Human Resource Planning Process

HRP is a continuous process which starts on identification of HR objectives, moves through analysis of human resources and ends at appraisal of HR planning. These phases should be revised as the organizational requirement since it operates in changing environment. HRP starts from developing the current status of HR available in the organization and ends with assessment of effectiveness of the planning process HRP process can be described as follows:
1. Assessing HR:
   It begins with both the external and internal environmental analysis under which internal objectives, resources and structure and external (PEST) are analyzed. After the analysis of these forces HR manager finds out the internal strength or weakness of the organization and also finds out the opportunities and threats. ON this basis HR requirement is estimated. Forecasting or estimating operative level personnel is less complex then that of supervisory and managerial levels since they are more skilled. It finds out HR inventory level and finds job analysis.

2. Demand forecasting:
     HRP is the process of forecasting the demand of manpower and supply them accordingly in the organization. Demand accordingly in the organization. Demand forecasting is the process of determining future needs of HR in terms of quality and quantity to achieve organizational output. HR can be foretasted on the basis of current human resources situation and analysis of organizational plans and procedures.

3.Supply forecasting:
    Estimation of supply of human resources by analyzing current resources and future availability of Human Resources in the organization. Estimates the future sources of HR which might be available within the organizational sources includes promotion, transfer etc and external sources includes recruitment of fresh candidate.

4. Matching demand and supply:
      Estimating the future demand and supply of HR. Matching refers to keep demand and supply in an equilibrium position so that there won't be over staffing and shortages problem. Number of HR should be cut down in case of over staffing and human resources should be hired in case of shortages.

5. Action plan:
     Action Plan is concerned with over staffing and shortages of HR. To execute HRP, the activities like recruitment, selection, placement, training and development, socialization etc are required. HRP matches objectives and policies by control and evaluation of performance of human resources.

Importance Of HRP

To increase the productivity of the organization, HRP assisting in the fulfilling the objectives  of manpower requirement. HRP helps to link  business strategy and its operation. HRP determines the required number and kind of people as well as determines the action plan for acquisition and development of  human resources. The importance of HRP are:

1. Future personnel needs:
It ensures the availability of manpower for the smooth running of the organization. It acts as the tool for assuring the future availability of manpower in terms of number and kind.

2. Coping with change:
 HRP helps to cope with the change associated with the external environmental changes. It helps to adopt the human resources to changing technological, socio cultural, political and economical factors.

3. Recruitment of talented personnel:
It helps to recruit and select the most capable manpower to fill job vacancies. It determines human resource needs, recruit, the additional personnel needed to perform the job effectively and efficiently.

4. Development of HR:
It finds out required skill in various level of job. It conducts various training and development programs so that the personnel perform the test effectively and efficiently.

5. Proper utilization of HR:
It determines whether the organization utilizes the manpower effectively to achieve the organizational or not. It helps to recruit the skilled human resources. It helps for optimum utilization of human resources to minimize the cost.

6. Provides foundation of HR function:
It acts as a pillar for overall personnel function to perform different HR management functions. It provides tools and procedure. It helps in transformation, promotion, performance evaluation, incentive and compensation, employee discipline, reward and punishment etc.

7. Reduction in uncertainty:
It helps in reducing uncertainty which are brought by sudden changes in the process and procedures of HRM    system. External factors like: globalization, technologies, organizational re-structuring produces or brings organizational uncertainties which can be reduced by human resources planning(HRP)

8. HRP to find out where the organization is where it wants to be in future:

9. It provides guidelines for the achievement of organizational goals.

10. It helps to minimize future risk.

11. It suggest about the changes in the organizational activities.

12. It helpsto maintain the balance in the distribution and allocation of HR. 

Human Resource Planning

Meaning and Concept:
    It helps to ensure the needed manpower for the organizational goal.Due to high competition the qualitative and low cost products are increasing day to day. For this HRD has to plan for getting the qualitative manpower to complete the market. To run the organization smoothly, the sufficient manpower is to be supplied otherwise the objectives cannot be fulfilled on time. HRP is a process of determining future human resources needs and course of action needed to satisfy those needs to achieve the organizational goals. HRP should ensure that the organizational goals. HRP should ensure that the organization has the right nuber of people at right place at the right time to perform well. It is a continuous process rather than a one - shot function. It is to be done as the changes in the environment HRP is the process of knowing or finding what kind of people should be recruited for the quality performance. It determines what is to be done to ensure the availability of human resources needed to achieve stated goals within the given constraints.

