Objectives of HRP:
•To recruit and retain the human resource of required quantity and quality. •To foresee the impact of technology on work, existing employees and future human resource requirements, meeting the needs of the programs of expansion, diversification and to estimate the cost of human resources.
•To improve the standards, skills, knowledge, ability, discipline etc. •To assess the surplus or shortage of human resources and take measures accordingly thereby minimising the imbalance. •To maintain congenial industrial relation by maintaining optimum level and structure of human resources.
Process of Human Resource Planning:
1. Analysing Corporate Level Strategies: – Human Resource Planning begins with analysing corporate level strategies which include expansion, diversification, mergers, acquisitions, reduction in operations, technology to be used, method of production etc.
2. Demand forecasting: – Forecasting the overall human resource requirement in accordance with the organisational plans is one of the key aspects of demand forecasting. Forecasting of quality of human resources like skills, knowledge, values and capabilities needed in addition to quantity of human resources is carried out.
3. Analysing Human Resource Supply: – Every organisation has two sources of supply of Human Resources: Internal & External. Internally, human resources can be obtained for certain posts through promotions and transfers. Once the future internal supply is estimated through human resource audit, supply of external human resources is analysed. 4. Estimating manpower gaps: – Manpower gaps are identified by comparing demand and supply forecasts. Such comparison will reveal either deficit or surplus of Human Resources in the future. Employees estimated to be deficient can be trained while employees with higher, better skills may be given more enriched jobs.
5. Action Planning: – Once the manpower gaps are identified, plans are prepared to bridge these gaps by redeployment of surplus manpower. People may be persuaded to quit voluntarily or retrenched. Deficit can be met through recruitment, selection, transfer and promotion. In view of shortage of certain skilled employees, the organisation has to take care not only of recruitment but also retention of existing employees. 6. Modifying organisational plans: – If future supply of human resources from all the sources is estimated to be inadequate or less than the requirement, the organisation should consider alterations or modifications in the organisational plans.