Importance of Human Resource Planning.

Human resource planning is the process of systematically forecasting the future demand and supply for employees and the deployment of their skills within the strategic objectives of the organization. It is the process by which Management determines how the management should move from its current manpower to its desired manpower utilization. Manpower Planning emphasizes: • Establishment and recognition of future job requirements • Scanning the organization thru systematic manpower audit • Assured supplies of qualified participants • Development of available manpower • Effective utilization of current and prospective workforce members Manpower Planning Process Human resource forecasts On the basis of corporate goals and manpower analysis forecasting of manpower is done where kind of people needed for conduct the business is decided. Manpower Inventory Before any manpower planning making an Inventory of present manpower resources and finding out the extent to which these manpower's are employed optimally is important. HR Management System planning is required for selection, training, development, utilization, motivation, compensation, etc to ensure that future manpower needs and development manpower plans for implementation Perquisites of HR Planning Step1 - Job Analysis / job design - Management must define what work to be performed, how tasks to be carried out and allocated into manageable work units (jobs) rnStep 2 - Job description & job specification: It refers to incumbent where a job specification with regard to qualification and experience needed to perform a job rnStep 3 - Forecasting procedures: Corporate planner has to forecast the number of people needed for a particular job. It can be done by forecasting the internal supply and external supply of the people who can perform the job rnStep 4 - Internal Supply of Manpower: Identifying the manpower internally. Different Procedures in Human Resource Planning Planning for the status quo Planning involves steps to replace any employees who are either promoted or who leave the firm. An example is Management succession planning which seeks to ensure that there is at least one qualified manager to replace any higher level manager in the organization. Thumb Rule This is on the basis of firm’s beliefs with regard to forecasting Human resource needs. For example one firm believes that a ratio of one production supervisor for every 12 producers (Workmen) in optimal. This firm maintains this 1:12 ratio because it has proved successful in the past. Another thumb rule is based on past experience that one person can produce 2000 units of output per day and accordingly 5 employees needed for 10,000 units as a matter of forecast Unit Forecasting This refers to the estimate of supervisors and managers with regard to forecasting Human resource needs for the next year unit wise – this approach called as “Bottom up approach” to forecasting as the judgment are made by lower level management and added together at a higher level of the organization. Delphi Method This method relies on Expert opinion in making long range forecasts – this involves obtaining independent judgments from a panel of experts usually thru a questionnaire or interview schedule on certain issue affecting the nature and magnitude of demand for an organization’s products and services Computer Simulation This is one of the most sophisticated methods of forecasting human resource needs – A computer is a mathematical representation of major organizational processes, policies and human resource movement thru organization – computer simulations are useful in forecasting for human resources by pinpointing any combination of organizational and environmental variables. In technical field where direct production activities are involved, typically different methods following different method are used. Time and motion study here the Industrial Engineer observes records and movement of workman and productivity vis a vis time required to conduct specific activities. MOST (Maynard Operating Sequence Technique) This method is well accepted in automobile industries where lots of manual activities are involved. It is based on the walking and moving of the workmen to conduct the specific activity.