Q1.Explain the need for human resource planning.
Human Resource Planning:
Human resource or manpower planning is ‘the process by which a management determines how an organization should move from its current manpower position to its desired manpower position. Through planning, a management strives to have the right number and the right kind of people at the right places, at the right time, to do things which result in both the organization and the individual receiving the maximum long-range benefit”.
The organization’s business plan to invest in a particular product/market or a service will drive the HRP activity towards hiring to meet the business need. In the event an organization is divesting or shutting down a particular business unit or a manufacturing division the HRP activities would focus on the redeployment of the workforce that will be rendered unemployed as a result of the business decision. An organization wanting to retain its current market share and revenue projection at status quo would be supported by HRP activities that are limited to only filling positions falling vacant due to natural organizational attrition. Hence the HRP focus in a organizations is closely linked to the business plan and acts as a bridge between what an organization wishes to achieve and how it will go about achieving it w.r.t. the human resources requirements.
The scope of HRP is futuristic in nature and usually runs parallel to the annual business planning exercise. It commences prior to the start of the company’s new financial year. For example if the business year for a company runs April to March. The business planning and the HR planning activities for the New Year beginning in April is usually completed and in place by the 1st week of April. Once the HR plan is in place it is broken up into a quarterly or even a monthly plan which then is the input for the recruitment team to go and hire accordingly.
Need for Human Resource Planning:
Human Resource Planning is a mandatory part of every organization’s annual planning process. Every organization that plans for its business goals for the year also plans for how it will go about achieving them, and therein the planning for the human resource:
1. To carry on its work, each organization needs competent staff with the necessary qualifications, skills, knowledge, work experience and aptitude for work.
2. Since employees exit and organization both naturally (as a result of superannuation) and unnaturally (as a result of resignation), there is an on-going need for hiring replacement staff to augment employee exit. Otherwise, work would be impacted.
3. In order to meet the need for more employees due to organizational growth and expansion, this in turn calls for larger quantities of the same goods and services as well as new goods. This growth could be rapid or gradual depending on the nature of the business, its competitors, its position in the market and the general economy.
4. Often organizations might need to replace the nature of the present workforce as a result of its changing needs, therefore the need to hire new set of employees. To meet the challenge of the changed needs of technology / product/service innovation the existing employees need to be trained or new skill sets induced into the organization.
5. Manpower planning is also needed in order to identify an organizations need to reduce its workforce. In situations where the organization is faced with severe revenue and growth limitations it might need to plan well to manage how it will reduce its workforce. Options such as redeployment and outplacement can be planned for and executed properly.