In conclusion, HRP is a complex and continuous process which helps to determine the manpower requirement of the organization. It focuses on:
- Balancing demand and supply of employees.
- Ensuring right kind of people at the right time at right place.

Characteristics of Human Resources Planning (HRP):

1. Future oriented:
     HRP is done for future requirement of manpower in the organization. It supports to find out the number and composition of human resources for future purposes.

2. Continuous process:
      HRP which is prepared today may not work future due to change in external environment. To adjust these changing environment, HRP needs to be revised and updated continuously.

3. Optimum utilization of HR:
      HRP is for utilizing optimum level of resources. It checks the performance of employees. It finds out existing capabilities of employees and future potentialities to perform the work.

4. Right kinds and numbers:
     HRP finds out the right number of people in the right job at the right time who are capable of performing the required jobs. It ensures the future requirement of manpower to achieve organizational goal.

5. Determination of demand and supply of HR:
      HRP is a process of finding demand and supply them accordingly. It also finds out over staffing  by comparing HR inventory level and demand of HR.

6. Long-term and short-term:
      As per the need or requirement HRP is prepared for short term, mid term and long term. It differs as the nature of the organization.

7. Environmental influence:
      HRP is to be updated as per the change in the external environment since. HRP is influenced or affected by environmental changes.

8. Related to corporate plan:
      HRP is the integral part of overall corporate or business plan of the organization. HRP can be formulated in the strategic level or operational level.

9. A part of total HRM system:
      HRP is the component or element of HRM system. HRP ss concerned with acquisition and assessment of manpower or human resources. Human Resource Planning (HRP) is the foundation of management of human resources in an effective and efficient manner.

 

Challanges Of Human Resource Management

HRM operates in open environment so that it is influenced by internal and external changes. The change may create opportunities as well as threat since it operates in dynamic environment. The ever changing external and internal environment brings a variety of challenges to HRM while managing these ever changing social, economical, technological and political condition, the HR manager has to face different problem. These challenges can be studied under three categories:-

1. Environmental Challenges
2. Organizational Challenges
3. Individual Challenges

1.Environmental Challenges:
    It refers to external forces and institutions that are beyond the control of management. So the managers have to face difficulties to manage such environmental issues which consists following factors:
 a. Globalization movement
 b. Change in economic outlook
 c. Change in political environment
 d. Change in socio-cultural environment.
 e. Change in technological environment.

2.Organizational Challenges:
     Internal challenges that can be managed by efficient management. Some factors or components of organizational challenges are:
 a. Workforce diversity
 b. Organizational objectives
 c. Downsizing
 d. Business process re-engineering
 e. Decentralization
 f. Management of human relation
 g. Computerized information system

3. Individual Challenges:
      Primary concern is the individuals. Complexities raised due to organizational interaction with employees. It is under the control of management. Some components under individual challenges are:
 a. Brain drain
 b. Individual norms and values
 c. Mobility of professional personnel between organization
 d. Aspirations of employees

Difference Between Personnel Management and Human Resources Management

1.  Personnel management is traditional approach of managing people where as HRM is a modern approach .
2. Personnel management focuses on personnel administration, employee's welfare and labor relation where as HRM focuses on acquisition, development, motivation and maintenance of the resources.
3. Personnel management assumes people as an input for achieving desired output where as HRM assumes people as an important and valuable resources for achieving desired output.
4. Under personnel management personnel function is for employees satisfaction where as under HRM it is for goal achievement.
5. In personnel management employees are provided less training  and development opportunities where as in HRM employees are provided more training and development opportunities.
6. In personnel management decisions are made by top management where as in HRM decisions are made collectively after considering employees participation, authority, decentralization, competitive environment.
7. Personnel management is concerned with personnel manager whereas HRM is concerned with all level of managers from top to bottom.
8. Personnel management is the routine function since the line mangers directly take major recruitment and selection function since it focuses on human resources for long run direction and scope.  

