SCOPE OF HUMAN RESOURCE MANAGEMENT

UNIT TITLE 2: HUMAN RESOURCE PLANNING

 
TITLE OF THE LESSONS
Lesson 1 - Definition of Human Resource Planning
Lesson 2 - Importance of Plan Human Resources
Lesson 3 - Seven Steps to Human Resource Planning
INTRODUCTION
As told in the last lesson, Human Resource (HR) management has
started to play a significant role in the overall strategic development of
the organization. HR strategy should also serve the interest of the
organization, translating firm’s goals and objectives into a consistent,
integrated and complimentary set of programs and policies for
managing people.
First part of Human resource strategy is HRP – Human Resource
Planning. All other HR activities like employee hiring, training and
development, remuneration, appraisal and labor relations are derived
from HRP. HR planning is important in a wide variety of industries and
firms. HR planning affects what employers do when recruiting, selecting,
and retaining people, and of course these actions affect organizational
results and success.
PRETEST:
 
1. What are the activities involve in Human Resource Planning?
2. Why is it important to plan human resources?
3. What are the steps to human resource planning?
LESSON PROPER:
Definition of Human Resource Planning
Objective: After completing this lesson, you should be able to
determine the activities involve in Human Resource Planning.
• Human Resource Planning (HRP) is the process by which
management determines how the organization should move from its
current man power position to desired manpower position. Through
planning, management strives to have the right time, doing things
which result in both the organization and individual receiving
maximum long run benefits.
• Human Resource Planning (HRP) is a process of determining and assuming
that the organization will have an adequate number of qualified persons,
available at proper times, performing jobs which meet the needs of the
enterprise and which provides satisfaction for the individuals involved.
Simply HRP can be understood as the process of forecasting an
organization’s future demands for and supply of the right type of
people in the right number. In other words HRP is the process of
determining manpower needs and formulating plans to meet these
needs.

Why is it important to Plan Human Resources?

Objective: After completing this lesson, you should be able to interpret the
importance of Planning Human Resources.
1) Technological Change: The changes in production technologies,
marketing methods and management techniques have been extensive and
rapid. Their effect has been profound on the job contents and job contexts.
These changes have caused problems relating to redundancies, retention
and redeployment. All these suggest the need to plan manpower needs
intensively and systematically.
2) Demographic Change: The changing profile of the work force in terms of
age, sex, literacy, technical inputs and social background has implications for
HRP. In most developed economies, the ‘silver tsunami’ - the group of aging
individuals - is surging.
3) Skill Shortage: In its 2016/2017 Talent Shortage Survey, the Manpower
Group reported that 40 percent of employers are having difficulty filling
positions, up from 38 percent in 2015. Organizations generally become more
complex and require a wide range of specialist skills that are rare and scare. A
problem arises in an organization when employees with such specialized skills
leave.
4) Governmental Influences: Government control and changes in legislation
with regard to affirmative action for disadvantages groups, working conditions
and hours of work, restrictions on women and child employment, causal and
contract labor, etc. have stimulated the organizations to be become involved
in systematic HRP.
5) Legislative Control: The policies of “hire and fire” and ENDO have
never gone. Now the legislation makes it difficult to retain the numbers
of employed because of the recent labor law relating to employment.
6) Impact of the Pressure Group: Pressure groups such as unions,
politicians and persons displaced from land by location of giant
enterprises have been raising contradictory pressure on enterprise
management such as internal recruitment and promotion, preference to
employees’ children, displace person, etc.
7) Systems Approach: The spread of system thinking (refers to a
management and operations approach where single business decisions
are analyzed based on the systematic consequences they have) and
advent of the macro computer as the part of the on-going revolution in
information technology which emphasis planning and newer ways of
handling huge personnel records.
8) Lead Time: The log lead time (the time between the initiation and
completion of a production process) is necessary in the selection
process and training and deployment of the employee to handle new
knowledge and skills successfully.
9) Future Personnel Needs: Human resource planning is significant
because it helps to determine the future personnel needs of the
organization. If an organization is facing the problem of either surplus or
deficiency in staff strength, then it is the result of the absence of
effecting HR planning.
10) Succession Planning: Human Resource Planning prepares people
for future challenges. The ‘stars’ are picked up, trained, assessed and
assisted continuously so that when the time comes such trained
employees can quickly take the responsibilities and position of their
boss or seniors as and when situation arrives
Seven Steps to Human Resource Planning
Objective: After completing this lesson, you should be able to
familiarize the step by step process in human resource planning.
There are seven different steps in the human resource planning
process, but the pivot point is forecasting demand. That means that
today’s human resources professionals need to have a well-rounded
picture of their own company and a grasp of multiple factors to put
together a plan.
The seven steps to creating a human resource plan provide a
roadmap for companies, but one size does not fit all. The amount of
detail and which factors to include are different for every organization.
Startup sole proprietorships working in a single geographic area will
need to create an entirely different plan than a multinational enterprise. 
Step One: Analyze Organizational Objectives
HRM should works hand in hand with other top managers so there is
a clear understanding of ultimate goals, and then they focus on the
human capital needed to meet them. It’s vital that the human resources
plan encompasses every part of the company from product
development to sales and expansion plans. 
Step Two: Inventory Current Human Resources
HRM analyzes the number of people currently employed, along with
their skills, perfor­mance, and potential. Once HRM determine which
jobs need to be filled based on forecast, they can then decide whether
they have enough internal candidates to fill the job requirements or if
they need to go to external sources or strategies to add staff.
Step Three: Forecast Demand
Forecasting human resource demand involves estimating the number
of future employees of the right quality and quantity, with a view to the
company’s strategic plan over a given period of time. Forecasting
demand is the most crucial part of human resource. It’s challenging for
many reasons, and even more so because there are no absolute
answers on how to accomplish it. 

