Question: 
  1. Rohan works as a Sr. Executive in HR department of a construction company. It has been a practice in his organisation that whenever there is a shortfall of human resources a mail would arrive from the SBU head expressing a need for immediate recruitment. Rohan detests this kind of working and harps on Human Resource Planning. He has been asked by the management to prepare benefits or advantages of HRP. What all benefits can be listed by Rohan?  

 

Comments

BeingSkilled's picture

Rohan is right when he pitched usage of Human Resource Planning as ad-hoc urgent hiring requirements can hamper the works of Human Resource department which were planned.
Also, it would be hard for the HR Team to plan the organization’s structure and nurture the culture of organization.

That’s where Human Resource Planning ( also called manpower planning ) comes into play which is a systematic process of determining the organisation’s future workforce requirements. These requirements maps the jobs , skills with the people so that optimal amount of resources can be allocated, vacant job positions can be filled so that organizational goals are met within desired time frame and optimal performance is achieved.

It helps in assigning right people to right job positions which have right skills.

Some of the Objectives of Human Resource Planning are:

  1. To recruit and maintain the HR of desired quality and quantity.

  2. To predict the employee turnover and minimize the turnover and fill up the

    vacancies.

  3. To meet the human resource requirements during the expansion,

    diversification.

  4. To maintain good culture by maintaining good resources in optimal level.

  5. To estimate the costs ( salaries plus benefits ) of human resources

Process of Human Resource Planning is:

Human resources should be aligned with organizational goals and objectives. The HRP process assesses human resource requirements.

  1. Reviewing business goals –

    1. Before starting the planning process of manpower requirements, HR team studies the organizational goals and objectives as all planning work should be aligned to it.

    2. Thereafter a list of HR Activities is prepared to analyze the jobs which will be done in order to accomplish the goals.

  2. Scanning the environment –

    1. Organizational goals and objectives - After knowing them, total

      number of manpower is determined which will be required to achieve.

    2. HR demand forecasting and supply - The deficit between the

      available human resource and the requirement is calculated.

    3. In order to determine the manpower requirements, various factors are

      considered like skill sets required, number of vacancies, etc.

    4. Scaling Internal and External Business Environments to forecast the HR Demand Supply –

i. Internal Scanning – SWOT analyses is performed which lets us identify the strengths and weaknesses of the business. Changes in Business’ policies, leadership structures and business structure or even the operational changes are internal factors that affects the HR Demand and supply.

ii. External Scanning – Opportunities and threats from the market which can influence the human resource demand and supply are competitions, government policies, talent availability in different geographies, technological trends.

e. Identifying the potential talent to hire both inside and outside the organization –

  1. Internal Supply –

    1. Existing workforce of organization is involved.

    2. Promotions, Salary hikes, training and development are

      factors influencing internal supply

    3. Succession planning and employee replacement charts

      assist in forecasting internal supply.

  2. External Supply –

    1. External employees are recruited.

    2. HR supply is forecasted through government data on

      labour force population, economic patterns.

  1. Balancing manpower demand and supply –

    1. This is important step which involves brining human resource demand

      and supply at the equilibrium position where the headcount is neither

      surplus or facing shortage.

    2. When shortage happens, employees overtime, are given promotions,

      new hiring is done.

  2. Implementing and monitoring the HR Plan –

    1. After equalizing, HR plan is brought to action. HR Activities which are performed are recruitment, selection, placement, training and development.

    2. After implementation, evaluation is done of HR plan to check how efficiently it is meeting the organizational goals and objectives. 

 

BeingSkilled's picture

Benefits of Human Resource Planning which can be shared by Rohan are:

  1. To meet up Human Resource requirements of the organization – Every

    organization requires personnel which have desired skills, knowledge and relevant experience. This requirement both present as well as future can be fulfilled efficiently through proper HR planning. It assists in defining the quantity off Human resource required. It builds the reservoir of required human resources for future usage.

  2. Right resources to mitigate risks – Right people are placed at right job at the right time which helps organization tackle various risks of business such as lack of resources, change in technology, recession, etc.

  3. HRP manages the demand and supply – Since there will be changes in demand and supply of the human resources, instances of surplus as well as shortage will be anticipated and managed as both situations can lead to potential losses.

  4. HRP identifies best resources – In organizations, there has to be resources which can work under challenging situations for example during expansion, employees will have to work for additional hours. HRP helps in identifying top performers.

  5. HRP empowers human resources – Every employee has some motivation to stay in the job. While some wants to grow in their career, some wants to earn more. HRP serves all these needs through regular promotions, transfers, appraisals.

  6. Budgeting – It is essential to budget different expenses such as salaries and benefits offered to employees. HRP helps in preparing the budgeting and costing of human resources.

  7. Training and Development of Employees – In this information age, every resource is important and to gain maximum productivity out of them, regular training programmes are organized which will be beneficial for the projects they are on.

  8. Trimming the surplus workforce – There will be times when some functions are redundant in the organization and resources of those are either mapped to other functions or they are laid off the organization.