HUMAN RESOURCE DEVELOPMENT

Human Resource Development (HRD) encompasses concepts

like performance management, compensation, employee relations,
succession planning, career development, recruitment and selection,
employee engagement, training, mentoring, coaching, job rotation, and
organizational development, all aimed at enhancing employee skills and
performance to meet an organization's evolving needs.
Key HRD concepts:
 Performance Management:
Evaluating and improving employee performance through feedback and
goal setting.
 Compensation:
Determining fair salary, benefits, and other rewards based on job roles
and market standards.
 Employee Relations:
Maintaining positive relationships between employees and
management, addressing concerns and conflicts.
 Succession Planning:
Identifying and developing future leaders within the organization to fill
critical positions.
 Career Development:
Guiding employees to plan and achieve their career goals through
training, mentorship, and job rotations.
 Recruitment and Selection:
Attracting and choosing qualified candidates for open positions.
 Employee Engagement:
Implementing strategies to foster employee satisfaction, motivation, and
commitment.
Other important aspects of HRD:
 Training and Development: Providing employees with necessary
skills and knowledge through various training programs.
 Mentoring and Coaching: Pairing experienced employees with
newer ones for guidance and development.
 Organizational Development: Implementing changes to improve
organizational culture and effectiveness.
  Needs Analysis: Identifying the specific skills and knowledge gaps
within the workforce.
 Learning Culture: Fostering an environment where continuous
learning and development are encouraged.

HUMAN RELATIONS MANAGEMENT

“Human relations management theory is a management
approach that recognizes employees as human beings with
needs and wants beyond their job tasks,” Cameron Noe,
transformation lead at Humana, told us. “It highlights that
employees aren’t just motivated by money and rules in the
workplace, but also by recognition, inclusion, informal social
norms and structures and a sense of belonging.”

These are some of the human relations management theory

basics:

1. Individual attention and recognition align with the human

relations theory.

2. Many management theorists support the motivational

theory, which ties into the human relations theory.

3. Studies support the importance of human relations in

business.

4. Elton Mayo’s Hawthorne experiments

5. In the 1920s, Elton Mayo, an Australian-born psychologist

and organizational theorist, began his research on the
behavior of people in groups and how it affects
individuals in the workplace, known as the Hawthorne
studies.
6. At the time, Taylorism, or the application of science in the
workplace to improve productivity, viewed individuals as
machines that could work in unethical or unrealistic
environments. Mayo, in contrast, popularized the idea of
the “social person,” meaning organizations should treat
 people as individuals, not machines, with individual
needs.
7. The results of Mayo’s Hawthorne studies showed that
relationships are the most influential factor in
productivity. The researchers realized productivity
increased due to relationships and supportive groups
where each employee’s work had a significant effect on
the team output. As a side result, the attention the
workers received from the researchers increased their
motivation and productivity, in an example of what is now
known as the Hawthorne effect.
8. “Elton Mayo’s human relations theory emphasizes the
social and emotional well-being of employees as critical
components of organizational success,” said Pamela
Barnhill, managing director/practice lead at MSS
Business Transformation Advisory. “This is great for small
and medium-sized organizations as its principles are
foundational to sustainable businesses.”

Some popular management theories include:

 Elton Mayo’s management theory: This highlights the

importance of attention, social interactions and how

positive relationships impact employee productivity.

 Frederick Herzberg’s management theory: This

highlights the fact that motivators (e.g., recognition,

personal growth) and hygiene factors, such as job

security and salary, are key to employee satisfaction.

 Maslow’s Hierarchy of Needs: Maslow suggested that

five basic needs (physiological, safety, love, esteem and

self-actualization) are motivating factors in an employee’s

 work values because the employee is motivated to ensure

the most important of these individual needs are met.

 Douglas McGregor’s X & Y theory: This theory outlines

two contrasting management styles: Theory X assumes

employees are inherently lazy and need strict supervision,

while Theory Y assumes employees are self-motivated and

thrive with empowerment and responsibility. McGregor

supports motivational beliefs by recognizing that

employees contribute more to the organization if they feel

responsible and valued.

The results of studies regarding human relations in the

workplace show that people want to feel a sense of belonging
and significance while being treated with value and respect. If
you treat an employee with that value and respect, their
individual productivity and quality of work will increase to
support the organizational team.

What are 5 essential human relations skills?

1. Communication

Open lines of communication are essential to any workplace,

but this is especially vital for leaders practicing human
relations management. Effective communication helps ensure
that all employees not only are on the same page but also feel
motivated and valued in their work. This refers to in-person
conversations as well as written communication such as emails
and social media.

