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HUMAN RESOURCE PLANNING

Astha Rathod (23BC729)


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Abstract
Human resource planning has traditionally been employed by companies to
ensure appropriate staffing levels in alignment with organizational needs.
Historically, this process primarily focused on short-term goals and was driven
by the concerns of operational managers. However, with the emergence of
greater environmental uncertainty, demographic shifts, technological
advancements, and intensified global competition, the role and nature of human
resource planning are evolving. As Human Resource planners become more
involved in shaping business direction and addressing organizational needs,
they encounter new responsibilities and challenges.
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Objective
This paper aims to conduct an in-depth literature review on Human Resource
Planning, focusing on research articles published between 1990 and 2017. The
goal is to investigate the evolution of human resource planning methodologies,
identify the factors driving its transformation, and examine the contemporary
strategies adopted by organizations to align their workforce with strategic goals.
Additionally, the objective is to underscore the importance of training and
development, recruitment strategies, and outsourcing in addressing future
workforce requirements.

Introduction
In earlier discussions, Vetter (1967) characterized human resource planning as
the process whereby management orchestrates a shift from the current
deployment of personnel to a more advantageous configuration. Through
strategic planning, management aims to secure an optimal quantity and caliber
of employees, suitably positioned and engaged in activities that yield enduring
benefits for both individuals and the organization.
Modern human resource planning centers on projecting the future human
resource requirements of the organization and formulating strategies to meet
those needs. This involves establishing goals and executing initiatives such as
hiring and training to ensure that individuals possess the necessary attributes
and competencies when called upon. Human resource planning also
encompasses gathering data to evaluate the efficacy of programs and indicate
when adjustments are warranted. A primary objective of this planning is to
enhance organizational effectiveness, necessitating alignment with business
goals. The increasing emphasis on human resource planning is driven by factors
like advancements in technology, economic shifts, globalization, and changes in
the workforce landscape.

Literature Review
Modern human resource planning is concerned with forecasting the
organization's future human resource needs, as well as the planning necessary to
meet those needs. It needs not only the setting of objectives, but also the
development and implementation of specific programs, such as staffing and
training, to ensure that individuals have the necessary attributes and abilities
when they are needed. Human resource planning also includes data collecting,
which may be used to assess program effectiveness and notify when
revision is required. One of the goals of planning is to facilitate organizational
effectiveness, thus it must relate to the organization's commercial objectives.
Human resource planning continues to gain attention owing to causes such as
the development of new technologies, changes in economic conditions,
globalization, and a changing workforce.

THE PROCESS:

The strategic human resource planning process involves four key steps, each of
which will be explored in detail:

1.Assessing the current human resource capacity


2.Forecasting human resource requirements
3.Gap analysis
4.Developing human resource strategies
1. Assessing the current human resource capacity:

The initial phase, aligned with the organization's strategic plan, entails
assessing the current human resource capabilities within the organization.
This includes identifying the knowledge, skills, and abilities of existing
employees, often achieved through the development of a comprehensive
skills inventory for each individual. It's essential for this inventory to
encompass not only the skills required for their current roles but also any
additional competencies demonstrated, such as those acquired through
community involvement or volunteer work. Educational backgrounds,
certifications, and ongoing training should also be documented.
Following a performance evaluation, a review can determine readiness
for increased responsibilities and assess current developmental plans.

2. Forecasting human resource requirements:

A thorough forecast considers both the supply and demand aspects of


human resources. Key questions in this forecasting process include
determining the necessary staff numbers to achieve the organisation's
strategic objectives, identifying vacant positions, and specifying required
skill sets and qualifications. Additionally, it's crucial to anticipate
challenges the organisation may face in meeting staffing needs due to
external factors. This assessment should focus on how external influences
might affect human resource requirements. Utilizing modelling and
forecasting techniques provides management with valuable insights into
the implications of various human resource strategies aligned with
organizational goals. These modelling methods can range from simple to
complex, but it's essential to choose a model that is easily comprehensible
to management to ensure acceptance of the results. The Two types of
modelling techniques are Demand forecasting and Supply forecasting.
Demand forecasting techniques include regression analysis, time series
analysis, and simple percentage changes. Supply forecasting techniques
include replacement charts.

3. Gap Analysis:

Gap analysis entails determining the future requirements in terms of


faculty/staff numbers and necessary skills and abilities. It's essential to
scrutinize all human resource management practices within the
organisation to pinpoint areas for improvement or the need for new
practices to bolster the organisation’s progress. Key inquiries include
identifying new job roles, assessing the demand for additional skills and
abilities, evaluating whether current staff possess requisite skills,
determining if employees are effectively utilizing their strengths in their
roles, assessing the adequacy of managerial and supervisory staff, and
evaluating the suitability of existing human resource management
practices for future requirements.

