Reachout Blogs: Human Resources Planning

Importance of Human Resources

The concepts of “Manpower” or “human resource” is meant as “the total knowledge, skills creative abilities, talents and aptitudes of an organization’s work force, as well as the values, attitudes and benefits of an individual involved…… It is the sum total of inherent abilities, acquired knowledge and skills represented by the talents and aptitudes of the employed persons.” Of all the “Ms” in the management (i.e., the management of materials, machines, methods, money, motive power), the most important is “M” for men or human resources.

In any organisation, Human resources are utilized to the maximum possible extent in order to achieve individual and organizational goals. An organization’s performance and resulting productivity are directly proportional to the quantity and quality of its human resources.

MANPOWER PLANNING DEFINED

“Manpower Planning and “human resource planning” are synonymous. In the past, the pharse manpower planning was widely used; but not the emphasis is on human resource planning which is more broad- based. Human resource or manpower planning is “the process by which a management determines how an organisation should move from its current manpower positon to its desired manpower position. Through planning, a management strives to have the right number and the right number and the right kinds of people at the right places, at the right time, to do things which result in both the organisation and the individual receiving the maximum long-range benefit.”

Coleman has defined human resource or manpower planning as “the process of determining manpower requirements and the means for meeting those requirements in order to carry out the integrated plan of the organisation.

Stainer defines manpower planning as “Strategy for the acquisition, utilization, improvement, and preservation of an enterprise’s human resources. It relates to establishing job specifications or the quantitative requirements of jobs determining the number of personnel required and developing sources of manpower”

According to Wickstrom, human-resources planning consists of a series of activities, viz.,

(a) Forecasting estimates based upon the specific future plans of a company;

(b) Making an inventory of present manpower resources and assessing the extent to which these resources are employed optimally;

(c) Anticipating manpower problems by projecting present resources into the future and comparing them with the forecast of requirements to determine their adequacy, both quantitatively and qualitatively; and

(d) Planning the necessary programmes of requirements, selection, training, development, utilization, transfer, promotion, motivation and compensation to ensure that future manpower requirements are properly met.

Human resources planning is a double-edged weapon. If used properly, it leads to the maximum utilization of human resources, reduces excessive labour turnover and high absenteeism; improves productivity and aids in achieving the objectives of an organisation. Faultily used, it leads to disruption in the flow of work, lower production, less job satisfaction, high cost of production and constant headaches of for the management personnel. Therefore, for the success of an enterprise, human resource planning is a very important function, which can be neglected only at hits own peril. It is as necessary as planning for production, marketing, or own peril, it is as necessary as planning for production, marketing, or capital investment.

NEED FOR HUMAN RESOURCE PLANNING

The necessity of Human resource planning for all organizations is for following reasons:

(i) To carry on its work, cash organisation needs personnel with the necessary qualifications, skills, knowledge, work experience and aptitude for work. These are provided through effective manpower planning.

(ii) Since a large number of persons have to be replaced who have grown old, or who retire, die or become incapacitated because of physical or mental ailments, there is a constant need for replacing such personnel otherwise the work would suffer.

(iii) Human resources planning is essential because of labor turnover which is unavoidable and even beneficial because it arises from factors which are socially and economic ally sound such as voluntary quits, discharges, marriage, promotions, or factors such as seasonal and cyclical fluctuations in business which cause a constant ebb and flow in the work force in many organisation.

(iv) In order to meet the needs of expansion programmes which become necessary because of increase in the demand for goods and services by a growing population, a rising standard of living – which calls for larger quantities of the same goods and services as also for new gods; the competitive position of a firm which bring it more business arising from improvements effected in the slump period; and the rate of growth of the organisation, human resource planning is unavoidable.

(v) The nature of the present work force in relation to its changing needs also necessitates are recruitment of new labour. To meet the challenge of a new and changing technology and new techniques of production, existing employees need to the trained or new blood injected in an organisation.

(vi) Manpower planning is also needed in order to identify areas of surplus personnel or areas in which there is a shortage of personnel. If there is a surplus, it can be redeployed; and if there is shortage, it may be made good.

Stainer recommends the following nine strategies for the man power planners:

(a) They should collect, maintain and interpret relevant information regarding human resources.

(b) They should report periodically man power objectives, requirements and existing employment and allied features of manpower.

(c) They should develop procedures and technique to determine the requirements of different types of manpower over period of time form the standpoint of organisation’s goals;

(d) They should employ suitable techniques leading to effective allocation of work with a view to improving manpower utilization;

(e) They should conduct research to determine factors hampering the contribution of the individuals and groups to the organisatoin with a view to modifying or removing these handicaps.

(f) They should develop and employ methods of economic assessment of human resources reflecting its features as income-generator and cost and accordingly improving the quality of decisions affecting the manpower.

