HRP- Human Resource Planning

Human Resource Planning: Human Resource planning is the process of including

forecasting, developing and controlling by which a firm ensures that it has the right number
of people & the right kind of people at the right place at the right time doing work for which
they are economically most useful.

Here,
Forecasting would be two types. They are:
1. Demand forecasting
i. Internal demand: Here, I have to know perfectly how many people I
need to hire for BFL & which position and when I will need new
employees.
ii. External demand: Here, I have to go to the market and have to know
what’s the demand for those employee positions.
2. Supply forecasting
i. Internal supply: Recruiting employees from the organization by
promotion or shifting the department and so on.
ii. External supply: Hiring employees from the market through LinkedIn,
bdjobs, social media and many more options is there for me.

Development: Development means training employees time to time. As an HR, I have to

arrange training and development programs so that they can work conveniently.
Controlling: It means evaluating employees during work, are they standard or not through
performance appraisal. Performance appraisal are made quarterly, half yearly, yearly.
We ensure here 4 things.
1. Right number of people to run my business
2. Right kind of people who have knowledge, skills, abilities and so on.
3. Right place or position for those employees
4. Right time – Time frame of work and planning’s

Lastly, in light of the organization’s objectives, corporate & business level strategies, HRP is
the process of analyzing an organization’s human resource needs & developing plans,
policies & systems to satisfy those needs.

PPs – Personal Policies

Personal policies are planned expression of the company’s official attitudes toward the
range of behavior within which it will permit or desire its employees to act. It means what
type of behavior I will display in the work, what would be my attitudes with whom I will
work everything will be on the policy.

Five essential elements

1. Analyze the current human resource: We have to analyze the current manpower. I
have to know the current employees’ knowledge, experience, attitudes and so on.
 2. Reviewing employee utilization: Are these employees working or serving by giving
their 100% effort or not. The people I have in BFL, are they being utilized perfectly or
not.
3. Forecast the demand for employees: How many people I need based on our existing
employees.
4. Forecasting supply: It involves with internal and external supply.
a. Internal supply: Recruiting employees from the organization by promotion or
shifting the department and so on.
b. External supply: Hiring employees from the market through LinkedIn, bdjobs,
social media and many more options is there for me.
5. Developing an HRP: After reviewing the four above elements now I have to develop a
human resource planning.

Why HRP/ Why HRP necessary

1. Replacement of persons: In a business we require to replace employees. Here, one is

voluntary, he or she left the company on their own after two or three years later.
Someone turned 65years so he retired. In the HRP, it’s also necessary to budget their
gratuity & retirement pensions. Sometimes we terminate employees, there we need
replacement of him or her. Ex: I need to calculate past 5 years data of entry level,
mid-level to find out the leaving rate
2. Explanation plan: I need to justify why I need to replace or hire new employees.
3. Technological changes: Technological requirements & advancement demands more
skillful employees. So that they can work perfectly with the advanced technology. It's
very necessary to achieve the organizations objective.
4. Assessing needs: The demographic imperative demands more such planning. It
means the characteristics of our population. Ex: Age, sex, religious and so on. Our life
expectancy increased to 72+ years accordingly National Statistics Bureau (NSB).
Senior citizens or employees have more experience, so we need to assess their need
and keep them for the organizations well-being. Moreover, we have to revise the
retirement plan here.
Another one Demographic dividend which means workable population or class is
also important here. According to UNFPA, working class is 14 to 64 age. Bangladeshi
is crossing demographic dividend. It's a positive characteristic of marketplace and
population. If we can use it, we can change the economic landscape of Bangladesh.
5. Training becomes effective: If we have HRP our training would be effective. Training
help the employees to gather knowledge related to their jobs. Moreover, developing
managers related with educational growth, practical work experience, maturity,
attitudes, communication skills, leadership quality and so on.
6. Increase service quality, reduce operating cost & increase return on assets: If we
have planning training would be effective. Money sped will be efficient and quality of
service will be ensured. The operating cost would be minimized, cost of goods sold
will be reduced & return on asset will be increased.
HRP & its characteristic features:

1. Systematic approach: A good policy instruct us to follow a good and perfect policy to
run an organization. We must follow framework and suggested guideline. We can't
take any decision instantly without proper planning. We need to do HRP on two
aspects, one is qualitative, and the other is quantitively. Ex: I am assuming I need 20
employees and instructed to hire 15 instantly without any proper plan that where I
need in which position. It's not a systematic approach. Here I need to know when
where and how many people I need temporary, permanent or casual.
2. Continuity of process: We make HRP for long term at least for 5 years. But the policy
we have developed should be revised time to time continuously. If require next day
morning we need to modify when the market changes. Ex: During Covid-19 we
shifted to online business and remote work from home over night. Here we require
technology related human resources who have these specific skills.
3. Flexibility: Continuity of the process is required. It has to be flexible so that I can
address the market needs and changing circumstances in our policy.

