Human Resource Planning Essay

Definition: Human Resources Planning is defined as the process of assessing an organization’s human resources needs in the light of organizational goals and changing condition and making plans to ensure that a competent, stable workforce is employed. The actual planning process will vary a great deal from organization to organization As defined by Bulla and Scott (1994), human resource planning is ‘the process for ensuring that the human resource requirements of an organization are identified and plans are made for satisfying those requirements’. Reilly (2003) defined workforce planning as: ‘A process in which an organization attempts to estimate the demand for labour and evaluate the size, nature and sources of supply which will be required to meet the demand.’ Human resource planning includes creating an employer brand, retention strategy, absence management strategy, flexibility strategy, talent management strategy, recruitment, and selection strategy. However, James Walker pointed out that for some companies, human resources planning is essentially management succession and development planning. For others it is the staffing process which includes forecasting and planning for recruitment, deployment, development and attrition of talent in relation to changing needs. Increasingly, however, it is a broader process addressing multiple levels for increasing organization effectiveness on the management of Human Resources. According to Walker, effective human resources planning is a process of analyzing an organization human resources needs under changing condition and development of the activities necessary to satisfy those needs. Walker sees human resources planning as two step processes, planning as they pertain to all aspects of personnel management. This will include for example planning with respect to desired organizational climate and development of staff reward and appraisal system appropriate to short range and long range organizational goals. This implies that help must be proactive and as well as reactive. Pattern states that Human Resource Planning is the process by which a firm ensures that it has the right number of people and the right kind of people in the right place at the right time doing things for which they economically most useful. Fayana (2002) emphasized that human resource planning deals with the systematic and continuing process of analyzing a firm’s human resources needs under mutating conditions and developing workforce policies suitable to the long-term effectiveness of the organization. It is a vital part of corporate planning and budgeting procedure since human resources costs and forecasting both effect and are affected by long-term corporate plans. Need and Importance of HRP Human resource Planning translates the organization objectives and plans into the number of workers needed to meet these objectives. The need and importance of HRP is as follows: HRP helps in determining the future manpower requirements and avoids problems like over staffing or understaffing in the organization. HRP helps in tackling with the factors like competition, technology, government policies etc. that generates changes in the job content, skill requirements and number and types of personnel required. Now a days there is a demand of exceptional intellectual skills while the existing staff becomes redundant, the HR manager has to attract and retain qualified and skilled personnel and also required to deal with issues like career development, succession planning for which he takes the help of HRP. A proper and realistic human resource plan is needed to ensure equal employment and promotional appointments to the candidates for weaker sections, physically handicapped and socially and politically oppressed citizens. HRP provides valuable and timely information for various designing and execution of personnel functions like recruitment, selection, transfers, promotions, layoffs, training and development and performance appraisal. It helps the organization to anticipate imbalance in human resources, which in turn will facilitate reduction in personal costs. HRP facilitates planning for future needs which will help in better planning of assignments to develop managers and to ensure the organization has a steady supply of experienced and skilled employees. Factors Affecting Human Resource Planning HRP is a dynamic and ongoing process. The process of updating is not very simple, since HRP is influenced by many factors, which are as follows: 1. The type of organization determines the production process and number and type of staff needed. 2. The human resource needs of an organization depend on the strategic plan adopted by it. For e.g. the growth of a business calls for hiring of additional labor, while mergers will need a plan for layoffs. 3. Organization operates under different political, social environment and has to carefully formulate the HR policies and so the HR manager has to evolve suitable mechanism to deal with uncertainties through career developments, succession planning, retirement schemes etc. 4. HRP also depends on the time periods and accordingly the short and long-term plans are adopted. And this time span is based on the degree of environmental uncertainties. 5. The type and quality of information used in making forecasting is an important factor influencing HRP. Accurate and timely human resource information system helps in getting better quality personnel. 6. HRP is required to ensure that suitable candidates should be appointed at the right kind of job. Limitations of Human Resource Planning a. It is very difficult to ascertain future manpower requirements of an organization, as future is always uncertain. b. It is more relevant to the countries that face the problem of scarcity of human resources. c. It is a time consuming and costlier process. d. It is beneficial in the organizations that adopt a professional approach and at the same time are conscious about the changing environment. e. HRP is beneficial where adequate skilled manpower is available. f. HRP is also made difficult in the organizations that have a very high labor turnover.