HRP

Definition of HRP
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.”
According to K Aswathappa, “HR Planning is the process of forecasting a firm’s future
demand for, and supply of, the right type of people in the right number.”
Meaning of HRP
Human Resource Planning is the most important HR function in an organisation. This is the
first step after sourcing human resources in an organisation. It focuses on ensuring
adequate supply of human resource, quality of human resources and effective utilization of
human resources. Human Resource Planning is concerned with forecasting and projecting
the requirement of human resource in the organisation. This unit shall cover the process of
Human Resource Planning and the methods of forecasting and supply of human resources.
Human Resource Planning (HRP) may be defined as strategy for acquisition, utilization,
development and retention of the human resources of an enterprise. The objective is to
provide right human resources for the right work and optimum utilization of the existing
human resources. HRP exists as a part of the planning process of business. This is the
activity of the management which is aimed at co-ordinating requirements for and the
availability of different types of employers. The major activities of HRP include: forecasting
(future requirements), inventorying (present strength), anticipating (comparison of present
and future requirements) and planning (necessary programme to meet future
requirements).
OBJECTIVES, BENEFITS AND NEED OF HUMAN RESOURSE PLANNING

The following are the objectives of human resource planning:

1. Assessing manpower needs for future and making plans for recruitment
and selection.
2. Assessing skill requirement in future for the organization.
3. Determining training and the development needs of the organization.
4. Anticipating surplus or shortage of staff and avoiding unnecessary
detentions or dismissals.
5. Controlling wage and salary costs.
6. Ensuring optimum use of human resources in the organization.
7. Helping the organization to cope with the technological development and
modernization.
8. Ensuring career planning of every employee of the organization and
making succession programmes.
9. Ensuring higher labour productivity.
Benefits of HRP

Proper HRP results into a number of benefits. Some of them are:

a) Create a reservoir of talent;
b) Preparation for future HR needs;
c) Promote employees in a systematic manner;
d) Provide basis for HRD; and
e) Help in career and succession planning.

Need for HRP

Employment-Unemployment Situation: Though in general the number of

educated unemployed is on the rise, there is acute shortage for a variety of
skills. This emphasises the need for more effective recruitment and retaining
people.

Technological Changes: The myriad changes in production technologies,

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

Organizational Changes: In the turbulent environment marked by cyclical

fluctuations and discontinuities, the nature and pace of changes in
organizational environment, activities and structures affect manpower
requirements and require strategic considerations.
Demographic Changes: The changing profile of the work force in terms of
age, sex, litercy, technical inputs and social background have implications for
HRP.

Skill Shortages: Unemployment does not mean that the labour market is a
buyer’s market. Organizations have generally become more complex and
require a wide range of specialist skills that are rare and scarce. Problems
arise when such employees leave.

Governmental Influences: Government control and changes in legislation

with regard to affirmative action for disadvantaged groups, working
conditions and hours of work, restrictions on women and child employment,
casual and contract labour, etc. have stimulated the organizations to become
involved in systematic HRP.

Legislative Controls: The days of executive fiat and ‘hire and fire’ policies
are gone. Now legislation makes it difficult to reduce the size of an
organization quickly and cheaply. It is easy to increase but difficult to shed
the fat in terms of the numbers employed because of recent changes in labour
law relating to lay-offs and closures. Those responsible for managing manpower must look
far ahead and thus attempt to foresee manpower problems.

DETERMINANTS OF HUMAN RESOURCE PLANNING

The function of HRP is dependent an various factors. These include both

external and internal factors of an organisation. These factors can be
considered as determinants of HRP.

External Factors

Government Policies: Policies of the government like labour

policy, industrial relations policy, policy towards reserving certain
jobs for different communities and sons-of-the-soils, etc. affect the
HRP.

Levels of Economic Development: Level of economic development

determines the level of HRD in the country and thereby the supply of
human resources in future in the country.

Business Environment: External business environmental factors

influences the volume and mix of production and thereby the future
demand for human resources.