As a leader, you should be able to adapt your language to

various situations, such as by modifying your word choice and
formality for high-level executives versus the customer base.
One useful communication technique is mirroring the other
person’s approach; people are more likely to respond well to
those similar to them. Finding your common interests with
them and matching their tone of voice or physical stance are
great ways to subtly connect with your conversational partner.

2. Conflict resolution

Managing individuals with differing personality types,

worldviews and goals can make universal agreement incredibly
difficult, if not impossible, to achieve. Therefore, you must be
comfortable and well-versed in conflict resolution . You will
help your team work together in a civil manner – even if they
don’t agree with each other on all points – to ensure the work
gets done in a timely manner.

When dissent arises, you must be able to take individual

perspectives into account and make each person feel heard
and understood. Once you’ve synthesized the presented
information, you must work with all parties to come up with a
solution where everyone feels comfortable moving forward.
While it’s impossible to make everyone happy 100 percent of
the time, good conflict resolution skills can maintain or restore
team harmony in the face of disagreement.

3. Multitasking

Managers face countless tasks, questions and issues to solve

on a daily basis. They are responsible for themselves and their
team’s success, which means spending time checking in with
their team and ensuring things are moving smoothly.

A good leader must be able to manage multiple, often

competing, priorities at once, without missing deadlines.
Another important aspect of multitasking is flexibility; as a
manager, you must adapt to policy or workplace changes that
affect your employees’ daily workflow.

4. Negotiation

Whether there’s an employment offer to navigate, an

agreement to establish between stakeholders and the
company, or opposing viewpoints to manage, negotiation
happens regularly in the workplace. Strong negotiation skills
are key to keeping the peace between two parties while
reaching an agreement where all parties are satisfied.
Effective communication techniques such as mirroring and
adapting your language to your audience can also be useful in
negotiations.

5. Organization

Organization is one of the most important human relations

skills as it impacts all other areas of work. You must keep your
physical workspace, as well as your workflow process, highly
organized. This is especially important when you’re filing
paperwork or employee records because everything must be
completed correctly and on time. Staying organized is also a
key part of time management and an efficient workflow.

As a leader, you must work efficiently and manage your time

appropriately, especially when tackling multiple and often
time-sensitive priorities, which is possible only when there is
an organized process.

HUMAN RESOURCE ACCOUNTING

Mr. Woodruff Jr. Vice President, R.G. Batty Corporation

“Human Resource Accounting is an attempt to identify & report investments

made in human resources of an organization that is presently not accounted for
in conventional accounting practice. Basically, it is an information system that
tells the management what changes over time are occurring to the human
resources of the business.”
American Association of Accountants

“Human Resource Accounting is a process of identifying & measuring data about

human resources & communicating this information to interested parties.”

M.N. Baker

“Human resource accounting is the term applied by the accountancy profession

to quantify the cost & value of employees to these employing organizations.”

A company’s most crucial assets are its people or human

resources. The impact of these human assets and their expenses
are dealt with by Human Resource Accounting. It delves into
understanding and valuing the contributions these individuals
make to the organization.

In simple language, HRA is like keeping a score of how much

individual team members bring or contribute to the table.

For any organization to grow and succeed, it’s crucial to enhance

the effectiveness of its people. Human resources play a key role
in making other resources function well. The overall health of an
organization is reflected in human behavior factors such as

 Group loyalty
 Skills
 Motivation
 Communication
 Making decisions effectively.

All the above factors are contributing elements to human

resource accounting.
What are the key objectives of
Human Resource Accounting?
The key objective of Human Resource Accounting is to represent
the value of human resources in financial terms, which is then
reflected in the organization’s financial statements.

The above objective can be broken down into the following

aspects:

Cost Information for Management Decisions

Providing cost information to aid effective management decisions
related to acquiring, assigning, developing, and sustaining human
resources.

Monitoring Human Resource Utilization

Effectively monitoring the management’s utilization of human
resources.

Analysis of Human Asset Status

Analyzing the status of human assets – assessing whether they
are preserved, depleted, or appreciated.

Development of Management Principles

Assisting in the development of management principles and
informed decision-making for the future by categorizing the
financial impact of various practices.

Valuation and Disclosure of Human

Resources
Facilitating the valuation of human resources, including recording
this valuation in the books of account and disclosing the
information in financial statements.

Organization Decision-Making Assistance

Assisting the organization in decision-making processes, such as:

(a) Choosing between direct recruitment and promotion

(b) Deciding between employee transfers and retention
(c) Balancing considerations between retrenchment and retention
(d) Evaluating the impact on budgetary controls related to human
relations and organizational behavior
(e) Making decisions about reallocating plants, closing existing
units, developing overseas subsidiaries, and more.

