Module-I

MP Forecasting Introduction

Meaning

Human resource planning (HRP) is the first step in the HRM process. HRP is the process by
which an organization ensures that it has the right number and kind of personnel, at the right
place, at the right time, capable of effectively and efficiently completing those tasks that
will help the organization achieve its overall objectives. Human resources undoubtedly play
the most important role in the functioning of an organization. The term ‘resource’ or ‘hu man
resource’ signifies potentials, abilities, capacities, and skills, which can be developed
through continuous interaction in an organizational setting.

Manpower Planning also called as Human Resource Planning. It focuses on right number of
people, at the right place, at right time, and doing the right things for which they are being
selected. It will be helpful for the achievement of goals and objectives of the organization.
Human Resource Planning has got an important place in the arena of industrialization.

Human resource planning is important for helping both organizations and employees to prepare
for the future. The basic goal of human resource planning is to predict the future and based on
these predictions, implement program to avoid anticipated problems. Very briefly humans
resource planning is the process of examining an organizations or individual’s future human
resource needs for instance, what types of skills will be needed for jobs of the future compared to
future human resource capabilities (such as the types of skilled employees you already have) and
developing human resource policies and practices to address potential problems for example,
implementing training program to avoid skill deficiencies.

Definition

As according to Geisler, ―Manpower planning or HR Planning is the process which includes:

forecasting, developing and controlling manpower. It also ensures that it has-

 The right number of people,  The right kind of people,  At the right places,  At the right
time, doing work for which they are economically most useful‖.

Manpower planning as defined by Stainer is the ―strategy for the requisition, utilization,
improvement and preservation of an enterprise human resource. It relates to establish job
specifications or the quantitative requirements of jobs determining the number of personnel
required and developing sources of manpower. Thus, Manpower planning is a process of
determining the requirement of right number and right kind of human force at right place and
right time.
E.W. Vetter viewed human resource planning as “a process by which an organization
should move from its current manpower position to its desired manpower position. Through
planning, management strives to have the right number and right kind of people at the right
places at the right time, doing things which result in both the organization and the individual
receiving maximum long-run benefit.”

According to Leon C. Megginson human resource planning is “an integrated approach to

performing the planning aspects of the personnel function in order to have a sufficient
supply of adequately developed and motivated people to perform the duties and tasks
required to meet organisational objectives and satisfy the individual needs and goals of
organisational members.”

Need of MPP/ HRP

Human resource planning may be viewed as foreseeing the human resource requirements of
an organisation and the future supply of human resources. It focuses on

(i) Making necessary adjustments between these two and organisational plans.
(ii) Foreseeing the possibility of developing the supply of human resources in order
to match it with requirements by introducing necessary changes in the functions
of human resource management. In this definition, human resource means skill,
knowledge, values, ability, commitment, motivation, etc., in addition to the
number/of employees.

Need of HRP is vital as it focuses on both Employment and Unemployment Situation:

Though in general the number of educated unemployment is on the rise, there is acute shortage
for a variety of skills. This emphasizes on the need for more effective recruitment and employee
retention. There are following factors which can be discussed to focus on need and importance of
HRP.

Technological Change: The changes in production technologies, marketing methods and

management techniques have been extensive and rapid. Their effect has been profound on the
job contents and job contexts. These changes have caused problems relating to redundancies,
retention and redeployment. All these suggest the need to plan manpower needs intensively and
systematically

Skill Shortage: Unemployment does not mean that the labor market is a buyer’s market.
Organizations generally become more complex and require a wide range of specialist skills that
are rare and scare. A problem arises in an organization when employees with such specialized
skills leave.

Governmental Influences: Government control and changes in legislation with regard to

affirmative action for disadvantages groups, working conditions and hours of work, restrictions
on women and child employment, causal and contract labor, etc. have stimulated the
organizations to become involved in systematic HRP.

Lead Time: The lead time is necessary in the selection process and training and deployment of
the employee to handle new knowledge and skills successfully.

Replacement: Since a large number of persons have to be replaced who have grown old, or who
retire, die or become incapacitated because of physical or mental ailments, there is a constant
need for replacing such personnel. Otherwise, the work would suffer.

