Problems/ Barriers to HRP (Human Resource Planning)

Problems/ Barriers to HRP (Human Resource Planning)

Human resource planning is as important is not so easy to make. The planners face various problems while formulating human resource plans. The major ones are discussed as follows:

1. People perceive that people are available in abundance in our labor surplus economy. Then, why to spend time and money in forecasting human resources? Surprisingly, this perception about human resource planning is also held by the top management.
2. Another problem in human resource planning is that the demand for and supply of human resources is not cent percent accurate. Experience suggests that longer the time horizon for forecasting human resource requirements, greater is the possibility of inaccuracy in estimates of human resource needs.
3. Various types of uncertainties like labour turnover, absenteeism, seasonal employment, market fluctuations and changes in technology render human resource planning ineffective. The reason being these uncertainties makes human resource forecast mere a guess far from reality.
4. Sometimes human resource planning suffers from a conflict between quantitative and qualitative approaches used for it. Some people view human resource planning as a mere numbers game to track the flow of people across the departments and in and out of the organization. Conversely, others take a qualitative approach focusing on the quality of human resources like career planning development, skill, morale etc.
5. Generally, human resource personnel are perceived as experts in handling personnel matters. But, they are not experts more than often. Hence, human resource requirements estimated by such people are not realistic ones. The organizational plans based on such estimates are endangered to be flopped.
6. As human resource planning is based on data relating to human resources, the same is not maintained in a proper manner in some of the industrial organizations. Then, in the absence of reliable data, it becomes difficult to develop effective human resource plans.

In sum and substance, problems in human resource planning arise both from inherent limitations of forecasting, on the one hand, and from weaknesses of human that do it, on the other. But, both can be overcome.

 

How to Make HRP Effective?

Following are some of the steps that may improve the effectiveness of human resources planning.

1. Human resource plans must be viewed as an integral part of corporate planning. So to say, human resource plans should be tailored with the objectives, strategies and overall environment of the particular organization.
2. The support and commitment of the top management be ensured before starting the process of human resource planning.
3. Personnel records must be complete, up-to-date and readily available to ensure an adequate and strong data-base. Data-base serves as backbone for human resource planning.
4. The time horizon of the human resource plan should be appropriate to accommodate the changing needs and circumstances of the particular organization.
5. Both quantitative and qualitative aspects of human resource plans should be stressed in a balanced manger in order to avoid conflicts between the two.

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• Meaning and Concept of Human Resource Planning (HRP)
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• Problems / Barriers to Human Resource Planning (HRP)
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• Requirement for Effective Human Resource Planning (HRP)
• Determining Human Resource Requirement
• Reasons for Preparing Human Resource Plan
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Techniques of determining human resource requirements for an organization

Techniques of determining human resource requirements for an organization

The need for human resource planning in organization is realized for the following reasons:

1. Despite growing unemployment, there has been shortage of human resource with required skills, qualification and capabilities to carry on works. Hence, the need for human resource planning. 
2. Large numbers of employees who retire, die, leave organizations, or become incapabilities because of physical or mental ailments, need to be replaced by the new employees. HRP ensures smooth supply of workers without interruption.
3. Human resources planning is also essential in the face of marked rise in workforce turnover which is unavoidable and even beneficial. Voluntary quits, discharges, marriages, promotions and seasonal fluctuations in business are the examples of factors leading to workforce turnover in organizations. These cause a constant ebb and flow in the workforces in many organizations.
4. Technological changes and globalization user in change in the method of products and distribution of production and services and in management techniques. These changes may also require a change in the skills of employees, as well as change in the number of employees required. It is human resource planning that enables organizations to cope with such changes.
5. Human resource planning is also needed in order to meet the needs of expansion and diversification programmes of an organization.
6. The need for human resources planning is also felt in order to identify areas of surplus personnel or areas in which there is shortage of personnel. Then, in case of surplus personnel, it can be redeployed in other areas of organization. Conversely, in case of shortage of personnel, it can be made good by downsizing the workforce.

