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Concept of Human Resource Planning

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Concept of Human Resource Planning essay
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Indore Institute of Law (affiliated to davv & bar council of india) b.b.a.ll.b(hons.) Vth sem Mrs.Bharti Mishra Concept of Human Resource Planning Content 1.introduction 2.objectives of research 3.research methodology 4.aim of the project 5.definition 6.human resource management planning process-steps 8.need for human resource planning 9.importance of human resource planning 10.strategic hr planning 11.conclusion

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Firstly we will have a look what is the human resource planning in general and what it means in a theoretical way then we will have a look on the practical aspect by taking the example of the the company oyorooms.In this company in the HR department there are different levels first is the chief human resource head and then there comes many subhead under chief which looks after the different works that is the salary distribution,hiring of the employee and the welfare of the employee.

Objective of Research

The objective of the good sources of HR planing of any organization ,makes it clear that there is basic idea behind selecting the topic of ‘Employee Hiring, salary distribution and welfare of the employee’ is to study how employees are hired. Today organizations are coming up with the new techniques of hiring people. Hence to study how the actual process is carried in the organization. However, Human Resources forgets to set the objectives for Human Resources Department. Just as the inspiration, you can find Goals and Objectives.

Research Methodology

The method of approach adopted for the same, would be as follows: To work out the various steps and procedures involved. To contacts various companies and collect information. To collect the information secondary like magazines, newspaper, internets.

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Aim Of The Project

This project aims the finding out and analyzing the HR planning and process in the organization. They are not the real targets to be used as they are provided. They just inspire. They help building the modern Human Resources Management Function in the company. Do not follow them blindly

Human Resource Planning

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. It is, therefore, suitable on the part of the organization to opt for HR Planning to prevent any unnecessary hurdles in its workforce needs. An HR Consulting Firm can provide the organization with a comprehensive HR assessment and planning to meet its future requirements in the most cost-effective and timely manner.

An Hr Planning Process Simply Involves The Following Four Broad Steps

Current HR Supply: Assessment of the current human resource availability in the organization is the foremost step in HR Planning. It includes a comprehensive study of the human resource strength of the organization in terms of numbers, skills, talents, competencies, qualifications, experience, age, tenures, performance ratings, designations, grades, compensations, benefits, etc. At this stage, the consultants may conduct extensive interviews with the managers to understand the critical HR issues they face and workforce capabilities they consider basic or crucial for various business processes.

Future HR Demand: Analysis of the future workforce requirements of the business is the second step in HR Planning. All the known HR variables like attrition, lay-offs, foreseeable vacancies, retirements, promotions, pre-set transfers, etc. are taken into consideration while determining future HR demand. Further, certain unknown workforce variables like competitive factors, resignations, abrupt transfers or dismissals are also included in the scope of analysis.

Demand Forecast: Next step is to match the current supply with the future demand of HR, and create a demand forecast. Here, it is also essential to understand the business strategy and objectives in the long run so that the workforce demand forecast is such that it is aligned to the organizational goals.HR Sourcing Strategy and Implementation: After reviewing the gaps in the HR supply and demand, the HR Consulting Firm develops plans to meet these gaps as per the demand forecast created by them. This may include conducting communication programs with employees, relocation, talent acquisition, recruitment and outsourcing, talent management, training and coaching, and revision of policies. The plans are, then, implemented taking into confidence the mangers so as to make the process of execution smooth and efficient. Here, it is important to note that all the regulatory and legal compliances are being followed by the consultants to prevent any untoward situation coming from the employees. Hence, a properly conducted process of HR Planning by an HR Consulting Firm helps the organization in meeting its goals and objectives in timely manner with the right HR strength in action.