Labor Turnover: Human resource planning is essential because of frequent labor turnover
which is unavoidable and even beneficial because it arises from factors which are socially and
economically sound such as voluntary quits, discharges, marriage, promotions, or factors such as
seasonal and cyclical fluctuations in business which cause and flow in the workforce in many
organizations.

Increase in Demand: In order to meet the needs of expansion programs human resource
planning is unavoidable. It becomes necessary due to increase in the demand for goods and
services with growing population, a rising standard of living - larger quantities of the same goods
and services are required. Surplus manpower: Manpower planning is also needed in order to
identify areas of surplus personnel or areas in which there is a shortage of personnel. If there is a
surplus, it can be deployed, and if there is shortage, it may be made good

Objective of HRP

Each organization needs manpower planning. An organizational unit is started to accomplish

certain goals. Which requires human resources with necessary qualification? These are provided
through effective manpower planning. Comprehensive manpower planning helps to optimize
effectiveness of human resources. Thus, the main objective of manpower planning is to ensure
optimum use of human resources. Beside that the other objectives are:

 To determine present requirement level of human resource so as to ensure smooth functioning

of the organization.

 To analyze and calculate future skills requirement,

 To provide control measures so as to ensure that necessary resources are available as and when
required. To anticipate redundancies and avoid unnecessary dismissals and assess training and
development needs.

 It is also needed for identifying surplus or shortage manpower areas and there by balancing
manpower. Thus, in short manpower planning provides right size and structure of human
resources which provides the basic infrastructure for smooth functioning of an organization. It
minimizes the cost of employment and nullifies the effects of disruptions in developing and
utilizing the human resources.

Micro & Macro Level

Human Resource Planning deals with both macro and micro concepts. Macro level includes
demographic changes, legal central, policies and markets technology etc. Micro level includes
organizational restructuring, skill, strategic objective, trade unions etc. Macro is uncontrollable
factor and Micro level is controllable factor.

Micro Level HRP: -

1. Macro level HRP drives Micro level HRP

2. It develops and implements the tactics needed to help the organization to achieve its strategic
objectives

3. It ensures that the business has the appropriate number of knowledges, skills and abilities in
the proper areas and departments.

Basics of Micro Level: -

1. Demand Forecasting: - Uses historical and current operations data to identify future needs and
analyzing the current workforce to identify potential shortage and surpluses in various job
categories in future

2. Manpower supply Analysis: - Scanning the current labor market to determine the workforce
available and analyzing any gaps between the kind of workforce needed with what is available.

3. Manpower Planning: - Set priorities and develop plans for employee recruitment, retention
and development and workforce reductions.

Macro Level HRP

1. HRP Focuses on aligning human resources administration with the organization’s mission and
overall strategic plan.

2. Examines employee-management policies and procedures and their effect on HRM.

HRP Links with other HR Functions

HRP has always a linkage with all the HR function starting from the recruitment to Retirement
Or from job analysis to completion of job.

 HRP is the first step in all HRM functions. So, HRP provides the essential
information needed for the other HRM functions like:
 Job analysis,
  Recruitment,
 Selection,
 Placement,
 Induction,
 Performance Appraisal,
 Compensation and Reward,
Training and Development,
 promotion, etc.
 From a systems view, human resource planning is interrelated with many of the
organization’s personnel management. The strongest relationship exists between
human resource planning and selection. In fact, all selection efforts really are an
integral part of the whole human resource planning process.
 In addition, human resource planning is related to both performance appraisal and
training and development. Performance appraisals can pinpoint the skills that will be
required for employees to move into higher-level positions via promotion, while
training and development efforts may then be designed to provide these skills.
 To meet organizational goals, human resource planning seeks to ensure that the
organization’s demand for individuals at any particular time will be just met by
available human resources.

Factors influencing HRP

Several factors affect HRP can be classified into external factors and internal factors.

