human resource planning

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HUMAN RESOURCE PLANNING Human resource is the most important asset of an organization.The planning of human resources an important function. It ensures adequate supply, proper quantity & quality as well as effective utilization of human resources. Human resource planning is the process by which a management determines how an organization should move from its current manpower position to its desire manpower position. Through planning a management strives to have right number & the right kind of people at the right place ,at the right time to do things which

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Page 1: HUMAN RESOURCE PLANNING

HUMAN RESOURCE PLANNING

Human resource is the most important asset of an organization.The planning of human resources an important function. It ensures

adequate supply, proper quantity & quality as well as effective utilization of human

resources. Human resource planning is the process by which a management determines

how an organization should move from its current manpower position to its desire manpower position. Through planning a

management strives to have right number & the right kind of people at the right place ,at the right time to do things which results in

both the organisation & the individual getting long time benefits.

Page 2: HUMAN RESOURCE PLANNING

OBJECTIVES OF HUMAN RESOURCE PLANNING

• Assessing manpower needs for future & making plans for recruitments & selection.

• Assessing skill requirement in future.• Determining training & development needs

of the organisation.• Anticipating surplus or shortage of staff &

avoiding unnecessary detention or dismissal.

• Controlling wages & salary casts.

Page 3: HUMAN RESOURCE PLANNING

OBJECTIVES OF HUMAN RESOURCE PLANNING

• Ensuring optimum use of human resource in the organisation.

• Helping the organisation to cope with the technological development & modernization.

• Ensuring higher labour productivity.• Ensuring career planning of every

employee of the organisation & making succession programmers.

Page 4: HUMAN RESOURCE PLANNING

THE PROCESS OF HUMAN RESOURCE PLANNING

• The mission & vision of the organisation:- the organisation should be clear about it’s mission & objectives. The manpower planning must be integrated with other business policies such as profitability, production, sales & development. Any change in the business objectives would certainly affect the manpower planning. The ultimate aim of manpower planning should be to relate future human resource to future enterprise need so as to maximize the future return on investment.

Page 5: HUMAN RESOURCE PLANNING

• SWOT analysis :- After organisation has fixed the goals & objectives, the next step is the corporate assessment. The company now begins to analyze its goals, current strategies, external environment, strengths & weaknesses, opportunities & threat, to know whether they can be able to achieved with the current human resource. The SWOT (Strengths, weakness, opportunities,& threats).

Page 6: HUMAN RESOURCE PLANNING

THE PROCESS OF HUMAN RESOURCE PLANNING

• The SWOT analysis will give the clear picture about the organisation resources such as capital & worker it will also indicate departmental abilities such as training & development, marketing, accounting, research and development & management information system. This SWOT analysis serves as the link between the organisation goals & the way or direction in which the organisation should go to meet its objectives.

Page 7: HUMAN RESOURCE PLANNING

THE PROCESS OF HUMAN RESOURCE PLANNING

• Man power Forecasting :-Forecasting of future manpower requirement is the most important part of manpower planning. It is done on the basis of production & sales budgets, work loads analysis, work force analysis, estimated absenteeism & turnover. The future manpower requirements should be forecasted quantitatively & qualitatively. Their are several factors which need to be look upon before forecasting.

Page 8: HUMAN RESOURCE PLANNING

THE PROCESS OF HUMAN RECOURCE PLANNING

• (a) Employment Trend :-The manpower planning committee should compare & analyze the trend of last five year to forecast the manpower requirements.

• (b) Productivity:- Manpower requirements are also influenced by improvement in productivity. The important three aspects are

• Better utilization of existing manpower.• Improvement in technology.• Matching of skills with job requirement.

Page 9: HUMAN RESOURCE PLANNING

THE PROCESS OF HUMAN RESOURCE PLANNING

• (c ) Absenteeism:-Absenteeism is a situation when a person fails to came for work when he is scheduled to work. while estimating demand for manpower the prevailing rate of absenteeism in the organisation should be considered.

• (d) Expansion & Growth:- Expansion & growth plans of the organisation should be carefully analyzed to judge their impact on manpower requirement in future.

Page 10: HUMAN RESOURCE PLANNING

THE PROCESS OF HUMAN RESOURCE PLANNING

• Manpower Plan:-after forecasting about the right type & number of people required the next phase is to plan, how the organisation can obtain these people. Programmers & strategies need to developed for recruitment, selection, training, internal transfers, promotions & appraisal so that the future manpower requirement can be met.

Page 11: HUMAN RESOURCE PLANNING

THE PROCESS OF HUMAN RESOURCE PLANNING

• Development plans are designed to ensure a continuing supply of trained people to take over jobs as they fall vacant either by promotion or recruitment or through training. In this way, shortages or redundancies can be avoided in the long run.

Page 12: HUMAN RESOURCE PLANNING

Problems in manpower planning

• Accuracy of forecasts:-If the forecast are not accurate, planning will not be accurate. Inaccuracy increases when departmental forecasts are merely prepared without critical review.

• Identity Crisis:- Many human resource specialists & the managers do not understand the whole manpower planning process. Because of this there is generally an identity crisis.

Page 13: HUMAN RESOURCE PLANNING

Problems in manpower planning

• Support of Top Management:-Manpower planning requires full & wholehearted support from the top management. In the absence of this support & commitment, it would not be possible to ensure the necessary resources & cooperation for the success of the manpower planning.

Page 14: HUMAN RESOURCE PLANNING

Problems in manpower planning

• Resistance from Employees:- Employees & trade unions resist manpower planning. They feel that this planning increases their overall workload & regulates them through productivity bargaining .They also feel that it would lead to wide spread unemployment, especially of unskilled labour.

Page 15: HUMAN RESOURCE PLANNING

Problems in manpower planning

• Insufficient initial efforts:- Successful human resource planning flourish slowly & gradually. Sometimes sophisticated technologies are forcefully introduced just because competitors have adopted them. These may not be successful Unless matched with the need & environment of the particular enterprise.

Page 16: HUMAN RESOURCE PLANNING

Problems in manpower planning

• Management information system:- Effectiveness of the planning depends upon the reliability of the information system. In most of the Indian industries, human resource information system has not fully developed. In the absence of reliable data it would not be possible to have effective planning.

Page 17: HUMAN RESOURCE PLANNING

Problems in manpower planning

• Expensive & Time consuming:-Manpower planning is an expensive & time consuming process .Employers may resist manpower planning feeling that it will increase the cost of manpower.

Page 18: HUMAN RESOURCE PLANNING

Problems in manpower planning

• Coordination with other managerial Functions:- There is generally a tendency on the part of the manpower planners to remain aloof from others operating managers& to become totally absorbed in their own world. To be effective manpower planning must be integrated with other management functions.

Page 19: HUMAN RESOURCE PLANNING

Problems in manpower planning

• Unbalanced Approach:- Many human resource person gives more importance on the quantitative aspects of manpower to ensure that there is adequate flow of people in & out of the organisation.They overlook the qualitative aspects like career development & planning ,skill levels, morale .