HUMAN RESOURCE PLANNING

Introduction 
 The success of a business is directly linked to the performance of those who work for that
business. Underachievement can be a result of workplace failures. Because hiring the wrong
people or failing to anticipate fluctuations in hiring needs can be costly, it is important that you
put effort into human resource planning.

Planning for HR needs will help to ensure your employees have the skills and competencies
your business needs to succeed. An HR plan works hand in hand with your business plan to
determine the resources you need to achieve the business’s goals.

Human resource management is the strategic and coherent approach to the management of an
organisation’s most valued assets, that is, the people who individually and collectively
contributes to the achievement of the objectives of the organisation. 

At the start of the 21st century, there were increasing claims that the route to competitive
advantage is achieved through people. In a situation where identical non-people resources in
the form of finance, raw materials, plants, technology, hardware and software are made
available to competing organisations differences in economic performance between
organisations must be attributed to differences in the performance of people.

For senior managers in an organisation whose task it is to plan a response to the pressure for
continuous changes, the attraction, recruitment and selection, utilization, development and
future of the organisation ought to be consistent with line functions such as finance, marketing
and production etc. in the course of drawing strategic plans.

Concept & Meaning of HRP 

 To understand the Human Resource Planning First, we will see what is Planning? And why is
it needed?

What is planning? Plans are methods for achieving a desired result. Goals or objectives are spec
ific results you want to achieve. Planning
is thus "the process of establishing objectives and courses of action prior to taking action."

What is planning concerned with? 

Planning provides a sense of purpose and direction.  It is a comprehensive framework for
making decisions in advance. It also facilitates the organizing, leading, and controlling functions
of management. Planning: allows you to make your decisions ahead of time, it helps you to
anticipate the consequences of various courses of action, it provides direction and a sense of
purpose, it provides a unifying framework against which to measure decisions. It is concerned
with the end (what is to be done) as well as with means (how it is to be done).

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Is planning really needed?
 Planning is one of the functional areas of Human Resource Management.

Human Resource Planning 

 Human resource planning is used by organisations to ensure that they have the right number
and the right kind of people at the right place and at the right time. Where this process is
carried out properly, it brings maximum long-run benefits to both the organisation and the
individual employee.

Human Resource Planning is the planning of Human Resources. It is also called manpower

planning/ personnel planning/ employment planning. It is only after Human Resource Planning
that the Human Resource department can initiate the recruitment and selection process.
Therefore Human Resource Planning is a sub-system of organisational planning.

Definitions “Human Resource Planning is a strategy for the acquisition, utilisation,

improvement and preservation of an organisation’s human resource” – Y.C. Moushell

“Human Resource Planning is a process of forecasting an organisation’s future demand for

human resource and supply of right type of people in right numbers” – J.Chennly.K

Human resources planning is the process of analysing an organisation's human resources needs
under changing conditions and developing the activities necessary to meet these needs.

Such planning helps entities anticipate the impact of change and respond to such change in a
systematic and integrated way. It is a vital part of corporate planning and budgeting procedures
since, human resource costs and forecasts both affect and are affected by longer-term
corporate plans.

Planning involves the forecasting of human resource needs in organisations and designing
appropriate actions such as recruitment, training and career development based on identified
needs. Planning is carried out within the goals and general policy framework of the firm or
agency. It is also affected by public policies, changes in technology and availability of
manpower.

Human resource planning involves a complex task of forecasting and planning for the right
numbers and the right kinds of personnel at the right places and at the right time to perform
activities that will benefit the organisation in accomplishing its objectives and in helping its
members to satisfy their needs. Human resource planning will be successful to the extent that it
properly coordinates each of enumerated elements and it is essentially the fitting of resources
to business needs in the longer term or shorter term as the case may be.

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Can we develop these knowledge, skills, and abilities internally, or will we have to seek outside
help?

Planning objective       
 To maximize the use of human resources and ensure their ongoing development
 To secure the production capacity required to support organisational objectives
 To synchronize human resources activities with organisational objectives
 To increase the organisation’s productivity

Human resource planning provides answers to such questions as:

 i) How many people will be needed?

ii) What skills, knowledge and competencies will they require?
iii) Will existing human resource meet the identified need(s)?
iv) Is further training and development needed?
v) Is recruitment necessary?
vi) When will the new people be needed?
vii) When should training or recruitment start?