External Factors: (PESTI)

 Environmental uncertainties: - Political, Economic, Social and Technological changes

affect all organizations.
 Political or Government Policies – Policies of the government like labour policy,
industrial relations policy, policy towards reserving certain jobs for different
communities and sons-of the soil, etc. affect the HRP.
 Level of Economic Development – Level of economic development determines the
level of HRD in the country and thereby the supply of human resources in the future
in the country.
 Social Factors- HRP is influenced by social factors like: family structure, norms,
traditions, culture etc.
 Level of Technology – Level of technology determines the kind of human resources
required.
 International Factors – International factors like the demand for resources and
supply of human resources in various countries. Similarly, labor market comprises
people with skills and abilities that can be tapped as and when the need arises. When one
talks about labor supply, the following deserve due consideration: • The size, age, gender
and educational composition of the population • The demand for goods and services in
the country • The nature of production technology etc.
Internal Factors:

 Type and strategy of organization: - The type of organization is an important

consideration because it determines the production processes involved, number and type
of staff needed, and the supervisory and managerial personnel required. (e.g.
Manufacture or service, etc.)
 Organizational growth cycles and planning: - Need for planning is felt when the
organization enters into the different stage like growth stage, Initiation stage, decline
stage etc.
 Company policies – Company policies relating to expansion, diversification,
alliances, etc. determines the human resource demand in terms of quality and
quantity. Balancing mechanisms are built into the HRM program through succession
planning, promotion channels, layoffs, flexi time, job sharing, retirement, VRS and other
personnel related arrangements.
 Company’s production operations Company’s policy regarding how much to
produce and how much to buy from outside to prepare a final product influence the
number and kind of people required.
 Quality of information: - The quality and accuracy of information depend upon the
clarity with which the organizational decision makers have defined their strategy,
organizational structure, budgets, production schedules and so forth.
 Job analysis – Fundamentally, human resource plan is based on job analysis. Job
description and job specification determines the kind of employees required.
 Time horizons – Companies with stable competitive environment can plan for the
long run whereas the firms with unstable competitive environment can plan for only
short- term range.
 Trade unions – Influence of trade unions regarding number of working hours per
week, recruitment sources, etc., affect the HRP.

Process of MPP

Manpower planning requires an in-depth knowledge of how the human resource system /
manpower system operates, with emphasis on the flow (supply and demand) of people
into, through and out of the organization. On the supply side, manpower planning
requires accurate and current information regarding the qualitative and quantitative
factors such as, skills invention and public policy towards manpower resource. On the
demand side, attention is paid to such factors as productivity, technological changes, and
sales forecast. Supply and demand are continuously balanced within the framework of
organizational goals and priorities. A step wise manpower planning process is given
below:

• Manpower Demand Forecasting

• Manpower supply forecasting

• Manpower inventory

• Forecasting the Wastage

• Reconciling Demand and Supply

Human Resource Forecasting Need

HR Forecasting refers to determine the number and kind of manpower required in near
future. It is the systematic process of manpower need identification to achieve
organizational goals and objectives. Firms can schedule projects more accurately with
proper manpower forecasting. It promotes proper use of resources and it is very
economic.

The Steps in HR Forecasting

1. Assess your current human resource capacity

2. Scrutinize the Current Job Market

3. Evaluate Organizational Needs

4. Anticipate Employee Turnover

5. Forecast future HR requirements

6. Identify HR gap

7. Estimate Future HR Needs

8. Integrate the plan with your organization’s overall

Factors Influencing HR Demand Forecasting

Human Resource Demand Forecasting depends on several factors, which can be discussed in
following manner.

 Employment trends

 Replacement needs

 Productivity

 Absenteeism and
  Expansion and growth

Techniques of Demand Forecasting

A Managerial judgment

B. Work study Technique

C. Ratio Trend Analysis

D. Econometric Models

E. Trend Analysis

F. Delphi Model

G. Other Technique

(A)Managerial Judgment :-

This technique is very common technique of demand forecasting. This approach is applied by
small as well as large scale organizations. This technique involves two types of approaches.
“Bottom-up-approach” and “Top-down approach”. Under the “Bottom-up approach, line
managers send their departmental requirement of human resources to top management. Top
management ultimately forecast the human resource requirement for the overall organization on
the basis of proposals of departmental heads. Under the “Top-down approach”, top management
forecasts the human resource requirement for the entire organization and various departments.
This information is supplied to various departmental heads for their review and approval.
However, a combination of both the approaches i.e. “Participative Approach” should be applied
for demand forecasting. Under this approach, top management and departmental heads meet and
decide about the future human resource requirement.

