Concept And Definition Of Hrp Business Essay

Concept And Definition Of Hrp Business EssayIt is very natural that, the continual positive development of any business owe to its strong cooking. Making all the undeniable preparations and appropriate arrangements proactively basing upon what is expected to happen in future and performing a series of tasks and activities accordingly in a taxonomical and organized way is one of the important functions of man durationment, which necessitates an putive and proactive prepargondness surgery. Proper supply and designing an effective disposalal structure by designation an assortment of responsibilities to the concerned employees may help the business organizations to accomplish their set of objectives. Putting the obligation person at the right place and at the right time is prerequisitely much important to any business as it comprises of a wide and comprehensive range of activities in relation to the management of man. work force condition preparedness, not only foc engages on the effective utilization of existing gay elements but also concern in get togetherling future hands assume of the organizations at the time of indispensableness. Man power formulation is the process of de marchesining custody needs and the means and shipway to happen those needs in dictate to shake out the integrated organisational plan. It is very much indispensable for any organization to perform the activities efficiently and to produce desired results.It is an apparently healthful known fact that, the success of any business highly rest upon the competent plurality that a business organization posses. Man power cookery is considered as crucial functions of tender preference management. It gives imputable importance to the serviceman element than that of material elements and strive to manage and maintain the good will of a business. It endeavours to add to the organizational development and success of the business with due recognition of knowledge, acquirem ents, competence, experiences, expertise and talent of the employees. Effective recoverment and selection process follows an effective men planning process in fulfilling future custody need as and when needed by the organisation. That necessitates manpower planning process and put lot of meaning to it. At the same time, it contributes signifi stick outtly to the get hold ofment of organizational objectives by avoiding overstaffing and understaffing. However, although the notion of kind-hearted Resource supplying is healthful established in the HRM vocabulary, in practice, it does not seem to be as key HR activity.Need for man power planning is continuously driven by many of the factors in the organizations. It is essential when labour turnover is to be de marginined. There are functions that compel to replace older employees, disabled personnel and lot whose medical conditions cause disturbances to usual procedure of the organisation. While executing effectively, man power planning process entails analyzing the extremitys of present and future va sterncies. These situations usually take place at the time of retirements, transfer of employees or they are upgraded due to promotion. Similarly, manpower planning is inevitable to deal with the situations that arise at the time, when employees avail their leaves or in case of their absence seizures. In read to carry out the assigned task in a planned or intended way business organizations need personnel having necessary qualifications and experience which passel be accomplished optimally done a effective man power planning process. custody planning is of great importance in separateing the extra and shortages of the employees. In case of surplus, the man power may be redeployed from one area or activity to another in case of the former, whereas shortages imply providing affect personnel.Man power demand forecasting, manpower supply forecasting and manpower audit are some of the important tasks co ncerning the process of manpower planning. work force demand involves estimating total man power needs and planning accordingly. Then, the next step in manpower planning process is man power supply forecasting. It comprises of both interior supply forecasting and external supply forecasting. Internal supply forecasting works when the employees are transferred or promoted, enchantment the need of external supply arises from the ingestment of untested workers when a business expands or there is change in technology or adopts new methods of production. In addition to that the process entails man power audit. Manpower audit is carried out through Skills inventory. It provides detail information about each employee. The overall value of an employee in an organization is also determined through skills inventory. For the sustenance of the key workers, man power audit analyses the factors that compels and propels the employees to leave the current jobs and move elsewhere. As a result o f which necessary measures may be taken to curb the rate of turnover in the context maximum utilization of humankind Resources.Manpower planning is significant for the scoop up interest of employees as well as for organization. While implementing appropriate selection procedures for the right candidates, gentlemans gentleman option planning undertakes proper recruitment methods and thereby preserves the item-by-item talents of the employees. It focuses on assessing the requirement and the arrangement of training and development programs for the employees in order to equip them with the prerequisites of job. Manpower planning also focuses on the promotion procedures for competent people who can be entrusted with the challenges of advanced tasks. The inefficiencies of the employees are also identified by means of manpower planning process. So that necessary training may be provided leading towards modify employee morale. In this way the manpower planning process improves produc tivity and efficiency of the employees and their performance may be more effective and they can contribute optimally to the total organizational development. Above all, the success of any business revolves round the quantity and quality of human resourcefulnesss of that incident organisation.CONCEPT