MODULE – III

HUMAN RESOURCES PLANNING

Understanding Human Resource Planning

Human resource planning allows companies to plan ahead so they can maintain a steady supply of skilled
employees. That's why it is also referred to as workforce planning. The process is used to help companies
evaluate their needs and to plan ahead to meet those needs.

What Is Human Resource Planning (HRP)?

Human resource planning (HRP) is the continuous process of systematic planning ahead to achieve optimum
use of an organization's most valuable asset—quality employees. Human resources planning ensure the best fit
between employees and jobs while avoiding manpower shortages or surpluses.
 Human resource planning (HRP) is a strategy used by a company to maintain a steady stream of skilled
employees while avoiding employee shortages or surpluses.
 Having a good HRP strategy in place can mean productivity and profitability for a company.
 There are four general steps in the HRP process: identifying the current supply of employees,
determining the future of the workforce, balancing between labor supply and demand, and developing
plans that support the company's goals.
Human resource planning needs to be flexible enough to meet short-term staffing challenges while adapting to
changing conditions in the business environment over the longer term. HRP starts by assessing and auditing the
current capacity of human resources.

Need for HRP

1. Despite growing unemployment, there has been shortage of human resources with required skills,
qualification and capabilities to carry on works. Hence the need for human resource planning.
2. Large numbers of employees, who retire, die, leave organisations, or become incapacitated because of
physical or mental ailments, need to be replaced by the new employees. Human resource planning
ensures smooth supply of workers without interruption.
3. Human resource planning is also essential in the face of marked rise in workforce turnover which is
unavoidable and even beneficial. Voluntary quits, discharges, marriages, promotions and seasonal

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 fluctuations in business are the examples of factors leading to workforce turnover in organisations.
These cause constant ebb and flow in the work force in many organisations.
4. Technological changes and globalisation usher in change in the method of products and distribution of
production and services and in management techniques. These changes may also require a change in the
skills of employees, as well as change in the number of employees required. It is human resource
planning that enables organisations to cope with such changes.
5. Human resource planning is also needed in order to meet the needs of expansion and diversification
programmes of an organisation.
6. The need for human resource planning is also felt in order to identify areas of surplus personnel or areas
in which there is shortage of personnel. Then, in case of surplus personnel, it can be redeployed in other
areas of organisation. Conversely, in case of shortage of personnel, it can be made good by downsizing
the work force.

Important of HRP
Human resource planning is important to organisation because it benefits the organisation in several ways.
 Human resource planning meets the organisation need for right type of people in right number at right
times.
 By maintaining a balance between demand for and supply of human resources, human resource planning
makes optimum use of human resources, on the one hand, and reduces labour cost substantially, on the
other.
 Careful consideration of likely future events, through human resource planning might lead to the
discovery of better means for managing human resources. Thus, foreseeable pitfalls might be avoided.
 Manpower shortfalls and surpluses may be avoided, to a large extent.
 Human resource planning helps the organisation create and develop training and succession planning for
employees and managers. Thus, it provides enough lead time for internal succession of employees to
higher positions through promotions.
 It also provides multiple gains to the employees by way of promotions, increase in emoluments and
other perquisites and fringe benefits.
 Some of the problems of managing change may be foreseen and their consequences mitigated.
Consultations with affected groups and individuals can take place at an early stage in the change
process. This may avoid resistance for change.

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  Human resource planning compels management to asses critically the strength and weaknesses of its
employees and personnel policies on continuous basis and, in turn, take corrective measures to improve
the situation.
 Through human resource planning, duplication of efforts and conflict among efforts can be avoided, on
the one hand, and coordination of worker’s efforts can be improved, on the other.
 Last but no means the least, with increase in skill, knowledge, potentialities, productivity and job
satisfaction, organisation becomes the main beneficiary. Organisation is benefitted in terms of increase
in prosperity/production, growth, development, profit and, thus, an edge over its competitors in the
market.

Objectives of Human Resource Planning

The objective of human resource planning is to ensure the best fit between employees and jobs, while avoiding
manpower shortages or surpluses. Human resource planning is a sub-system of the total organizational
planning. It constitutes an integral part of corporate plan and serves the very purpose of organization in many
ways. The primary purpose of human resource planning is to prepare for the future by reducing organizational
uncertainty in relation to the acquisition, placement, and development of employees. Human resources planning
is done to achieve the optimum use of human resources and to have the right types and correct number of
employees to meet organizational goals.