What are the different methods used

in HR Accounting?
Human Resource Accounting employs various methods to
manage employee records in an organization. Here are the key
eight methods explained:

Cost-Based Method
This method identifies and measures the cost of recruiting,
training, developing, and maintaining employees, including the
associated benefits.

Present Value of Future Earnings Method

This method values human resources based on their potential
future earnings, considering skills, knowledge, and experience. It
estimates the company’s future earnings based on employee
capabilities.

Historical Cost Method

Historical cost considers the expenses incurred by the
organization in recruiting, training, developing, and retaining
human capital. It includes employee benefits and compensation.

Replacement Cost Method

The replacement cost is the expense of replacing an employee
with a similar one, covering recruitment, training, and other
benefits for the new hire.
Recruitment Cost Method
This method incorporates the expenses related to recruiting and
selecting new employees. This includes advertising, travel, and
HR staff time for reviewing resumes and conducting interviews.

Income-Based Method
Human resources are valued based on their contribution to the
organization’s revenue and profits. This method assesses the
generated revenue and cost savings resulting from employee
work.

Market-Based Method
The cost of human resources is determined by comparing
salaries, wages, and benefits with similar positions in other
organizations.

Economic Value Method

Employees can generate profits through their skills, knowledge,
and experience. The economic value method uses this idea as a
contributing factor to the organization’s revenue.

Two common models of Human

Resources Accounting
The methods of Human Resource Accounting or HRA are divided
into two main branches: Cost-based models and Value-based
models, each serving specific objectives. This section discusses
both the models in brief.

Aspect Cost-Based Model Value-Based Mod

Quantifies the expenses incurred Assesses the economic wo
Focus
for human resources. on future contributio
Acquisition and maintenance Future services and pot
Emphasis
costs over a given period. contributions of emplo
Suitable Widely applicable across Particularly popular in the
 Industries industries. industry.
Future-oriented, conside
Perspective Past and present costs.
employee’s potenti
Recruitment costs, and training Estimating an employee
Example
expenses. based on future servi

Cost-based model
Cost-based models evaluate the money invested and expenses
incurred for an organization’s human resources. Some of these
models also measure the value of human capital by considering
replacement or opportunity costs.

Notably, cost-based models, when determining the value of an

individual or a position, consider both the initial acquisition cost
and the ongoing maintenance cost over a specific period.

Example: Recruitment value with cost-based model:

When a company hires a new employee, it involves various

expenses beyond the basic salary. The recruitment process incurs
costs such as advertising, interviews, assessments, and training.
Let’s break down the recruitment costs:

Advertising Cost: $5,000

This includes expenses related to job postings, online platforms,
or any promotional activities to attract potential candidates.

Interview and Assessment Cost: $2,000

Encompasses expenses associated with conducting interviews,
assessments, and any tools or resources used in the evaluation
process.

Training Cost: $3,000

Represents the investment made in training the new employee to
align with the company’s processes, culture, and specific job
requirements.

Total Recruitment Cost: $10,000

Value-based model
Value-based models determine the economic worth of an
employee by considering the potential future contributions they
will make. These models are particularly popular in the service
industry, where the employees play a central role, steering the
organization’s future through their services.

Example: Economic Value of a Software Developer

If the developer is skilled in creating innovative software

solutions, the value-based model would estimate the economic
value by considering the

 Revenue generated from future software projects.

 Potential cost savings through increased efficiency.
 Overall positive impact on the company’s growth.

What are the features of Human

Resource Accounting?
For an HR Accounting strategy to run successfully, there are
certain prerequisites or features it must have. Here’s a list:

 Management Support: Essential support from all levels of

management to facilitate the HRA process.
 Resource Allocation: Adequate time, financial, and human
resources are needed for data collection, criteria setting,
and ongoing HR valuation.
 Multi-functional Team: Involvement of a diverse team
with various skills to navigate the complex process of
measuring HR value.
 Modern HR Team: Adoption of a contemporary HR team
that embraces change and facilitates adaptation.
 Awareness Campaigns: HR-led campaigns to raise
awareness among employees about the valuation process,
ensuring understanding and avoiding objectification.
 Knowledge-Based Methodologies: Development and
implementation of knowledge-based methodologies for
effective measurement.
 Strategic Relevance: Measurements designed to align
closely with the strategic direction of the company.
 Economic Consideration: Larger company sizes are
favored due to the heavy costs involved; not as economical
for small firms.
  HR Information System: Implementation of a
comprehensive Human Resources Information System containing
all personnel data for proper administration.