(B)Work-Study Technique :

This technique is also known as “work-load analysis”. This technique is suitable where the
estimated work-load is easily measurable. Under this method, estimated total production and
activities for a specific future period are predicted. This information is translated into number of
man-hours required to produce per units taking into consideration the capability of the
workforce. Past-experience of the management can help in translating the work-loads into
number of man-hours required. Thus, demand of human resources is forecasted on the basis of
estimated total production and contribution of each employee in producing each unit items.
Example: -

 Let us assume that the estimated production of an organization is 3,00,000 units.

 The standard man-hours required to produce each unit are 2 hours.
 The past experiences show that the work ability of each employee in man-hours is 1500
hours per annum.

The work-load and demand of human resources can be calculated as under

i. Estimated total annual production = 3,00,000 units

ii. Standard man-hours needed to produce each unit = 2 hrs.

iii. Estimated man-hours needed to meet estimated annual production = 6,00,000 hrs.

iv. Work ability/contribution per employee in terms of man-hour = 1500 unit

v. Estimated no. of workers needed (iii/iv) = 6,00,000/1500 = 400 workers

The example clearly shows that 400 workers are needed for the year. Further, absenteeism rate,
rate of labor turnover, resignations, deaths, machine break-down, strikes, power-failure etc.
should also be taken into consideration while estimating future demand of human
resources/manpower.

( C ) Ratio Trend Analysis :

Demand for manpower/ human resources is also estimated on the basis of ratio of production
level and number of workers available. This ratio will be used to estimate demand of human
resources.

Example: -

Estimated production for next year = 1,40,000 units

Estimated no. of workers needed (on the basis of ratio-trend of 1:200) will be = 700

(D) Econometrics Models :

These models are based on mathematical and statistical techniques for estimating future demand.
Under the model relationship is established between the dependent variable to be predicted (i.e.
manpower/human resources) and the independent variables (i.e. sales, total production, work-
load etc.). Using these models, estimated demand of human resources can be predicted.

(E)Trend Analysis

In trend analysis to predict future needs the company analyses past staffing history. It compares
the number of employees at different times against a key factor of the company. For example, a
car dealership might research past data to determine the number of sales persons related to the
highest number of cars sold per employee. It will help the organization for required manpower
with excellent services.

( F ) Delphi Technique :

It is also a very important technique used for estimating demand of human resources. This
technique takes into consideration human resources requirements given by a group of experts i.e.
managers. The human resource experts collect the manpower needs, summarizes the various
responses and prepare a report. This process is continued until all experts agree on estimated
human resources requirement.

(G) Nominal Group Technique

NGT is one of the popular demand forecasting techniques in HRM that utilizes expert
assessments. The management identifies employees in key positions and create an expert panel
to set questions related to human resource demand. The solutions and ideas generated by this
panel are collected and finalized with panel votes.

( H ) Other Techniques:-

The other techniques of Human Resources demand forecasting as specified as under.

i. Following the techniques of demand forecasting of human resources used by other similar
organizations.

ii. Organization-cum-succession-charts

iii. Estimation based on techniques of production

iv. Estimates based on historical records

v. Statistical techniques e.g. co-relation and regression analysis.

Supply Forecasting

Human Resource supply forecasting is the process of estimating availability of human resource
followed after demand for testing of human resource. For forecasting supply of human resource,
we need to consider internal and external supply. Internal supply of human resource available by
way of transfers, promotions, retired employees & recall of laid-off employees, etc. Source of
external supply of human resource is availability of labor force in the market and new
recruitment.

External supply of human resource depends on some factors mentioned below.

 Supply and demand of jobs.

 literacy rate of nation.

 rate of population

 industry and expected growth rate and levels

 technological development.

 compensation system based on education, experience, skill and age.

The most important techniques for forecasting of human resource supply are succession analysis

and Markov Analysis.

