HRP

Human Resource Planning is a process of forecasting an organization's future demand for human resource and supply of right type of people in right numbers. Employment or personnel planning The process of deciding what positions the firm will have to fill, and how to fill them. Personnel planning covers all the firms future positions, from low position to Top level. However, the term Succession planning is used to refer to the process of deciding how to fill the companys most important executive jobs.

 Staffing Planning: Projected turnover (as a result of resignations or terminations) 2. Quality and skills of your employees (in relation to the changing needs of your organization) 3. Strategic decisions to upgrade the quality of products or services or enter into new markets 4. Technological and other changes resulting in increased productivity 5. The financial resources available to your org.

Features of Human Resource Planning

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. It is a continuous process: Human Resource Planning is a continuous process because the demand and supply of Human Resource keeps fluctuating throughout the year. Optimum utilization of resources: The basic purpose of Human Resource Planning is to make optimum utilization of organization's current and future human resources.

 Both Qualitative and Quantitative aspect: Quantitative meaning the right number of people and Qualitative implying the right quality of manpower required in the organization. Long term and Short term: , Human Resource Planning keeps long-term goals and short-term goals in view while predicting and forecasting the demand and supply of Human Resource. Involves study of manpower requirement: Human Resource Planning involves the study of manpower availability and the manpower requirement in the organization.

 Objectives of Human Resource Planning

Optimum utilization of human resources currently employed in the organisation. To reduce imbalance in distribution and allocation of manpower in organisation for various activities. To ensure that the organisation is well-equipped with the required Quantity and Quality of manpower on a sustained basis. To anticipate the impact of technology on jobs and resources. To control cost of Human Resources employed, used and maintained in the organisation. To provide a basis for management development programmes. To ensure optimum contribution and satisfaction of the personnel with reasonable expenditure. To recruit and retain human resource of required Quantity and Quality.

 Need for Human Resource Planning Shortage of Skills: Necessary to plan for skilled people much in advance than when we actually need them. Non-availability of skilled people when and where they are needed is an important factor which prompts sound Human Resource Planning. Frequent Labour Turnover: Human Resource Planning is essential because of frequent labour turnover which is unavoidable by all means. Labour turnover arises because of discharges, marriages, promotion, transfer etc. 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.

 Identify areas of surplus or shortage of personnel: Manpower planning is needed in order to identify areas with a surplus of personnel or areas in which there is a shortage of personnel. If there is a surplus, it can be redeployed, or if there is a shortage new employees can be procured. 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.

 Factors affecting Human Resource Plans External factor: They are the factors which affect the Human Resource Planning externally. They include: Government policies: Policies of the government like labour policy, industrial policy, policy towards reserving certain jobs for different communities affect Human Resource Planning. Level of economic development: Level of economic development determines the level of human resource development in the country and thereby the supply of human resources in the future in the country. Information Technology: Information technology brought amazing shifts in the way business operates.

 Business Environment: Business environment means the internal and external factors influencing the business. Business environmental factors influences the volume of mix of production and thereby the supply of human resources in the future in the country. International factors: International factors like the demand and supply of Human resources in various countries also affects Human Resource Planning .

 Internal factors: Company Strategies: The organization's policies and strategies relating to expansion, diversification etc. determines the human resource demand in terms of Quantity and Quality Human Resource policies: Human Resource policies of the company regarding quality of human resources, compensation level, quality of working conditions etc. influence Human Resource Planning. Job analysis: Job analysis means detailed study of the job including the skills needed for a particular job. Human Resource Planning is based on job analysis which determines the kind of employees to be procured.

Methods to predict.
Trend analysis Trend Analysis means studying variations in your firms employment levels over the last few years to predict future needs. Ratio Analysis Another approach, ratio analysis, means making forecasts based on the ratio between (1) some causal factor (like sales volume) and (2) the number of employees required (for instance, number of salespeople). The Scatter Plot A scatter plot shows graphically how two variables.such as a measure of business activity and your firms staffing levels.are related. If they are, then if you can forecast the level of business activity, you should also be able to estimate your personnel requirements.

 Managerial Judgment Whichever forecasting method you use, managerial judgment will play a big role. Its rare that any historical trend, ratio, or relationship will simply continue unchanged into the future. Youll therefore have to modify the forecast based on factors. such as projected turnover or a desire to enter new markets.you believe will be important.

Forecasting Inside candidate

Qualifications inventories
Manual or computerized records listing employees education, career and development interests, languages, special skills, and so on, to be used in selecting inside candidates for promotion Replacement chart

Personnel replacement charts

Company records showing present performance and promotability of inside candidates for the most important positions

Personnel inventory & development record help track employee qualifications Personnel replacement charts are often used for filling a companys top positions

 Position replacement card

A card prepared for each position in a company to show possible replacement candidates and their qualifications Skill Inventory : Biography profiling about the job incumbent. Management Inventory.Profilling about the managers of the organisation. Secession planning.

Computerized system
Work experience codes. A list of work experience titles, or codes describing the persons jobs within the company. Product knowledge. The employees level of familiarity with the employers product lines or services. Industry experience. The persons industry experiences, since for some positions work in related industries is very useful. Formal education. Each postsecondary educational institution attended, field of study, degree granted, and year granted. Training courses. Those taken or conducted by the employee, including courses taught by outside firms like the American Management Association.

Replacement chart

Commitment Manpower Planning:

1. Supply of employees and promotability and placement status of each. 2.The organization demands, arising from new positions and turnover and projected vacancies for each job title. 3.The balance or status of supply versus demand, including the name, job, location of all those suitable for promotions.

Ratio analysis: A tool used in human resource planning to measure the organization's human resource vitality as indicated by the presence of promotable personnel and existing backup.