Unit 2 HRM

What is Human Resource Planning?
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 ensures the best fit between employees and jobs while avoiding manpower
shortages or surpluses.
HRP helps companies is an important investment for any business as it allows companies to remain both
productive and profitable.
Objectives of Human Resource Planning
The major objectives of Human Resource Planning in an organization are to:
1. To ensure optimum use of human resources currently employed;
2. To avoid balances in the distribution and allocation of human resources;
3. To assess or forecast future skill requirements of the organization’s overall objectives;
4. To provide control measures to ensure availability of necessary resources when necessary;
5. To control the cost aspect of the human resources; and
6. To formulate transfer and promotion policies
Human Resource Planning Process In today’s knowledge economy an organization’s most valuable asset
is its human resources – its employees.
Their skills and knowledge, as well as their relationships with key customers, can often be irreplaceable
and can determine an organization’s success. So much so, human resource planning is now an integral
part of an organization’s strategy.
The human resource planning is a four-step process that analyzes current human resources, forecasts
future requirements, identifies areas where there are gaps, and then implements a plan to tighten up
those gaps.
Breaking it down, the objectives of human 16 resource planning are to make sure you have the right
number of people in the right jobs at the right time.vi
Step 1: Assess your current human resource capacity Start by looking at your current human resources
state of play. This will involve analyzing the HR strength of your organization across factors including
employee numbers, skills, qualifications, experience, age, contracts, performance ratings, titles, and
compensations. During this phase, it’s a good idea to gather insight from your managers who can
provide real-world feedback on the human resource issues they face, as well as areas in which they think
changes are necessary.
Step 2: Forecast future HR requirements You will then need to look at the future HR needs of your
organization and how human resources will be applied to meet these organizational goals. HR managers
will typically look at the market or sectoral trends, new technologies that could automate certain
processes, as well as industry analysis in order to gauge future requirements. Of course, there are a
number of factors affecting human resource planning such as natural employee attrition, layoffs, likely
vacancies, retirements, promotions and end of contract terms. Above all of this, you will need to
understand the goals of the organization: are you entering a new market, launching new products or
services, expanding into new areas. Forecasting HR demand is a complex task based on several
dynamics. Being infjormed and having a seat, or at least an ear, at boardroom level is essential if you are
to make accurate HR projections.
Step 3: Identify HR gaps An effective human resource plan walks the fine line between supply and
demand. By assessing the current HR capacity and projecting future requirements you should have a
clear picture of any gaps that exist. Using your HR forecast you can better judge if there will be a skills
gap, for example. Should you upskill existing employees or recruit employees who are already qualified
in specific areas? Are all current employees being utilized in the right areas or would their skills be better
suited to different roles?
Step 4: Integrate the plan with your organization’s overall strategy After you’ve assessed your current
human resources capacity, projected future HR demands and identified the gaps, the final step is to
integrate your human resources plan with your organizational strategy. On a practical level, you will
need a dedicated budget for human resources recruiting, training or redundancies, and you will also
need management buy-in across the business. You will need cooperation and the necessary finances in
order to implement the plan and a collaborative approach from all departments to put it into practice.
Learn about the benefits of strategic human resource management.
17 Current Interest in HR Planning The present emphasis on manpower planning takes into
considerations the following environmental situations:
1. Employment-Unemployment Situation – this emphasizes the need for more effective recruitment
and retaining people.
2. Technological Changes – These changes can cause problems relating to redundancies, retraining and
redeployment. Human Resource Management needs to plan human resource needs intensively and
systematically.
3. Organizational Changes –In a turbulent environment marked by cyclical fluctuations and

discontinuities, the nature and pace of changes in organizational environment, activities and structures
affect human resource requirements and require strategic consideration.
4. Demographic Changes – The changing profiles of the work force in terms of age, gender ,literacy,
technical inputs and social background have implications for human resource planning.
5. Skill Shortages – Government control and changes in legislation with regard to affirmative action for
the disadvantaged groups, working conditions and hours of work restrictions etc. have stimulated the
organizations to become involved in systematic human resource planning.
6. Legislative Controls – It is easy to increase but difficult to reduce the numbers of employed because
of recent changes in labor law relating to lay-offs and closures. Those responsible for managing human
resources must look far ahead and attempt to foresee human resource position.
7. Impact of Pressure Groups – Pressure groups such as unions, politicians and persons displaced from
land by location of giant enterprises have been raising contradictory pressures on enterprise
management in areas such as internal recruitment and promotions, preference to employees’ children,
displaced persons, sons of oils and others.
8. System Concept – The spread of systems thinking and the advent of microcomputer as part of the
on-going revolution in information technology emphasize planning and adopting newer ways of handling
voluminous personnel records.
9. Lead Time – A longer lead time is necessary for the selection process and for training and
development of the employees, to handle new knowledge and skills successfully

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What is Human Resource Planning?

Objectives of Human Resource Planning

The major objectives of Human Resource Planning in an organization are to:

1. To ensure optimum use of human resources currently employed;

2. To avoid balances in the distribution and allocation of human resources;

3. To assess or forecast future skill requirements of the organization’s overall objectives;

4. To provide control measures to ensure availability of necessary resources when necessary;

5. To control the cost aspect of the human resources; and

6. To formulate transfer and promotion policies

3. Organizational Changes –In a turbulent environment marked by cyclical fluctuations and

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