AND DEFINITION OF HRPHRP is supposed to be an integral part of total organizational planning. The Human Resource Planning includes managerial activities that contribute to set the companys future objectives .It also determines appropriate means and ways for achieving those objectives. Where as organizational planning facilitates the realization of the companys future objectives and determines appropriate means for achieving those objectives. HRP is a systematic effort that comprises of three key elementsWorkforce forecastManpower assessmentStaffing programmeAccording to Leon C. Megginson, Human Resource Planning is an integrated approach to perform the planning aspects of the personnel function. It ensures sufficient supply of adequately authentic and motivated workforce to perform the required duties and tasks to meet organizations objectives by satisfying the individual needs and goals of organizational members.Stainer defines manpower planning as a out source for the acquisition, utilization, improvement, and preservation of human resources of an enterprise. It is a way of dealing with people in a dynamic situation.It relates to establishing job specifications or the qualitative requirements of job determining the image of personnel required and ontogeny sources of supply of manpower. Human resource planning determines the determinants of changing job requirement. Technological advancement that requires introduction of new equipment, product, and process and forever resulting in changes in jobs and job structure in an organization can be dealt with proper manpower planning. It is therefore, manpower planning is essential for the organization to meet the demands of future job requirements in order to survive and remain competitive. Otherwise, the organizations experiencing the effect of rapid technological change will face the shortages of skilled employees in the absence of effective human resource planning.HRP can be define as the task of assessing and anticipating the skill, knowledge and labour time requirements of the organization and initiating necessary action to fulfil those requirements. If the organization is declining, it may need a reduction plan or redeploys its existing labour force. On the other hand, if it is growing or diversifying, it requires finding and tapping competent sources of skilled labour.According to Coleman HR planning is The process of determining manpower requirements and the means for meeting those requirements to carry out the integrated plan of the organization.Manpower planning is the Strategy for acquisition, utilization, improvement and preservation of an enterprises Human Resources. It is the process by which management determines the path for the organization to move from its current manpower position to its desired manpower position in order to carry out integrated plan of the organization.Vetter (1967) defines Human Resource Planning as the process by which management determines how the organization should move from its current manpower position to its desired position. Through planning, management strives to have the right number and the right kind of people, at the right places, at the right time, doing right things resulting in maximum keen-sighted-run benefits both for the organization and for the individual.Human resource planning takes place within the broad framework of organizational and strategic business planning. It involves forecasting the organizations future human resource needs and planning accordingly to meet those needs. It also includes establishing objectives and then developing and implementing HR programs interchangeable staffing, appraising, compensating, and providing training in order to ensure that people with the appropriate skills are available as and when the organization needs them. It may also include developing and implementing programs to improve employee performance or to increase employee satisfaction and involvement in order to boost organizational productivity, quality, or innovation (Mills, 1985b). Finally, human resource planning includes gathering information that can be used to evaluate the effectiveness of ongoing planning programs which will be useful for the planners when revisions in their forecasts and programs are needed.Human resource planning is the process of systematically reviewing human resource requirements to ensure that the required numbers of employees with requisite skills are available at the time of need. Human resource planning encompasses four elementsQuantity No of employeesQuality Required, skills, knowledge and abilitiesSpace for which division, unit and levelTime at which po int of time and how longNature and Scope of HRPHRP includes identifying both present and future needs of various types of employees in an organisation, comparing these needs with the present workforce, and determining the numbers and types of employees to be recruited. Persons can be recruited and selected from outside the organisation or selected out of the organisations potential group and fit them into the organisational set up to get the best out of them. While extracting the best out of the employees, the organisation has also a responsibility to protect the interests of employees in terms of their career prospects, adequate compensation for their work, providing the best work environment and developing a culture of interpersonal, intrapersonal, employee-employer relationship and introduce a sense of quality consciousness within everyone to produce the best.Leading Features of HRPThe leading features of HRPs are listed below.It is systematic in approach.It ensures a continuous and proper staffing.It checks on occupational imbalances i.e shortages or surplus occurring in any of the department of the organization.There is a certain degree of flexibility, which is meant for modifications and alterations in accordance with the needs of the organization or to adopt with the changing circumstances. Manpower plans can be done both at micro and at the macro levels.Thus, HRP is a kind of risk management tool. It involves realistically appraising the present human resources and anticipating the future need as far as possible in order to get the right people into right