How many employees do you need?
Here, comes the role of HRP!
Now let’s see what is Human resource planning?
Estimating manpower is very vital. It has the management to anticipate shortages or surpluses of human resources in the future and correct their imbalance before they become unmanageable and expensive. Through HRP tools, management strives to have the right number and the right kind of people at the right places, at the right time for the maximum benefit of both employees and Organizations.
Importance of human resource planning
The reservoir of talent in the organization for all times
- To prepare people for the future by training and motivational techniques
- It helps in adjusting personal with the expanding or contracting scales of operations
- To cut costs by maintaining an appropriate manpower budget for each division and reduces overall cost.
- It helps in succession planning by preparing promising candidates in advance for senior positions.
Process of human resource planning
It is the process of matching the future and current needs of the organization. Manpower planning is a continuous process that tries to match the manpower needs with sudden changes in working of the organizations such as a hike in production volume, an unexpected higher rate of labor turnover, new technology adoption, etc.
Now let’s navigate into the Steps of Human Resource Planning
Determining the objective of manpower planning: Whether to train existing employees, employ new people, or reduce current manpower.
Analyzing current manpower inventory: On the basis of department, function, job, and level of skills required for qualifications in order to ensure that a reservoir of the Talent is available when vacancies occur.
Demand forecasting: The judge the manpower required in the future, maybe two to three years.
Job requirements: It helps in determining the number and kinds of jobs and qualifications needed to fill these jobs.
Employment plans: On the basis of demand forecasting and job requirements, and employment plan is made to arrange for recruitment, selection, and training so that the personal needs of the various departments of the organization are met.
Training and development program: Executive development programs have to be devised for the development of managerial personnel. The talents of the employees are not fully productive without a training course.
Appraisal of manpower planning: The catalog of manpower inventory should be updated periodically to check the effectiveness of manpower planning. It should remove any kind of surplus or deficiencies of skills required in an organization.
Human resource planning comprises estimating the demand for human capital. It is a practice of estimating the required manpower for future work on a fixed budget.
There are three basic demand forecasting methods:
Managerial judgment: used in smaller companies, it simply requires the functional managers to sit and think about their future workloads and decide manpower required. It can be used to forecast by “bottom-up” and” top-down” approach. Then the personnel department also prepares its forecast. The two forecasts are compared and submit the final approve forecast is the combination of the tree this is called the right angle method.
Work-Study techniques: this technique tries to assess the workload of an organization in coming here three types of analysis
Workforce analysis– It is calculated by taking the average loss of Manpower due to leave, retirement, death, transfer, etc during the last five years is taken into account. It should be considered in order to arrive at the manpower inventory.
Workload analysis– Companies try to calculate the number of man-hours required for various jobs with reference to plant output.
Job analysis- It helps in finding out the skills and talents required to do the job efficiently.
Statistical Techniques: Managerial judgment and work-study techniques can be applied to smaller organizations with few operations for short term demand forecasting. Long-range forecasting of big organizations required statistical and mathematical techniques.
These are the following:
Ratio and trend analysis– HR needs can be estimated by projecting past trends. The ratio of the number of workers to production volume can be used to project the manpower requirements of the future.
Econometric model- Estimating on the basis of sales, revenue, and profits.
Also comprises estimating the supply of human capital. It is concerned with the estimate of size and quality of personal available within the organization to occupy various positions. It can be termed as preparing manpower inventory. The two major sources of supply of Manpower are:
- Internal sources: recruitments in the terms of internal movement due to transfer, promotions, retirements, etc must be assessed in advance. Manpower audits may be carried out to find out the Inventory of skills with organizations.
- External sources: organizations look on the employment agencies, colleges to replenish the exhausted personal. Organizational growth and diversification required the use of external sources to obtain young and fresh talents.