Human resource planning is important to organization because it benefits the organization in several ways. The important ones are mentioned below:

1. Human resource planning meets the organization need for right type of people in right number at right times.
2. By maintaining a balance between demand for and supply of human resources, human resource planning make optimum use of human resources, on the one hand and reduces labour cost substantially, on the other.
3. Careful consideration of likely future events, through human resource planning might lead to the discovery of better means for managing human resources. Thus, forceable pitfalls might be avoided.
4. Manpower shortfalls and surpluses may be avoided, to a large extent.
5. Human resource planning helps the organization create and develop training and succession planning for employees and managers. Thus, it provides enough lead time for internal succession of employees of higher positions through higher positions through promotions.
6. It also provides multiple gains to the employees by way of promotions, increase in emoluments and other perquisites and fringe benefits.
7. Some of the problems of managing change may be foreseen and their consequences mitigated. Consultations with affected groups and individuals can take place at an early stage in the change process. This may avoid resistance for change.
8. Human resources planning compels management to assess critically the strength and weaknesses of its employees and personnel policies on continuous basis and, in town, take corrective measures to improve the situations.
9. Through human resources planning, duplication of efforts and conflict among efforts can be avoided, on the one hand, and coordination of worker’s efforts can be improved on the other.
10. Last but no means the least, with increase in skill, knowledge, potentialities, productivity and job satisfaction, organization becomes the main beneficiary. Organization is benefited in terms of increase in prosperity/ production, growth, development, profit and thus, an edge over its competitors in the markets.

Human resource planning systematically forecasts an organization’s future supply of, and demand for employees

Human resource planning systematically forecasts an organization’s future supply of, and demand for employees. As a human resource manager of an organization, the following methods and techniques would be followed in determining human resources requirements.

Related Topic: 

Meaning and Concept of Human Resource Planning (HRP)

In simple words, HRP is a process of sticking balance between human resources required and acquired in an organization. In other words, HRP is a process by which an organization determines how it should acquire its desired manpower to achieve the organizational goal. Thus, HRP helps an organization have the right number and kind of people at the right place and right number times to successfully achieve its overall objectives. The quality of an organization is, to a large degree, considered merely the summation of the quality of people it hires and keeps. Therefore, before actually selecting the right people for right jobs, it becomes a pre-requisite to decide on the quantity and quality of people required in the organization. This is done through human resource planning.

Requirements for Effective HRP

Human resource planning is the process of predetermining human resource needs and choosing human resource actions to satisfy those needs. In order to make HRP more effective, the following elements should be taken into consideration or the following elements are required.

1. Formulation of business plan and their integration with HRP

First of all in order to meet the organizational goal, business plan should be formulated. After formulating business plan, planning about human resource should be done. Then after there should be integration between business plan and HRP.

2. Manpower Forecasting

On the basis of received information from job analysis, what is the real requirement of the job should be identified and on its basis manpower be forecasted using different techniques.

3. Top Management Support

HRM affects all types of organizational activities. Top management should extend total support to human resource planning. HRP should form an integral part of their personal and managerial philosophy.

4. Developing Manpower

Human resource planning is a professional job. People responsible for planning in human resource department should posses planning skilled. Continuous training and development should upgrade their skills.

5. Information System

An effective human resource information system (HRIS) should be established to provide up-to-date information about employees and jobs. It should contain the following data.

• Personal data: Employee’s personal factors
• Skills data: Employee’s education, training, capabilities etc.
• Position data: Occupational history of the employee.
• Compensation data: Data about remuneration of employee.
• Job data: Employee’s job description and job specification etc.

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Meaning and Concept of HRP (Human Resource Planning)

Concept of HRP (Human Resource Planning)

In simple words, HRP is a process of sticking balance between human resources required and acquired in an organization. In other words, HRP is a process by which an organization determines how it should acquire its desired manpower to achieve the organizational goal. Thus, HRP helps an organization to have right number and kind of people at the right place and right number times to successfully achieve its overall objectives. The quality of an organization is, to large degree, considered merely the summation of the quality of people its hires and keeps. Therefore, before actually selecting the right people for right jobs, it becomes a pre-requisite to decide n the quantity and quality of people required in the organization. This is done through human resource planning.

Process of HRP

How to have the right number of people with right skills at right imes? The process of human resource planning helps in this regard. The human resource planning process consists of activities relating to future demand for and supply of manpower and matching the two in the context of overall organizational plans and objectives.

The various activities involved in the process of human resource planning are now discussed one by one.
1. Analyzing organization plans and objectives: The process of human resource planning begins with analyzing the overall plans and objectives of organization. The reason being the human resource plans stem from business plans. Analysis of business plans into sub-sectional and functional plans such as technology, production, finance, marketing, expansion and diversification provides for assessing the human resource requirements for each activity in each section and department.

Similarly, the analysis of organizational objectives also provides for human resources required by an organization. For example, if the objective of the organization is rapid growth and expansion, it would require more human resources for its all functional areas. Thus, it is evident that the human resource planning needs to be made in accordance to the overall organizational plans and objectives.