There are two categories of forecasting methods: quantitative and

qualitative. You can use both methods to track the work performance of
the workforce as a whole, individuals, or business units.
Qualitative reports contain subjective observations, while quantitative
data is statistical or more data-driven. Select the methods that make the
most sense in your environment.
Step Four: Estimate Gaps
With your forecast completed, you’ll have an understanding of future
needs and if you will need to fill them with external workers hired full-
time, part-time, or as contractors. If you have the right number of
employees that don’t have the right skills, you can use training and
development to upgrade employee skills to fill the gaps, or you may
need to deploy workers in another role.
Step Five: Formulate the Human Resource Action Plan
The human resource plan relies on identifying deficits or surplus in
the company. You’ll need to determine if you need to begin recruiting or
training, transition, or develop voluntary retirement processes and
redeployment in case of a surplus. Include priorities and critical
planning issues in your plan.
Step Six: Integrating/Implementing the Plan
This is the most challenging aspect of any human resources plan. The
organization often invests time and money on plans that are shelved and
not utilized. Company executives need to embrace the plan, and bring
the organization on board. Overcome any potential employee resistance
to the process by rolling in one aspect of the plan at a time to help
employees acclimate to changes.
Step Seven: Monitoring, Control, and Feedback
Strictly monitoring progress helps identify sticking points in your plan
and helps you avoid making changes too quickly. It’s essential to
compare actions to how the plan is being implemented to ensure
reliability. Ongoing measurement, reporting, and continuous improvement
efforts will keep the company moving towards its stated strategic goals.
ACTIVITIES:
Direction: Write a paragraph on each figure that explain why human
resource planning is important. On the third figure, explain why
feedback is important in human resource planning cycle.

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ANALYSIS:
1. Explain the role of HR professional in human resource planning process in
organizations.
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2. Describe the various forecasting techniques and how these techniques are being
used in human resource planning.
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3. Explain the barriers to HRP. Bring out the requisites for effective planning.
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Next meeting…
Post Test on lesson 1 & 2