Module-4 2.4 Human Resource Management: Human Resource Planning: Meaning, Features, Objectives, Scope and Process, HRIS

Module-4
2.4 Human Resource Management

Human resource planning: Meaning,
features, objectives, scope and
process, HRIS
Introduction
• Look at the job advertisement placed in the newspaper
You must have seen many such advertisements
in newspaper and online jobsites everyday.
However, do you know that there are certain

strategies the employers follow to plan their
manpower for the year.
Let us learn about the Man Power planning in
detail.
What is Man Power?
They are various words that can be used as
synonyms to the word ‘Manpower’ they are:
• Human Resource
• Personnel
• People at work
• Manpower
Man power planning - Meaning
• Manpower Planning which is also called as Human
Resource Planning consists of putting right number of
people, right kind of people at the right place, right
time, doing the right things for which they are suited
for the achievement of goals of the organization.
• Human Resource Planning has got an important place

in the arena of industrialization. Human Resource
Planning has to be a systems approach and is carried
out in a set procedure.
• It is a continuous process. Of developing and
determining objectives, policies that will
procure, develop and utilize human resources
to achieve the goal of the organization.
Features of Human Resource planning
• Forwards looking
• In sync with organizational needs
• In tune with corporate plan
• Proactive
• Get qualified people at a right time.
Objectives of Human Resource planning
• Forecast personnel requirement

• Cope with changes
• Use existing manpower productively
• Promote employees in a systematic manner
Importance of Human Resource planning
• Reservoir of talent
• Prepare people for future
• Expand or contract
• Cut costs
• Succession planning
• Key to managerial functions
• Efficient utilization
• Motivation
• Better human relations
• Higher productivity
Scope of Human Resource planning
• To make the list of current manpower.
• To check how much current manpower is
being utilized.
• To find out how much manpower is required.
• To make manpower procurement plans.
• To make the training programmes.
The process of Human Resource planning
• Forecasting the Demand for Human Resource

• Preparing Manpower Inventory(Supply
forecasting)
• Determining Manpower Gaps
• Formulating HR plans
Forecasting the Demand for Human Resource
The demand for human talent at various levels is

primarily due to the following factors:
1. External challenges
a. Economic developments
b. Political, legal, social and technical changes
c. Competition
2. Organizational decisions
3. Workforce factors
Forecasting techniques
The manpower forecasting techniques commonly employed by modern organizations are given below:
–Expert Forecasts: This includes informal decisions, formal expert surveys and
Delphi technique.
–Trend Analysis: Manpower needs can be projected through extrapolation
(projecting past trends), indexation (using base year as basis), and statistical
analysis (central tendency measure).
–Work Load Analysis: It is dependent upon the nature of work load in a
department, in a branch or in a division.
–Work Force Analysis: Whenever production and time period has to be analysed,
due allowances have to be made for getting net manpower requirements.
–Mathematical Models: Several Mathematical models, with the aid of computers
are used to forecast manpower needs, like budget and planning analysis,
regression, new venture analysis.
–Computer models:
–Job Analysis: it helps us to identify the skills required to perform a particular job.
Delphi Technique
Objective of Delphi Technique is to predict future
requirements in a particular area by integrating judgments
and opinions provided independently by many experts.
Disadvantages
o Time consuming
o Integration problem
Ratio- Analysis
This method involves comparing the number of employees to
a workload index.
• The level of activity in each job may vary from department
to department in the same organization
Eg.-To produce 100 unit of a product ,if 10 workers are

required , the department would require 15 workers to
produce 150 units.
Regression Analysis
• Projection of future demand is based on the past
relationship between the work force level and the basic
factor on whom the demand is assumed to depend
• ex:
demand of doctors in government health program
regression equation:-
D=5+0.1E
EXAMPLE OF CORRELATIONS/PROJECTIONS OF
NURSING STAFF IN HOSPI TAL
SIZE OF HOSPITAL NUMBER OF NURSES
(no. of beds)
200 240
300 260
400 470
500 500
600 620
700 660
800 820
900 860
MARKOV ANALYSIS
 Mathematical technique
 Forecasts the availability of internal job
candidates
 In this analysis, various job classifications can
be predicted from past movements
 Its use is restricted to very large organisations.
Markov Analysis for a Retail Company
Methods of Supply Forecasting
Once the demand forecasting is made, the planners have to
go out and find the kind of work force needed.
The sources of manpower supply may be

• Internal Supply
• External Supply
Internal supply
• Transfer
• Promotion
External supply
• Educational institutes
• Advertisement
• Placement agencies
• telecasting
Determining Manpower Gaps
Balancing supply and

demand
Formulating HR Plan
• Acquisition of personnel/ recruitment plan
• Effective Utilization
– redeployment
– methods improvement
– training to prevent obsolescence
• Development and Improvement
– broad-based training and development
– performance management systems
• Retention
– proper remuneration
– long-term career planning
– healthy employee relations
– good working environment
• Redundancy plan
• Productivity plan
• Control points
Problems in HRP
• Accuracy
• Preparation
• Support
• Resistance
• Number game
Requisites for Successful HRP
• HRP must be seen as equally vital as business planning

• Top-management support
• Periodic review and revision of the forecasting techniques
and the forecasts
• Without long range planning concentration becomes
focussed on short-term needs resulting in “crisis
management” reactions
• An excellent and up-to-date HRIS
• Active involvement of line managers and co-ordination
between line mgrs and HR function
Competitive
Company Challenges Achieving Strategic
Values
Fit
Business
Strategy
Environ- HR HR
Philosophy Policy
ment EXTERNAL
FIT
INTERNAL
FIT
HR HR
Practices System
Ensuring the Fit between HR and Organisation Strategy
• External Fit (or External Alignment)

– Focuses on the connection between the
business objectives and the major initiatives in
HR.
• Internal Fit (or Internal Alignment)
– Aligning HR practices with one another to
establish a configuration that is mutually
reinforcing.
Strategic Flexibility
• Organizational Capability
– Capacity of the organization to act and change in
pursuit of sustainable competitive advantage.
– Coordination flexibility
• The ability to rapidly reallocate resources to new or
changing needs.
– Resource flexibility
• Having human resources who can do many different
things in different ways.

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Module-4

2.4 Human Resource Management

However, do you know that there are certain

• Human Resource Planning has got an important place

• Forecast personnel requirement

• Forecasting the Demand for Human Resource

The demand for human talent at various levels is

Eg.-To produce 100 unit of a product ,if 10 workers are

The sources of manpower supply may be

Balancing supply and

• HRP must be seen as equally vital as business planning

• External Fit (or External Alignment)

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