The main objectives of Human Resource Planning are:

 Achieve Goal: Human Resource Planning helps in achieving individual, Organizational & National
goals. Since Human resource planning is linked with career planning, it can able to achieve individual
goal while achieving organisational and national goal.
 Estimates future organizational structure and Manpower Requirements: Human Resource
Planning is related with number of Personnel required for the future, job-family, age distribution of
employees, qualification & desired experience, salary range etc and thereby determines
future organisation structure.
 Human Resource Audit: Human resource planning process is comprised of estimating the future needs
and determining the present supply of Manpower Resources. Manpower supply analysis is done through
skills inventory. This helps in preventing over staffing as well as under-staffing.
 Job Analysis: The process of studying and collecting information relating to operations and
responsibilities of a specific job is called Job analysis. Job analysis is comprised of job description and
job specification. Job description describes the duties and responsibilities of a particular job in an

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 organized factual way. Job specification specifies minimum acceptable human qualities necessary to
perform a particular job properly.

Problems with Human Resource Planning

 Resistance by Employers: Many employers resist Human Resource Planning as they think that it
increases the cost of manpower for the management. Further, employers feel that Human Resource
Planning is not necessary as candidates will be available as and when required in the country due to the
growing unemployment situation.
 Resistance by Employees: Employees resist Human Resource Planning as it increases the workload on
the employees and prepares programmes for securing human resources mostly from outside.
 Inadequacies in quality of information: Reliable information about the economy, other industries,
labor markets, trends in human resources etc are not easily available. This leads to problems while
planning for human resources in the organisation.
 Uncertainties: Uncertainties are quite common in human resource practices in India due to absenteeism,
seasonal unemployment, labor turnover etc. Further, the uncertainties in the industrial scenario like
technological changes and marketing conditions also cause imperfection in Human Resource Planning.
It is the uncertainties that make Human Resource Planning less reliable.
 Time and expense: Human Resource Planning is a time-consuming and expensive exercise. A good
deal of time and cost are involved in data collection and forecasting.

Challenges of Human Resource Planning

The challenges to HRP include forces that are always changing, such as employees getting sick, getting
promoted or going on vacation. HRP ensures there is the best fit between workers and jobs, avoiding shortages
and surpluses in the employee pool.
To satisfy their objectives, HR managers have to make plans to do the following:
 Find and attract skilled employees.
 Select, train, and reward the best candidates.
 Cope with absences and deal with conflicts.
 Promote employees or let some of them go.

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Factors Affecting Human Resource Planning
There are various factors affecting Human Resource Planning. Human resource Planning is the process of
planning the human resource in the
organisation. HRP is forecasting the
future human resource requirement in
the organisation and planning
accordingly. Hence in this process
there are various factors which affect
the Human Resource Planning. Let us
discuss about the factors affecting
human resource planning.

1. Organizational Growth
Cycle and Planning: Each organisation will be in a certain place in the organisation life cycle. The
organisation growth cycle consist of 5 stages namely Existence, survival, maturity, renewal and decline.
The success of HRP is also depending on the stage of growth cycle in which the organisation presently
prevails. Hence the Human resource department must understand and consider the growth cycle stage of
the organisation which is planning the Human resource planning process.
2. Environmental uncertainties: There are certain things which are out of control for the management
like labor market, economic development of the nation, natural disasters, government policies etc. These
things will also affect the HRP of any organisation.
3. Outsourcing: Now a days it is a trend that many organisation outsource many things to reduce either
cost or time or efforts or all together. Few things that are outsourced popularly are security, canteen,
office assistance, system supporters, Maintenance employees etc. When the HRP is done many a times
there may be fewer clues about the future outsourcing strategy of the organisation. Hence this will also
affect the HRP.
4. Nature of Jobs being filled: The success of HRP is also depending on the nature of the jobs being
filled. The demand and supply, alternative employees and turnover ratio varies from job to job. The time
taken to fill each post is also different. All these also matters a lot and so affect the human resource
planning.
5. Type & Quality of Forecasting Information: As discussed in the beginning HRP is based on the
future forecasting of human requirement of the organisation. The data used to estimate the man power

