Meaning of HRP / Manpower / Personnel Planning

Human Resource (Manpower or Personnel) Planning (HRP) involves : Forecasting (Estimating) the Manpower requirements and recruitment. Manpower Allocation Manpower Motivation Manpower Development

Need / Advantages / Role / Importance of HRP

Now-a-days organisations are fully dependent on human resources. Thus, they are giving great importance to Human Resource (Manpower) Planning. Following points bring out the need / advantages / role / importance of HRP : To make optimum utilisation of human resources : HRP helps to make optimum utilisation of the human resources in the organisation. It helps to avoid wastage of human resources. To forecast manpower requirements : HRP helps to forecast the future manpower requirements of all organisations. It helps to forecast the number and type of employees who will be required by the organisation in a near future. To provide manpower : Every organisation requires manpower to conduct its business activities. HRP provides different types of manpower as per the needs of the organisations. To face manpower problems : HRP helps to face the manpower problems, which are caused by labour turnover, introduction of new technologies, etc. To integrate different plans : HRP helps to integrate the personnel plans with the other important plans of the organisation. To make employee development programmes more effective : HRP selects the right man for the right post. The right man will get maximum benefits from the employee development programmes. Therefore, HRP helps to make the employee development programmes more effective. To reduce labour cost : Today the cost of labour is about 25% to 45% of the cost of production. So the labour cost is increasing very quickly. Labour cost has to be reduced in order to face competition. HRP helps to avoid both shortage and surplus of labour. It helps to make optimum utilisation of labour. It also helps to reduce labour turnover. All this helps to reduce labour cost. To enable organisations to grow : When an organisation grows, the number of jobs also increases. More employees are required to perform these jobs. HRP helps to supply these employees to the organisations. So HRP enables the organisation to grow. To identify potential replacements : Each year many employees either retire or leave or are taken out of the organisation. HRP helps to find replacements for these employees. These replacements may be either from inside or from outside the organisation. To avoid disturbance in the production process : In HRP, the manpower requirements of the organisation are determined well in advance. So the manpower is supplied continuously to

the organisation. This helps the production process to run smoothly. Thus, HRP helps to avoid disturbances in the production process. Basis for effective recruitment and selection : HRP is the basis for effective recruitment and selection in the organisation. It helps the organisation to select the right man for the right post. Basis for employee development programmes : HRP is the basis for employee development programmes.

Steps In Human Resource Planning HRP Process

HRP is done by the HRD manager. He is supported by the HRD department. He takes following Steps in the process of Human Resource Planning HRP.

1. Review of Organisation's Objectives

The HRD Manager first studies the objectives of the organisation. Then he prepares a list of all the activities (jobs) that are required to achieve the objectives. He also does Job's analysis.

2. Estimation of Manpower Requirements

The HRD manager then estimates the manpower requirement of the organisation. That is, he finds out how many people (manager and employers) will be required to do all the jobs in the organisation. Estimation of manpower requirements must be made in terms of quantity and quality.

3. Estimation of Manpower Supply

The HRD manager then estimates the manpower supply. That is, he finds out how many managers, and employers are available in the organisation.

4. Comparison of Manpower
The HRD manager then compares the manpower requirements and manpower supply.

5. In case of no difference
If there is no difference between the manpower requirements and the manpower supply, then the HRD manager does not take any action. This is because manpower requirements are equal to the manpower supply.

6. In case of difference
If there is a difference between the manpower requirements and the manpower supply the HRD manager takes the following actions.

1. Manpower Surplus
If the manpower requirements are less then the manpower supply then there is a surplus. During manpower surplus, the HRD manager takes the following actions :Termination i.e removal of staff. Lay-off. Voluntary retirement.

2. Manpower Shortage
If the manpower requirements are greater than the manpower supply then there is manpower shortage. During manpower shortage, the HRD manager takes the following actions :Promotions Overtime Training to improve quality. Hire staff from outside, etc.

7. Motivation of Manpower
HRP also motivates the employers and managers by providing, financial and non-financial incentives.

8. Monitoring Manpower Requirements

The HRD manager must continuously monitor the manpower requirements. This is because many employees and managers leave the organisation by resignation, retirement, etc. and new work force must take their place fill the manpower gap. This helps in uninterruptible functioning of the organisation.

Human Resource Planning (HRP)

Organizations need to do human resource planning so they can meet business objectives and gain a competitive advantage over competitors. Human resource planning compares the present state of the organization with its goals for the future Then identifies what changes it must make in its human resources to meet those goals

The human resource planning process, demands the HR manager to first understand the business requirement. Only if he comprehends the nature and scope of the business, will he be able to employ those who will deliver the required performance. When it comes to engaging the manpower, the manager should have a keen eye for spotting the talent. It ensures that the workforce is competent enough the meet the targets. Additionally, the existing 'talent pool' in the workplace should be taken into consideration, so that people with complimentary skills can be employed. The functions of the HR manager are varied, he has to assess the currently employed workforce and their shortcomings. Identifying these shortcomings goes a long way in choosing an efficient workforce. While recruiting the new employees, the HR manager must calculate the expected workload. This way the HR department can design an accurate job profile and job expectations. Once you have the decided job descriptions, looking for candidates who fit the job will be easy. Don't be fooled by their qualifications, it is only the relevant experience that matters more. A good HR manager is one who has the zeal and passion to motivate his prospective employees to perform to their potential.