Human Resource Planning – MBA Tutorials
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Human Resource Planning

Meaning Human Resource Planning:

Human resource is the most important asset of an firm or organisation. Human resources planning is the most important managerial function. It ensures the right type of people, at the right place and right time, who are motivated and trained to do the right kind of work at the right time, there is generally a shortage of right or suitable persons.

The firm will estimate its manpower requirements and then find out the sources from where they can fulfill manpower requirement. If manpower which is required to do the work is not available then the work will suffer. Developing countries mostly suffer from the shortage of trained managers. Jobs are available in these countries but properly trained persons are not available. These countries try to import trained skill from other countries who know the work better.

To fulfill human resource requirements, an firm will have to plan in advance for the needs and the sources. The terms HRP and manpower planning are generally used interchangeably. HRP is not a substitute for manpower planning. the latter is a part of the former i.e., manpower planning is integrated with HRP.

Features of Human Resource Planning:

Features of human resource planning are :-

1. Well Defined Objectives:

Human resource needs are planned on the basis of organization goals. Besides, human resource planning has its own objectives like updating technical expertise, developing human resources, ensuring better commitment of people, career planning of individual executives and people, and so on.

2. Determining Human Resource Needs:

Human resource plan must incorporate the human resource needs of the firm. The planning must be done in advance so that the persons are available at time when there is requirement. For this an firm will have to undertake recruiting, selecting and training process.

3. Keeping Manpower Inventory:

It includes the inventory or stock for present manpower in the firm. The manager must know the persons who will be available to him in future for undertaking higher responsibilities.

4. Adjusting Demand and Supply:

Manpower needs have to be planned for future. If he think that there will be shortage of employees in future then efforts should be made to start recruitment process well in advance.

5. Creating Proper Work Environment:

Employees should like to work in the firm and they should get proper job satisfaction then only they will work efficiently and effectively to achieve the target or work given to them.

Need of Human Resource Planning

1. Replacement of Persons:

A number of employees or workers are to be replaced because of retirement, death, old age, etc. So there will be a need to prepare and train persons for taking up vacant jobs in an firm.

2. Labour Turnover:

Labour turnover takes place in all organizations. The degree of labour turnover may vary from company to company but it cannot be eliminated or unseen. There is always a need to recruit new employees or workers to take up the jobs of those employees or workers who left the job.

If the firm is able to foresee turnover rate properly then efforts in advance are made for future to recruit and train employees or workers so that work does not suffer because of shortage of employees.

3. Expansion Plans:

Whenever there is a proposal to diversify or expand the firm, more employees will be needed to occupy new jobs. In such situations the human resource planning is necessary to handle the situation smoothly.

4. Technological Changes:

Technological changes occur so quickly due to new inventions and research. There may be need to give fresh training to employees. In addition, there may also be a need to recruit new employees into the firm. Human resource planning will be helpful in adopting new technology in the enterprise.

5. Assessing Future Requirements:

Human resource planning is also needed to assume whether there is any surplus or shortage of employees in the firm. If there is less number of employees in the firm then required, it will badly affect the work. On the other hand, if there are more employees working than requirement then it will increase labour costs, etc. Human resource planning will ensures the employment or job of right employees or workers.

Objectives of Human Resource Planning:

These are the objectives of Human Resource Planning :-

  1. Human resource Planning helps in doing assessment of human resource requirements for future and helps in making plans for recruitment and selection.
  2. Human Resource Planning helps in assessing skill needs for future.
  3. It helps in determining training and development needs of the firm.
  4. It helps to assess the shortage or surplus of human resources and avoiding unnecessary dismissals.
  5. HRP helps to minimise imbalances caused due to unavailability of human resources of right kind, right number in right place and at the right time.
  6. HRP helps in ensuring optimum use of existing human resources in the firm.
  7. HRP helps to keep the firm ready to meet with the technological development and modernization.
  8. It helps in controlling salary and wages costs.
  9. HRP helps in ensuring higher labour productivity.
  10. It helps in ensuring career planning of each employee of the firm and making succession programmes.

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