Need for Human Resource Planning       

Shortage of Skills: – These days we find shortage of skills in people. So it is necessary to plan for
such skilled people much in advance than when we actually need them. Non-availability of
skilled people when and where they are needed is an important factor which prompts sound
Human Resource Planning.

 Frequent Labour Turnover: – Human Resource Planning is essential because of frequent

labour turnover which is unavoidable by all means. Labour turnover arises because of
discharges, marriages, promotion, transfer etc. which causes a constant ebb and flow in
the workforce in the organisation.
 Changing needs of technology: – Due to changes in technology and new techniques of
production, existing employees need to be trained or new blood injected into an
organisation.
 IIdentify areas of surplus or shortage of personnel: – Manpower planning is needed in
order to identify areas with a surplus of personnel or areas in which there is a shortage
of personnel. If there is a surplus, it can be re-deployed, or if there is a shortage new
employees can be procured.
 Changes in organisation design and structure: – Due to changes in organisation structure
and design we need to plan the required human resources right from the beginning.

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Guidelines for making Human Resource Planning effective       
Adequate information system: – The main problem faced in Human Resource Planning is the
lack of information. So an adequate Human resource database should be
maintained/developed for better coordinated and more accurate Human Resource Planning.

  Participation: – To be successful, Human Resource Planning requires active participation

and coordinated efforts on the part of operating executives. Such participation will help
to improve understanding of the process and thereby, reduce resistance from the top
management.
 Adequate organisation: – Human Resource Planning should be properly organised; a
separate section or committee may be constituted within the human resource
department to provide adequate focus and to coordinate the planning efforts at various
levels.
  Human Resource Planning should be balanced with corporate planning: – Human
resource plans should be balanced with the corporate plans of the enterprise. The
methods and techniques used should fit the objectives, strategies and environment of
the particular organisation.
  Appropriate time horizon: – The period of manpower plans should be appropriate
according to the needs and circumstances of the specific enterprise. The size and
structure of the enterprise as well as the changing aspirations of the people should be
taken into consideration.

Features of Human Resource Planning      

 It is future oriented: – Human Resource Planning is forward-looking. It involves forecasting the
manpower needs for a future period so that adequate and timely provisions may be made to
meet the needs.

 It is a continuous process: – Human Resource Planning is a continuous process because

the demand and supply of Human Resource keeps fluctuating throughout the year.
Human Resource Planning has to be reviewed according to the needs of the
organisation and changing environment.
 Integral part of Corporate Planning: – Manpower planning is an integral part of
corporate planning because without a corporate plan there can be no manpower
planning.
 Optimum utilisation of resources: – The basic purpose of Human Resource Planning is to
make optimum utilisation of organisation’s current and future human resources.
 Both Qualitative and Quantitative aspect: – Human Resource Planning considers both
the qualitative and quantitative aspects of Human Resource Management,
‘Quantitative’ meaning the right number of people and ‘Qualitative’ implying the right
quality of manpower required in the organisation.

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  Long term and Short term: – Human Resource Planning is both Long-term and short-
term in nature. Just like planning which is long-term and short-term depending on the
need of the hour, Human Resource Planning keeps long-term goals and short-term goals
in view while predicting and forecasting the demand and supply of Human Resource.
   Involves study of manpower requirement: – Human Resource Planning involves the
study of manpower availability and the manpower requirement in the organisation.

Linkages with Business Planning & Strategies 

Human resources planning and strategic planning are intimately related. On the one hand,
strategic planning provides the basis for the development of all human resources functions. On
the other, human resources planning plays a key role in the strategic planning process as the
organization defines

       What is our business, and what should our business be?

       Who are our employees, both demographically and educationally?
       What learning experiences are necessary to prepare our employees to deliver our
service and to function effectively?
       What knowledge, skills, and abilities are necessary for the staff to perform
successfully?