What are the benefits of Human

Resource Accounting?
The main benefit of human resources accounting is assessing the
investments made by the company in its human assets. It makes
planning future finances easier and more streamlined. Here are
10 key benefits of HRA:

 Reveals Investment Insights: Enables the determination

of the company’s investment in employees and expected
returns.
 Quantifies Labor Intensity: Computes the human-to-non-
human capital ratio, effectively indicating the organization’s
labor intensity.
 Serves as Asset Planning Basis: Provides a solid
foundation for planning physical assets in relation to human
resources.
 Informs Long-Term Investors: Offers valuable
information for investors seeking long-term engagements in
service sector companies.
 Facilitates Returns Interpretation: Discloses the value of
human resources, facilitating a clearer interpretation of
return on capital employed.
 Enhances Decision-Making: Improves managerial
decision-making by providing informed insights from human
resource accounting.
 Identifies Valuable Assets: Recognizes human resources
as valuable assets, preventing potential misuse by superiors
and management.
 Optimizes Resource Utilization: Facilitates efficient
utilization of human resources and enhances understanding
of the impact of labor unrest.
 Boosts Productivity and Morale: Increases productivity
by acknowledging human talent, devotion, and skills as
valuable assets, thereby boosting employee morale.
 Assists in Wage Administration: Provides valuable
assistance to management in implementing the best
methods of wages and salary administration.
What are the limitations involved in
Human Resources -Accounting?
In India, Human Resource Accounting is still a fresh concept.
Because of its restricted understanding, there are certain
limitations involved with it:

 Lack of Standardized Procedures: The absence of

standardized procedures hinders widespread adoption in the
country. Firms currently provide human resource accounting
information only as additional data.
 Uncertain Lifespan and Valuation Realism: The inability
to estimate the lifespan of human resources makes
valuation appear unrealistic. This includes relying on
assumptions that may not hold true, such as the assumption
that all workers stay with the same organization until
retirement.
 Legal and Cultural Challenges in India: In India, there is
a fear of dehumanization and manipulation of employees
through HRA. Example: concerns about employee
discouragement, complex development, and potential
opposition from trade unions seeking rewards and
compensations based on valuation.
 Lack of Consensus on Inclusion in Financial
Statements: The question of how to include the value of
human resources in financial statements lacks consensus
within the accounting profession.
 Tax Laws Do Not Recognize Human Beings as
Assets: Despite the significance and necessity of HRA, tax
laws in India do not recognize human beings as assets. This
adds to the complexity of the financial treatment of human
resources.
 Opposition from Trade Unions: Constant fear of
opposition from trade unions, as placing a value on
employees may lead to claims for rewards and
compensations based on such valuations.
 Uncertain Period of Existence: The uncertain period of
existence for human resources raises questions about
valuing them under future uncertainty. This makes the
process seem unrealistic.
 Lack of Empirical Evidence Supporting HRA
Efficacy: The absence of empirical evidence supporting the
hypothesis that HRA facilitates effective management of
 human resources raises doubts about its practical utility in
Indian contexts.
 Absence of Universal Valuation Method: No universally
accepted method of human asset valuation exists, leading to
varied approaches and interpretations.
 Underdeveloped State of HRA in India: As of now,
human resources accounting is still in the development
stage in India. It requires additional research for effective
application and addressing practical challenges.

HUMAN RESOURCE PLANNING

HRP or HR Planning, is the process of carefully and scientifically
preparing a strategy to ensure the right people are available at
the right time, in the right place, and at the right cost for the
organization.

Employees are the best resources of a company. Hence, HRP is all

about finding the ideal employees and making sure they’re in the
right job, that benefits both the individual and the organization.

Robbins and Coulter says “HR Planning is the process by

which manager ensures that they have the right number
and right kind of capable people in the right places and at
the right times.”

Its key important features include:

1. Increasing productivity
In HR planning, maximizing productivity is crucial. Efficient use of
resources and minimizing waste, achieved through staffing
activities like training, performance appraisal, and fair
compensation, leads to higher productivity.

HR planning ensures employees are skilled, motivated, and

properly rewarded, enhancing overall efficiency and productivity
in the organization.

2. Implementing managerial activities

The success of managerial tasks like planning, organizing,
directing, and controlling relies heavily on having the right people
(human resources) in place. Human resources play a crucial role
in making sure these managerial activities work effectively.

So, HRP, which is about having the right staff in the right
positions, is essential for all managerial functions to succeed. In
simpler terms, having the right people is vital for any business to
run smoothly.

3. Motivating employees
HR Planning goes beyond just placing the right people in the right
roles. It also involves motivating employees through programs
like incentives. These incentives are crucial because they
encourage active participation and help in retaining employees
within the organization.

So, within the scope of HR planning, designing effective incentive

plans becomes extremely important. It ensures not only hiring
suitable individuals but also keeping them engaged and
motivated to contribute their best to the organization.

