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Nature of Course: Specialization HRM

Subject: Human Resource Planning and Development


Credit Hours: 3
Course Code: HR 531
Prakash K Shrestha
M Phil, MBA, MA Sociology, MPA
The objective of this course is to develop a conceptual and advance understanding
of human resource planning and career development.
Unit I: Introduction
Concept and objectives of HRP, Types of HR plan, Factors affecting HRP,
Approaches- Social Demand Approach, Rate of Return Approach and Manpower
Requirement Approach,
Qualitative and quantitative dimensions of HRP,
Labor market behavior and its impact on HRP,
Analysis of performance and productivity,
Micro and macro HRP,
Labor economics.
Managers must find ways to get the highest level of contribution from their workers.
And they will not be able to do that unless they are aware of the many ways that
their under-standing of diversity relates to how well, or how poorly, people
contribute.
R. Roosevelt Thomas Jr.,
HRM ?
The process of attracting, developing and maintaining a talented and energetic
workforce to support organisational mission, objectives and strategies.
A distinctive approach to employment management which seeks to achieve
competitive advantage through the strategic deployment of a highly committed and
capable workforce, using an integrated array of cultural, structural and personnel
techniques.
PRINCIPLES OF HRM
Strategic integration
Organisational flexibility
Commitment
Quality.
1.1Concept and objectives of HRP
Concept of HRP
Like corporate and strategic managers, human resource professionals have a role to
play in the sustainability of an organization.

One way they do this is by ensuring that the organization is appropriately staffed
and that those staff are able to contribute to corporate success.

Process of determining human resource needs of an organization and ensuring that


the organization has the right number of qualified people in the right jobs at the
right time.
Also referred to as workforce planning or personnel planning
It is the system of matching the supply of peopleinternally (existing employees)
and externally (those to be hired or searched for)with openings the organization
expects to have over a given time frame
Human resource planning is probably one of the most critical elements in linking the
work of the human resources function to the business goals of the company.
Human resources planning in the broadest sense includes both strategic and
operational human resource planning as a continuous process rather than an
activity limited to a fixed segment of the business planning process.
HRP is a sub-system of total organizational planning.
HRP facilitates the realization of the companys objectives for the future by
providing the right type and number of personnel
Human resource planning involves
analyzing current human resource capacity;
forecasting human resource needs and
identifying any gaps between the two.

HRP ensures that the organization has:


Right Number
Right Kind
Right Place
Right Time
HRP is a process of analyzing and identifying the need for and availability of human
resources (HR) so that organization can meet its objectives.

Defining HR Planning
Strategy Oriented DEFINITION
A strategy for the acquisition, utilization, improvement & retention of an
organizations human resources

AIMS of HRP:
to ensure the optimum use of the people currently employed
to provide for the future staffing needs of the organization in terms of skills,
number, & ages of people
HRP establish control: planner work as a policeman who checks whether staffing
levels are optimum

Process Oriented DEFINITION


HRP is as a continuous process of analyzing an organizations HR needs under the
changing conditions & developing the activities necessary to satisfy these needs
like staffing, recruitment, selection, training, etc.
Process aimed at assisting management to determine how the organization should
move from its current staffing position to its desired staffing position.

Objective of HRP
To integrate human resource activities into the business (vertical integration)
To integrate human resource activities with each other (horizontal integration)
To strengthen control over staff numbers and costs and to determine whether
growth or reductions are necessary.
To profile current levels and attributes of staff
To identify the need for training and development.
1.2 Types of HR Plan
HR plan is carried out at four levels/types
1. National HR plan
Forecasting of demand for and supply of HR for the country as a whole.
Following factors are considered;
Population projection
Economic Development Program
Educational facilities
Mobility of people
Population Distribution etc.

The National Government uses following policies to match HR demand and supply
in the country/
Population policy
Education policy
Migration policy etc.

2. Sectoral HR plan
HR plan for particular sector such as;
Agricultural sector
Industrial sector
Tertiary sector etc.
3. Industry level HR plan
4. Firm level HR plan
Short term HR planning
Long term HR planning
1.3 Factors affecting HRP
HR Demand
HR Supply
Essentials of HR
Nature of Labor Market
Labor Economy
Technology
Labor politics
1.4 Approaches of HR planning

Social Demand Approach,


Rate of Return Approach and
Manpower Requirement Approach.

