Unit3:HumanResourcePlanning Structure:

3.1 Introduction Objectives 3.2 HumanResourcePlanning SAQs 3.3 NeedforHumanResourcePlanning SAQs 3.4 ProcessofHumanResourcePlanning SAQs 3.5 HumanResourcePlanningSystem SAQs 3.6 3.7 3.8 3.9 ResponsibilityforHumanResourcePlanning Summary TQs Answersto SAQsandTQs

3.1 Introduction
Through human resource planning, the management strives to have the right number and the right kindsofpeopleattherightplaces,attherighttime,todothingswhichresultinboththeorganization andtheindividualreceivingthemaximumlongrangebenefit.Recruitmentisasignificantfactorthat infusesnewbloodintoanorganisation.Thisunitthrowslightontheprocessofrecruitment. Objectives: Afterstudyingthisunit,youwillbeableto: UnderstandingHumanResourcesPlanning WhatdoesHRPinvolve ManagingRecruitmentchallenges

3.2.HumanResourcePlanning
Human resource or manpowerplanningis'theprocess by whicha management determines how an organization should move from its current manpower position to its desired manpower position. Throughplanning,amanagementstrivestohavetherightnumberandtherightkindofpeopleatthe right places, at the right time, to do things which result in both the organization and the individual receivingthemaximumlongrangebenefit". AccordingtoWickstrom,HumanresourcePlanningconsistsofaseriesofactivities,viz.

a. Forecastingfuturemanpowerrequirements,eitherintermsofmathematicalprojectionsoftrendsin theeconomicenvironmentanddevelopmentinindustry,orintermsofjudgemental estimates baseduponthespecificfutureplansofacompany b. Makinganinventory ofpresent manpower resourcesandassessingtheextentto whichthese resourcesareemployed/optimally c. Anticipatingmanpowerproblemsbyprojectingpresentresourcesintothefutureandcomparing them with the forecast of requirements to determine their adequacy, both quantitatively and qualitativelyand d. Planning the necessary programmes of requirement selection, training, development, utilization, transfer, promotion, motivation and compensation to ensure that future manpower requirementsareproperlymet. Thus,it will be notedthat'manpowerplanning consistsinprojecting future manpower requirements anddevelopingmanpowerplansfortheimplementationoftheprojections'.

SelfAssessmentQuestionsI 1. Throughplanning,amanagementstrivestohavetherightnumberandtheright kindofpeopleattherightplaces,attherighttime,todothingswhichresultinboth the________________________________receivingthemaximumlongrange 2. Anticipatingmanpowerproblemsbyprojectingpresentresourcesintothefuture andcomparingthemwiththeforecast ofrequirementstodeterminetheiradequacy, both______________________________________. 3. Manpowerplanningconsistsin_________________________________and developingmanpowerplansfortheimplementationoftheprojections' 3.3.NeedforHumanResourcePlanning
Human Resource Planning is deemed necessary for all organizations for one or the other of the followingreasons: 1. To carry on its work, each organization needs personnel with the necessary qualifications, skills, knowledge, work experienceand aptitude for work. These are provided through effective manpowerplanning. 2. Sincealargenumberofpersonshavetobereplacedwho havegrownold,orwhoretire,die or become incapacitated because of physical or mental ailments, there is a constant need for replacingsuchpersonnel.Otherwise,theworkwould suffer. 3. Human Resource Planning is essential because of frequent labour turnover which is unavoidable and even beneficial because it arises from factors which are socially and economicallysoundsuchasvoluntaryquits,discharges,marriage,promotionsorfactorssuchas seasonal and cyclical fluctuations in business which cause a constant ebb and flow in the workforceinmanyorganizations.

4. In order to meet the needs of expansion programmes which become necessary because of increase in the demand for goods and services by a growing population, a rising standard of living whichcallsforlargerquantitiesofthesamegoodsandservicesasalsofornewgoods thecompetitivepositionofafirmwhichbringsinmorebusinessarisingfromimprovements effected in the slump period and the rate of growth of the organization), Human Resource Planningisunavoidable. The nature of the present workforce in relation to its changing needs also necessitates the recruitmentofnewlabour.Tomeetthechallengeofanewandchangingtechnologyandnew techniques of production, existing employees need to be trained or new blood injected in an organization. 5. Manpower planning is also needed in order to identify areas of surplus personnel or areas in whichthereisashortageofpersonnel.Ifthereisasurplus,itcanberedeployedandifthereis shortage,itmaybemadegood.