4. Improving employee relations

Strong human relations are vital for a company’s stability. This
strength is achieved through effective control, clear
communication, and strong leadership. Human resources
planning plays a key role in this.

By focusing on training and developing the workforce, HR

Planning ensures that employees are skilled and cooperative. This
in turn fosters better human relations within the organization.
Essentially, HR planning helps create a positive work environment
where employees understand their roles, communicate well, and
cooperate effectively.

5. Coping with change

Human resource planning is important for organizations to cope
with changes in the external environment. It enables the
development and implementation of strategies to enhance
employee and organizational performance.
6. Evaluating demand and supply of
resources
Human resource planning ensures there is the right number of
employees (demand) to meet the company’s needs without
overstaffing or understaffing. It’s like finding the perfect balance,
ensuring there are enough people to get the job done efficiently
without unnecessary costs or gaps.

7. Increasing quality of hire

Human resource planning impacts the quality of applicants an
organization attracts. Companies practicing HR planning know
what qualities they need in applicants, making their hiring
decisions more precise and effective. This results in attracting
candidates who are better suited for the organization’s needs.

8. Growing a competitive advantage

As discussed, organizations that invest in human resource
planning can identify and nurture the best talents. By having the
right people with the right skills in the right places, a company
gains a competitive edge.

They can adapt to changes faster, innovate more effectively, and

deliver superior products or services. In essence, human resource
planning helps companies stay ahead of the competition by
ensuring they have the right team to tackle challenges and seize
opportunities.

Human Resource Planning Process

The Human Resources Planning (HRP) process contains
systematic steps in HRP that drive effective management of
human resources. It is sometimes referred to as the process of
human resources planning or manpower planning.

This methodical approach involves careful analysis, prediction,

and strategic allocation of workforce resources. By understanding
the process of manpower planning, businesses can ensure that
the workforce remains a dynamic and responsive asset, vital for
achieving long-term success.
Step 1: Analyzing the Environment
Analyzing the environment marks the starting point of Human
Resource Planning (HRP). It involves scrutinizing both external
and internal factors to identify potential issues, threats, and
opportunities shaping the organization’s strategic planning.

External environment:

 Competitors
 Legal environment

Internal environment:

 Strategy
 Technology factors

Step 2: Predicting Labour Demands

Predicting labor demands is essential to avoid labor shortages
that often impede business expansion. Various methods are
employed to forecast how business needs will influence HR
requirements. Here are two basic method categories:

 Qualitative Methods: Qualitative techniques like the

Delphi and nominal group techniques involve expert
collaboration to create forecast statements and
assumptions. These methods, although time-consuming,
allow for in-depth discussions and idea sharing among
experts.
 Quantitative Methods: Quantitative techniques, such as
trend analysis, rely on historical data to project future
workforce needs. Crucial steps in trend analysis include
selecting appropriate business factors, plotting historical
records, computing productivity ratios, determining trends,
and making necessary adjustments for future projections.

Step 3: Assessing Labour Supply

Labour supply assessment focuses on both internal (existing
workforce) and external (potential recruits) resources. These
resources are crucial to determine the supply required in the
present and the future.
Internal and external labor supply can be explained as:

 Internal Supply: Internal labor supply refers to the

available individuals and jobs within the organization.
Human Resource Information System (HRIS) data projects
future trends based on current patterns.
 External Supply: External supply encompasses individuals
in the broader labor force who are potential recruits. The
relevant labor market varies based on job skills. For highly
skilled positions, it might be a national or global market,
whereas for unskilled jobs, it typically is the local
community.

Step 4: Bridging Gaps

Gap analysis merges labor demand and supply forecasts. This
critical process identifies potential skill shortages or surpluses. By
aligning environmental forecasts with supply and demand
projections, HR planners evaluate the organization’s readiness to
pursue different business scenarios in alignment with its
objectives.

Step 5: Implementation Planning

Following the analysis, implementation planning outlines the
necessary steps to put the chosen solution into action. This phase
ensures that decisions made in the above steps are translated
into actionable plans, setting the sequence of events in motion.

Step 6: Oversight and Evaluation

Oversight and evaluation involve monitoring the effectiveness of
human resource plans over time. Any deviations from the plans
are identified, and corrective actions are taken as needed.
Feedback from various outcomes is utilized to measure the extent
to which human resource objectives have been achieved.
Tools and Techniques Used in
Human Resource Planning
structured. Using verified techniques also validates the process
for employees and stakeholders.

