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Human Resource Planning

Human Resource Planning is the planning of Human Resources. It is also called

manpower planning/ personnel planning/ employment planning. It is only after
Human Resource Planning that the Human Resource department can initiate the
recruitment and selection process. Therefore Human Resource Planning is a sub-
system of organisational planning.

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½eatures of Human Resource Planning

Ô.c It is future oriented: It involves forecasting the manpower needs for a future
period so that adequate and timely provisions may be made to meet the
needs.
2.c It is a continuous process: Human Resource Planning has to be reviewed
according to the needs of the organisation and changing environment.
3.c Integral part of Corporate Planning: - Manpower planning is an integral part
of corporate planning because without a corporate plan there can be no
manpower planning.

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c Vptimum utilisation of resources: - The basic purpose of Human Resource

Planning is to make optimum utilisation of organisation¶s current and future
human resources
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Objectives of Human Resource Planning

Ô.c Vptimum utilisation of human resources currently employed in the
organisation.
2.c To reduce imbalance in distribution and allocation of manpower in
organisation for various activities.
3.c To ensure that the organisation is well-equipped with the required Muantity
and Muality of manpower on a sustained basis.

c To anticipate the impact of technology on jobs and resources
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ëeed for Human Resource Planning

Ô.c whortage of wkills: Non-availability of skilled people when and where they
are needed is an important factor which prompts sound Human Resource
Planning.
2.c Frequent Labour Turnover: Labour turnover arises because of discharges,
marriages, promotion, transfer etc which causes a constant ebb and flow in
the workforce in the organisation.
3.c Changing needs of technology: - Due to changes in technology and new
techniques of production, existing employees need to be trained or new
blood injected into an organisation.
4.c Changes in organisation design and structure: - Due to changes in
organisation structure and design we need to plan the required human
resources right from the beginning.

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Process of Human Resource Planning

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Ô Analysing the Corporate Level wtrategies: - Human Resource Planning should

start with analysing corporate level strategies which include expansion,
diversification, mergers, acquisitions, reduction in operations, technology to be
used, method of production etc.

2. Demand forecasting: - Forecasting the overall human resource requirement in

accordance with the organisational plans is one of the key aspects of demand
forecasting.

3. Analysing Human Resource wupply: - Every organisation has two sources of

supply of Human Resources: Internal & External. Internally, human resources can
be obtained for certain posts through promotions and transfers

4.Estimating manpower gaps: - Manpower gaps can be identified by comparing

demand and supply forecasts. wuch comparison will reveal either deficit or surplus
of Human Resources in the future. Deficit suggests the number of persons to be

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recruited from outside, whereas surplus implies redundant employees to be re-

deployed or terminated.

5. Action Planning: - Vnce the manpower gaps are identified, plans are prepared to
bridge these gaps. Plans to meet the surplus manpower may be redeployment in
other departments and retrenchment.

6. Modify the Vrganisational plans: - If future supply of human resources form all
the external sources is estimated to be inadequate or less than the requirement, the
manpower planner has to suggest to the management regarding the alterations or
modifications in the organisational plans.

7. Controlling and Review: - After the action plans are implemented, human
resource structure and the processes should be controlled and reviewed with a view
to keep them in accordance with action plans.