subject: Human Resource Planning (hrp) [print this page] Manpower Planning (MPP) now referred to as Human Resource Planning (HRP) is an attempt to meet organizations need for Human Resources with the available supply of manpower in the local and national labor markets. For many organizations, specialized departments within personnel may be established to concentrate exclusively on manpower planning. Issues that these departments may address include:
*How many employees does the organization currently employ?
*What is the age profile, by the department, of our employees?
*Where in the organization are these employees to be found?
*Which are the biggest departments in the organization?
*What skills do our employees?
*How many employees, on average, leave the organization every year?
*In which areas of our business do we tend to lose more employees?
These questions are fundamental to the day-to-day activities of manpower planners and are crucial for the future success of the business. Human resources are considered the most valuable, yet the most volatile and potentially unpredictable resource, which an organization utilizes. If an organization fails to place and direct human resources in the right areas of the business, at the right time, and at the right cost . Serious inefficiencies are likely to arise creating considerable operational difficulties and likely business failure. Consider the rather unlikely, but illustrative example, of a business, which one-day finds that all its employees in the accounts department suddenly retire! This ridiculous situation is an extreme example of poor manpower planning. Most organizations would keep records on the age profile of their departments so that such events can be created for with specific development, progression, recruitment and training plans. Such contingencies would ensure that human resources are channeled through organizations in an orderly and disciplined fashion.
In order to hire personnel on a scientific basis one should establish in
advance a standard with which applicants can be compared. This standard
should establish minimum acceptable qualities necessary adequate performance
of job duties and responsibilities to determine human abilities required for
execution
HRP is the predetermination of the future course of action chosen from a number of alternatives for procuring, developing, managing, motivating, compensating, career planning, succession planning and separating human element of the enterprise. It determines a conscious choice of patterns of the humanization of work environment in an organization.
The Need for Manpower Planning
1. The rationale of human resources planning stems from the challenges posed by an overflowing realization that managerial success depends on the success of human resources management. If the desired people were not in position, then the implementation of the plans would suffer.
2. Capabilities, skills, performance abilities and potentialities of each individual are evaluated in the human resources audit. On many occasions, replacement charts or succession plans are kept so that potential executives are located for every position in the organization during the given future period.
3. Forecasting and auditing provide background information about internal factors like current and expected skills and vacancies. Accordingly manpower planning can be done. The normal wastage of HR due to turnover, death, superannuation, needs to be planned. Thus, manpower planning must be supported by human resource forecasting, human resource auditing and human resources analyzing.
4. There is an increasing awareness among the managers that no business can survive and grow without adequate and appropriate human resources and their proper management. Taking cognizance of the emerging trends, the human resources planning must respond to the need for structural changes on the one hand and to the emerging set of human expectations on the other.
5. Adequate investment in human capital is indispensable in a business environment. A substantial improvement in quality of life and quality of work life backed by total quality management, require systematic human resource planning.
6. Planning will help in positioning needed employees at the desired time taking into account the lead time for the process of identifying the shortages, getting the vacancy cleared and going through the selection process. It identifies and develops the personnel to move up and assume greater responsibility.
7. Human resources planning must always be backed by proper evaluation and appraisal systems. Periodical appraisal of performance, both in qualitative and quantitative terms, throws light on actual performance as a result of planning. Scientific performance appraisals facilitate in identifying the gaps existing so that corrective measures can be undertaken.
8. Changes in the environment are continuously taking place. Human resource planning suggests training and development programmes so that personnel can adapt to these changes.
9. Human resource planning helps in reducing the cost of production and keeps the wheels moving, by providing adequate personnel, utilizing the human resources present in the organisation itself and effectively controlling and utilizing them.