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Unit 2 Human Resource Planning

Human resource planning (HRP) involves forecasting future human resource needs, determining current capacity, and developing strategies to ensure the organization has the right number and types of employees. The objectives of HRP include providing workforce information, effective utilization of employees, economic development, determining skill gaps, forecasting needs, analyzing the current workforce, managing change, and helping the organization achieve its goals. Key functions of HRP include analyzing staffing levels, qualifications, budgets, and recruitment to develop a strategic plan for acquiring and maintaining talent. HRP is affected by factors such as the business environment, technological changes, government policies, and economic conditions.

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0% found this document useful (0 votes)
82 views18 pages

Unit 2 Human Resource Planning

Human resource planning (HRP) involves forecasting future human resource needs, determining current capacity, and developing strategies to ensure the organization has the right number and types of employees. The objectives of HRP include providing workforce information, effective utilization of employees, economic development, determining skill gaps, forecasting needs, analyzing the current workforce, managing change, and helping the organization achieve its goals. Key functions of HRP include analyzing staffing levels, qualifications, budgets, and recruitment to develop a strategic plan for acquiring and maintaining talent. HRP is affected by factors such as the business environment, technological changes, government policies, and economic conditions.

Uploaded by

Gaurav vaidya
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2.

Human Resource Planning

2.1. Meaning and Definitions


Human Resource Planning (HRP) is the process of forecasting the future
human resource requirements of the organization and determining as to how
the existing human resource capacity of the organization can be utilized to
fulfill these requirements. It, thus, focuses on the basic economic concept of
demand and supply in context to the human resource capacity of the organization.
It is the HRP process which helps the management of the organization in meeting
the future demand of human resource in the organization with the supply of the
appropriate people in appropriate numbers at the appropriate time and place.
Further, it is only after proper analysis of the HR requirements can the process of
recruitment and selection be initiated by the management. Also, HRP is essential in
successfully achieving the strategies and objectives of organization. In fact, with
the element of strategies and long term objectives of the organization being widely
associated with human resource planning these days, HR Planning has now
became Strategic HR Planning.
Though, HR Planning may sound quite simple a process of managing the numbers
in terms of human resource requirement of the organization, yet, the actual activity
may involve the HR manager to face many roadblocks owing to the effect of the
current workforce in the organization, pressure to meet the business objectives and
prevailing workforce market condition. HR Planning, thus, help the organization in
many ways as follows:

 HR managers are in a stage of anticipating the workforce requirements


rather than getting surprised by the change of events
 Prevent the business from falling into the trap of shifting workforce market,
a common concern among all industries and sectors
 Work proactively as the expansion in the workforce market is not always in
conjunction with the workforce requirement of the organization in terms of
professional experience, talent needs, skills, etc.
 Organizations in growth phase may face the challenge of meeting the need
for critical set of skills, competencies and talent to meet their strategic
objectives so they can stand well-prepared to meet the HR needs
 Considering the organizational goals, HR Planning allows the identification,
selection and development of required talent or competency within the
organization.
2.2. Objectives, functions of Human Resource planning.
Objectives
Planning is a process of developing a set of decisions for action in future. Human
resource (HR) planning is also termed ‘manpower planning’ by many authors. It is
the process of preparing a set of decisions with regard to HR development and
deployment. The actions required to be initiated are exogenous to HR planning and
are generally categorized as – (a) employment opportunity and (b) economic
development.
HR planning comprises putting the right number and kind of people at the right
place, at the right time, and making them do things for which they are suited, to
achieve business goals. In the era of industrialization, structured HR planning has
become a really important aspect. It is carried out in a particular sequence of steps
which begins with analyzing the current inventory of manpower available. The
managers need to suitably make plans for future requirements, by forecasting along
with developing employment and training programmes.
Employment opportunity originates from technology up-gradation, innovation, and
continuous search for newer scope and ideas. For example, after launching CNC
machines, the use of old conventional machines has mostly been discontinued in
large companies. The new generation machines have opened up opportunities for
employment for software engineers, growth of air conditioner manufacturers, etc.
In fact, modern technology explosion has made our lives hassle-free. This is
directly related to economic development. Obviously, employment opportunity and
technology advancement are interdependent.
HR planning also calls for deciding the position to be filled based on the workload
for a considerable period of time by means of personnel planning and forecasting,
building a pool of potential candidates who are capable of performing the required
tasks through internal and external recruitment, using the most suitable selection
tools tailor-made for the position, and populating the HR inventory/information
system.
While negotiating during an interview, the financial as well as the non-financial
offers must be discussed openly to prevent attrition at a later stage. HR planning
manifests its importance as the key to managerial functions, efficient utilization,
motivation, better industrial relations, and higher productivity.
Human Resource planning is an important aspect of manpower management and
administration. A large pool of manpower exists, but utilizing them for the right
job at the right time is a major managerial task. Manpower is the quantity of
productive people who can be used in any organization as human capital and as
assets to achieve the common goal.

