Refer Books, Elaborate The Points

HUMAN RESOURCE PLANNING

MEANING- It is a process by which an organisation determines how it should acquire its
desired manpower to achieve the organisation goal. It helps an organisation have the right
number and kind of people at the right place and right times to successfully achieve its
overall objectives.

DEFINITION- Human Resource Planning (HRP) is a process of determining and assuming that
the organisation will have an adequate number of qualified persons available at proper
times, performing jobs which meet the needs of enterprise and provide satisfaction for the
individuals involved.

OBJECTIVES:-

1. To Recruit and retain required quality and quality of Human Resources.

2. To meet the needs of expansion and diversification of the organisation.
3. To adjust the impart of technological change and need of Human Resources.
4. To enhance the skill, ability, knowledge and standards of the existing employee.
5. To adjust the surplus and shortage of employee and take corrective measures.
6. To maintain favourable industrial Relate.
7. To maintain a balance between demand and supply of Human Resources at
appropriate period.
8. To reduce the labour turnover cost.
9. To make best use of Human Resources.
10. To ensure effective control over HR.

NEED AND IMPORTANCE OF HRP

1. To meet the shortage of experienced and skilled employee of the organisation.

2. It works as a cost saving device.
3. Provides man power without interruption, (situations like retire, death,
retrenchment )
4. Change in technology like production, marketing, privatisation, globalisation etc.
5. To deploy and Re-deploy the existing works.
6. To protect the employment policy of the govt.
7. To provide suitable working condition as a demand of workers union.
8. Provides swot analysis of the workers.
9. Face the other competitors in the market.
10. Helps for growth and development of the organisation.
HRP PROCESS
Acquisition and utilisation of human resources is an important decision of a manager. The
process of human resources planning helps in this regard and makes the task of a manager
easy.The process of HRP involves the following steps they are :-

1. Analysis of organisational plans & objectives:- Organisational plan means functional

plan like different branches, sections, and sub sections i.e. production. Finance,
marketing, administration etc. Objective refers to long term and short term objective.

2 .Analysis of HRP Objective:-

 Emphasis to future requirement.
 Specify the policy for HR selection.
 Abolish routine or old job by replacing meaning full work to meet changing
environment.
 Maximize return on investment on HR.

3. Forecast Human Resource Requirement or Demand of HR:-

 Expansion of the enterprise.
 Merger or acquisition.
 Retirement, resignation & retrenchment.
 Improvement in productivity.
 CAD- Computer aided design, CAM- Computer aided manufacture.

4 .Assessment of supply of HR: -

 Human Resource Audit.
 Complete information about quantity and quality.
 Department requirement of manpower.
 provision to deploy existing manpower for extra work & overtime

5. Matching the demand and supply of HR: -

 Demand for and supply of HR.

 Find out the shortage & excess of HR.
 In case of shortage it can recruit, promote etc.
 In case of excess vs. Re-deployment, etc

6 .Follow – up – action: - This step involves:-

 Review and monitor against the standard.
 Corrective measures for deficiency.
 Implementation of plan in right direction.
 Corrective actions need to be modified in the changed environment.

If all these steps carried out properly the HRP will be effective and proves to be productive
for the organisation .Otherwise the HRP will be counterproductive for the organisations.
PESTEL Analysis

A PESTEL analysis is an acronym for a tool used to identify the macro (external) forces facing
an organisation. The letters stand for Political, Economic, Social, Technological,
Environmental and Legal. This analysis can be a highly useful tool for helping future proof a
business both in the short and long term and developing the skills of people within an
organisation, in terms of how they react to external change and manage its implications.

Political Factors
These determine the extent to which government and government policy may impact on an
organisation or a specific industry. This would include political policy and stability as well as
trade, fiscal and taxation policies too. Examples in HR include changes to tax rules or
employment laws, as well as the implementation of new rules to which a business must
adhere.

Economic factors
These are relevant to broader national and, in some cases, international economic
conditions. An economic factor has a direct impact on the economy and its performance,
which in turn directly impacts on the organisation and its profitability. Factors include
interest rates, employment or unemployment rates, raw material costs and foreign
exchange rates. Staffing is an obvious example in HR, as most of the industries rely heavily
on employees for their growth and developmentfrom other countries.

Social Factors
Sociological factors consider the perceptions, changing views, and needs of a company’s
employees. This facet of a PESTLE analysis is all about getting to know people and
identifying trends that may influence their outlook toward an employer and their
engagement.

Technological Factors
More companies than ever before are integrating technology as a productivity enabler,
providing a competitive advantage. As opposed to time-consuming manual procedures and
methods. Understanding the benefits of technology and how they enable people to work
efficiently and to the best of their abilities has never been more important from an HR
standpoint. Analyzing what technical tools are available or in development is now a priority
for both HR and IT.

Environmental Factors
Environmental factors are those that are influenced by the surrounding environment and
the impact of ecological aspects. These are concerned with a company’s environmental
impact and ecological footprint, both locally and globally. Sustainability and Corporate Social
Responsibility (CSR) are becoming increasingly important to businesses of all sizes, and there
is mounting evidence that this is also a top priority for employees. People want to work for
organizations that are socially responsible, and HR must communicate evidence of strong
social and environmental values to a company’s workforce and to new candidates who are
considering joining the company.
Legal Factors
An organisation must understand what is legal and allowed within the territories they
operate in. They also must be aware of any change in legislation and the impact this may
have on business operations. Factors include employment legislation, consumer law, health
and safety, international as well as trade regulation and restrictions. Political factors do
cross over with legal factors; there is some overlap here with political factors in the context
of people management. Employment law changes over time, and HR professionals must
understand how these changes will impact their policies and practices. however, the key
difference is that political factors are led by government policy, whereas legal factors must
be complied with.

FACTORS OF HRP

A) Internal factors: -
1) Company policy.
2) HR strategy
3) Job analysis
4) quality of information system
5) marketing policy
6) Trade unions.

B) EXTERNAL FACTORS
1) Government policy
2) Level of Economic Development
3) Business environment
4) Level of technology
5) International sources
6) Outsourcing.

BARRIERS OF HRP
1) Perceptions of top management: - It has been perceived by the top management
that people are available plenty in this labour surplus country. so time and money
should not spent for HRP.
2) Problem of demand and supply of HR: - It has been experienced that accuracy of
resources which is a barrier for HRP.
3) Fluctuation in technology:-Technology changes rapidly. Accordingly labour turnover,
market fluctuations, and employment opportunity change rapidly, these
uncertainties cause a major problem for HRP as it seems to be far from the reality.
4) Conflict of quantity and quality: - The HRP process suffers due to a conflict in
between the quality of manpower and the quantity of manpower. Quantity in HRP
means flow of employees inside the organisation and quality refers to only few
employee backed by experience, skill, knowledge and morale.
5) Absence of reliable Data: - The entire HRP process dependent on an accurate and
reliable data maintained by the organisation for Human Resources. In case of a
defective data and unreliable information it is not possible to carry out the HRP in
the Organisation.