SelfAssessmentQuestionsII
1. HumanResourcePlanningisessentialbecauseoffrequent

_______________whichisunavoidableandevenbeneficial 2. ManpowerPlanningisrequiredinordertomeettheneedsofexpansion programmeswhich becomenecessarybecauseofincreaseinthedemandfor goodsandservices_____________________,arisingstandardofliving 3. Manpowerplanningisalsoneededinordertoidentifyareasof____________ personnelorareasinwhichthereisa__________ofpersonnel.

3.4.ProcessofHumanResourcePlanning
The process of Human Resource Planning is one of the most crucial, complex and continuing managerial functions which, according to the Tata Electrical Locomotive Company, "embraces organizationdevelopment,managementdevelopment,careerplanningand successionplanning". Itmayberightlyregardedasamultistepprocess,includingvariousissues,suchas: 1. Decidinggoalsorobjectives 2. Estimatingfutureorganisationalstructureandmanpowerrequirements 3. AuditingHumanresources 4. Planningjobrequirementsandjobdescriptionsand 5. Developingahumanresource

HumanResourcePlanningispracticallyusefulatdifferentlevels: i) At the national level, it is generally done by the Government and covers items like population projections, programme of economic development, educational facilities, occupationaldistribution,andgrowth,industrialand geographicalmobility ofpersonnel. ii) Atthesectorlevel,itmaybedonebytheGovernment CentralorStateandmaycover manpowerneedsofagricultural,industrialandservicesector.

iii) Attheindustrylevel,itmaycovermanpowerforecastforspecificindustries,suchasengineering, heavyindustries,consumergoodsindustries,publicutilityindustries,etc. iv) Attheleveloftheindividualunit,itmayrelatetoitsmanpowerneeds forvariousdepartments andforvarioustypesofpersonnel.

SelfAssessmentQuestionsIII

Matchthefollowing
1.

It

is

generally

done

by

the

a) Attheindustrylevel,

Government and covers items like population projections, programme of economic development, educational c) At the level of the b) Atthesectorlevel

facilities, occupational distribution, and growth, industrial and geographical

individualunit,

mobility ofpersonnel.
2.

ItmaybedonebytheGovernment Central or State and may cover manpower needs of agricultural,industrial andservicesector.

d) Atthenationallevel,

3.

It may cover manpower forecast for specific industries, such as engineering, heavy industries, consumer goods

industries,publicutilityindustries,etc.
4.

Itmayrelatetoitsmanpowerneedsfor variousdepartmentsandforvarioustypes of personnel.

3.5. HumanResourcePlanningSystem
A. Objectives of Human Resource Planning: Human Resource Planning fulfils individual, organizationalandnationalgoalsbut,accordingtoSikula,"theultimatemissionorpurposeisto relatefuturehumanresourcestofutureenterpriseneeds,soastomaximisethefuturereturnon investmentinhumanresources.Ineffect,themainpurposeisoneofmatchingorfittingemployee abilitiestoenterpriserequirements,withanemphasisonfutureinsteadofpresentarrangements." Theobjectivesmaybelaiddownforashortterm(i.e.foroneyear). B. Estimating the Future Organizational Structure or Forecasting

theManpowerRequirements:Themanagementmustestimate thestructureoftheorganizationata given point in time. For this estimate, the number and type of employees needed have to be determined. Many environmental factors affect this determination. They include business forecasts, expansion and growth, design and structural changes, management philosophy, governmentpolicy,productandhumanskillsmix,andcompetition. Forecasting provides the basic premises on which the manpower planning is built. Forecastingisnecessaryforvariousreasons,suchas: a) Theeventualitiesandcontingencies ofgeneraleconomicbusiness cycles (suchasinflation, wages,prices,costsandrawmaterialsupplies)haveaninfluenceontheshortrangeandlong runplansofallorganizations. b) An expansion following enlargement and growth in business involves the use of additionalmachineryandpersonnel,andareallocationoffacilities,allofwhichcallfor advanceplanningofhumanresources. c) Changesinmanagementphilosophiesandleadershipstyles. d) Theuseofmechanicaltechnology(suchastheintroductionofautomaticcontrols,orthe mechanization of materials handling functions) necessitates changes in the skills of workers,aswellasachangeinthenumberofemployeesneeded. e) Veryoften, changesinthequantityorqualityofproductsorservicesrequireachangeinthe organizationstructure. Planshavetobemadeforthispurposeaswell. C. AuditingHumanResources:Oncethefuturehumanresourceneedsareestimated,thenextstepis todeterminethepresentsupplyofmanpowerresources.Thisisdonethroughwhatiscalled"Skills Inventory". A skills inventory contains data about each employee's skills, abilities, work preferencesandotheritemsofinformationwhichindicatehisoverallvaluetothecompany. D. Job Analysis: After having decided how many persons would be needed, it is necessary to prepare a job analysis, which records details of training, skills, qualification, abilities, experience and responsibilities, etc., which are needed for a job. Job analysis includes the preparationofjobdescriptionsandjobspecifications. E. DevelopingaHumanResourcePlan:Thisstepreferstothedevelopmentandimplementationof thehumanresourceplan,whichconsistsinfindingoutthesourcesoflaboursupplywith aviewto