Human Resource planning is a process that comprises forecasting, developing, and


controlling by an organization to ensure that it has the right number and kind of
people with regard to their skills and competencies.
The objectives of HR planning are as follows:
Objective # 1. Provide Information:
The information obtained through HRP is highly important for identifying surplus
and unutilised human resources. It also renders a comprehensive skill inventory,
which facilitates decision making, like, in promotions. In this way HRP provides
information which can be used for other management functions.
Objective # 2. Effective Utilisation of Human Resource:
Planning for human resources is the main responsibility of management to ensure
effective utilisation of present and future manpower. Manpower planning is
complementary to organisation planning.
Objective # 3. Economic Development:
At the national level, manpower planning is required for economic development. It
is particularly helpful in the creating employment in educational reforms and in
geographical mobility of talent.
Objective # 4. Determine Manpower Gap:
Manpower planning examine the gaps in existing manpower so that suitable
training programmes may be developed for building specific skills, required in
future.
Objective # 5. To Forecast Human Resource Requirements:
HRP to determine the future human resource needed in an organisation. In the
absence of such a plan, it would be difficult to have the services of the right kind of
people at the right time.
Objective # 6. Analyse Current Workforce:
HRP volunteers to assist in analysing the competency of present workforce. It
determines the current workforce strengths and abilities.
Objective # 7. Effective Management of Change:
Proper HR planning aims at coping with severed changes in market conditions,
technology products and government regulations in an effective way. These
changes call for continuous allocation or reallocation of skills evidently in the
absence of planning there might be underutilisation of human resource.
Objective # 8. Realising Organisational Goals:
HRP helps the organisation in its effectively meeting the needs of expansion,
diversification and other growth strategies.
Functions of Human Resource planning.
In order for a company to make proper use of its resources, there needs to be a plan
in place. By not having proper human resources planning in place, a company
could lose money because of an under-qualified staff or an inappropriate staffing
amount, according to the staffing experts at the Accel Team Development website.
By understanding the functions of human resource planning, you can better
appreciate its impact on your company's success.
Staff Levels
Human resource professionals gather all of the personnel projections from each
department, compare them to present staff levels and then design a plan to make
sure that the company is adequately staffed for the coming year. The needs of a
business can change quickly, so the human resources group should review the
staffing levels with departmental managers on no less than a quarterly basis to
make sure that accelerated company growth has not affected the need for
personnel.
Qualifications
The function of the human resources group in respect to qualified employees is a
two-fold proposition. The first part of it is to make sure that there is always an
updated file of resumes on hand of qualified individuals who already have been
interviewed by human resources staff. The second part of the qualifications
function of a human resources group is to go over the growth patterns of the
company with departmental managers to see what new qualifications should be
part of future candidate searches.
Budgets
A company stays profitable by working within its predetermined budget. When
human resources personnel set out to fill job openings, they need to understand the
departmental personnel budgets they are working with and stay within those
numbers when negotiating with candidates. This requires close work with
executives and managers to make sure the company gets the talent it needs to move
forward but without going over the prescribed annual budget.
Recruitment
The resumes that human resources professionals use to keep candidates available
for future staffing needs to come from perpetual recruiting efforts done by the
human resources group. The human resources professionals spend time at
recruiting trade shows, visiting college campuses and getting involved in any other
activity that will help them come into contact with talented candidates. A proactive
recruiting effort is essential to the ongoing human resources planning success of
any company.

