Importance of Human Resource Planning PDF

Importance of Human Resource Planning 1 Learning Objectives The definition of Human Resource Planning Features of HRP Why HR Planning Need/Importance of HRP Major reasons for the present emphasis on manpower planning...

Importance of Human Resource Planning 1 Learning Objectives The definition of Human Resource Planning Features of HRP Why HR Planning Need/Importance of HRP Major reasons for the present emphasis on manpower planning 2 Human resource planning is the process of anticipating and carrying out the movement of people into, within, and out of the organization. Human resources planning is done to achieve the optimum use of human resources and to have the correct number and types of employees needed to meet organizational goals. 3 According to Geisler, “Manpower planning is the process – including forecasting, developing and controlling by which a firm ensures that it has: The right number of people, The right kind of people, At the right places, At the right time, doing work for which they are economically most useful”. 4 Features of HRP  Forecasting future manpower requirements, where we use mathematical projections you might have studied in ‘business economics’ and ‘quantitative techniques’ paper, to project trends in the economic environment and development of the industry. Can you remember one such application?? 5  Making an inventory of present manpower resources and assessing the extent to which these resources are employed optimally.  Procuring competent personnel requires positive recruitment efforts and the development of a variety of recruitment sources.  These sources must consider not only the nature and conditions of the external labor market, but also the presence of qualified personnel who are available to fill vacancies through internal promotions or transfers. 6  Anticipating manpower problems by projecting present resources into the future and comparing them with the forecast of requirements to determine their adequacy, both quantitatively and qualitatively;  Planning the necessary programs of requirement, selection, training, development, utilization, transfer, promotion, motivation and compensation to ensure that future manpower requirements are properly met. 7 Why HR Planning? You all must have understood the importance of planning in general. In designing an environment for the effective performance of individuals working together in groups, a manager’s most essential task is to see that everyone understands the groups purposes and objective and its methods of attaining them. If group effort is to be effective, people must know what they are expected to accomplish. This is the purpose of planning! It is the most basic of the managerial functions. 8 Thus, in the context of Human Resources, planning is a must in order to:  Ensure optimum use of manpower and capitalize on the strength of HR.  Forecast future requirements (this is done by keeping track of the employee turnover.)  Help determine recruitment/induction levels.  Anticipate redundancies surpluses/obsolescence.  Determine training levels and works as a foundation for management development programs.  Know the cost of manpower if there is a new project is being taken up,  Help assess accommodation requirements? (remote area )  Support management decisions. 9 Reason for current interest and importance in HRP? You are all aware of the challenges the business faces due to turbulent and hostile environmental forces (e.g., technological, social, economic, and political issues) that impact each one of them. Limited demand for unskilled and less skilled labor. Increase in demand for skilled labor on account of technological development and up gradation and changes in the organization of work · Problems in maintaining the continued employability of labor force remember this! 10  Demand for multi skilling Important Strategies Recommended in the World Employment Report: Timely Investment in Skill Development and Training: Prioritize the enhancement of training programs to address both current and anticipated workforce needs. Improvement of Education and Skill Levels: Focus on elevating the educational standards and competencies of the workforce. 11  Demand for multi skilling….cont. Adaptive Training Systems: Develop training initiatives that are responsive to the evolving requirements of the labor market. Collaboration Among Stakeholders: Encourage partnerships between government agencies, industry players, and educational institutions to drive workforce development. 12  Major reasons for the present emphasis on manpower planning include: Employment-Unemployment Situation: We can understand that in general the number of educated unemployed is on the rise, there is acute shortage for a variety of skill. This emphasizes the need for more effective recruitment and retaining people. Technological Changes: The myriad changes in production technologies, marketing methods and management techniques have been extensive and rapid (e.g.. introduction of HRIS). Their effect has been profound on job contents and job contexts. These changes cause problems relating to overlaps, retraining and redeployment. 13  Organizational Changes: In the turbulent environment marked by cyclical fluctuations and discontinuities, the nature and pace of changes in organizational environment, activities and structures affect manpower requirements and require strategic considerations. Demographic Changes : The changing profile of the work force in terms of age, gender participation, literacy, technical inputs and social background have implications for manpower planning. The workforce is more diverse than ever before. And the trend shows it is going to be on the rise even more!! 14  Skill Shortages: Unemployment does not mean that the labor market is a buyer’s market. Organizations have in general become complex and thus, in turn require more specialist skills that are rare and scarce. Governmental Influences: Government control and changes in legislation with regard to affirmative action for disadvantaged groups, working conditions and hours of work, restrictions on women and child employment, casual and contract labor, etc. have stimulated the organizations to become involved in systematic manpower planning. 15 Impact of Pressure Groups: Pressure groups often exert contradictory pressures on enterprise management. These pressures may arise from various sources, such as: Unions advocating for recruitment and promotions to maintain job security. Politicians pushing for policies that support local employment or regulate labor practices, which may affect management's hiring decisions. NGOs raising concerns about social responsibility and the handling of communities displaced by large enterprises, influencing companies to adopt more inclusive hiring practices. 16 Rapid technological change: Is leading to a requirement for manpower which is both more highly skilled and more adaptable. Labor flexibility is a major issue, and means that the career and retraining potential of staff are at least as important as their actual qualifications and skills. Computer technology: Has made available techniques which facilitate the monitoring and planning of manpower over fairly long time spans: manipulation of manpower statistics, trend analysis, ‘modeling’ and so on. Lead Time: The long lead-time is necessary in the selection process and for training and development of the employee to handle new knowledge and skills successfully. 17 From the above discussion we get to the following conclusion. Manpower planning has maintained its imperatives for several reasons, such as: 1. A growing awareness of the need to look into the future. 2. A desire to exercise control over as many variables as possible which influence business success or failure. 3. The development of techniques which make such planning possible.’ 18