Succession Analysis

Once a company has forecast the demand for labor, it needs an indication of the firm’s labor
supply. Determining the internal labor supply calls for a detailed analysis of how many people
are currently in various job categories or have specific skills within the organization. The planner
then modifies this analysis to reflect changes expected in the near future as a result of
retirements, promotions, transfers, voluntary turnover and terminations.

Demand forecasting helps in determining the number and type of personnel/human resources
required in future. The next step in human resource planning is forecasting supply of human
resources. The purpose of supply forecasting is to determine the size and quality of present and
potential human resources available from within and outside the organization to meet the future
demand of human resources. Supply forecast is the estimate of the number and kind of potential
personnel that could be available to the organization.

Markov Analysis—

In Markov analysis the HR department of the company maintains record of employees’ skills,
education, work experience etc. The manager checks the record regularly for future talent and
skill required. It is based on transition probability matrix which is developed to determine the
probabilities of job incumbents remaining in their jobs for the forecasting period. The technique
is named after Russian mathematician Andrei Andreyev ich Markov, A transition matrix, or
Markov matrix, can be used to model the internal flow of human resources. These matrices
simply show as probabilities of average rate of historical movement from one job to another.

For example, for a line worker there is a 20% probability of being gone in 12 months,

a 0% probability of promotion to manager,

a 15% probability of promotion to supervisor,

and a 65% probability of being a line worker this time next year.
Such transition matrices form the bases for computer simulations of the internal flow of people
through a large organization over time.

Forecasting Accuracy

Forecasting is always a means to an end, not the end itself. We need to keep in mind that a
forecast is relevant only in its capacity of enabling us to achieve other goal. Although forecasting
is an important part of any planning activity, it still represents only one cogwheel in the planning
machinery, meaning that there are other factors that may have a significant impact on the
outcome. Oftentimes the importance of accurate forecasting is truly crucial, but from time-to-
time other factors are more important to attaining the desired results. However, to get truly
valuable insights from measuring forecast accuracy we need to understand:

 The role of demand forecasting in attaining business results.

 What factors affect the attainable forecast accuracy.
 How to assess forecast quality
 How the main forecast accuracy metrics work.
 How to monitor forecast accuracy.

Advantages of Manpower Planning

Without proper manpower planning no enterprise can achieve its objectives fully and entirely.
Sometimes, even its very existence may be handicapped. Hence, it is needless to stress its
importance. However, the following benefits are worth mentioning.

1. The required number of staff shall be recruited at each level in the hierarchy.

2. Staffing requirements can be better balanced and movement of staff can be made easier by
manpower planning.

3. Areas of high labor turnover are highlighted in manpower planning.

4. Implications of changes in recruitment, promotion and succession plans are foreseeable.

5. Improvement of labor Productivity

6. Recruitment of Qualified Human Resources

7. Adjusting with the Rapid Technological Change

8. Reducing labor Turnover

9. Control over Recruitment and Training Cost

10. Mobility of labor

11. It cans Facilitate Expansion Programs

12. To Treat the Manpower like Real Corporate Assets

Limitations of Manpower Planning

Human resources planning is not free from defects. In fact, it is a double-edged weapon. If used
properly, it will lead to maximum utilization of human resources. If used faulty, manpower
planning will lead to disruption in the flow of work, lower production, less job satisfaction, etc.
Besides, it also has certain limitations.

Limitations of Manpower Planning

The following are some of the limitations of manpower planning

1. Detailed records are needed plus expensive clerical staff.

2. Problems of forecasting changes, especially in technological and Government policy areas.

3. Manpower planning can be uncertain even for few years ahead. Particularly, in a dynamic
business situation it is really difficult to foresee the future with maximum accuracy.

In spite of these limitations, proper manpower planning is a condition precedent to perform

staffing function properly and successfully.

Strategic Staffing

Strategic staffing is a HR strategy that helps businesses ensure they have the right number and
type of employees to meet current and future business goals. It is a proactive approach to talent
acquisition and retention that involves planning ahead to fill positions quickly and efficiently. It
helps the business to streamline the staffing process, reduce manpower cost and maximize profit.
Lack of staff in certain job categories can lead to a decrease in performance of the company
level. So, in order to avoid these kinds of situations HR Directors and Managers need to plan
ahead to meet future staffing needs. It makes sure that organization has the workforce it needs to
deliver its current and planned business objectives. It is a process which defines and addresses
the staffing implications of strategic, tactical and operational plans.