2.3. Factors affecting to Human Resource planning.


Factors Affecting HRP:-
HRP is influenced by several considerations. The more important of them are: (1)
type and strategy of organization, (2) organizational growth cycles and planning,
(3) environmental uncertainties, (4) time horizons, (5) type and quality of
forecasting information, (6) nature of jobs being filled, and (7) off-loading the
work.

1. Type and Strategy of Organisation:-


The type of organization is an important consideration because it determines the
production processes involved, number and type of staff needed, and the
supervisory and managerial personnel required. Manufacturing organisations are
more complex in this respect than those that render services. The strategic plan of
the organization defines the organization’s HR needs. For example, a strategy of
organic growth means that additional employees must be hired. Acquisitions or
mergers, on the other hand, probably mean that the organization will need to plan
for layoffs, since mergers tend to create; duplicate or overlapping positions that can
be handled more efficiently with fewer employees. Primarily, the organization
decides either to be proactive or reactive in HRP. It can either decide to carefully
anticipate the needs and systematically plan them to fill them far in advance, or it
can simply react to needs as they arise. Of course, careful planning to fill HR needs
better helps ensure that the organisation obtains the right number of HR people
with proper skills and competencies when they are needed.
Fig. Factors Affecting HRP

Similarly the organisation must determine the breadth of the plan. Essentially, the
organisation can choose a narrow focus by planning in only one or two HR areas,
such as recruitment or selection, or it can choose a broad focus by planning in all
areas including training, remuneration and so on. ~
The organisation must also decide upon the formality of the plan. It can decide to
have an informal plan that lies mostly in the minds of the managers and personnel
staff. Alternatively, the organisation can have a formalized plan which is clearly
spelt out in writing, backed by documentation and data.
Finally, the organisation must make a decision on flexibility—the ability of the HR
plan to anticipate and deal with contingencies No organisation likes high levels of
uncertainty. Organisations seek to reduce uncertainty by planning, which includes
forecasting and predicting possible future conditions and events. HRP can contain
many contingencies, which reflect different scenarios thereby assuring that the plan
is flexible and adaptable. Figure 4.4 summarizes these five major choices faced by
the organisation in strategic HRP. An organisation will often tend to be, to the left
or to the right, on all continua rather than to the left on some and to the right on
other, although there could be exceptions. A company could be at one end of the
extreme on some plan characteristics and at the other end on other.

2. Organisational Growth Cycle and Planning:-


The stage of an organisation’s growth can have considerable influence on HRP;
small organisations in the embryonic stage may not have personnel planning. Need
for planning is felt when the organisation enters the growth stage. HR forecasting
becomes essential. Internal development of people also begins to receive attention
in order to keep up with the growth. A mature organisation experiences less
flexibility and variability. Growth slows down. The workforce becomes old as few
younger people are hired. Planning becomes more formalised and less flexible and
innovative. Issues like retirement and possible retrenchment dominate planning.
Finally, in the declining stage, HRP takes a different focus. Planning is done for
layoff, retrenchment and retirement. Since decisions are often made after serious
financial and sales shocks are experienced by the organisation, planning is often
reactive in nature.
Fig. Continual Strategic Choices in HRP

Internal Growth Growth through


• Narrow Mergers & Acqusitions
• Informal • Broad
• Reactive • Formal
• Inflexible • Proactive
• Flexible

