Human Resource Planning

Human Resource Planning

Approaches to Human Resources Planning
Human resource planning involves estimating the size and composition of the future force. It is predetermining future human resource needs and choosing action to satisfy those needs.

The approaches to human resources planning can be
1. Quantitative Approach (i.e. top down Approach): This approach is management driven. It views human resource planning as a numbers game designed to track the flow of people across departments. The foundations of this approach are
  1. Human resource management information system (computerized, if possible) 
  2. Demand forecasting techniques, especially statistical and mathematical techniques consisting of tools such as;
    1. Trend analysis
    2. Mathematical models
    3. Econometric models
    4. Marker analysis, etc.
  3. Work study Techniques to lay down work standards
The focus of this approach is to forecast human resource shortages and surpluses. The aim is to reconcile supply and demand of human resources.

2. Qualitative Approach (i.e. Bottom up Approach): This approach is employee driven and focuses on individual employee concerns such as promotion, performance evaluation, career development, etc. Specific highlight can be
  • Employee development and training
  • Compensation and incentive schemes
  • Employee motivational techniques to increase productivity.
  • Promotion of employee
  • Career planning and development of employees.
  • Protection of special focus groups as such women, disadvantages person etc. Managerial judgment and expert forecasts serve as important techniques for forecasting human resource demand.
3. Mixed Approach to HRP: This approach combines both the quantitative and qualitative approaches for the purposes of human resource planning. Efforts are made to strike a balance between both the approaches. They both complement each other.

Relationship of HRP to Strategic Planning

Business organizations prepares plan to reach its objectives. Plan is of short middle and long term. Short-term plan can be considered as tactical plan and long-term plan is strategic plan. Strategic plan includes corporate philosophy strength and policy to achieve organizational goal. Medium-term planning is operational planning. It is concerned with the policy of how efficiently is to operate the organization smoothly. Strategic planning is a systematic process to analyze the opportunities and threats in the environment, assess organization’s strengths and weakness, and identify opportunities of competitive advantage in a long-term perspective.

Every planning is implemented through human resources. Human resources planning are done to support the business planning. So, all the HRP should be linked with business plan. In other word, it can be said that HRP is nothing but the part of business planning. Here HRP are highlighted as all the plans are implemented through HR. Human resource plan cannot be developed as a separate or parallel activity from corporate plan. It should be based on the overall strategies and objectives of the organization. The emerging thinking is that human resource plan should be a partner in the formulation of the corporate strategic plan. Implication of human resources should be considered in the formulation stage of the corporate plan. Human resource should develop a strategic relationship in the development of the corporate strategic plan. HRM should also get everybody in the organization involved in implementing the strategic plan effectively.

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