By: Chandni Kumar Shuchi Mangal Himani Sharma

Amity Business School

A reputed South Indian University appointed 218 people on temporary basis as Group D and Group C employees (all in administration, typically called non-teaching)

These appointments were made though there was no need for additional staff.
In fact, the university already had surplus of these employees.

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33 percent of these temporary staff have already put in more than 10 years of service and the remaining a couple of years less. The service of 35 percent of them were renewed six monthly with a break of one day each time. The service of 65 percent of the temporary employees were extended until further orders. In the past ten plus years, that further order never came. The procedure followed to appoint these 218 was slipshod.

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The conscience of the authorities is now pricked.

The university made a decision to regularize the services of the provisional employees as and when vacancies arise vacancies arising on retirement or death of permanent staff. Right now, there are 50 of such vacancies and these will be filled up soon. This would cost the university an extra expenditure of Rs. 30 lakh per annum. When the remaining are also regularized, the extra drain on the university exchequer would be Rs1.2 crores per annum.
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When reminded about human resource planning and about its need, prompt came the reply from an employee who is going to be benefited shortly Human Resource Planning? No. Thank You.

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Human resource planning is the systematic and continuing process of analyzing an organizations human resource needs under changing conditions and integrating this analysis with the development of personnel policies appropriate to meet these needs.

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Figure 2 4

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Future personnel needs-Planning is important as it helps to determine future personnel needs. Surplus or deficiency in staff strength is the result of absence or defective planning. Part of strategic planning-HRP provides set of inputs into strategic formulation process in terms of deciding whether the types and number of people are available to pursue a given strategy.

Foundation for Personnel functions-HRP provides essential information for designing and implementing personnel functions such as recruitment, selection, personnel movement(transfer, promotion, layoff) and training and development 8

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Upper management has a better view of HR dimensions of business decision Personnel costs may be les because management can anticipate imbalances before they become unmanageable and expensive. It helps to satisfy the individual needs of the employees for the promotion, transfers, salary enhancement, better benefits etc.

It supports organization plans regarding expansion, diversification, technological change by providing necessary human resources.
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Environment Organizational Objectives and Policies HR Needs Forecast HR Programming HRP Implementation Control and Evaluation of Programme Shortage Recruitment and Selection HR Supply Forecast

Surplus Restricted Hiring, Reduced Hours, VRS etc

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Environmental Scanning refers to systematic monitoring of the

external factors influencing the organization.

HR plans needs to be based on organizational objectives Specific requirements and in terms of number and characteristics of employees should be derived from organizational objectives.

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Demand forecasting the process of estimating the quantity and quality of people required to meet future needs of the organization. Reasons to conduct demand forecasting: 1. Help in quantify the jobs necessary. 2. Determine what staff-mix is desirable in the future. 3. Prevent shortages of people where and when they are needed most.

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Demand forecasting techniques

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1.

Trend Analysis: Study of a firms past employment needs over a period of years to predict future needs.

2.

Ratio Analysis: A forecasting technique for determining future staff needs by using ratios between one or more business factors and staffing level for example, sales volume and number of employees needed.
Regression Analysis: A graphical method used to help identify the relationship between two variables Managerial Judgment-Management forecasts are the opinions (judgments) of supervisors, department managers, experts, or others knowledgeable about the organization's future employment needs based. The forecast is based on factors that are likely or should be 13 changed.

3.

4.

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5. Delphi Technique- It attempts to decrease the subjectivity of forecasts by involving a group of pre-selected individual and soliciting and summarizing the judgments. Thus a group decision-making process is invoked which in turn, requires a great deal of process orientation to enhance coordination and cooperation for satisfactory forecasts. This method works best in situation where dynamic technological changes affect staffing levels.

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Determines whether the HR department will be able to procure the required number of personnel. Specifically, supply forecast measures the number of people likely to be available from within and outside an organization.

The supply analysis covers:

1. Existing Human Resource (Analysis of present employees) 2. External sources of supply

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Balancing Demand and Supply Vacancies filled in by the right employee at the right time

Requires converting HR plan into action. A series of action programmes are initiated as a part of HR plan implementation. Some such progammes are:
Recruitment plan Training and Development plan Retraining and redeployment plan Retention plan Transfer plan Succession plan

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The HR plan should include Budgets, Targets & Standards. It should also clarify responsibilities for implementation & control And establish reporting procedures to enable achievements to be monitored against the HR plan.

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Planners face significant barriers while formulating an HRP. The major ones are the following: People question the importance of making HR practices future oriented and the role assigned to HR practitioners in formulation of organizational strategies. Their argument is simple-there are people when needed. Offer attractive package of benefits to them to quit when you find them in surplus.

Conflicts may exist between short-term and long-term HR needs. For example, there arises a conflict between the pressure to get work done on time and long-term needs, such as preparing people for assuming greater responsibilities.
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There is conflict between quantitative and qualitative approach to HRP. Non-involvement of operating managers renders HRP ineffective. HRP is not strictly an Hr department function. Successful planning needs a coordinated effort on the part of operating managers and HR personnel.

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