makinganeffectiveuseofthesesources.Thefirstthing,therefore,istodecideonthepolicy should the, personnel be hired from within through promotional channels or should it be obtainedfromanoutsidesource.Thebestpolicy whichisfollowedbymostorganizations isto fill up highervacanciesbypromotionandlowerlevelpositionsbyrecruitmentfromthe labourmarket.

SelfAssessmentQuestionsIV
1. _________________providesthebasicpremisesonwhichthemanpower planningisbuilt. 2. An expansion following enlargement and growth in business involvesthe use of additional machinery and personnel, and a reallocation of facilities, all of whichcallfor______________ofhumanresources. 3. A_________________ containsdataabouteachemployee'sskills,abilities,work preferencesandotheritemsofinformationwhichindicatehisoverallvaluetothe company.

3.6. ResponsibilityforHumanResourcePlanning
TheresponsibilitiesofthePersonnelDepartmentinregardtomanpowerplanninghavebeenstated byGeislerinthefollowing words: i) Toassist,counselandpressurisetheoperatingmanagementtoplanandestablishobjectives ii) Tocollectandsummarisedataintotalorganizationaltermsandtoensureconsistencywithlong rangeobjectivesandotherelementsofthetotalbusinessplan iii) To monitor and measure performance against the plan and keep the top management informed aboutitand iv) Toprovidetheresearchnecessaryforeffectivemanpowerandorganizationalplanning.

SelfAssessmentQuestionsV TheresponsibilityforsoundHRPis... i) To _________________________the operating management to plan and establish objectives ii) To __________________________in total organizational terms and to ensure consistencywithlongrangeobjectivesandotherelementsofthetotalbusinessplan iii) To ___________________________against the plan and keep the top management informedaboutitand iv) To ____________________________for effective manpower and organizational planning

3.7.Summary:
Through planning, a management strives to have the right number and the right kinds of peopleattherightplaces,attherighttime,todothingswhichresultinboththeorganization andthe individualreceivingthemaximumlongrangebenefit. Manpower planning consists in projecting future manpower requirements and developing manpowerplansfortheimplementationoftheprojections. Tocarryonits work,eachorganizationneedspersonnelwiththenecessaryqualifications, skills,knowledge,workexperience andaptitudeforwork. HumanResourcePlanningisessentialbecauseoffrequentlabourturnover. Manpowerplanningisalsoneededinordertoidentifyareasofsurpluspersonnelorareasin

whichthereisashortageof personnel. TheprocessofHumanResourcePlanningembraces organizationdevelopment, management development,careerplanningand successionplanning".

3.8.TerminalQuestions
1. DefineManPowerPlanning.DiscusstheneedforMan PowerPlanning 2. DescribetheprocessofHumanResourcePlanning. 3. Whatarethevarioussourcesofrecruitment?

3.9.Answersto SAQsandTQs 1. Referto2.1&2.2 2. Referto2.3 3. Referto2.9

SelfAssessmentQuestionsI
1organization and the individual, 2 quantitativelyand qualitatively, 3 projecting future manpower requirements

SelfAssessmentQuestionsII 1Labourturnover,2byagrowingpopulation,3surplus,shortage SelfAssessmentQuestionsIII 1d,2b,3a,4c SelfAssessmentQuestionsIV 1Forecasting,2advanceplanning,3skillsinventory SelfAssessmentQuestionsV 1 assist, counsel and pressurise, 2 collect and summarise data, 3 monitor and measure
performance,4 providetheresearchnecessary