3. Environmental Uncertainties:-
HR managers rarely have the privilege of operating in stable and predictable
environmental uncertainties by carefully formulating recruitment, selection, and
training and development policies and programmes. Balancing mechanisms are
built into the HRM programme through succession planning, promotion channels,
layoff’s, and flextime, job sharing, retirement, VRS and other personnel related
arrangements.
4. Time Horizons:-
Yet another major factor affecting personnel planning is the time horizon. On one
hand, there are short-term plans spanning six months to one year. On the other
hand, there are long-term plans which spread over three to twenty years. The exact
time span, however, depends on the degree of uncertainty prevailing in an
organisation’s environment. Plans for companies operating in an unstable
environment, computers for example, must be for a short period. Plans for others
where environment is fairly stable, for example a university plan, may be long-
term. In general, the greater the uncertainty, the shorter the plan’s time horizon and
vice versa.

5. Type and Quality of Information:-


The Information used to forecast personnel needs originates from a multitude of
sources. A major issue in personnel planning is the type of information which
should be used in making forecast. Table 4.7 illustrates the type and levels of
forecasting information useful to personnel planners. Closely related to the type of
information is the quality of data used. The quality and accuracy of information
listed in Table 4.7 depends upon the clarity with which the organizational decision
makers have defined their strategy, organizational structure, budgets, production
schedules and so forth. In addition, the HR department must maintain well-
developed job-analysis information and HR information systems (HRIS) that
provide accurate and timely data. Generally speaking, organisations operating in
stable environments are in a better position to obtain comprehensive, timely and
accurate information because of longer planning horizons, clearer definition of
strategy and objectives and fewer disruptions.

6. Natures of Jobs Being Filled:


Personal planner must consider the natures of jobs being failed in the organisation.
Job vacancies arise because of separation, promotions and expansion strategies. It
easy to employ shop floor workers, but a lot of sourcing is necessary for hiring
managerial personnel. It is, therefore for the personal department to anticipate
vacancies, as far in advance as possible, to provide sufficient lead time to ensure
that suitable candidate are recruited.

7. Outsourcing:
Several organizations outsource part of their work to outside parties either in the
form of sub-contracting or ancillarisation. Outsourcing is a regular feature both in
the public sector as well as in the private sector. Most organisations have surplus
labour and they do not want to worsen the problem by hiring more people. Hence,
the need for off-loading. Some organisations are known to carry the concept off-
loading to ridiculous lengths. One of the Bangalore-based public sectors under
taking outsources major part of its work, and in the process, the regular employees
sit idle. Kickback from owners of ancillary units is the cause for ancillarisation.
HRP is rarely required in such circumstances.

2.4. Process of Human Resource planning.


Process of HRP:
Human resource planning is a process through which the company anticipates
future business and environmental forces. Human resources planning assess the
manpower requirement for future period of time. It attempts to provide sufficient
manpower required to perform organizational activities. HR planning is a
continuous process which starts with identification of HR objectives, move through
analysis of manpower resources and ends at appraisal of HR planning. Following
are the major steps involved in human resource planning:
1. Assessing Human Resources
The assessment of HR begins with environmental analysis, under which the
external (PEST) and internal (objectives, resources and structure) are analyzed to
assess the currently available HR inventory level. After the analysis of external and
internal forces of the organization, it will be easier for HR manager to find out the
internal strengths as well as weakness of the organization in one hand and
opportunities and threats on the other. Moreover, it includes an inventory of the
workers and skills already available within the organization and a comprehensive
job analysis.

2. Demand Forecasting
HR forecasting is the process of estimating demand for and supply of HR in an
organization. Demand forecasting is a process of determining future needs for HR
in terms of quantity and quality. It is done to meet the future personnel
requirements of the organization to achieve the desired level of output. Future
human resource need can be estimated with the help of the organization's current
human resource situation and analysis of organizational plans an procedures. It will
be necessary to perform a year-by-year analysis for every significant level and
type.