Level of Technology: Level of technology determines the kin d of

human resources required.
International Factors: International factors like the demand for the
resources and supply of human resources in various countries.

Internal Factors

Company Policies and Strategies: Company’s policies and

strategies relating to expansion diversification, alliances, etc.
determines the human resource demand in terms of quality and
quantity.

Human Resource Policies: Human resources policies of the

company regarding quality of human resource, compensation level,
quality of worklife, etc. influences human resource plan.

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.

Difference between HR Planning and Manpower Planning

Aspect HR Planning Manpower Planning

Aligning human capital with Determining staffing levels for immediate

Focus
organizational objectives efficiency

Scope Long-term strategy Short to medium-term operational needs

Time Future-oriented, considering Immediate, addressing current operational

Horizon organizational growth demands

Analyzing current workforce capabilities,

Forecasting future personnel needs,
quantifying staffing requirements,
Activities identifying skill gaps, planning
implementing recruitment and training
recruitment, training, and retention
plans

Ensuring workforce readiness for Meeting immediate operational demands

Objective
future challenges efficiently

Adaptable to changing organizational Less flexible due to immediate operational

Flexibility
goals and market dynamics focus

Strategic Influences organizational culture and Influences day-to-day operations and short-
Impact long-term success term productivity and mistakes to avoid
Selection

Objectives of Selection
• Choose the Best Candidate: Recruitment’s main goal is to screen the most suitable
candidate who meets the job specifications in terms of his qualifications and
experience.
• Ensure Organizational Fit: It evaluates the compatibility of individuals with the
organizational culture and organisational requirement.
• Minimize Hiring Risks: Selection minimizes the possibility of low performer and also
minimizes the chances of a high turnover.
• Establish a Contractual Relationship: If so desired, successful candidates come into
an employment contract specifying the terms of contract and service.

Importance of Recruitment and Selection

Recruitment and selection are crucial for several reasons:
• Talent Acquisition (Recruitment and Selection): It is responsible for having the right
people in the organization in order to fulfill the set strategies.
• Employee Performance: If the candidates are well selected then they are likely to
deliver and impact positively.
• Organizational Growth: Recruiting the right talent and staff acquisition help in
improving on the overall organizational performance and competitiveness.
• Cost Efficiency: Recruitment and selection help reduce turnover and related costs
hence an improved financial position.

Recent Trends in Selection:

New trends have been coming up in selection techniques along with other areas of human
resource management. The recent trends in selection include:

a) Selection of Invitation: Management observes the performance of executives of nearest

competitors. If the performance of the key executives is excellent, the management invites
such executives to join the organisation by offering attractive salary and prequisites.

b) Leasing: Technological changes demand highly skilled employees now a days. It is very
difficult for the small organisation to employ the skilled became of high pay. Moreover, such
employees may not have sufficient work in small concerns. These factors enabled the
consultancy organisation to employ experts and depute these employees and the needy
organisations draw the required employees from the pool on lease and pay the fee. The
consultancy firms pay the salary to the employees.
This type of arrangement is beneficial to the consultants, employees on lease and the
industrial organisations.
c) 360o Selection Programme: Generally, superiors conduct the selection tests and
interviews. They judge the fit between the job and the candidate. But the employee skills
and performance not only affect the superiors but also sub-ordinates and the employees at
the same level. Hence, the organisations started involving the subordinates and the
employees at the same level along with in superiors in conducting tests and interviews. This
type of selection programme is called 360o selection programme.

FACTORS AFFTECTING RECRUITMENT

INTERNAL FACTORS
The internal factors also called as “endogenous factors” are the factors within the
organization that effect recruiting personnel in the organization.
The internal forces i.e. the factors which can be controlled by the organization are:

1. Recruitment Policy
The recruitment policy of the organization i.e. recruiting from internal sources and external
also affect the recruitment process The recruitment policy of an organization specifies the
objectives or recruitment and provides a framework for implementation of recruitment
program.It may involve organizational system to be developed for implementing
recruitment programs and procedure by filling up vacancies with best qualified people.