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 requirement is obtained in various ways. The type of data used and method used to collect such data
decides the quality and reliability of the information collected.
It is also to be noted that the type of data and collection method must be decided on the basis of the
nature of job to be filled, organisation life cycle, previous experiences etc. This is one of the important
factors which will have direct impact on HRP.
6. Time Horizons: Time horizon includes many things like for how many years you are forecasting, HRP
is planned for how many years, how many years data you are using hoe prior you are estimating the
Human resource requirement etc. Hence the organisation must go for a perfect time span which should
not be so lengthy or too short. Data should not be very old. You should not plan very prior or too late.
Much focus must be given to time horizons as it is one of the deciding factor.
7. Type & Strategy of organization: Many a times the organisation needs to consider a change in the
strategy depending upon the market, products, competitor, government policy etc. The type and strategy
of organisation will also affect the HRP in certain cases. Hence HR department must consider all
possibilities before going for man power planning

What is Recruitment?
Recruitment is the process in which
people are offered selection in an
organization. It is when prospective
employees are searched for and are
then encouraged to apply for jobs
within the organization.
This is just one step in the process
of employment however it is a long process that involves a series of tasks, starting with an analysis of the job
requirements and ending with the appointment of the employee. Specific tasks involved in the process
of recruitment include:
 Analyzing job requirements
 Advertising the vacancy
 Attracting candidates to apply for the job
 Managing response
 Scrutinizing applications

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 Shortlisting candidates
Recruitment activities are typically performed by Human Resource practitioners, either internally or
externally. Internal recruitment sources are promotion, transfers, retrenched employees, contact or references,
ex-employees, retired employees, etc. External recruitment sources are recruitment through advertisement,
campus recruitment, recruitment by employee exchanges, recruitment by third parties, internet recruitment,
unsolicited applicants, etc.

What is Selection?
Selection is the process of identifying an individual from a pool of job applicants with the requisite
qualifications and competencies to fill jobs in the organization. This is an HR process that helps differentiate
between qualified and unqualified applicants by applying various techniques.
The term ‘selection’ comes with the connotation of placing the right person in the right job. Selection is the
process in which various strategies are employed to help recruiters decide which applicant is best suited for the
job. Some activities include:
 Screening
 Eliminating unsuitable candidates
 Conducting an examination (aptitude test, intelligence test, performance test, personality test, etc.)
 Interviews
 Checking references
 Medical tests
The selection process is a largely time-consuming step in an employee’s hiring experience. HR managers must
carefully identify the eligibility of every candidate for the post, being careful not to disregard important factors
such as educational qualification, background, age, etc.

Recruitment Process
Recruitment is a process of finding and attracting
the potential resources for filling up the vacant
positions in an organization. It sources the
candidates with the abilities and attitude, which
are required for achieving the objectives of an
organization.
Recruitment process is a process of identifying the

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jobs vacancy, analyzing the job requirements, reviewing applications, screening, shortlisting and selecting the
right candidate. To increase the efficiency of hiring, it is recommended that the HR team of an organization
follows the five best practices (as shown in the following image). These five practices ensure successful
recruitment without any interruptions. In addition, these practices also ensure consistency and compliance in the
recruitment process
Recruitment process is the first step in creating a powerful resource base. The process undergoes a systematic
procedure starting from sourcing the resources to arranging and conducting interviews and finally selecting the
right candidates.

1. Recruitment Planning
Recruitment planning is the first step of the recruitment process, where the vacant positions are analyzed and
described. It includes job specifications and its nature, experience,
qualifications and skills required for the job, etc.
A structured recruitment plan is mandatory to attract potential
candidates from a pool of candidates. The potential candidates
should be qualified, experienced with a capability to take the
responsibilities required to achieve the objectives of the organization

Identifying Vacancy
The first and foremost process of recruitment plan is identifying the vacancy. This process begins with
receiving the requisition for recruitments from different department of the organization to the HR Department,
which contains −
 Number of posts to be filled
 Number of positions
 Duties and responsibilities to be performed
 Qualification and experience required
When a vacancy is identified, it the responsibility of the sourcing manager to ascertain whether the position is
required or not, permanent or temporary, full-time or part-time, etc. These parameters should be evaluated
before commencing recruitment. Proper identifying, planning and evaluating leads to hiring of the right
resource for the team and the organization.