jobs at the right time.Underlying Factors of HRPUndoubtedly, there are a lot many factors that contribute for the increase attention towards human resource planning. Again, environmental forces homogeneous globalization, new technologies, economic conditions, and changing characterstics of work forces create complexity and add uncertainty for organizations. Therefore, organizations typically drive t o reduce the interference of uncertainty. While attempting so, formal planning is considered as one common tactic used by organizations to buffer themselves from environmental uncertainty (Thompson, 1967).Manpower Planning vs Human Resource PlanningManpower planning or HR planning both can be used interchangeably. HR planning is more broad-based. Human Resources planning refer to planning conducted for all aspects of Human Resources. It takes care of training, employee safety, recruitment, manning levels, Performance Management and so on. But manpower planning fundamentally tends to revolve predominantly around numbers. The number of people required to perform efficiently and productively in order to produce the best results with minimum embody is known as manpower planning. However, these concepts are always evolving and are variously called as manpower planning, personnel planning or employment planning and human resource planning.Levels of HRPHuman resource planning is done at v arious levels. The use of goods and services of manpower planning determines its level. However, broadly level of manpower planning fall in the following categories.National Level At National level, government of India undertake macro human resource plans for the entire country by anticipating the demand for and supply of human requirements at the national level.Sectoral Level Along with central government various state governments of the country also plan human resource requirements for different sectors of the economy. Sectoral level manpower planning endeavours to cater the needs of manpower requirements of some particular sectors like Agriculture Sector, Industrial Sector and Service Sector. diligence Level To cater to the manpower needs of a particular manufacturing much(prenominal) as Engineering and Heavy Industries, Paper Industries, and Consumer Goods Industries, Public Utility Industries, Textile, cementum/Chemical Industries and so on and so forth industry level manp ower planning is done.Unit/ Departmental Level To take care the manpower needs of a particular department in a company such as Marketing Department, Production Department, Finance Department, etc unit or department level manpower planning is conducted.Job Level Man power planning at job level fulfils the human resource requirements of a particular job family within a department. For example, the requirement of number of sales executives in the marketing department or client care people in customer care department is done by planning at the level of Job.Periods of HRPShort -Term Human Resource Planning Short term Human resource planning primarily focuses on designing and implementing the activities like recruitment, selection systems, and training programs to serve short-term organizational needs. Generally such activities involve an element of planning that is future-oriented to some extent. Short-term human resource planning is done to achieve long term objectives of the organisati on.Long-Term Human Resource Planning Increasingly, long-term human resource planning is done minimum for the period of three years or sometimes beyond that. Long term human resource planning is critical for the effective functioning of organizations. The rapidly changing world and highly competitive marketplace is causing firms to turn their focus on human resources for survival of the fittest and competitiveness. Effective long-term human resource planning demands integration of the skills and knowledge of the manpower planner and all other executives who are responsible for strategic planning. intermediate -Term Human Resource Planning Human resource planning is a risk averting tool and buffer organizations from future uncertainty. Since, human resource programs such as recruitment, selection, training, and motivation of employees ensures availability of required number of people with appropriate skills at all levels in the organizations and thereby it help to reduce uncertainty. Short term human resource planning is associated with very little uncertainty about which skills and how many people will be needed. For which it is relatively easy to predict supply.However, due to rapid, turbulent and ongoing changes in todays business environment, it is difficult to seek future by simply projecting past trends. When the focus of planning shifts from short term to intermediate term, what is the requirement of an organisation becomes dominant problem so also the uncertainty related to the question of availability. As a result of which more technological attention is required to be given to the problem of forecasting. To minimise the uncertainty in intermediate term human resource planning, interaction between the human resource planner and line managers is even more critical for making accurate demand and supply forecasts.PURPOSE, NEED AND OBJECTIVE OF HRPPurposes of HRPThe primary function of force-out planning is to analyze and evaluate the available human re sources within the organization. It also determines how to obtain the kinds of needed personnel to staff various organisational positions starting from assembly line workers to chief executives. Smaller companies have assigned the function of HR planning to the human resource department or personnel department. Larger corporations have intermit departments for this function.Personnel planning aims at minimisation of waste in employing people, lessen uncertainty of current personnel levels and future needs, and eliminate mistakes in staffing pattern. The purpose of Human Resource Planning aims at maintaining the required level of skill by avoiding workforce skill shortages, stopping the profit-eroding effects of being overstaffed or understaffed, preparing succession plans and pliant the optimum future work force composition by hiring the right skill in appropriate