The following showcases all the tools and techniques used in the
HRP process categorized into various HR activities:

1. Determining Human Resource

Requirements
 Jobs analysis
 Workday tasks analysis
 Instantaneous observation
 Time recording
 Workday shooting
 Standard administrative times
 Work standards determination
 Scenario planning
 Extrapolation
 Correlation coefficient analysis
 Physical and/or value work productivity assessment
 Critical incidents method

2. Forecasting Human Resource Needs

 Dynamics of market demand for company products
 Dynamics of market offer for company products
 Forecasts on the company’s branch of activity
 Forecasts on the evolution of the national economy
 Dynamics of the company’s turnover
 Dynamics of production
 Productivity dynamics analysis
 Trends analysis
 Regression method
 Delphi method
 Business plan
 Gantt chart
 Staff fluctuation index
 Retirement index
  Investment value per workplace
 Investment value for the next period

3. Recruiting and Selecting Talent

 Human resource selection model
 General knowledge tests
 Specific knowledge tests by field, positions, etc.
 Skills tests (attention, communication, negotiation, etc.)
 Personality tests
 Practical exams
 Projects elaboration
 Case study assessments
 Interview techniques
 Questionnaires
 Personnel file review
 Curriculum vitae (C.V.) analysis
 Studies diploma verification
 Recommendations from former managers

4. Integrating New Employees

 Individual labor contract establishment
 Orientation discussion between manager and new employee
 Job description explanation
 Internal regulation comprehension
 New employee introduction to colleagues
 Specific work instructions provision
 Methodologies in new employee’s field explanation

5. Training and Development

 Individual study
 Bachelor’s degree programs
 Master’s degree programs
 Doctor’s degree programs
 Vocational schools attendance
 Workplace apprenticeship
 Panel discussions
 Case study analyses
 Specialized training sessions
 Job rotation experiences
 Research projects involvement
  Managerial simulations
 Managerial game participation
 Information seminars attendance
 Specialty site referrals
 Quality, skill, and knowledge tests

6. Communication Strategies
 Information dissemination through various means (e-mail,
written communication, etc.)
 Balanced scorecard reviews
 Instruction set provisions for specific activities
 Organization’s internal communication tools utilization (e.g.,
“newspaper”)
 Panels with high performers within the organization
 Annual letters from CEOs or managers to employees

7. Human Resource Assessment

 360-degree assessment
 Assessment interviews
 Work productivity evaluations
 Management by objectives (MBO)
 Diagnostic analysis methods
 Notation systems
 Overall assessments
 Functional evaluations
 Self-assessment tests
 Assessment tests
 Graphic scales for classifying human qualities
 Various assessment methods (essay, critical incidents,
behaviors checklist, etc.)
 Human Resource Assessment Center participation

8. Career Development
 Job analysis for career planning
 Career plan creation
 Organigram understanding for growth opportunities
 Mentoring sessions
 Tutoring programs
 Coaching sessions
Using the above-mentioned tools and techniques manually makes
HR planning a tedious task. A solution to such a problem would be
to automate such tasks. Organizations worldwide use HRMS
software to assist with HRP processes.

Here are some tools incorporated by Keka’s dashboard to

make HR Planning easier for HR professionals:

1. Employee database
With Keka HR, you can manage your employee database
seamlessly. It digitizes every aspect of your employee’s
documentation processes – storing documents, company policies,
issuing letters, and collecting signatures, all in a digital format.

Also, check out: Employee Profile.

2. Recruitment and talent acquisition

Keka’s applicant tracking system allows easy talent acquisition
practices from recruiting to onboarding. You can manage the
whole recruitment process on the dashboard while screening the
perfect candidates. Here are some of the features offered by it:

 Candidate Kanban: Obtain a clear overview of candidate

application statuses.
 Pre-employment tests: Assess candidate skills and
competence through specialized assessments.
 Scorecards: Access summarized test results and feedback
for more informed hiring choices.
 Job boards: Publish and track your job openings across
different platforms.
 Reports and analytics: Utilize measurable data and
analytics from your hiring processes to improve decision-
making and strategies.

3. Performance management
Keka’s performance management software keeps an eye on
employee performance, analyzing and tracking it to ensure goals
are met and the desired results are achieved. 3 of its top features
are:
  360-degree review
 1-on-1 meetings
 Employee scorecards

4. Workflow automation
Keka’s Professional Services Automation software automates
workflows for service businesses smoothly. It enables efficient
project management, optimized resource allocation, and
enhanced profit margins amidst tough competition.

Its key features include:

 People-centric platform
 Bill and track revenues
 Intelligent resource planning
 Predictive analysis

5. Data security and compliance

Keka prioritizes your data security by following industry best
practices. We cover all aspects, from storage to monitoring,
ensuring a safe environment for your subscription data. Our
approach emphasizes data privacy and access, using meticulous
strategies to maintain your trust.

We adhere to the EU’s General Data Protection Regulation

(GDPR), ensuring our product features, corporate protocols, and
legal documents assist users and customers in compliance efforts.