Need For Human Resource Planning

The need of HRP may arise because of the following reasons: In India, unemployment is a grave concern. Scarcity of manpower and that too with the required skill sets and competence, has given rise for need of Human Resource Planning. It comes handy for smooth and continuous supply of workers when a huge number of employees is retiring, or leaving the company or maybe they are incapable of working due to psychological or physical ailments. There is a need for Human Resource Planning when there is an increase in employee turnover, which is obvious. Some examples of this turnover are promotions, marriages, end of contract, etc.

Technological changes lead to a chain of changes in the organization, right from skill sets product methods and administration techniques. These changes lead to an overall change in the number of employees required and with entirely different skill set. It is here that the Human Resource Planning helps the organization deal with the necessary changes. Human Resource Planning is required to meet the requirements of diversification and growth of a company. There is a need for Human Resource Planning in downsizing the resources when there is a shortage of manpower. Similarly, in case of excess resources, it helps in redeploying them in other projects of the company.

Importance Of Human Resource Planning

After the need for Human Resource Programme,It gives the company the right kind of workforce at the right time frame and in right figures. In striking a balance between demand-for and supply-of resources, HRP helps in the optimum usage of resources and also in reducing the labor cost. Cautiously forecasting the future helps to supervise manpower in a better way, thus pitfalls can be avoided. It helps the organization to develop a succession plan for all its employees. In this way, it creates a way for internal promotions. It compels the organization to evaluate the weaknesses and strengths of personnel thereby making the management to take remedial measures. The organization as a whole is benefited when it comes to increase in productivity, profit, skills, etc., thus giving an edge over its competitors. is apt to discuss the importance of it.

Human Resource Planning Process

In any Human Resource Planning model there are 3 main elements which should be adhere by management: Forecasting recruitment needs: There are a number of ways in forecasting your business needs, to know the exact number of employees required to run the business. Factors to be considered are the economical situation of any given country, internal and external factors of an organization and the demand for the products. Evaluate Supply: In estimating this, there are two aspects, one is the evaluation of the internal resources and the other is the prospective or external resources. Among the two, external factors require extra care, these include education, unemployment rate and law that is in existence.

Evaluating these factors very closely will help the organization in filling the right resources at the right time with the right skill set. Supply and demand balance: This element of Human Resource Planning is very important, as striking a balance between these two forces will help the organization in understanding if there is shortage or excess of employees available in a particular group. It also helps in understanding as to the need of full time or part time needs of the organization

Strategic Hr Planning

Strategic HR planning is a key component of strategic Human Resource management skills. It links HR management directly to the strategic plan of your organization. Most mid- to large sized organizations have a strategic plan that guides them in successfully meeting their missions. Organizations routinely complete financial plans to ensure they achieve organizational goals and while workforce plans are not as common, they are just as important. Even a small organization with as few as 10 staff can develop a strategic plan to guide decisions about the future. Based on the strategic plan, your organization can develop a strategic HR plan that will allow you to make HR management decisions now to support the future direction of the organization. Strategic HR planning is also important from a budgetary point of view so that you can factor the costs of recruitment, training, etc. into your organization’s operating budget. Strategic HR management is defined as: “Integrating human resource management strategies and systems to achieve the overall mission, strategies, and success of the firm while meeting the needs of employees and other stakeholders.”


Human Resources planninghas a highlevel of human resource management activities. Knowledge and proper application of planning is essential for the effective functioning of the organization, depending on the outcome of HR process the best department in the organization. The essence of HR planning can be summed up as „the philosophy of attracting as many applicants as possible for sharing there problems?. The face value of this definition is what guided HR process activities in the past. These days, however, the emphasis is on aligning the organization?s objectives with that of the individual?s. By making this a priority, an organization safeguards its interests and standing.

After all, a satisfied workforce is a stable workforce which also ensures that an organization has credible and reliable performance. Ina bid to underscore this subtle point, the project examines the various processes and nuances one of the most critical activities of an organization. The HR process has a wide coverage as it collects the applications of interested candidates, whereas the process constricts down the possibility and becomes specific when it selects the suitable candidates.

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