(g) They should evaluate the procurement, promotion and retention of the effective human resources; and

(h) They should analyse the dynamic process of recruitment, promotion and loss to the organ is an control these processes with a view to maximizing individual and group performance without involving high cost.

Process of Human Resource Planning

Human resource planning process is one of the most crucial complex and continuing managerial functions. It may be rightly regarded as a multi-step process of human resource planning such as:

(a) Deciding goals or objectives;

(b) Estimating future organizational structure and manpower requirements;

(d) Planning job requirements and job descriptions;

(e) Developing a human resource plan.

Fig. Human Resource Planning System

(A) Objectives of Human Resources Planning

Human resource planning fulfils individual, organizational and national goals; but, according to Sikula, “the ultimate mission or purpose is to relate future human resources to future enterprise needs so a to maximize the future return on investment in human resources. “In effect, the main purpose is one ‘ of matching or fitting employee abilities to enterprise requirements, an emphasis on future instead of present arrangement.

(B) Estimating the Future Organizational Structure of Forecasting the Manpower Requirements

The management must estimate the structure of the organisation at a given point in time. For this estimate, the number and type of employees needed have to be determined. Many environmental factors affect this determination. They include business forecasts, expansion and growth, design and structural changes, management philosophy, government policy, product and human skills mix, and competition.

Forecasting provides the basic premises on which the manpower planning is built, Forecasting is necessary for various reasons, such as:

(a) The eventualities and contingencies of general economic business cycles (such of additional machinery and personnel, and a re-allocation of facilities, all of which call for advance planning of human resources.

(b) An expansion following enlargement and growth in business involves the use of additional machinery and personnel, and a re-allocation of facilities, all of which call for advance planning of human resources.

(d) The use of mechanical technology (such as the introduction of automatic controls, or the mechanization of materials handling functions) necessitate changes in the skills of workers, as well as a change in the number of employees needed.

(e) Very often, changes in the quantity or quality of products or services require a change in the organisation structure. Plans have to be made for this purpose as well.

It may be noted that for purposes of manpower planning, the main dimensions to be taken into consideration are:

(i) The total number of personnel available, this could be obtained from they pay-rolls and other personnel records, such as the applications for employment. The total number has to be classified on some basis, such as manual workers (i.e., daily-rated, weekly-rated or monthly-rated); clerical employees, ministerial staff, managers and other executives; specialists and skilled and unskilled workers; sex-wise distribution etc.

(ii) The job-family, i.e., a detailed job-description for each position such as stenographers who may belong to various departments e.g., finance, marketing, personnel, public relations, general administration, etc.

(i) Age distribution of the employees, available in the present departments, say in the age-groups 20-29 years; 30-45 years; 46 years and above.

(ii) Qualification and experience desired, such as a person with 5 years 10 years experience in a particular branch/job; and whether under-graduate, post-graduate, or MBAs or graduates in Science, Commerce, Arts, engineering, or professional diploma holders, etc; or with specialized knowledge in the field of marketing, finance, computer programming or engineering work.

(iii) The salary range, etc.

(C) Auditing Human Resource

Once the future human resource needs are estimated, the next step to determine the present Supply of manpower resources. This is done through what is called “Skills Inventory”. A skills inventory contains data about each employee’s skills, abilities work preferences and other items of information which indicate his overall value to the company.

(D) Job Analysis

After having decided how many persons would be needed, it is necessary to prepare a job analysis, which records details of training, skills, qualification abilities, experience and responsibilities, etc., which are needed for a job. Job analysis includes the preparation of job descriptions and job specifications. This has been discussed in the later sections of this chapter.

(E) Developing a Human Resources Plan

This step refers to the development and implementation of the human resource plan, which consists in finding out the sources of labour supply with a view to making an effective use of these sources. The first thing, therefore, is to decide on the policy – should the personnel be hired from within through promotional channels or should it be obtained from an outside source. The best policy which is followed by most organisatoins is to fill up higher vacancies by promotion and lower level positions by recruitment from the labour market.

RESPONSIBILITY FOR HUMAN RESOURCE PLANNING

The responsibilities of the Personnel department are having the responsibilities in man power planning which have been stated by Geisler in the following words:

i. To assist, counsel and pressurize the operating management to plan and establish objectives;

ii. To collect and summarize data in total organizational terms and to ensure consistency with long-range objectives and other elements of the total business-plan;

iii. To monitor and measure performance, against the plan and keep the top management informed about it; and

iv. To provide the research necessary for effective manpower of organizational planning.

Manpower Plan – Component

The manpower plan can be broken down into three components:

i. Forecasting – estimating future needs and stock taking of available resources in the organisation.

ii. Recruitment plan, to meet the gap between the internal resource and estimated need by external recruitment;

iii. Training and Development plan to utilize fully the human resources of the organisation and to develop the potential resources.

Human Resources Planning

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