6. Communication and Collaboration

Keka Wall helps employees interact with one another in the
company-wide portal, gaining insights into the best performers of
the organization or the achievements of various departments.
Additionally, features like One-on-One meetings simplify the
entire mechanism of giving and receiving feedback.

Wrapping it Up
In conclusion, human resource planning is like creating a roadmap
for a successful journey in the business world. Just as travelers
consider external factors like weather and road conditions,
companies must adapt to external influences such as laws and
market trends.

Internally, it’s akin to aligning company policies, fostering a

positive work culture, and ensuring employees have the skills
needed. By carefully considering these factors, businesses can
navigate challenges, foster a motivated workforce, and ultimately,
reach their desired goals and success.

HR planning promotes innovation and creativity by cultivating a

diverse and skilled workforce. Furthermore, thoughtful planning
paves the way for a thriving and harmonious workplace.

1. What are the basic steps in HRP?

The 5 basic steps in Human Resources Planning are:

Step 1: Assess the organization’s goals and strategies.

Step 2: Examine the existing workforce and identify disparities.

Step 3: Predict future HR needs.

Step 4: Create and execute a plan.

Step 5: Oversee, re-evaluate, and adjust the plan as necessary.

2. What is human resource planning?

Human resource planning (HRP) is the ongoing process of
carefully planning to make sure a company uses its employees
effectively. It’s about finding the right balance between the
number of employees and the available jobs. This helps avoid
situations where there are too few or too many employees for the
work that needs to be done.

3. Why is human resource planning

important?
HR Planning is vital because it allows businesses to predict and
prepare for their future staffing needs. By studying the current
workforce and foreseeing future requirements, companies can
plan ahead. This guarantees they have the necessary skills and
resources to achieve their goals smoothly.

4. What are the stages of human resource

planning?
The human resource planning process involves four main stages:

1. Identifying the current employee supply.

2. Determining future workforce needs.
3. Finding a balance between the available workforce and
demand.
4. Creating plans that align with the company’s objectives.

5. What are the benefits of human resource

planning?
Here are the benefits of human resource planning:

 Talent Optimization: Ensures the right people are in the

right roles, improving efficiency.
 Cost Efficiency: Avoids overstaffing or understaffing, saving
costs.
 Skill Development: Identifies skills gaps and plans for
training and development.
 Strategic Alignment: Aligns workforce planning with
organizational goals.
 Adaptability: Enables quick response to market and
industry changes.
 Succession Planning: Facilitates smooth transitions in
leadership positions.
 Employee Satisfaction: Ensures workload balance,
promoting job satisfaction.

6. What are the factors influencing human

resource planning?
Human resource planning is influenced by external factors like
government policies, technological advancements, and the
business environment. Company policies, organizational culture,
and the need for specific skills are internal factors. These factors
shape workforce planning strategies and ensure alignment with
organizational goals.

7. What is the purpose of human resource

planning?
The purpose of HR planning is to match employees with jobs and
prevent having too few or too many staff. There are three main
steps: predicting how much staff will be needed, understanding
how many employees are currently available, and making sure
the predicted staff needs and available staff align properly.

8. How does human resource planning

contribute to organizational success?
Human resource planning impacts organizational success by
enhancing employee experiences. Proper orientation programs,
for instance, help employees understand the organization’s
values, leading to improved performance and overall
effectiveness.

9. What are the key components of the

human resource planning process?
Human resource planning involves three key components. First, it
predicts future staffing needs. Second, it evaluates the current
workforce’s skills and performance. Lastly, it ensures there’s a
proper match between the predicted demand and the available
skilled employees, preventing shortages or surpluses. This
process helps organizations align their staffing with their goals
effectively.

10. What challenges are commonly faced

during the human resource planning
process?
The common challenges commonly faced during the human
resource planning process are:

 Retaining Skilled Employees

  Hiring New Talent
 Work Burden
 Skill Shortages
 Limited Career Progression
 Resource and Budget Limitations
 Ambiguous Job Descriptions
 Ineffective Leadership

