Chapter 2: Human Resource Planning

HR Planning Concept

• HR planning is the process of analyzing and identifying the need for and availability of human resources so that the organization can meet its objectives.
• It ensures that the organization has the right number of employees in the right place at the right time so that critical HR planning problems can be solved as and when occur.
• HR department engages in determining the right number manpower needed.
• The number of manpower in demand and supply derived from environmental and operational analysis.

Gary Dessler:

“Human resource planning is the process of deciding what positions the firm will have to fill and how to fill them.”

Decenzo and Robbins:

“Human resource planning is the process of determining an organization’s human resource needs.”

“Human resource planning is the process by which an organization ensures that it has the right number and kinds of people at the right place, at the right time, capable of effectively and efficiently completing those tasks that will help the organization achieve its overall objectives.

Michael Armstrong:

“Human resource planning ensures that the organization knows and gets what it wants in the way of the people needed to run the business now and in the future.”

Torrighton and Hall:

“Human resource planning is fundamental in developing and implementing the organization’s human resource strategy, which, in turn, enables the organization to meet its goals.”

• Integration of human resource planning with business strategies.
• Influence the way people are managed in the organization.
• Integration of all human resource activities carried out both by HR departments and line manager(including senior managers)
• Utilization of human resources in a cost effective and efficient manner; and
• Estimation of demand and supply of human resources.

HR Planning Characteristics

• Goal Directed
• Future Oriented
• Quantitative and Qualitative
• System Oriente
• Time Horizon
• Part of Corporate Plan
• Part of Acquisition Function

HR Planning Importance

Technological changes, globalization, job diversity, shortage of critical skills, need for organizational development, increasing legal provisions and labour union pressures have led to rising importance of human resource planning.

• Uncertainty reduction
• Objective focused
• Environmental adaptation
• Acquisition of human resource
• Utilization of human resource
• Development of human resource
• Control of human resource
• Improved labour relations

Role of information in HR planning

HR Strategy

Human resource strategy is concerned with the long term direction and scope of human resource function of the organization. It is a broad action plan to achieve the objectives of human resource management function.

It is based on:

• Human resource strengths of the organization
• Core competencies possessed by human resources
• Competitive capabilities of human resources, such as specialized skills high loyalty, low turnover.
• Proactive management

HR Strategy Characteristics

• Long term horizon
• Objectives oriented
• Value addition
• Environmental adaptation