Human Resource planning concept

1. Human Resources Planning
= Resources

2. Definition :
• Process by which an organization ensures
that it has the right number & right kind of
people at the right place and at the right
time, capable of effectively and efficiently
completing those tasks that help the
organisation achieve its overall objectives..

3. Human resource planning is a decision making process
that combines three important activities
• (1) identifying and acquiring the right number of
people with the proper skills,
• (2) motivating them to achieve high
performance, and
• (3) creating interactive links between business
objectives and resource planning activities.

4. • In simple words HRP is understood as the
process of forecasting an organisation’s future
human resource demand for, and supply to meet
the objectives such as the right type of people in
the right number. After this process only the
HRM department can initiate recruitment and
selection process.

5. Importance
 1) Each Organisation needs personnel with
necessary qualifications, skills, knowledge,
experience & aptitude .
 2) Need for Replacement of Personnel - Replacing
old, retired or disabled personnel.
 3) Meet manpower shortages due to labour
turnover - Indian Airlines, Gas Authority of India
headless for 10 months.

6. 4) Meet needs of expansion / downsizing programmes - As a
result of expansion of IT companies the demand for IT
professionals are increasing. PSU’s offering VRS to employees to
retrench staff and labour costs. DOT.COMs firing staff.
5) Cater to Future Personnel Needs - Avoid surplus or
deficiency of labour.
75% of organisations are overstaffed. Redeployment of staff
to other units.

7. Need for planning
• The need for planning arises mostly due to the
fact that modern organisations have to survive,
operate and grow in highly competitive market
economics where change is the order of the day.
The change may be either revolutionary
(sudden) or evolutionary (slow).

8. • According to Megginson,
“to have an organisation that looks forward to the
future and tries to stay alive and prosper in a
changing world, there must be active, vigorous,
continuous and creative planning”.
• Thus, there is a greater need for planning in order to
keep the organization dynamic in a changing situation of
uncertainty.

9. • More specifically, HRP is required to meet following
objectives:
1) Forecast HR requirement.
2) Cope-up with the change — in market conditions,
technologies, products,
government regulations and policies, etc.
3) Use existing HR productivity.
4) Promote employees in a systematic manner.

10. If used properly, it offers a number of benefits:
1) Create reservoir of talent.
2) Prepares people for future.
3) Expand or contract.
4) Cut cost.
5) Succession planning.

11. HR Demand Forecast
process of estimating future quantity and quality of
manpower required for an organisation.
External factors - competition, laws &
regulation, economic climate, changes in
technology and social factors
Internal factors - budget constraints,
production levels, new products & services,
organisational structure & employee separations

12. HR Plan Implementation
Recruitment, Selection & Placement
Training & Development
Retraining & Redeployment
Retention Plan
Downsizing Plan