On-the-Job Training Methods

Following are the On-The-Job methods:
 Apprenticeship Programs: Apprenticeship programs
place the trainee under the guidance of well-trained
personnel. These programs are designed to obtain skills
and knowledge of higher levels. Such programs are
necessary for people entering skilled jobs, like, plumbers,
electricians, etc. These apprentices are trainees who
enter into these programs and invest some time working
under the guidance of a professional or a trainer. The
trainees are required to spend a specified time here
where both fast and slow learners are trained together.
The slow learners may be provided with additional
training.
 Coaching: In this method, the trainer who is known as
the coach guides and instructs the trainee. The coach or
the trainer sets the required goals with a mutual
discussion, advises on how to achieve those goals,
analyzes the trainees’ progress from time to time, and
suggests changes necessary in the attitude and
performance. The trainee works under the senior
manager and the manager takes full responsibility for the
employees’ training. The training is done to take the
place of the senior manager so that he can be freed from
some of his duties. This is also a chance for the trainee to
learn about his job and the working of the organization.
 Internship Training: Internship training is a
cooperation of educational institutions and business
firms. These trainings are generally a joint program. The
candidates who are selected continue to pursue their
studies regularly and also work in a factory or office to
gain the practical knowledge and skills required for a
job.
 Job Rotation: Job rotation involves shifting trainees
from one job to another or from one department to
another. This allows the trainee to gain a better
 understanding of the working of the organization and all
its parts. The rotation enables the trainee to indulge in all
kinds of operations from different departments, and also
allows them to enhance their knowledge and skills. This
is also beneficial for the trainees, as they get to interact
with other employees, which creates cooperation among
different departments. Such training of employees makes
it easier for the organization at the time of promotions,
replacements, or transfers.
Off-the-Job Training Methods
Following are the Off-the-Job methods:
 Class Room Lectures or Conferences: The lecture or
conference method is generally used for conveying
specific information, rules, procedures, or methods. The
use of audio-visual means makes a formal classroom
presentation more interesting along with increasing the
memory and proving an instrument for clearing
difficulties or doubts.
 Films: Films supply information and show a definite
display of skills that are not easily represented by other
techniques. The use of films together with conference
discussion is a very effective method in most cases.
 Case Study: Case studies are the actual experiences
faced by the organization. They display the events that
the managers have faced in real life. The trainees study
these cases and analyze them sincerely to find out the
problems and their causes, come up with possible
solutions, select the best solution and at last, implement
it.
 Computer Modelling: It encourages the work
environment by developing a computer program that
copies a few of the realities of the job and enables
learning to take place securely. It also allows the
organization to see the mistakes that may occur and how
much they would cost. This saves the organization from
making mistakes in such situations in real life.
 Vestibule Training: In vestibule training, the
employees are given training on the equipment that they
will be using during their jobs. Though the training is
conducted away from the actual workplace, the trainees
are provided with a work environment in which all the
pieces of equipment, files, and materials to be used are
present. This method is usually used when the
 employees need to handle advanced or complex
equipment and machinery.
 Programmed Instruction: Such a method includes a
predetermined and proposed acquisition of some definite
skills or general knowledge. In this method, the
information is divided into meaningful units, and these
units are arranged in a proper way to form a logical and
consecutive learning bundle or collection, i.e., from
simple to complex. The trainee is required to answer the
questions asked or by filling in the blanks.
Job rotation is a human resource strategy that involves moving employees
between different roles within a company. It can be temporary or
permanent, and it's a lateral move rather than a promotion.
Benefits of job rotation
 Learn new skills: Employees can gain new skills and
competencies.
 Reduce monotony: Employees can avoid boredom and stay
motivated.
 Develop relationships: Employees can build relationships across
the company.
 Understand company operations: Employees can gain a broader
understanding of how the company operates.
 Succession planning: Employees can be developed to replace
senior employees when they leave.
 Employee development: Employees can be given practical
experience and develop into future leaders.
How to make job rotation successful
 Establish clear objectives
 Foster a culture that values learning and development
 Communicate the program's goals to employees
 Assess employee competencies
 Involve employees in the process
 Provide continuous feedback
 Provide training and development
 Implement a performance management system
 Ensure a smooth transition process
Simulation in human resource development (HRD) uses computer models
to mimic HR activities like recruitment, training, and workforce
planning. Simulations can help employees develop skills and improve their
performance. They can also help companies identify and assess
candidates.
How HR simulations work
 Create realistic scenarios: Simulations mimic real-life situations,
such as interviewing for a job or managing a company
 Provide feedback: Administrators can provide real-time feedback to
employees
 Evaluate skills: Simulations can assess a candidate's technical and
behavioral skills
 Identify risks and opportunities: Simulations can help companies
identify potential problems and opportunities
 Optimize decisions: Simulations can help companies experiment
with different solutions and optimize their decisions
Benefits of HR simulations
 Help employees develop critical thinking and problem-solving skills
 Help employees develop emotional intelligence
 Help employees refine their technical and soft skills
 Help companies identify candidates who have the skills they need
 Help companies improve their strategic human resource planning
Examples of HR simulations
 Crossed Swords, an online simulation game that helps users
experience corporate negotiations
 HRD Simulator, a game that immerses users in the life of an HR
professional
 CapsimInbox, a simulation tool that helps companies assess
candidates for specific roles