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Job Analysis
Job analysis is a process of identifying, analyzing, and determining the duties, responsibilities, skills, abilities,
and work environment of a specific job. These factors help in identifying what a job demands and what an
employee must possess in performing a job productively.
Job analysis helps in understanding what tasks are important and how to perform them. Its purpose is to
establish and document the job relatedness of employment procedures such as selection, training,
compensation, and performance appraisal.
The following steps are important in analyzing a job −
 Recording and collecting job information
 Accuracy in checking the job information
 Generating job description based on the information
 Determining the skills, knowledge and skills, which are required for the job
The immediate products of job analysis are job descriptions and job specifications.

Job Description
Job description is an important document, which is descriptive in nature and contains the final statement of the
job analysis. This description is very important for a successful recruitment process.
Job description provides information about the scope of job roles, responsibilities and the positioning of the job
in the organization. And this data gives the employer and the organization a clear idea of what an employee
must do to meet the requirement of his job responsibilities.
Job description is generated for fulfilling the following processes −
 Classification and ranking of jobs

 Placing and orientation of new resources

 Promotions and transfers
 Describing the career path
 Future development of work standards

A job description provides information on the following elements −

 Job Title / Job Identification / Organization Position
 Job Location
 Summary of Job
 Job Duties
 Machines, Materials and Equipment

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  Process of Supervision
 Working Conditions
 Health Hazards

Job Specification
Job specification focuses on the specifications of the candidate, whom the HR team is going to hire. The first
step in job specification is preparing the list of all jobs in the organization and its locations. The second step is
to generate the information of each job.
This information about each job in an organization is as follows −
 Physical specifications
 Mental specifications
 Physical features
 Emotional specifications
 Behavioral specifications

A job specification document provides information on the following elements −

 Qualification
 Experiences
 Training and development
 Skills requirements
 Work responsibilities
 Emotional characteristics
 Planning of career

Job Evaluation
Job evaluation is a comparative process of analyzing, assessing, and determining the relative value/worth of a
job in relation to the other jobs in an organization.
The main objective of job evaluation is to analyze and determine which job commands how much pay. There
are several methods such as job grading, job classifications, job ranking, etc., which are involved in job
evaluation. Job evaluation forms the basis for salary and wage negotiations.

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 2. Recruitment Strategy
Recruitment strategy is the second step of the recruitment process, where a strategy is prepared for hiring the
resources. After completing the preparation of job descriptions and job specifications, the next step is to decide
which strategy to adopt for recruiting the potential candidates for the organization.
While preparing a recruitment strategy, the HR team considers the following points −
 Make or buy employees
 Types of recruitment
 Geographical area
 Recruitment sources
The development of a recruitment strategy is a long process, but having a right strategy is mandatory to attract
the right candidates. The steps involved in developing a recruitment strategy include −
 Setting up a board team
 Analyzing HR strategy
 Collection of available data
 Analyzing the collected data
 Setting the recruitment strategy

3. Searching the Right Candidates

Searching is the process of recruitment where the resources are
sourced depending upon the requirement of the job. After the
recruitment strategy is done, the searching of candidates will be
initialized. This process consists of two steps −
 Source activation − Once the line manager verifies and
permits the existence of the vacancy, the search for
candidates starts.
 Selling − Here, the organization selects the media through which the communication of vacancies
reaches the prospective candidates.
Searching involves attracting the job seekers to the vacancies. The sources are broadly divided into two
categories: Internal Sources and External Sources.