Advantages of Strategic Staffing

The use of strategic staffing allows companies:

- To improve staff utilization

- To address critical HR concerns in a systematized and integrated way

- To recruit, develop and place the talent required to meet future company needs
- Managing staffing function to be aligned to the changing business scenario.

- It allows the organization to hire talent and develop them for a higher position in the future of
the company.

- It provides solutions to HR problems in a more organized way.

- It fosters a diverse workforce that is healthy for the company.

- It helps in better planning of use of external resources.

Here are five steps for creating a staffing plan that will assist organizations to keep up with its
potential and ambitions.

1. Determine Goal of the Organization and Design Strategic Direction

2. Analyze Workforce and Identify Skill Gap.

3. Develop Action Plan

4. Implement Action Plan

5. Monitor and Revise

Job Analysis and Human Resource Planning: -

A Job can be described as a group of tasks which assigned to the individual employees for
ensuring achievement of the organizational goals. When this job is analyzed in terms of
determination of the skills, duties and knowledge required for completion of tasks, it is regarded
a Job Analysis. In the words of Geisler (2006), the entire process of HRP essentially involve four
crucial aspects in it.

 Forecasting of Manpower requirements

 Formulating Policies

 Implementing policies effectively and

 Controlling or monitoring the policies for ensuring that the right kind of people in right
numbers are selected for the right position and in right time

A sound HRP process in an organization must be strategically aligned with overall corporate
strategy and essentially depends on the availability of a robust HRIS for making accurate
projections regarding the manpower requirements and availability of information readily
regarding crucial parameters.

Job Analysis
Job Analysis involves gathering information and analysis of crucial information about a job. In
this analysis judgment are made on the data collected of a job. Job Analysis involves both Job
Description and Job Specification, which includes an assessment of the nature of the job as
well as the knowledge skills, and attitude of the jobholder. In other words, Job Description
provides details regarding the content of the job in a written format and Job Specification is
written record of the qualities and qualifications which a Jobholder should be having for
handling a job. The job analysis is useful in developing selection, training, and performance
evaluation. Job analysis is the process of studying and collecting information about the
responsibilities and operations of a given job. Specifically, job analysis involves the following
steps:

 Analyzing the Job interrelationship with the organizational strategies and vision.

 Determining the Uses of Job Analysis like Recruitment & Selection, Compensation,

Training & Development, etc.

 Identification of Job which would be analyzed

 Collection of Data for Job Analysis through observation, Interviews and Questionnaire

Administration.

 Preparing the Job Description which is essentially a written account of the job.

 Preparing the Job Specifications which should essentially provide details regarding the

specific skills, qualities and qualifications which a job holder should possess.

 Reviewing and updating the information ideally in every three years and the

interrelationship collecting job information.

Problems in HRP

1. People perceive that people are available in abundance in our labor surplus economy. Then,
why to spend time and money in forecasting human resources? Surprisingly, this perception
about human resource planning is also held by the top management.

2. Another problem in human resource planning is that the demand for and supply of human
resources is not cent percent accurate. Experience suggests that longer the time horizon for
forecasting human resource requirements, greater is the possibility of inaccuracy in estimates of
human resource needs.
3. Various types of uncertainties like labor turnover, absenteeism, seasonal employment, market
fluctuations and changes in technology render human resource planning ineffective. The reason
being these uncertainties, make human resource forecast mere a guess far from reality.

4. Sometimes human resource planning suffers from a conflict between quantitative and
qualitative approaches used for it. Some people view human resource planning as a mere
numbers game to track the flow of people across the departments and in and out of the
organization. Conversely, others take a qualitative approach focusing on the quality of human
resources like career planning development, skill, morale, etc.

5. Generally, human resource personnel are perceived as experts in handling personnel matters.
But they are not experts more than often. Hence, human resource requirements estimated by such
people are not realistic ones. The organizational plans based on such estimates are endangered to
be flopped.

6. As human resource planning is based on data relating to human resources, the same is not
maintained in a proper manner in some of the industrial organizations. Then, in the absence of
reliable data, it becomes difficult to develop effective human resource plans.

