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Human Resource Planning.docx

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Concordia University
MANA 298

HUMAN RESOURCE PLANNING (HRP) Human Resource Planning refers to an attempt to estimate the numbers and kinds of employees the organisation will need in the future in order to realise its strategic goals and the extent to which the demand is likely to be met. Human Resource Planning (HRP) attempts to reconcile an organisation’s need for human resources with the available supply of labour. HRP also results in matching people to the job, that is, the right people doing the right thing. HRP can help management in making decisions in areas as hereunder: • Recruitment. • Avoidance of redundancies. • Training of staff. • Management development. • Estimates of costs. HRP needs continuous re-adjustment because the goals and objectives of an organisation are not stable due to uncertainties in the environment. 1 Human Resource Planning (HRP) Process Organisations engage in the process of Human Resource Planning (HRP) to determine the demand and supply of human resources so as to gain or maintain. In short, HRP is the process of identifying the HR needs and the ways of meeting those needs. 2 (i) The Strategic Planning Strategic planning refers to the process of determining the overall organisational purposes and objectives and how these can be achieved through Human Resource Planning, which is the process of systematically reviewing human resource requirements to ensure that the required numbers of employees, with the required skills are available in the organisation. (ii) Comparing requirement and availability This phase of the HR planning process involves matching the forecasted Human Resource (in terms of future requirements) with the existing HR (the available employees). (iii) Determining the surplus or shortage of employees Once the assessment has been made, there is a need to determine whether the organisation has a shortage or surplus of employees or the demand is just equal to the supply. In case of a surplus in the number of employees, appropriate action should be taken, namely; restricted hiring/recruitment, reduced hours, early retirement, layoffs. In case of a shortage of employees, a proper recruitment and selection process is required to obtain the right quantity and quality of new employees. (iv) The Internal and External Environment Conditions in the internal and external environment can change quickly and, hence, the human resource planning process must be continuous. Changing conditions may affect the entire organisation thereby requiring extensive modification of forecasts. 3 HR planning enables managers to anticipate and prepare for changing conditions and also allows flexibility in the area of human resource management. Aims of Human Resource Planning (HRP) The aims of HR planning has been summarised below:- • Attract and retain the right quantity and quality of employees (in term of qualification, knowledge, skills, expertise and attitude). • Optimising the use of the available HR (matching people with the job and adopting flexible systems of work). • Anticipation of potential problems of surpluses or deficits of employees (e.g., the world economic recession). • Develop a well trained and flexible workforce, making employees become multi-skilled and multifunctional. Thus, the organisation has a greater ability to adapt to the fast and constantly changing environment. It enhances the use of key skills within the organisation thus reducing the dependence on external recruitment and formulating retention HR development strategies. Forecasting Human Resource Requirments (i) Demand Forecasting Demand forecasting is an estimate of the numbers and kinds of employees the organisation will need at future dates in order to realise its stated objectives. (ii) Supply Forecasting 4 The determination of whether a firm is able to secure employees with the necessary skills, and from what sources. Before starting a new business, management study the demand side of human resources. It is equally important to study the supply side of HR as well, especially when very skilled workers are needed for the job. Supply forecasting measures the quantity and quality of employees likely to be available inside and outside the organisation after allowing for labour wastage, retirement, absenteeism, promotion and internal transfer. (iii) Analysis The demand and supply forecasts are analysed to identify and surpluses or deficits. This analysis which provides the basis for recruitment, retention and, if unavoidable, downsizing plans, may be done by using specialised software. (iv) Action Plan Plans are prepared to deal with forecasts so as to improve productivity and performance whilst at the same time staying within the HR budget set. 5 Plans often have to be short term and flexible because of the difficulty in making firm prediction about human resource requirements in a rapidly changing environment COST When recruiting people, several costs need to be borne by the organisation, mainly in the event of large group intake (e.g. in the health sector, police and prison department).
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