2.Human Resource Planning

Effective human resource planning helps in determining the gaps present in the existing
manpower of the organization. It also helps in determining the number of employees to be
recruited and what qualification they must possess.

3. Size of the Organization

The size of the organization affects the recruitment process. If the organization is planning
to increase its operations and expand its business, it will think of hiring more personnel,
which will handle its operations.

4. Cost involved in recruitment

Recruitment incur cost to the employer, therefore, organizations try to employ that source
of recruitment which will bear a lower cost of recruitment to the organization for each
candidate.

5. Growth and Expansion

Organization will employ or think of employing more personnel if it is expanding its
operations.

EXTERNAL FACTORS

1.Supply and Demand

The availability of manpower both within and outside the organization is an important
determinant in the recruitment process. If the company has a demand for more
professionals and there is limited supply in the market for the professionals demanded by
the company, then the company will have to depend upon internal sources by providing
them special training and development programs.

2. Labour Market
Employment conditions in the community where the organization is located will influence
the recruiting efforts of the organization. If there is surplus of manpower at the time of
recruitment, even informal attempts at the time of recruiting like notice boards display of
the requisition or announcement in the meeting etc. will attract more than enough
applicants.

3.Goodwill / Image of the organization

Image of the organization is another factor having its influence on the recruitment process
of the organization. This can work as a potential constraint for recruitment. An organization
with positive image and goodwill as an employer finds it easier to attract and retain
employees than an organization with negative image. Image of a company is based on what
organization does and affected by industry. Managerial actions like good public relations,
rendering public service like building roads, public parks, hospitals and schools help earn
image or goodwill for organization.

4. Political-Social- Legal Environment

Various government regulations prohibiting discrimination in hiring and employment have
direct impact on recruitment practices. For example, Government of India has introduced
legislation for reservation in employment for scheduled castes, scheduled tribes, physically
handicapped etc. Also, trade unions play important role in recruitment. This restricts
management freedom to select those individuals who it believes would be the best
performers. If the candidate can’t meet criteria stipulated by the union but union
regulations can restrict recruitment sources.

5.Unemployment Rate
One of the factors that influence the availability of applicants is the growth of the economy
(whether economy is growing or not and its rate). When the company is not creating new
jobs, there is often oversupply of qualified labour which in turn leads to unemployment.

6.Competitors
The recruitment policies of the competitors also affect the recruitment function of the
organizations. To face the competition, many a times the organizations have to change their
recruitment policies according to the policies being followed by the competitors.
CONCEPT of Executive development
Executive development or management development is systematic process of learning and
growth by which managerial personnel gain and apply knowledge,skills, attitudes and
insights to manage the work in their organizations effectively and efficiently. It is an
education process through which executive learn conceptual and theoretical knowledge and
managerial skills in an organized manner.
Executive development consists of all the means by which executives learn to
improve their behaviour and performance. It is designed to improve the
effectiveness of managers in their present jobs and prepare them for higher jobs
in future.
According to Filppo, “Management development includes the process by
which managers and executives acquire not only skills and competency in their
present jobs but also capabilities for future managerial tasks of increasing
difficulty and scope”. In other words we can say that executive development is
any planned effort to improve current and future managerial performance. It is
an attempt at improving an individual’s managerial effectiveness through a
planned and deliberate process of learning

OBJECTIVE OF EXECUTIVE DEVELOPMENT

Any programme of executive development aims at achieving the following
purposes:
1. To improve the performance of managers at all levels in their present jobs.
2. To sustain good performance of managers throughout their careers by their
full potential i.e. to prepare managers for higher jobs in future.
3. To ensure availability of required numbers of managers with the needed
skills as so to meet the present and anticipated future needs of the
organization.
4. To prevent obsolescence of executives by exposing them to the latest
concepts and techniques in their respective area of specialization.
5. To replace elderly executives who have risen from the ranks by highly
competent and academically qualified professionals.
6. To provide opportunities to executives to fulfil their career aspiration.
7. To ensure that the managerial resources of the organization are utilized
Optimally