Guidelines for effective HRP

If you’re an entrepreneur, you will find it essential to have an effective Human Resources (HR)
business plan. You may have already discovered the value of a good strategic vision and overall
business plan, but it’s every bit as important to ensure your HR plan is effective to secure the
success of your business.

1. Identify Your Employees’ Abilities before you start thinking about what is your future
hiring strategies will be.
2. you’ll want to assess your current workforce’s skills and abilities. You’ll probably
already have files with your employees’ resumes, including their education history and
the projects they’ve worked on for you.
3. You should have a Succession Plan. It will be up to you whether you want to include
your employees in the creation of this succession plan. Either way, be aware of their
career goals and what their plans are for the future, and don’t hesitate to inform them
when changes are taking place.
4. Have a Development Plan for Your Employees. From there, develop a plan for the
employees to go about acquiring the skills they need and begin applying them towards
the greater good of the business. Studies have shown that the main reason employees stay
with the company they work for is because they feel challenged by the work they are
being given.
5. Conduct a Gap Analysis. You’ll want to analyze the job descriptions you use when
hiring; Make sure your employee handbook is up to date as well; Your training policies
 may also need to be updated. Changes may also have taken place in the requirements
regarding health benefits and sick leave of current laws.
6. Increase Your Resources as Business Grows. Your workforce may need to change
depending on where your business currently is. You may need to look for new employees
or train your current ones.

Current Trends in HRP

The universe of work is quickly evolving. As a part of a company, Human resource management
must be set up to in order to manage impacts of changing universe of manpower. For the HR
individuals, it implies understanding the consequences of recent human resource planning and
management changes and trends:

 Globalization
 Workforce Diversity
 Changing ability requirements
 Corporate cutting back
 Ceaseless change activities

Globalization and its impacts

Business today doesn’t have national limits; it stretches far and wide. The ascent of multinational
companies has encouraged new requirements on human resource managers. The HR office needs
to guarantee that the proper blend of workers regarding information, abilities and social
versatility is accessible to handle worldwide assignments. Keeping in mind this objective, the
companies must prepare its employees to meet the difficulties of globalization. Human resource
management should likewise create systems that will help multicultural people cooperate. The
main challenge is to avoid the signs of a worker struggling with increment. HRM is also required
to prepare the administration to be more adaptable in its practices. Since tomorrow’s manpower
will come in various hues, nationalities etc., managers will be required to change their way of
life. This will require managers to be prepared to gain comparisons in responsibilities and to
acknowledge and even praise these distinctions.

Work-power Diversity

In the past HRM was significantly less difficult and the fact that the man power was strikingly
homogeneous. Today’s manpower & HR Management includes individuals of various gender,
age, social class, values, identity attributes, ethnicity, religion, training, physical appearance, way
of life, convictions, belief systems etc. HRM must know about nationality, age contrasts that
exist in today’s manpower and must prepare individuals of various ages to successfully manage
each other and regard the qualities of perspectives that every individual offers.

Changing ability prerequisites

Enrolling and creating talented work is essential for any organization which is worried about
outcomes, profitability, quality and dealing with a work drive successfully. Education
inadequacies translate into noteworthy misfortunes for the company as far as low-quality work
and lower profitability is concerned. The division will need to devise reasonable planning and
projects in order to connect the expertise holes and mishaps.

Corporate scaling down

At whatever point a company wishes to delay, it is attempting to make more noteworthy

efficiency. The reason of cutting back is to lower the number of employees utilized and
employed by the company. The division plays a vital role in scaling the manpower down. Human
resource individuals must guarantee that proper communication should happen within this time.
They should minimize the negative impacts of gossipy tidbits and guarantee that people are kept
educated with authentic information. This would ensure the management of a real cutback. The
department should be critical in cutting back negative dialogues.

Ceaseless change activities

Intense global competition, rapid technological changes and fear of labor turnover have also led
many organizations to increase their use of part-time workers, sub-contractors and independent
professionals in response to the changing demand. Similarly, flexible working hours, work-from-
home, quality-of-work life facilities are common requirements of employees in the changing
business era.