HRP limitations & problems:

1. Limitations of forecasting: Forecasting mainly two types. One is demand forecasting

& another is supply forecasting. After crafting human resource policies, there are
limitations and problems. Limitations of forecasting is important here.
Grameenphone engaged most brilliant boys and girls to design the HRP. They
designed and forecasted that they require around 1500 employees between 2018-
2025. But the changing environment would require more cautious figure. Ex: Covid-
19 stopped us to move on 5G network. There was a plan to launch 5G in 2020. But
because of Covid-19 we lack behind. We have to train and develop who will work on
5G network than we can go for 5g on 2021-2022, now it’s our forecasting. But with
this 1500 people we can't cater 100% 5G. Here, we require to recruit and select new
people. Here we have to modify the policy.
2. Employer’s & Employees’ traditional bias & apathy: In Bangladesh we have many
first-generation employers who started their business early. They have
understanding that if they plan something, they will require more manpower and
that will be expensive. It’s a traditional bias & apathy of the employer.
On the contrary, employees have some traditional bias & apathy. In order to prepare
HRP in an organization, as an employee I require full devotion, passions, huge study,
robust process needs to be followed. I require a team to work for me. It's time
consuming & expensive. Employees who are tricky, they don’t like to engage in this
particular process. Moreover, employees change their job to develop their career
and experience. We see employees also in different lethargy to participate in the
policy making process.
3. Resistance from employees: An HR manager may face resistance from employees
but its not a negative word in business. Resistance is a natural phenomenon in
human. When we introduce any new things, technology or policies in the business
employees resist it. Ex: During Covid-19, we changed the working hour for bakery
kitchen employees and lunch was prepared inhouse for them. They resist it
 complaining the food is not good and so on. Moreover, when we shifted our work
online basis such as monitoring all work from home, arranging meetings through
Zoom, many employees made different complain and excuses to work. They often
thought that it may cut their job and manpower will be reduced.
When we introduced new policies, there was a fear in them. They complaint that it
may harm their job work. But its natural in business when we make human resource
planning for them.
4. Incidence of absenteeism- A stumbling block in HR planning: When we plan to offer
training and development for the employees regarding particular software. Such as
3S software what we use to keep record and generate sales report in our restaurant,
when we asked 10 employees to join the training program only 4 employees joined
the program. There is a incidence of absenteeism and it’s a stumbling block in
Human Resource Planning.
5. Literacy & paucity of skilled labor – It is a serious problem of HR planning. We won’t
get right skilled people in Bangladesh when we want. Ex: I am opening a branch of
our restaurant in Uttara, I can hire employees because if I want 10 employees, 100
people will apply for that position. There we can select the right skilled employees to
run the business. On the contrary, I planned to go for diamond business and my
consumer will be from America, Australia. I require diamond cutting specialist,
cutting specialist and so on and gave circular everywhere as needed. The interview
venue is in Westeen Hotel, but people won’t come for interview. Because there is a
illiteracy and paucity of skilled labour in this market.
6. Expensive & time consuming: In order to prepare Human Resource Planning, we
need huge time because most of the plan we make is for long run and it should be
revised before implementation. So, it’s time consuming and expensive. That’s why
we suggest small organizations to copy other company’s HR policies. On the contrary
we request mid to big organizations to prepare their own Human Resource Planning.

HRP: Influencing Factors:/ what are the influencing factors of HRP? Discuss with examples.

Internal Environment: Under internal environment we have four factors to consider. They
are:

1. Top management’s support & acceptability: In order to design human resource

planning and policy, we require top managements support and acceptability. Such as
Head of the department, CEO, Board of the Directors have to support the plan and
policy. They must accept the proposal to design human resource planning of the
organization. They have to support with time, people and money. They have to
accept the proposal neither we can't design.
2. Changes in the company’s policies & strategies: In the business sometimes, we
require to change the policy and strategy. Ex: In 2013, Aarong decided to go for
online sale. In person & online are two different business model and policy. To cater
online sale we require separate warehouse, distribution channel, product design,
availability of the product, customer care, online purchase security and so on. They
have to recruit and select employees for online business. To make it successful we
need to change the policy and strategy which would be different from showroom
sales.
 3. Time horizons: The policy I am developing, I have to keep in mind that is it for long
term or short term. Sometimes we require to prepare for long term, sometimes we
require to prepare it for short term and sometimes we require to prepare it for both.
Ex: Abdul Monem Limited got the contact to construct over bridge. The project
timeline is 3 year and budget was 50 corers. HR was instructed to find out how many
people they require over the 3 years to complete the project. HR then prepared
policy stating, this kind of people you require for 3 months, this kind of people you
require for 1 year and so on. HR will give a short-term plan in order to complete that
particular over bridge.
Moreover, Crown cement got the contract of supply cement for Padma bridge. They
have to supply 1000 metric tons of cement per month for 3 years. Their current 5
production units are not sufficient to supply that 1000 metric tons. They have to
build one more production unit. HR prepared a plan that they need 200 labor to
construct unit 6 within 3 months. Another plan the HR gave to run the unit 6 they
require 80 employees. Here, the HR gave two plans for long term as well as short
term.
4. Layout of equipment's: Before designing manpower requirement we need to think
about the existing equipment, machineries and infrastructure. Ex: Novo air has
decided to buy two aircrafts. They instructed to the HR department to hire
employees such as pilot, cabin crew, engineers and so on based on that two aircrafts.
HR have to select employee who have experience on that particular aircraft. Here,
layout of equipment is so important. Specially, on RMG sector employees need to be
hired who have experience to run particular machine.