2. Analyzing Objectives of Human Resource Planning: The main purpose of human resource planning is matching employee’s abilities to enterprise requirements, with an emphasis on future instead of present arrangements. According to Sikula, “the ultimate mission or purpose of human resource planning is to relate future human resources to future enterprise need so as to maximize the future human resources to future resources.” For this, managers need to have the objectives of human resource planning with regard to the utilization of human resources in the organization. While developing specific objectives of human resource planning, questions need to be addressed like:

• Whether the vacancies, as and when these arise, will be filled in by promotion, transfer from external sources?
• What will be the selection procedure?
• How will provisions be made for training and development of employees?
• How to restructure job positions, i.e., how to abolish the old or boring jobs and replace by the challenging ones?
• How to downsize the organization in the light of changing business and industrial environment?

3. Forecasting Demand for Human Resources: The demand for human resources in an organization is subject to vary from time to time, depending upon both external and internal factors. External factors include competition, economic and political climate, technological changes, government policy, etc. Among the internal factors include growth and expansion, design and structural changes, management philosophy, change in leadership style, employee’s resignation, retirement, termination, death, etc. Therefore, while forecasting future demand for human resources of the organization, these factors need to be taken into consideration.

Forecasting demand for human resources is good for several reasons because it can help: (i) quantify the number of jobs required at a given time for producing a given number of goods, offering a given amount of services. (ii) ascertain in staff-mix needed at different points of time in the future and (iii) ensure adequate availability of people with varying qualifications and skills as and when required in the organization,.

How to forecast requirement for human resources in the future? There are various techniques varying from simple to sophisticated ones employed in human resource forecasting. These include:

a) Management Judgment: This technique is very simple and time-saving. Under this technique, either a “bottom-up” or a “top-down” approach is employed for forecasting future human resource requirement of an organization. In case of bottom-up approach, line managers prepare departmental requirements for human resource and submit it to the top managers for their review and consideration. In the “top-down” approach, the top managers prepare the departmental forecasts which are reviewed with the departmental heads or managers. However, neither of these approaches is accurate. Forecasts based on these approaches suffer from subjectivity. This technique is suitable only for small firms or in those organizations where sufficient data-base is not readily available.

b) Work-Study Method: This method can be used when it is possible to measure work and set standards and where job methods do not change frequently. In this method, as used by Fredrick Winslow Taylor in his ‘Scientific Management’, time and motion study is used to ascertain standard time for doing a standard work. Based on this, the number of workers required to do standard work is worked out.

c) Ratio-Trend Analysis: This is one of the quickest forecasting techniques. Under this method, forecasting for future human resource requirements is made on the basis of time series data. In other words, this technique involves studying past ratios (e.g. Total output number of workers, total sales volume/ number of sales persons, direct workers, is made for indirect workers) and based on these, forecasting is made for future ratios. While calculating future ratios, allowances can be made for expected changes in organization, methods and jobs. The demand for human resources is calculated on the basis of established ratios between two variables.

d) Delphi Technique: Delphi technique is named after the ancient Greek oracle at the city of Delphi. This is one of the judgmental methods of forecasting human resource needs. It is a more complex and time-consuming technique which does not allow group members to meet face-to-face. Therefore, it does not require the physical presence of the group members. 

• The members are asked to provide their estimates of human resource requirements through a series of carefully designed questionnaires. 
• Each member anonymously and independently completes the first questionnaire.
• Results of the first questionnaire are compiled at a central location, transcribed and copied.
• Each member receives the copy of the result.
• After viewing the results, members are again asked to review their estimates. The initial results typically trigger new estimates or cause changes in the original position.
• Steps 4 and 5 are repeated as often as necessary until a consensus is reached.

The Delphi technique insulates group members from the undue influence of others. Also, since it does not require the physical presence of group members, even a global company could use this technique with members/ managers stationed indifferent countries. As the technique is extremely time consuming, it is frequently not appropriate when a speedy decision is necessary. Further, the technique might not develop the rich pool of alternatives that interacting or nominal groups do. The ideas that might arise from the heat of face-to-face interaction might never come up.

• Flow Models: Among the flow models, the simplest one is called the Markov model. This model involves the following:
• Determination of time period that will be covered under forecast.
• Establishment of employee’s categories also called states. There should not be overlapping among the various categories.
• Enumeration of annual flows among various categories or states for several time periods.
• Estimation of probability of flows or movements from one categories to another based on past trends in this regard.

However, the Markovian model suffers from disadvantages like heavy reliance on past data, which may not be accurate in abnormal situations like periods of turbulent change, and individual accuracy in forecast is sacrificed at the cost of group accuracy.

f. Mathematical Models: Mathematical models express relationship between independent variables, (e.g. production, sales, etc.) and dependent variable (e.g. number of workers required).