numbers.Need of HRPManpower Planning is basically a two-phased process. It analyses the current human resources, makes manpower forecasts and thereby draw employment programmes. Manpower Planning serves organisational purpose in many ways. It ensures optimum use of manpower and capitalizes on the strength of organisations Human Resources. Talent reservoir of an organisation is maintained at any point of time. The assigned tasks can be carried out easily if people skills are readily available. All these things can be possible with the help of effective HR Planning that provide information beforehand.To forecast future requirements and provides break measures Although planning is considered as the essential process of management, HRP becomes especially critical when organizations go for mergers, relocation of plants, downsizing, right sizing or at time of closing of operational facilities. For example, expansion of scale of operations of any business requires advance planning that can ensure a continuous supply of people with appropriate skill set who can handle the challenges of the jobs easily.To face the challenges Human resource planning helps the business to encounter the challenges that occur due to turbulent and hostile environmental forces like technology, social, economic and political factors.To adopt with technological changes The change in technology in production, marketing methods and management techniques have been very extensive and rapid. It has profound effect both on job contents and job contexts. These changes may cause problems relating to redundancies, demand for retraining and redeployment, In order to cope with these changes, organisations need systematic manpower planning.To face Organizational Changes The nature and pace of changes in organizational environment marked by cyclical fluctuations and discontinuities and the changes in activities and structures affect manpower positions of the organisation and require strategic considerations which necessitate perfect HR Planning.To determine recruitment/induction levels A readily available HR plan can pr ovide plum good ideas about the kind of people are recruited and at what position. This will help in determining the kind of induction the organization require and thence can help to plan induction level successfully.To determine training level Human Resource Planning helps in determining training levels in an organisation and lays foundation for management development programmes.To know the cost of manpower In cases of expansions or opening up a new factory or if there is a new project organisation would require more number of human resources of different skill set. In those cases, Human Resource Planning helps in estimating the manpower cost. Hence a proper budgetary allocation can be made well in advance for this type of forthcoming corporate strategic move.To assist in productivity bargaining In case of automation, Human Resource Planning Data helps in negotiating for lesser workers as required for the same amount of the job. The organisation can offer higher incentives to sm oothen the process of VRS, voluntary layoffs and so on.To assess physical facilities Physical facilities such as accommodation ,canteen, school, medical help, etc. can also be planned well in advance, because a good HRP can assist in solving many problems of the firm, from day to day ones to very strategic ones.Moreover, Human Resource Planning helps in maintaining the stability of a concern preventing it to incur several(prenominal) intangible costs due to inadequate, improper or lack of HRP. For example, inadequate HRP may cause unfilled vacancies and the resulting loss in efficiency cost a lot to the organisation, particularly when the lead-time is required to train replacements. There are also situations in which employees are laid off in one department on the other hand applicants are hired for similar jobs in another department due to absence of proper HRP. There may be situation of over hiring resulting in the need to lay off effective employees. These are the variety of fact ors which necessitate Human Resource Planning in an organisation for optimum utilisation of Human Resources.Objectives of HRPThe objective of human resource planning is to ensure the best fit between employees and jobs, while avoiding manpower shortages or surpluses. Human resource planning is a sub-system of the total organizational planning. It constitutes an integral part of corporate plan and serves the very purpose of organization in many ways. The primary purpose of human resource planning is to prepare for the future by reducing organizational uncertainty in relation to the acquisition, placement, and development of employees .Human resources planning is done to achieve the optimum use of human resources and to have the right types and correct number of employees to meet organizational goals.Objectives of Human Resource Planning areAchieve goal Human Resource Planning helps in achieving individual, Organizational National goals. Since Human resource planning is linked with career planning, it can able to achieve individual goal while achieving organisational and national goal.Estimates future organizational structure and Manpower Requirements Human Resource Planning is related with number of Personnel required for the future, job-family, age distribution of employees, qualification desired experience, salary range etc and thereby determines future organisation structure.Human Resource Audit Human resource planning process is comprised of estimating the future needs and determining the present supply of Manpower Resources. Manpower supply analysis is done through skills inventory. This helps in preventing overstaffing as well as understaffing.Job Analysis The process of studying and collecting information relating to operations and responsibilities of a specific job is called Job analysis. Job analysis is comprised of job comment and job specification. Job description describes the duties and responsibilities of a particular job in an organized factu al way. Job specification specifies minimum acceptable human qualities necessary to perform a particular job properly.Other objectives of HRP are as followsTo link human