4. Developing human resource strategies:

There are three human resource strategies that a college may take
advantage of in order to meet its needs for the future:

 Training and development strategies


 Recruitment strategies
 Outsourcing strategies

(i) Training and development strategies:

It encompasses equipping faculty and staff for new responsibilities and


future roles through various means. This includes offering training for
individuals to transition into new positions and providing development
opportunities to enhance their readiness for upcoming job roles. Meeting
training and development needs can be achieved through multiple
methods, such as funding skill upgrades for staff by the organisation. This
might involve sponsoring individuals to attend courses or obtain
certifications. Additionally, many training and development requirements
can be addressed through cost-effective approaches.

(ii) Recruitment Strategies:

It serves as the initial means through which an employer gathers


information about potential job candidates. The selection of a recruitment
method directly impacts the quantity, calibre, and flow of applicants.
When determining an appropriate recruitment strategy, organizations
often face a trade-off. On one hand, there may be a pressing need to
swiftly fill positions. However, opting for speed may compromise the
quality of candidates. As the importance of both candidate suitability and
hiring pace varies among organizations, recruitment decisions are likely
to vary based on firm attributes and desired skill levels.

(iii) Outsourcing strategies:


To accomplish certain specialized tasks that don't necessitate full-time
employment, many organizations opt to enlist external individuals or
entities for assistance, rather than relying solely on their internal human
resource pool. Outsourcing human resource activities can be particularly
beneficial in such cases. Recruitment Process Outsourcing (RPO)
presents a solution to the financial challenges linked with conventional
recruitment methods. It involves delegating the talent acquisition process
from an organization's Human Resource department and external supplier
or partner specialized in this domain.

Conclusion

Human resource planning holds significant importance for organizations


striving to align their workforce with strategic goals within a dynamic business
environment. The traditional emphasis on short-term objectives has evolved into
a more holistic approach incorporating both immediate and long-term strategies.
Collaboration between line managers and Human Resource professionals has
become essential to ensure the right quantity and calibre of employees
positioned for optimal performance. The strategic human resource planning
process, delineated through assessing current capacity, forecasting future needs,
conducting gap analysis, and formulating appropriate strategies, offers a
structured framework for achieving organizational objectives.

Moreover, the significance of training and development, recruitment strategies,


and outsourcing to meet future workforce demands has been underscored. These
approaches provide avenues to enhance employee skills, attract top talent, and
efficiently leverage external expertise. The adoption of contemporary methods
like Recruitment Process Outsourcing (RPO) demonstrates organizations'
adaptability in addressing evolving talent acquisition challenges.

In summary, amidst technological advancements, economic fluctuations,


globalization, and workforce transformations, effective human resource
planning remains pivotal for organizational effectiveness and competitiveness.
By aligning human resource initiatives with business targets and utilizing
strategic planning, organizations can position themselves for success in a
dynamic and competitive landscape.

Limitation
The paper relies heavily on theoretical discussions and conceptual frameworks
without incorporating empirical evidence or case studies to support the
assertions made. Incorporating empirical research could strengthen the paper's
credibility and provide practical insights into the effectiveness of human
resource planning strategies.
Moreover, the paper predominantly emphasizes traditional approaches to human
resource planning, such as forecasting and gap analysis, while overlooking
newer paradigms and innovative practices. Focusing solely on traditional
methods may overlook opportunities for incorporating technology, data
analytics, and agile methodologies into human resource planning processes.

References
Bechet, T. a. (2002). “Modeling and Forecasting: Focusing on People as a Strategic
Resource,” Human Resource Planning.
Chhabra, T. (2022). An Introduction to Human Resource Management. Delhi: Sun India
Publication.
George, V. (2017). The Role Of Human Resource Planning in the Human Resource Network.
Bengaluru: Internation Journal Of Creative Thoughts .
Gregory Ulferts, P. W. (October 2009). Strategic Human Resource Planning. University of
Detroit Mercy, USA: American Journal of Business Education.
Prashanthi, K. (January, 2013). Human Resource Planning - An Analytical Study. JNTUH,
INDIA: International Journal Of Business and Management Invention.
Schuler, S. E. (1990). Human Resource Planning - Challenges for Industrial/Organizational
Psychologists. NEW YORK CITY.
sutanto, E. m. (n.d.). Forecasting : The Key To Successful Human Resource Management.
Petra Christian University.

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