System Approach To HRM

It is inter-related set of elements function as a whole is called system or system is a combination of different components or parts for being a complex organ. An organization is a system where as HRM is a sub-system. If HRM is taken a system other components that come under HRM are elements or sub-systems of HRM system. HRM system is a system which transforms employees into productive human resources. The input components are transformed into refined output throughout managerial process. Various sub-systems like; employment, training and development, compensation, maintenance, personnel resources are activated in HRM system. HRM system should adopt environmental changes like; political, economical, socio-cultural , and technological goal. HRM system is the open system that consists of input, processing/transformation and output relationship

INPUT:
It is used as primary resources for organizational output.

a. Human Resource:
     It is active means of production. It is mobilized from one job to another.

b. Non-human resource:
     It consists human resources to achieve goal. Machines, capital, market, information building etc are the non- human resources.

       Both the resources are utilized to achieve the goal through different managerial process.

PROCESS/TRANSFORMATION:
Inputs are processed level achieve the desired level of output. It is a mechanism on which input components are transformed into output.

a.Acquisition:
    Recruitment, selection and placement of people in the organization. It ensures right number of people at the right place at right time. Recruitment generates potential candidates, selection chooses the best candidates and placement or socialization makes these selected candidates familiar with organizational rules and regulations.

b. Development:
    *Employee training: It is given to the lower and middle level employees for the development of their skill, knowledge and ability to work.

     *Management development: It is educational and other academic activities provided to top level managers to develop their future potentials.

c. Motivation:
     It inspires people for better performance evaluation, reward and punishment, compensation management, discipline, etc.

d. Maintenance:
     It is a process of retaining the employees for the longer period of time. It is the keeping those people having better performance retention of competent or capable employees in the organization is maintenance. It consist of labor relation and employee welfare.


OUTPUT:
      It is the final product or service which is produced through managerial function by using inputs. Output components are ;
  a. Quality of work life:
      It refers to good relationship among employees and total working environment. Each and every members are able to satisfy the needs of the organization through transformation process. It makes employees participate in organization process actively and efficiently. It consists of autonomy, recognition, belonging process and development and external rewards.

  b. Productivity:
      It is the ratio of input and output how much and how will the amount of work is being produced. Productivity can be increased y capital investment, innovation, learning and motivation to introduce new technologies. Efficient relationship between input and output is productivity i.e. higher productivity means less cost of production and vice-versa.

c. Readiness to change:
    Ability to adjust in dynamic environment HRM system ensures that the employees can tackle the change that occurs i the organizational environment. Everyone is prepared for any sort of changes according the work life. Employees should be competitive.

d. Employee satisfaction:
    It belongs to employees attitude  towards the job and desire of commitment. Employees will show additional performance if they are satisfied with the pay and other are satisfied with the pay and other benefits provided with.

Functions Of HRM/HR Manager

Human Resource department is for the management of people to achieve organizational goals. It coordinates with different departments for effective utilization of human resources. The functions are from the time of entry to exit of an employee in an organization. It performs managerial, operative, and advisory functions i.e. HRM functions are categorized into three parts:


1. Managerial Function:
     * Planning
     * Organization
     * Directing/ Leading
     * Controlling

2.Operative Function:
     * Planning, Recruitment and Selection
     * Training and Development
     * Compensation and Re numeration
     * Safety and Health
     * Personnel Records
     * Employee Relation/ Industrial Relation
    * Exit (Separation)

3.Advisory:
    * Top Management
    * Departmental Heads