3. Supply Forecasting
Supply is another side of human resource assessment. It is concerned with the
estimation of supply of manpower given the analysis of current resource and future
availability of human resource in the organization. It estimates the future sources
of HR that are likely to be available from within an outside the organization.
Internal source includes promotion, transfer, job enlargement and enrichment,
whereas external source includes recruitment of fresh candidates who are capable
of performing well in the organization.

4. Matching Demand and Supply


It is another step of human resource planning. It is concerned with bringing the
forecast of future demand and supply of HR. The matching process refers to bring
demand and supply in an equilibrium position so that shortages and over staffing
position will be solved. In case of shortages an organization has to hire more
required number of employees. Conversely, in the case of over staffing it has to
reduce the level of existing employment. Hence, it is concluded that this matching
process gives knowledge about requirements and sources of HR.

5. Action Plan
It is the last phase of human resource planning which is concerned with surplus
and shortages of human resource. Under it, the HR plan is executed through the
designation of different HR activities. The major activities which are required to
execute the HR plan are recruitment, selection, placement, training and
development, socialization etc. Finally, this step is followed by control and
evaluation of performance of HR to check whether the HR planning matches the
HR objectives and policies. This action plan should be updated according to
change in time and conditions.

2.5. Human Resource Forecasting Techniques.


Techniques for Forecasting of Human Resources are;

1. Delphi technique.
2. Nominal technique.
3. Brainstorming.
4. Ratio Analysis.
5. Trend Analysis.
6. Scatter plot.

These are discussed below;

1 Delphi technique

Delphi technique is based on the principle that forecasts (or decisions) from a
structured group of individuals are more accurate than those from the unstructured
group.

Delphi is a structured approach for reaching a consensus judgment among experts


about future developments in any area that might affect a business, for example, a
firm’s future demand for labor.

In the Delphi technique, a panel of relevant people is chosen to address an issue. It


facilitates group decision-making.

Experts are chosen based on their knowledge of internal factors that might affect a
business (e.g., projected retirement), their knowledge of the general business plans
of the organization, knowledge of the external factors that might affect demand for
the firm’s product and service, and hence its internal demand for labor.

Experts may range from first-line supervisors to top-level managers. Sometimes,


outside experts are also used.

The main objective of the Delphi technique is to predict future developments in a


given area by integrating the independent opinions of experts.

Face-to-face group discussion among the experts is avoided to eliminate criticism


and compromise on good ideas.
To avoid these problems, an intermediary is used. The intermediary’s job is to
pool, summarize, and then feedback to the experts on the information generated
independently by all the other experts during the first round of forecasting.

The cycle is then repeated so that the experts can revise their forecasts and the
reasons behind their revised forecasts.

The following are the key characteristics of the Delphi method: the anonymity of
the participants, the structuring of information flow, regular feedback, and the role
of the facilitator.

Guidelines to make the Delphi process most useful:

 Give the experts enough information to make an informed judgment.


 It does not require precision.
 Keep the exercise as simple as possible.
 Be sure that the classification of employees and other definitions are understood in
the same way by all experts.
 Enlist top management’s expert’s support of the Delphi process by showing how
good forecasts will benefit the organization and affect profitability and workforce
productivity.

The Delphi technique produces a few important benefits such as;

a. elimination of interpersonal problems among panelists,


b. efficient use of experts’ time,
c. adequate time for reflection & analysis by respondents,
d. diversity & quantity of ideas generated, and
e. Accuracy of predictions & forecasts made.

The Delphi technique is not without limitations. It must be realized that in an area
such as human resource forecasting, the degree of uncertainty is so great that exact
and always correct predictions are impossible.

Hence, a high degree of error is to be expected. Another particular weakness of the


Delphi method is that future developments are not always predicted correctly by
the consensus of the experts.

