Manpower Planning or Human Resource Planning (HRP) can be defined as the process of ensuring the right number of qualified people, into the right job at the right time to deliver the results in an efficient and effective manner. It is the system of matching the available resources, either internally or externally, with the demand that the organization expects to have over a period of time.
It has gained a lot of importance in recent times. A well-designed and comprehensive HRP process is invaluable to the management in an organization. It helps in the following ways :-
- It helps to maintain the required quantity and quality of human resources required for a smooth & efficient functioning of the organization. It helps to identify shortages, surpluses or imbalances of manpower.
- It helps to forecast the turnover/attrition rates.
- It helps the management in making optimum use of the available skills and provides a platform for employee development.
- It leads to improvement in the overall business planning process.
- It helps the management to foresee the effects of technological changes on the requirement for human resources.
- It facilitates the identification of corrective training requirements and thus makes the training and development programmes more effective.
- It helps to develop contingent plans to handle sudden requirements and situations of shortfall.
- It helps estimate the value of human resources and their contribution to the organization.
- It helps to evaluate the effect of alternative manpower actions and policies.
- It aides in developing Human Resource plans and strategies aligned to the organisation's strategic direction. and business strategy. Provide tools and tactics to enhance execution of these strategies.
- It helps to manage people related issues accompanying mergers, alliances and acquisitions.
- It expresses the philosophy and values regarding people management in the organization.
Human Resource Planning Model
HRP is done at various levels in the organization to meet the resource requirements at these levels. This includes Corporate-level planning, Intermediate-level planning, Operations planning and Planning short-term activities. The flow of communication regarding HRP has to be both ways, that is, from top to bottom as well as from bottom to top. HRP involves planning with a long-term perspective rather than for temporary replacement needs. It has to take into consideration the career planning for individual employees and succession planning in the organization. The basic steps in HRP are:
* Analyzing the impact of the organizational strategy and objectives on different units of the organization in terms of the human resource requirements
* Involving the line managers in determining the human resource needs of their respective departments
* Forecasting the quantity and quality of human resources required by different departments/divisions
* Matching the current human resources supply in the organization with the numbers required in the future
* Developing an action plan to meet the future requirements in terms of addition or separation, in a planned and phased manner.
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