External Environment:

1. Social factors: Social factors are so important which influence the Human resource
planning.
i. Labour supply and demand: The people I require what about its
supply in the market I have to know that. If the supply is more than I
have to pay less. On the contrary if the supply is less than I have to
pay more compensation to recruit employees.
ii. Local and regional unemployment trends: The area I have selected to
do business, what about the people and unemployment rate of that
particular locality I have to know. Ex: RMG sector is popular for Savar,
Tongi, Gazipur, Narayanganj and so on. If we give a circular in this
area, it’s easy to get people.
iii. Competitors activities
2. Political factors: Political factors are also very important in terms of regulatory
issues, acts, rules, regulations and so on. Because when we will start a business all
this will be applicable on the business. Government directions are very important
here.
3. Economic factors: Bank interest rate is a factor here. Inflation and purchasing power
needs to be keep in mind. People should have the purchasing power to buy that
product.
4. Level of technology: here we need to know what about our use of technology and
where we are in technological advancement. Based on this we have to prepare our
 human resource policy. Ex: In RMG sector Cobots have been introduced. 1 lakh
people is losing their job who don’t have particular skills& 2 lakh people is getting job
who have particular skills.
5. Governments policies: Here, we need to understand government policy regarding on
the business industry. For Bangladesh, industrial policy is available in ministry of
industry website. That policy will guide us to know the government ’s view of that
particular industry.
6. International factors: International factors influence the HRP. Ex: After rana plaza
incident, North America, Europe they formed two organizations Accord and Alliance.
They worked from 2014-2019 to standardized health and safety practices,
compliances of Bangladeshi RMG’s. Now, every RMG’s have compliances officer. The
RMG have to be certified by Accord and Alliance neither buyer won’t buy the
product. In order to be compliant, we have changed manpower requirement,
training, development, management process and so on.
7. ‘Sons of the soil’ issue: It's very important issue when we start new factory. When
we start a business in a particular area local people will approach us to hire them. It’s
wise to appoint few of them. One of the reasons is they know the environment. They
can immediately start working. Second is we can give them low wage. Thirdly, we
don’t require to provide housing facility. Fourth. We can use their knowledge to
sustain in that particular locality. There are some limitations also. They can create
problem in the organization. They can do politics to gain more facilities from the
company.

Formulating HRP: To update the existing policy, we need to follow several steps by which we
can get know from where we should start.

1. Gathering Information: For any company at first, we have to gather following

information's.
i. Labor legislation: Gathering information means employee related legislation
which are available in the market and prescribed and instructed by the
government. Here, for us most important is Labor Act 2006, amended in 2013
and 2018. We must collect companies act, factories act, shop opening and
closing hours which are applicable to our marketplace and corporate work.
ii. Social values & customs: Beyond compliance, act, rules and regulations we
must consider a countries or communities, locality’s, districts values and
customs. Ex: In Bangladesh we give a break from 1-2 pm to the employees for
prayer and lunch. Bangladesh is a Muslim country that’s why we allow our
employees prayer break. It’s considering the social values and customs.
iii. Employee aspirations: The policies we have developed it supposed to be a
great source of aspiration and motivation for our employees. People should
love that policy and consider a part of that policy.
2. Environment study: We have to do environmental study. Here, we have to keep in
mind that the environment of that locality has to be supportive. We need to consider
in mind that how the employees will get to work safely during bad weather.
3. Examination of alternative policies: The policy we are developing and if we don’t
implement this one, do we have other alternative policies or not. If we have other
 alternative policies than we need to compare which one would be the better for
implement.
4. Getting approval of proposed policies: the proposed policies should be approved by
CEO, Board of The Directors and Head of The Department.
5. Adopting & launching policy: Officially making an event, adopt and launching the
policy Infront of the employees and make it available to everyone.
6. Appraising the policy: The policy needs to be revised after a certain time though it’s a
5 or 7 years policy. When any change occurs in the market, should we require to do
something or not.