IMPORTANCE OF EXECUTIVE DEVELOPMENT

Executive development is necessary for following reasons:
i) The size and complexity of organization both business and non-business
are increasing. Manager’s need to be developed to handle the problems of
giant and complex organizations in the face of increasing competition.

ii) The rapid rate of technological and social change in society requires
training of managers so that they are able to cope with these changes such
as Automation cut throat competition, growth of new market enlarged
labour in management etc.
iii) Executive development is required to broader the outlook of managers for
discharging new responsibilities.

iv) Executive development programme are required to train and develop

professional managers. Labour management relations are becoming
increasingly complex.

v) Executives require new and better skills in union negotiations, collective

bargaining, grievance redressal etc. workers are better educated and more
aware. More competent managers are needed to manage the modern
workforce.

PROCESS OF EXECUTIVE DEVELOPMENT

There are following process, which is essential for an executive development:

Analysis of Development Needs

It is the first step under which all the present and future development needs of
the organization are essential. It is necessary to determine how many and what
type of executives are required to meet the present and future needs of the
enterprise. For this, it is necessary to ascertain the future plans of the
organizations in terms of department, function and key executive position.
Then job descriptions and specifications are prepared for all executive position
to know the type of knowledge, skills, training and executive required for each
position.

Appraisal of Present Managerial Talent

A qualitative assessment of the existing executives is made to determine the
types of executive talent available within the organization. The performance of every
executive is compared with the standard expected of him. His personal traits are also
analysed to estimate his potential for development.

Inventory of Executive Manpower

The inventory is prepared to obtain complete information about each executive. Data on
age, education, experience, health teat results and performance appraisal results is
collected. This information is maintained on cards or replacement tables, one for each
executive. An analysis of this information will show the strengths as well as deficiencies of
executives in certain function relative to the future needs of the organization

Planning Individual Development Programmes

Every executive have a unique set of physical, intellectual and emotional
characteristics. Therefore development plan should be tailormade for each
individual. This development should give attention to the interest and goals of
the subordinates as well as to the training and development opportunities in the
organization.
Establishing Training and Development Programme
The human resource department prepares comprehensive and well conceived
programmes. The department identifies development needs and may launch
specific courses in field of leadership, decision making, human relations etc. It
is also recommends specific executive development programmes organized by
well known institutes of management. On the basis of its recommendation, the
top management nominates the executive who will participate in these
programmes at the cost of the company.

Evaluating Development Programme

Lastly, it is necessary to find out to what extent the programme objective have
been achieved. Programme evaluation will reveal the relevance of the
development programmes and the changes that should be made to make these
more useful to the organization. Observations of the trainee’s behaviour rating
of the training, elements, opinion survey, interviews, tests and changes in the
productivity, quality, cost etc. can be used to evaluate development
programmes.

PRINCIPLES OF EXECUTIVE DEVELOPMENT

1. Top management should accept responsibility for executive developments.
A senior executive should be made incharge of initiating and implementing
the company’s executive development programme.
2. Every manager must accept direct responsibility for developing the
executives under his control on the job.
3. Executive development programmes must be geared to the needs to the
company and individual.
4. Executive development being with the selection of the right man for
executive position. Therefore, good persons should be fed into executive
development programme at the entry levels.
5. A definite strategy spelling out of the objectives, coverage and type of
executive development programmes should be formulated.
6. A realistic time scheduled for the development of executive personnel
should be prepared keeping in view the present an future needs of the
organization.
7. In view of knowledge explosion and the consequent threat of executive
obsolescence, development programmes should be available for every
executive.
8. Learner’s participation is essential for development.
9. Feedback should be made available to the learners so that he can take steps
to improve himself. There is always opportunity for improvement due to
gap between actual performance and capacity.