1.5 HRP Dimension


Qualitative Dimension
Quantitative Dimension
1.6 Labor Market Behavior and its impact on HRP
A labor market can be understood as the mechanism through which human labor is
bought and sold as a commodity and the means by which labor demand (the
number and type of available jobs) is matched with labor supply (the number and
type of available workers).
As such, the labor market constitutes the systematic relationship that exists
between workers and work organizations
Two type of labor market-Internal and External Labor Market.
The Internal Labor Market
The mechanism by which existing employees are attributed particular roles within a
firm.
An organization's internal labor market is reflective of a number of HR policy
emphases
the level of investment in employee training and development,

the availability of career development opportunities and


the extent to which employee retention and job security are prioritized.
The external labor market;
The external labor market represents its external supply or available stock of labor.
A firms external labor market can be local, regional, national or international and
many larger organizations will operate in all of these depending on the type of labor
sought and its relative scarcity.
Elements of ELM are;
1. Unemployment -People that are out of work but actively seeking employment,
particularly those unemployed over a long period, tell us a great deal about the
operation of the labor market.
The unemployed or surplus labor in any given market plays a role in determining
the cost of employed labor, the terms under which it is engaged and the extent of
industrial conflict.
Where there is a large surplus of labor then this will result in greater competition for
jobs, a downward pressure on wages and conditions.

2. Labor market change ;


Change in labor supply and labor demand .
Factors shaping the labor supply are ;
I. Changing societal attitudes to work and education (for example, increased
acceptance of female participation in the labor market, desire for worklife
balance) .
II. Economic conditions (regional, national and international)
Level of unemployment
Interest rates, inflation and exchange rates and their impact on the cost of living
(for example, rising house prices has meant increasing numbers of families where
both parents work)
III. Changing demography
For example, falling birth rates, the extent of workforce gendering, life expectancy
and associated changes to retirement ages.
Migration (and the impact of international agreements on the movement of labor) .
IV. Government policy
Employment regulation
Level and focus of investment in education and training
Industrial policy .
1.7 Labor Economics

Labor economics studies the activities in/of labor markets- the demand and supply
of human resource as the important factor of production.
Labor economics include the study of;
the determination of the income distribution,
the economic impact of unions,
the allocation of a workers time to the labor market,
the hiring and firing decisions of firms,
labor market discrimination,
the determinants of unemployment, and
the workers decision to invest in human capital.

Models in labor economics typically contain three actors:


Workers -maximize their well-being
Firms-maximize profits
Governments-influence the decisions of workers and firms by imposing taxes,
granting subsidies, and regulating the rules of the game in the labor market.
Labor policy of government should properly
address the labor economy issues.
1.8 Micro and macro HRP
MACRO HRP
Assessing & forecasting demand for & availability of skills at national / global level
Predict the kinds of skills that will be required in future & compare these with what
is / will be available in the country.
MICRO HRP
Process of forecasting demand for & supply of HR for specific organization.
1.9 Analysis of Performance and
Productivity
Analysis of Performance and Productivity influence HR demand forecasting.
HR demand may change over time due to change in performance(output)level and
productivity (efficiency).
Balance between performance and productivity is a product of ideal type of HR
demand forecasting.

Analysis of Performance
Performance ?- Total outcome achieved after completing the certain effortful
activities.
Depends up on workload, and it may vary as per different categories of job.

Two methods of performance analysis;


Direct method Relationship between workload and worker, is measured by
reviewing past performance.
Indirect method -- Relationship between workload and worker, is estimated on the
basis of past experience.

Analysis of Productivity
Productivity? - is an index that measures output (goods and services) relative to the
input (capital, labor, materials, energy, and other resources) used to produce them.
Concerned with the efficiency and effectiveness with which these goods and
services are produced.
It is usually expressed as the ratio of output to input:
Output
Productivity = --------------Input

Factors Affecting Labor Productivity


Physical work environment
Technology, equipment, materials, lighting, layout
Product quality
Defects, scrap, rework
Employee job performance
Employee ability, motivation

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