application of Industrial
Engineering Techniques
Work study, method study and work
measurement techniques are also applied as a
preceding step for HRP. These techniques
provide opportunity for effective use of plant and
equipmet, effective use of human efforts,
measurement of human work, better ways of
doing things, developing predetermined
standard time etc.

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 Step 4 Other factors
• Layout
Layout of a factory influences determination of manpower
requirement. Some plants and equipments work in isolation (like
lathe, drilling machine, etc.) while some others work in work in group
continuously (like excavators).

• Statutory Requirements
For certain positions in mines, electrical installations, hazardous
places (chemical plants, etc.), welfare amenities need to be
provided as per statutory regulations.

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• Shifts
Number of manpower required also depends on whether the work
would be carried out in general shifts. The working shifts will decide
the requirement of manpower.

• Leave Reserve
workers are allowed for taking leave systematically. Conventionally,
20% allowances for weekly off and leave reserves are allowed in
factories. However, in mines, such allowance percentage is high.

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 Objectives of HRP
a) First objective of HRP is to integrate planning and
control of manpower with organizational planning to
ensure best possible utilization of all resources.
b) Next objective is to coordinate manpower policies of
the organization.
c) Achieve efficiency of work in all spheres of the
corporate body.
d) Ensure cost minimization
e) Eliminate all types of wastages including of time
f) Maintain required level of skill and competency,
matching present and future needs of the
organization.

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Manpower Demand Forecasting
Analysis of Performance- In order to
calculate manpower calculation in relation to
workload, first organization’s each unit of
manpower requirement for different job
categories of job to be determined. After that
total workload is related with manpower units of
different categories and finally the total
requirement of manpower of different categories
is determined. is determined.

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Manpower Demand Forecasting
Analysis of Performance
a) Direct Analysis (using two variables –workload &
certain manpower category)

b) Indirect Analysis ( Using past experience & less

systematic)

Analysis of Productivity: two major components like

technological change and manpower utilization.

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