resource planning with organizational planning.To ensure optimum, planned use of currently employees.To forecast future skill requirements.To provide control measures in order to ensure that necessary resources are made available as and when required.To anticipate redundancies and avoid unnecessary dismissals.To provide a basis for management development programmes.To deploy the manpower in upcoming new projects.To enable the organization to identify trouble spots.To study the cost of overheads.To decide whether certain activities need to be subcontracted.To achieve more effective and efficient use of human resources.To better recruit employees having the necessary skills and competences.To determine optimum training levels.To obtain fairly satisfied and developed workforce.To facilitate the roll-out of strategic pl ans and missions.To achieve more effective and equal hazard planning.To relieve the organization of unnecessary and unneeded labour.Human resources planning are human resource administration, quite similar to that of financial planning. But unlike financial planning, there are very few organizations that engage in any form of explicit human resource planning. However, if properly used, human resources planning can increase the prospects of an organizations management and of its resources by better coping with dynamic situations.Human resource planning aims at maintaining and improving the organizations ability to attain the goals by developing strategies, purporting to magnify the contribution of human resources. Objectives of HR planning are to ensure availability of the HR needs of the organization at specified times in the future. It is a systematic approach to help the organization to reach at its business objectives.TRENDS AND BEHAVIOURAL FACTORS ON HRPTrends That Impact HRPA Personnel planner desire to study the trends in Human Resource planning should include the following variablesThe state of the economy of the organisation The spectrum of economic activity of the organisation which largely depends upon the companys scene of action of operations is a crucial factor that is to be considered while doing HRP.Demographics The present and future age and sex composition, literacy level of the population of the organisation affect HRP.Employee losses or turnover The retirements, deaths, promotions and resignation affect the current number of individuals employed at every level.New skill requirementsObsolescence of current skills and its effects along with what new skills will be needed due to new technology markets or products affect HRP.The availability of materials The status of the availability of material and direction of materials prices is also considered while doing HRP. Technological changes Rate of change of technology along with technology ado ption by the organisation affects manpower planning.Social changes Effect of up gradation of educational backgrounds of the people in a given society and the willingness of people to take lower level jobs affect manpower planning.Labour costs The direction in which the labour cost move is given due consideration while doing human resource planning.Behavioural Factors on HRPBehaviour can be defined as the observable and measurable activity of human beings. Activity of human beings under this category shows a great variety. It may include anything like finding making, a mental processor, handling a machine, a physical process. Behavioural factors of HRP include1. Understanding Human Behaviour2. Controlling and order Behaviour3. disposal Adaptation1. Understanding Human Behaviour Understanding human behaviour in the organisation encompasses the following elements.(i) Individual Behaviour It is known as low gear behaviour of people and provides means for analyzing why and how an I ndividual behaves in a particular way.(ii) Interpersonal Behaviour It provides means for understanding the interpersonal relationship in the organization. Analysis of reciprocal relationship, role analysis, transactional analysis falls under the umbrella of interpersonal behaviour.(iii) Group Behaviour Group behaviour comprises of group norms, cohesion, goals, procedures, communication, and leadership.(iv) Intergroup relationship Intergroup relationships are in the form of intergroup cooperation and intergroup co-ordination.2. Controlling and directing behaviour these are the different factors that need to be taken care of in while controlling and directing people behaviour at workplaces.(i) Organisational Climate it refers to total organizational situations affecting human behaviour i.e how people of an organisation interact with each other at workplace.(ii) Communication-free flow of both way communications is inevitable in order to control and direct human behaviour because, it is through communication people come in contact with each others.(iii) Leadership leadership style is also very much crucial and plays vital role in order to control and direct peoples behaviour at workplace.(iv) Employee empowerment It refers to the degree of autonomy provided to people of an organisation so that they can take certain decision on their own without waiting for the supervisor to direct and may be utilized in many ways.3. Organisation Adaptation Organisations have to adapt themselves to the environment changes by making suitable internal arrangements like Management of Change.INFORMATION FOR HRPInformation that forms the basis of Human Resource Planning include statistics of past years data on all aspect of Human Resource programmes. It includes turnover data, recruitment costs, staff numbers both actual and forecasted, budgetary information, safety statistics, and performance estimation statistics and so on and so forth. Basically, information is gathered takin g into consideration of any objective for the year. For example, if organisations seek to reduce turnover, which thereby reduces recruitment and selection costs, need to focus man power plan on retention strategies. To strategise the retention strategies the organisation may go for benchmarking from other successful companies, may seek industry information, take the help of Human Resources Institutes and so on and so forth. After getting information and ways and me