Another problem is the inability of the experts to make complex forecasts with
multiple factors.
Nominal technique

A nominal group exists in name only, with members having minimal interaction
before producing a decision. Participants are asked to write their ideas
anonymously. Then the facilitator collects the ideas, and the group votes on each
idea. The group should be prepared and encouraged to embrace the process.

Here are the steps that nominal groups often follow:

1. Individuals are brought together & presented with a problem.


2. They develop solutions independently, often writing them on cards.
3. Their ideas are shared with others in a structured format,
4. Brief-time is allotted so that questions can be asked – but only for clarification, ask
the kinds of questions a unit manager can answer.
5. Group members individually designate their preferences for the best alternatives by
secret ballot.
6. The group “decision” is announced.

Advantages of the nominal technique

 There is an opportunity for equal participation by all members. Participation is


broad, not limited to a few powerful members.
 It allows tighter control of time. Thus, it quickens the decision-making process. It
is a time-saving process.
 A single member cannot dominate the decision process. There is little chance of
group thinking occurring.
 Because of wider participation, members can come up with new ideas.

Disadvantages of nominal technique

 Group members are frustrated by the rigidity of the procedure,


 Gain no feelings of cohesiveness,
 Do not have the opportunity to benefit from the cross-fertilization of ideas.
 The success of the nominal technique depends on each member’s capacity.

Brainstorming

Brainstorming is a popular method for encouraging creative thinking in groups of


about five to eight people (Ivanceivich, 1998).
Brainstorming is a group or individual’s creativity technique by which efforts are
made to conclude a specific problem by gathering a list of ideas spontaneously
contributed by its member(s).

Good ideas may be combined to form a single better idea, as suggested by the
slogan “1+1=3”. It is believed to stimulate the building of ideas by the process of
association. It is built around four basic guidelines for participants:

 Generate as many ideas as possible.


 Be creative, freewheeling & imaginative.
 Build upon extending or combine earlier ideas,
 Withhold criticism of others’ ideas.

The success of this technique depends on: each member’s capacity, willingness to
hear thoughts, use the thoughts as a stimulus, spark new ideas of their own, and
feel free to express them.

Advantages of Brainstorming

There are many advantages of brainstorming, such as

1. group members are enthusiastic,


2. broad level participation,
3. group members maintain a strong task orientation,
4. new ideas are built upon & extended and
5. combined and improved ideas.

Disadvantages of Brainstorming

The major disadvantages of brainstorming are:

1. Members typically feel that the final product is a team solution, not an individual,
2. Residual fear among some members,
3. Creative thoughts are looked down upon,
4. Less contribution to group cohesion.
5. Only one person can speak at a time,

Trend Analysis
Trend analysis means studying a firm’s past employment needs over the years
to predict the future. The purpose is to identify trends that might continue. It
provides an initial estimate.

Ratio Analysis

Ratio Analysis is a forecasting technique for determining future staff requirements


by using ratios between, for example, sales volume and number of employees
needed.

It means making forecasts based on the ratio between any causal factor and the
number of employees required. Ratio analysis assumes that productivity remains
the same.

Scatter plot

A scatter plot is a graphical method used to help identify the relationship between
two variables. If an HR manager can forecast the level of business activity, he
should also estimate personnel requirements.

Managerial judgment will play a big role, whichever forecasting technique HR


managers use. Rarely, any historical trend or relationship will continue unchanged
into the future.