Internal Sources
Internal sources of recruitment refer to hiring employees within the organization through −
 Promotions

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  Transfers
 Former Employees
 Internal Advertisements (Job Posting)
 Employee Referrals
 Previous Applicants

External Sources
External sources of recruitment refer to hiring employees outside the organization through −
 Direct Recruitment
 Employment Exchanges
 Employment Agencies
 Advertisements
 Professional Associations
 Campus Recruitment
 Word of Mouth

4. Screening / Shortlisting
Screening starts after completion of the process of sourcing the candidates. Screening is the process of filtering
the applications of the candidates for further selection process.
Screening is an integral part of recruitment process that helps in removing unqualified or irrelevant candidates,
which were received through sourcing. The screening process of recruitment consists of three steps −

Reviewing of Resumes and Cover Letters

Reviewing is the first step of screening candidates. In this process, the resumes of the candidates are reviewed
and checked for the candidates’ education, work experience, and overall background matching the requirement
of the job
While reviewing the resumes, an HR executive must keep the following points in mind, to ensure better
screening of the potential candidates −
 Reason for change of job
 Longevity with each organization
 Long gaps in employment
 Job-hopping
 Lack of career progression

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Conducting Telephonic or Video Interview
Conducting telephonic or video interviews is the second step of screening candidates. In this process, after the
resumes are screened, the candidates are contacted through phone or video by the hiring manager. This
screening process has two outcomes −
 It helps in verifying the candidates, whether they are active and available.
 It also helps in giving a quick insight about the candidate’s attitude, ability to answer interview
questions, and communication skills.

Identifying the top candidates

Identifying the top candidates is the final step of screening the resumes/candidates. In this process, the
cream/top layer of resumes are shortlisted, which makes it easy for the hiring manager to take a decision. This
process has the following three outcomes −

 Shortlisting 5 to 10 resumes for review by the hiring managers

 Providing insights and recommendations to the hiring manager

 Helps the hiring managers to take a decision in hiring the right candidate

5. Evaluation and Control

Evaluation and control is the last stage in the process of recruitment. In this process, the effectiveness and the
validity of the process and methods are assessed. Recruitment is a costly process, hence it is important that the
performance of the recruitment process is thoroughly evaluated.
The costs incurred in the recruitment process are to be evaluated and controlled effectively. These include the
following −
 Salaries to the Recruiters
 Advertisements cost and other costs incurred in recruitment methods, i.e., agency fees.
 Administrative expenses and Recruitment overheads
 Overtime and Outstanding costs, while the vacancies remain unfilled
 Cost incurred in recruiting suitable candidates for the final selection process
 Time spent by the Management and the Professionals in preparing job description, job specifications,
and conducting interviews.

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Placement
According to Pigors and Myers, “Placement may be defined as the determination of the job to which a selected
candidate is to be assigned, and his assignment to the job.” It is matching of what the supervisor has reason to
think he can do, with the job requirements (job demands); it is matching of what he imposes (in strain, working
conditions) and what he offers in the form of payroll, with other promotional possibilities etc.

Significance/Importance of Placement:
It is important for both the organisation as well as staff that each employee should be placed on a suitable job.
While doing so, the factor to be considered is not only the suitability of the job to the individual. But, initial
placement is always a problem because there is little knowledge about the new employee.
Therefore, placement should be done after due considerations of the demands of the job, as well as the social,
psychological needs of the individual. An enterprise which has spent a lot of time and money in making a very
careful selection may lose due to wrong placement.
Right placement of workers can have the following advantages:
1. Reduced labour turnover rate.
2. Reduced absenteeism rate.
3. Increased safety of workers and lower accidents.
4. Increased morale of workers.
5. Better human relations in the organisations.

Placement is not an easy process. It is very difficult to adjust for a new employee who is quite unknown to the
job and the environment. For this reason, the employee is generally put on a probation period ranging from one
year to two years.
At the end of this probation period, if the employee shows good performance, he is confirmed as a regular
employee of the organisation. Thus the probation period or trial period is the transition period at the end of
which management takes a decision whether to make the employee regular or discharge him from the job.

Placement of New Employees:

Placement decisions are generally taken by line executives. It is the supervisor who in consultation with higher
levels decides the placement of each employee. The personnel department’s role is to advise the line managers
about the human resource policies of the company and to provide counselling to the employees.

