Concept of Human Resource Planning-HRP

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Although  HRP  means  different  things  to  different  people  but  general  agreements  exists  on  its  ultimate objective. That is the most effective use of scarce talent in the interest of the worker and the organization.HRP  is  the  process used by organizations to: 

•Analyze business plans to establish future human resource requirements. 

•Estimate future HR availabilities

•Reconcile requirements and availabilities.

•Formulate action plans. 

•Contribute to the achievement of business plans and thus to future organizational success. 

Characteristics/Features of HRP

 Based    on    the    above    definitions    and    discussions'    now    we    can    list    the    basic    characteristics/features  of  HRP  for  our  purpose.  Some  of  the  important  features  that  describe  the basic characteristics of HR planning are: 

1.Ongoing  and  dynamic  process:   

 HRP  is  ongoing  process  because  it  is  not  only  the  plan  rather it is also an action plan. It also covers evaluation and control functions. It does not stop   anywhere   until   the   organization   achieves   its   objectives.   It   continuous   till   the   organization   is   alive.   It   is   dynamic   in   nature   because   its   objective   is   to   support   organizational  strategy.  Both  internal  and  external  environment  of  HRM  is  dynamic  is  nature.  So,  to  meet  the  challenges  posed  by  the  environment  strategic  plan  itself  is  dynamic. Therefore, HRP is also dynamic in nature; otherwise it will have no use. 

2.      Involves   interrelated   activities:   

HRP   is   the   balance   sheet   of   many   different   but   interrelated  activities  of  HRM.  Major  activities  incorporated  in  HRP  are:    

(a)  properly  understanding the HR demand and supply,

 (b) forecasting future HR demand and supply, 

 (c)   preparing   present   HR   inventory   and   HR   information   system  

 (d)   anticipating   manpower   problems,   

(e)   preparing   implementation   programs   (i.e.   recruitment   to   retirement - R2R), and 

(f) control and evaluation of those activities, etc. 

3.Focused towards development of HR:

 HR is not merely a plan rather it is also a guideline for human resource development (HRD) as discussed in development component of HRM in  chapter  one.  Major  components  of  HRD  (as  discussed  earlier)  are  employee  training,  management development and career development. Successful implementation of HRD is crucial to the success of many enterprises and to the development of its employees.  

4.Goal  directed:  

It  is  not  only  organizational  goal  directed  rather  it  is  equally  directed  towards  achievement  of  organizational  and  employee  goals.  HRP  recognizes  that  "people  need organization and organization needs people". 

5.Equally  applicable:  

HRP  is  equally  applicable  to  all  types  of  organizations  (profit-non  profit,    government-private,    national-international,    etc).    A    marketing    planning    or    profit/tax   planning   may   not   be   applicable   to   social/political   organizations   but   HR   planning is necessary even to those organizations. 

6.  Foundation  for  HR  activities: 

 All  major  HR  activities/  components  of  HR  (R2R)  come  under  the  preview  of  HRP.  Strategic  and  flexible  HR  planning  provides  guideline  for  future HR activities so that strategic objectives of the organization are achieved easily and efficiently. 

7. Unavoidable part of strategic planning: 

HRP is not separate from the corporate planning. It is an integrated part of strategic planning  because  HRP  is  directed  towards  managing  HR  at  all  levels  of  business  for  implementing  the  strategy.  It  is  the  key  component  to  achieve  corporate  strategy  through  efficient,  motivated  and  committed  HR. 

8.Hierarchy  and  time  based:  

Strategic  plan  is  hierarchy  and  time  based.  To  implement  strategic  planning  (long-range/4-5  years)  the  focus  of  HRP  is  towards  analysis  of  HR  issues.  To  implement  tactical  planning  (middle-range/2-3  years)  the  focus  is  towards  forecasting   HR   requirements.   Similarly,   to   implement   operational   planning   (short-range/up to 1 year) the focus of HRP is focused and limited towards action plan.

 Major Activities of HRP 

HRP is directly related to an organizations success and failure. It serves as an analysis of current and  future  needs  of  the  organization.  The  activities  involved  in  the  HRP  helps  to  guide  an  organization  in  several  areas.  They  are  staffing,  training  and  development,  compensation  and  benefits and so on. The major activities of HPR include: 

1. Analyzing the objectives of HRP: 

This is the first and most important activity of HRP. In most of the organizations, the main purpose of HRP is matching employee's abilities to the organizational   requirements.   The   emphasis   is   on   future   needs   instead   of   present   arrangements.  For  this  purposes,  managers  need  to  specify  the  objectives  of  HRP  with  regard  to  the  utilization  of  HR  in  the  organizations.  While  developing  the  specific  objectives of HRP managers need to address the following questions: •Whether the vacancies will be filled internally or externally? And why? •What will be selection procedure?  •Whether there is the need for training and development or not? •How to restructure job positions and why? 

2.  Forecasting  future  HR  demand: 

This is the second major activities of HRP. Forecasting future  HR  demand  can  be  done  in  two  ways.  First,  forecasting  future  HR  requirements  based  on  mathematical  projections  of  trends  in  the  economy,  and  developments  in  the  economy. Second is by using judgmental estimates based upon specific future plans of the company.  Forecasting  future  HR  demand  is  the  most  complex  activities  of  HRP.  They  require through knowledge. It also demands the utilization of certain assumptions. 

 3. Preparing present HR inventory:

 This is the third major type of activity involved in HRP. This activity is done to know the present situation of HR in an organization. It also helps to analyze  the  degree  to  which  these  resources  are  employed.  Whether  they  are  used  optimally  or  not  is  ascertained  here  in  this  activity.  If  they  are  not  utilized  optimally,  the  reasons for it are ascertained or identified. 

4.      Anticipating      HR      problems: 

This  is  the  fourth  major  activity  of  HRP.  It  is  done  by  projecting  present  human  resources  into  future  demands.  This  activity  is  necessary  to  determine  staff  adequacy  both  quantitatively  and  qualitatively.  Here,  managers  need  to  address questions like: •Why people will continue or discontinue their jobs? •What precautions will be needed to retain the present employees? •Is there a motivational problem with present work force or not?, etc. 

5.      Planning  the  necessary  programs:  

This  is  the  last  major  activity  of  HRP.  It  involves  identifying  the  necessary  programs  that  is  required  to  implement  HRP  into  actions.  The  programs  that  are  required  may  be  recruitment,  selection,  development,  motivation,  and  compensation so that future staff requirements will be met. 

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