4. Forecasting Supply of Human Resources: Having forecast human resource demand, the next task involved in human resource planning is to forecast human resource supply. Forecast of human resource supply gives the quantity and quality of people available from internal and external sources of manpower supply, after making due allowances for absenteeism, transfers, promotions, changes in the work hours, and other conditions of works.

Forecasting of human resources begins with the current human resource inventory, also called human resource audit. In brief, human resource inventory contains information about present human resources in the organization. It reveals what is available in the stock of manpower and what can be expected in future. Thus, it can indicate whether the supply of human resources is less than its demand or more than its demand. Whatever be the situation, the same will be made good accordingly.

5. Matching Demand and Supply: Once demand for and supply of human resources of an organization is forecast, the two need to be reconciled. Such reconciliation will reveal either shortage or surplus of human resources in future. Accordingly, action plans will be prepared to meet the situation, i.e., to strike a balance between the two. In the case of shortage of human resources, this will be met through recruitment, transfer, promotion, training and development, retention, etc. On the contrary, in case of surplus human resources, it can be made good through schemes like redeployment, retrenchment, voluntary retirement scheme (VRS) through golden handshake, etc. will be recommended and implemented. Yes, downsizing should be done in consultation with the employees union. This will help avoid employees’ resistance for change in job.

6. Monitoring and Control: the sixth and final step involved in human resource planning is monitoring and control. Once the action plans are implemented, these need to be reviewed, regulated and monitored against the set standards. Monitoring of action plans and programmes help reveal deficiencies, if any. Corrective measures help remove deficiency and, thus, control the implementation of action plans formulated earlier need to be modified in the light of changing needs of organization in the changed environment.

Reasons for Preparing Human Resource Plan in Organization

Reasons for Preparing Human Resource Plan in Organization

Organizations prepare human resource plan because of the following reasons:

1. Human resource planning meets the organization need for right type of people in right number at right times.
2. By maintaining a balance between demand for and supply of human resources, human resource planning makes optimum use of human resources, on the one hand, and reduces labour cost substantially, on the other.
3. Careful consideration of likely future events, through human resource planning might lead to the discovery of better means for managing human resources. Thus, forceable pitfalls might be avoided.
4. Manpower shortfalls and surpluses may be avoided, to a large extent.
5. Human resource planning helps the organization create and develop training and succession planning for employees and managers. Thus, it provides enough lead time for internal succession of employees to higher positions through higher positions through promotions.
6. It also provides multiple gains to the employees by way of promotions, increase in emoluments and other perquisites and fringe benefits.
7. Some of the problems of managing change may be foreseen and their consequences mitigated consultations with affected groups and individuals can take place at an early stage in the change process. This may avoid resistance for change.
8. Human resource planning compels management to assess critically the strength and weaknesses of its employees and personnel policies on continuous basis and, in town, take corrective measures to improve the situations.
9. Through human resources planning, duplication of efforts and conflict among efforts can be avoided, on the one hand, and coordination of worker’s efforts can be improved, on the other.
10. Last but no means the least, with increase in skill, knowledge, potentialities, productivity and job satisfaction, organization becomes the main beneficiary. Organization is benefited in terms of increase in prosperity/ production, growth, development, profit and thus, an edge over its competitors in the market.

Role Information System Occupies in HRP

Role Information System Occupies in HRP

Role of information system in HRP (Human Resource Planning) can be listed out as follows:

1. Human Resource Inventory Role: Human resource information systems help in preparing human resource inventory by providing the following information. 
1. Number of current employees by department, skills, service, level, age, etc.
2. Number of employee, joining and leaving with reasons for leaving
3. Labour turnover rates
4. Sickness and absenteeism rate
5. Salary bills including overtime, payer bills including overtime payments etc.
2. Human Resource Forecast Role: Human Resource information system helps to forecast human resource demand and supply. Various statistical and mathematical forecasting tools require information to be use. They can be
1. Statistical tool e.g. trend analysis
2. Mathematical tools
3. Econometric tools
4. Markov analysis etc.
3. Human Resource Development Role: Human Resource information system helps to identify person training, development promotion or transfer etc. It can be also used for succession planning and careers planning.
4. Job Analysis Role: Job analysis is the systematic investigation of job content. It provides information about jobs currently being done. It defines the jobs and behavior necessary to perform those jobs. It is the framework on which all human resource management activities are based. The information obtained from job analysis is helpful for job description and job specification.

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.