Integrating Human Resource planning with Business/Strategic Plan: 

  The integration of business plan and HR planning is likely to be more appropriate in a stable
market place with largely passive (and static) customers and with scope of long-term
forecasting because of the predictability of demographic change. Linking HR planning to
business planning interprets these plans in terms of people requirement. However it may
influence the business strategy by drawing attention to ways in which people can be developed
and deployed more effectively to enhance the achievement of business goals as well as
focusing on programme that might have to be resolved to ensure that the people required will
be available and will be capable of making the necessary contributions. HR planning is
important because it encourages employers to develop clear and explicit links between their
business and HR plans and integrates the two more effectively.

 It also allows for better control over staffing costs and numbers employed and enables
employers to make more informed judgements about the skills and attitude mix in
organisations. The penalties for not staffing an organisation correctly are costly. Understaffing
loses the business economies of scale and specialization, orders, customers and profits.
Overstaffing on the other hand is wasteful and expenses. If sustained, it is costly to eliminate
because of modern legislation in form of redundancy payments, consultation, minimum period
of notice etc. Very importantly, overstaffing reduces competitive efficiency of the business
enterprise (Aina, 2005).

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 BENEFITS AND CHALLENGES OF HRP

BENEFITS OF HRP
CHALLENGES, PROBLEMS AND ISSUES WITH HRP 
 HR planning has gained wide recognition as a reliable
Human resource planning involves projecting how
tool for effective human resource management. In
many people will be needed to fill position in an
recent times, even the medium and small-scale
organisation. This planning occurs in a changing
organisations have realized the critical role of HR
environment. Organisations study their short-term
plans in goal accomplishment and cost reduction. We
and long-term needs in hiring new employees.
shall now see the important benefits of the HR plans:
Uncertain economic conditions such as trade
competition and changes in technology are example
 HR planning helps the organisations in utilizing of contingency that can make an organisation to
human resources better through effective adjust its hiring needs. 
planning and timely execution.
 It assists the organisation in anticipating the Hiring new employees can be a challenging part of
future trends in the demand for and supply of human resource planning. People can be complicated
labour. elements and working with them could portray
 It replaces haphazard and thumb-rule horroring experiences. Furthermore, one has to
approaches towards human resource navigate through state and corporate rules, policies
management with a well-planned, systematic and procedures, and also deal with different types of
and scientific approach. personalities, needs and crises. Understanding some
 It forms the basis for all HR activities including of these challenges one many face in the course of
recruitment, training, performance evaluation, human resource planning could help for hitch free HR
and compensation fixation and employee planning when problem(s) arises: 
retention.
1. Employee Attitude: The unfortunate side of human
resource planning is dealing with difficult and
problematic employees. As in life situation, workplace
  is staffed with different kinds of people coupled with
other negative tendencies which employers must
contend with. Human resource personnel are often
called to assist with mediation, coaching and even
disciplinary actions to foster harmonious and orderly
work environment. To prevent hiring problematic
employees, human resource planners must use valid
and reliable screening instrument. However, it is
important to keep documentation of the hiring
process and clearly define expectations from the
potential applicants. 

2. Workplace Diversity: Companies must encourage

absorption of different talents and skill sets from all

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 spheres of life to promote expansion, globalization
and progress. Diversity can help foster a productive
and innovative work environment as blending of new
ideas, different perspectives, as well as different
approaches to work and problem-solving will not only
be result-oriented but also rewarding to the
employer. 

3. Mismatch Between Applicants’ Skills and Jobs: An

organisation may find it difficult to fill vacant positions
and consequently engage the services of on
consultant. This might be due to pressure or more
demand within the organisation and not because
there is no available talent in the job market. Another
reason is likely to be that the organisation’s recruiting
strategies are not attracting the right talent. Being
unable to fill positions necessary to achieve
operational goals leaves an organisation in a weak
business position. Consequently, forecasting human
resource needs should be supported with effective
recruitment, replacement and retention policy
framework. 

4. Environmental Factors: Environmental issues are

domiciled in an organisation. Demographic changes
affect the internal work climate. Differences in work
value between generations, such as Baby Boomers
and Generations X and Y, mean that employees have
different preferences, motivations, interests,
aspirations etc. and these diverse inclinations have to
be satisfied or addressed by the employer. 

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