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System of HR Planning Essay

Q. Elaborate on the system of HR Planning. Outline the steps to be undertaken by organizations to effectively engage in HR Planning.


Human Resources by itself, is a vast function, and is the driver of an organization. Employees come from different socio- economic and cultural backgrounds. When you control the behaviour of employees, you automatically give direction to the organizational growth. Human Resources has many functions, which can broadly be categorized as, Manpower Planning, Recruitment, Training, Appraisals, Human Interventions to retain talented manpower, HR Administration, Sexual Harassment , Organizational Decorum and Career Growth Plans. As of today, HR is also part of strategic growth, because, your organization is ultimately going to be driven, by intellectual capital.

Human resource planning is the process by which a management determines how an organization should move from its current manpower position to its desired manpower position. a management strives to have the right number and the right kind of people at the right places at the right time to do things which result in both the organisation and the individual receiving the maximum benefits. NOW, the steps to be undertaken in hr planning are- 1. forecasting manpower requirements either by using mathematical tools or by simple judgemental estimates.

2. creating an inventory of current manpower resources.

3. identifying manpower problems by projecting present resources into the future to determine their adequacy.

4. planning the necessary programmes of requirement selection, training, development,etc.

Human resource planning is important for helping both organizations and employees to prepare for the future.

Human Resource Planning System.
A. Objectives of Human Resource Planning:Human Resource Planning fulfils individual, organizational and national goals. In effect, the main purpose is one of matching or fitting employee abilities to enterprise requirements, with an emphasis on future instead of present arrangements.” The objectives may be laid down for a short term (i.e. for one year).

B. Estimating the Future Organizational Structure or Forecasting the Manpower Requirements:The management must estimate the structure of the organization at a given point in time. For this estimate, the number and type of employees needed have to be determined. Many environmental factors affect this determination. They include business forecasts, expansion and growth, design and structural changes, management philosophy, government policy, product and human skills mix, and competition. Forecasting provides the basic premises on which the manpower planning is built.

Forecasting is necessary for various reasons, such as:
• The eventualities and contingencies of general economic business cycles (such as inflation, wages, prices, costs and raw material supplies) have an influence on the short range and long run plans of all organizations. • An expansion following enlargement and growth in business involves the use of additional machinery and personnel, and a reallocation of facilities, all of which call for advance planning of human resources. • Changes in management philosophies and leadership styles.

C. Auditing Human Resources: Once the future human resource needs are estimated, the next step is to determine the present supply of manpower resources. This is done through what is called “Skills Inventory”. A skills inventory contains data about each employee’s skills, abilities, work preferences and other items of information which indicate his overall value to the company. D. Job Analysis: After having decided how many persons would be needed, it is necessary to prepare a job analysis, which records details of training, skills, qualification, abilities, experience and responsibilities, etc., which are needed for a job. Job analysis includes the preparation of job descriptions and job specifications.

E. Developing a Human Resource Plan: This step refers to the development and implementation of the human resource plan, which consists in finding out the sources of labour supply with a view to making an effective use of these sources. The first thing, therefore, is to decide on the policy should the, personnel be hired from within through promotional channels or should it be obtained from an outside source. The best policy which is followed by most organizations is to fill up higher vacancies by promotion and lower level positions by recruitment from the labour market. How can HRP be applied?

The report details the sort of approach companies might wish to take. Most organisations are likely to want HRP systems:
• which are responsive to change
• where assumptions can easily be modified
• that recognise organisational fluidity around skills
• that allow flexibility in supply to be included
• that are simple to understand and use
• which are not too time demanding.
To operate such systems organisations need:
• appropriate demand models
• good monitoring and corrective action processes
• comprehensive data about current employees and the external labour market • an understanding how resourcing works in the organisation. If HRP techniques are ignored, decisions will still be taken, but without the benefit of understanding their implications. Graduate recruitment numbers will be set in ignorance of demand, or management succession problems will develop unnoticed. As George Bernard Shaw said: ‘to be in hell is to drift; to be in heaven is to steer’. It is surely better if decision makers follow this maxim in the way they make and execute resourcing plans.

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