While taking the placement decision, the following consideration or principles must be kept in mind:

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1. Job Requirements:
An employee should be placed on the job according to the requirements of the job such as physical and mental
ability, eyesight, hearing, stress etc. The job shouldn’t be adjusted according to the qualification and abilities of
the employees.
Job placement profile charts can be used to match the worker’s physical and mental abilities with the job
requirements. This profile chart displays an evaluation of both job requirements and worker abilities for key
features of the job so that the management can easily determine how well worker fits a job.

2. Suitable Qualifications:
The job should be offered to only that person who is suitably qualified. Over qualified and under qualified
persons might create problems for the organisation in the long run.

3. Adequate Information to the Job Incumbent:

The employee should be provided with the complete information and facts relating to the job, including the
working conditions prevailing in the firm. He should also be made known to the rewards associated with the
performance levels.

4. Commitment and Loyalty:

While placing the new employee, an effort should be made to develop a sense of commitment, loyalty and
cooperation in his mind so that he may realise his responsibilities better towards the job, the organisation and
his associates.

5. Flexibility:
The placement in the initial period may be temporary as changes are likely after the completion of training. The
employee may be later transferred to the job where he can do better justice.
Proper placement helps to improve employee morale. The capacity of the employee can be utilised fully if he is
placed on the job for which he is most suitable. Right placement also helps to reduce labour turnover,
absenteeism and accident rates. If a candidate adjusts himself to the job and continues to perform as per
expectation, it might mean that the candidate is properly placed.

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Induction
According to Edwin B.Flippo, “Induction is concerned with introducing or orienting a new employee to the
organisation. It is the welcoming process to make the new employee feel at home and generate in him a feeling
of belongingness to the organisation”. It is the first step in a proper communication policy which seeks to build
a two-way channel of information between the management and employees.
The new employee, on his joining the organisation, must be helped to get adjusted and acquainted with the
fellow employees and the work environment. Rather than leaving him to make his own way through the
organisation. It is much better to properly and systematically introduce him to the company, its philosophy, its
place in the industry or economy, its major policies etc.
This phase of induction is properly handled by the personnel department. Some large organisations show
pictures telling about their history and operation to give a better idea of the company to the new employees who
have joined. The new employee is also given the necessary information about canteen, lunch period; rest hours,
convenience facilities etc.
A complete induction programme also consists of a follow-up after few weeks to ascertain how well the new
employee has adjusted himself with his job and environment. This provides an opportunity to clarify or remove
any misunderstanding in him.
But then also, if an employee is not found adjusted after that, it may be the case of wrong selection or wrong
placement. It thus, gives an early warning of a later trouble. In any case, the follow-up interview enhances the
employee’s satisfaction by demonstrating to him the company’s interest in his welfare.

Contents of Induction Programme:

Topics to be covered in induction –
1. Company’s history, mission, vision and philosophy.
2. Products and services of the company.
3. Company’s organisation structure.
4. Location of departments and employee services.
6. Employees activities like clubs, credit society.
7. Personnel policies and procedures.
8. Standing orders.
9. Rules and Regulations.
10. Terms and conditions of services.
11. Grievance procedures.
12. Safety measures.

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 13. Benefits and services for employees.
14. Training, promotions and transfer facility.
15. Career advancement schemes.
16. Counseling facility.

Induction Procedure/Techniques:
Induction may be informal in case of small firms and formal may be of duration of two or three weeks in case of
large organizations. Induction training should not be too lengthy. It need not necessarily be given on the day
when the new employee joins the work, but if a formal course is to be attended after two or three weeks on the
job, the initial introduction and the immediately needed information may be given by the superior of the
department.

Orientation procedure consists of the following steps:

 The new employee should be given a definite time and place to report.
 The immediate boss or the supervisor should meet and welcome the new employee to the organization
when the latter reports for the duty.
 Complete information about the vacations, probationary period, working hours, medical leave,
suggestion styles etc. should be conveyed to the employee.
 Departmental orientation should be conducted which include introduction to the department, explanation
of the functions of the department, job instructions and to whom he should look for help and guidance
when he has any problem.
 Verbal explanations may also include a wide variety of printed materials, employee handbook,
employee manuals, house journals pamplets etc.
 The induction programme should be handled by the persons who are through with the course contents.
The success of the induction course also depends upon the quality of the trainers and their ability to
draw out the interest of their listeners.

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