HR managers have to modify the forecast based on factors- such as projected


turnover or a desire to enter new markets. It is sometimes difficult to take a long-
term perspective, particularly when market conditions change dramatically.
2.6. Human Resource planning- problems and Limitations

Problems In HRP (Limitations of HRP):-


The main problems in the process of HRP are follows:
i. Inaccuracy.
HRP involves forecasting the demand for and supply of human resources.
Therefore, it cannot be a cent per cent accurate process. Longer the time horizon,
greater is the possibility of inaccuracy. Inaccuracy increases when departmental
forecasts are merely aggregated without critical review.
ii. Employees Resistance.
Employees and trade unions feel that due to widespread unemployment, people
will be available for jobs as and when required Moreover, they feel that HRP
increases their workload and regulates them through productivity bargaining.
Employers may also resist HRP feeling that it increases the cost of manpower.
Managers and human resource specialists do not fully understand HRP process and
lack a strong sense of purpose.
iii. Uncertainties.
Labour absenteeism, labour turnover, seasonal employment, technological changes
and market fluctuations are the uncertainties which serve as constraints to HRP. It
is risky to depend upon general estimates of manpower in the face of rapid changes
in environment.
iv. Inefficient Information System.
In most of the Indian industries, human resource information system has not been
fully developed. In the absence of reliable data, it is not possible to develop
effective HRP.
v. Lack of Top Management Support.
In the absence of support and commitment from the top, human resource experts
find it difficult to obtain vital inputs. Sometimes, the process is started with great
funfare but is not sustained due to lack of patience. Successful HRP flourishes
slowly and gradually. In some cases, sophisticated technologies are forcefully
introduced just because competitors have adopted them. These may not yield fruits
unless matched with the needs and environment of the particular enterprise.
vi. Time and Expense.
Manpower planning is a time-consuming and expensive exercise. A good deal of
time and cost are involved in data collection and forecasting.
vii. Unbalanced Focus.
In some companies, HRP is use as a number’s game. There is too much focus on
the quantitative aspect to ensure the flow of people in and out of the organisation.
Such exclusive focuses overtake the more important dimension, i.e., the quality of
human resources. Career planning and development, skill levels, morale, etc., are
likely to suffer due to such unbalance approach to HRP. Thus a limitation of
manpower planning arises both from inherent limitations forecasting and from
human weaknesses.

Steps in Human Resource Planning (explained with diagram)

Human resource planning is a process through which the right candidate for the
right job is ensured. For conducting any process, the foremost essential task is to
develop the organizational objective to be achieved through conducting the said
process.
Six steps in human resource planning are presented in Figure 5.3.

Steps in Human Resource Planning

1. Analyzing Organizational Objectives:


The objective to be achieved in future in various fields such as production,
marketing, finance, expansion and sales gives the idea about the work to be done in
the organization.
2. Inventory of Present Human Resources:
From the updated human resource information storage sys-tem, the current number
of employees, their capacity, perfor-mance and potential can be analysed. To fill
the various job requirements, the internal sources (i.e., employees from within the
organization) and external sources (i.e., candidates from various placement
agencies) can be estimated.
3. Forecasting Demand and Supply of Human Resource:
The human resources required at different positions according to their job profile
are to be estimated. The available internal and external sources to fulfill those
requirements are also measured. There should be proper matching of job
description and job specification of one particular work, and the pro-file of the
person should be suitable to it.

4. Estimating Manpower Gaps:


Comparison of human resource demand and human resource supply will provide
with the surplus or deficit of human resource. Deficit represents the number of
people to be employed, whereas surplus represents termination. Extensive use of
proper training and development programme can be done to upgrade the skills of
employees.
5. Formulating the Human Resource Action Plan:
The human resource plan depends on whether there is deficit or surplus in the
organization. Accord-ingly, the plan may be finalized either for new recruitment,
training, interdepartmental transfer in case of deficit of termination, or voluntary
retirement schemes and redeployment in case of surplus.
6. Monitoring, Control and Feedback:
It mainly involves implementation of the human resource action plan. Human
resources are allocated according to the requirements, and inventories are updated
over a period. The plan is monitored strictly to identify the deficiencies and
remove it. Comparison between the human resource plan and its actual
implementation is done to ensure the appropriate action and the availability of the
required number of employees for various jobs.

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