Being a Human Resources Manager how will you formulate an effective HRP process?

The most important and valuable asset of an organization is manpower or human

resource. Development of human resource is needed by any organization if it wants to
succeed in the fast growing and fast changing business environment. An organizations
performs and resulting productively and directly proportional to the quality and quantity
of the human resource.
The process of human resource planning is one of the most crucial, complex and
containing managerial functions. Organizations can proper and progress only through the
creative efforts and competencies of their human resources.
So I have to plan a multi step process including various issues, such as
A. Deciding objectives and goals.
B. Estimating future organizational structure and manpower requirements.
C. Auditing human resources.
D. Planning job requirements and job descriptions.
E. Developing a human resource plan.

Human resources are utilized the optimum possible extent in order to achieve individual
and organizational goals. Human Resource Management is based on the personal
administration, Employee welfare and Functional areas.

These main areas can be broadly classified into following categories.

Personal Administration.
a. Recruitment Selection
b. Induction
c. Compensation
d. Discipline
e. Transfer and promotion
f. Merit rating and evaluation of employees
g. Administration
h. Personnel Training and Development Training
i. Personnel records and statistics.
j. Retirement
k. Statutory compliance
B. Employee welfare
a. Conditions of work environment
b. Employee’s health service

C. Functional Areas of Human Resource Management.

a. Organizational Planning and Development
b. Staffing and employment
c. Trading and Development
d. Wage and Salary Administration
e. Motivation and incentives.
f. Employee Service and benefits
g. Employee records
h. Labor and industrial Relations.
i. Personnel Research and Personnel Audit.

To formulate the effective HR Planning, It is important to have mixture and perfective

use of the human resource functions. Manpower planning involves identifying staffing
needs, analyzing the available personnel and determining what additions and / or
replacements are required to maintain a staff of the desired size and quality. It can be
defined as “a strategy for the acquisition, utilization, improvement and preservation of an
organization’s human resources”. HRP is a process of identifying human resource
requirements in terms of quality and quantity.
Today the organizations are more dependent upon people. They are increasingly involved
in more complex technologies and are functioning in more complex economic, social and
political environments. As a result, the organizations face shortage of the right kind of
human resources. HRP enables to get the right type of personnel in the organization.

Human resources are utilized to the optimum possible extent in order to achieve
individual and organizational goals. The objective of human resource planning is to
maintain and improve the organizations ability to achieve its goal by developing
strategies that will result in optimum contribution of human resources.

I have to give importance to the following areas while preparing or formulating an

effective HRP Process.

1. Personnel Requirements:
HRP involves forecasting of personnel requirements in organizations. After deciding the
objectives and goals the management must estimate the structure of the organization at a
given point in time. Several points are to be taken into mind that; while estimating it. The
eventualities, and contingencies of general economic business cycles; expansion
following enlargement and growth in business, changes in management philosophies and
leadership styles, the use of new mechanical technology etc. are such areas. To carry on
its work, each organization needs personnel with the necessary qualifications, skills,
knowledge, work experience and aptitude for work. These are provided through effective
manpower planning. HRP helps management to anticipate personnel shortages and
surpluses and develop ways to avoid or correct problems before they become serious.

2. Recruitment and selection

A proper forecasting of personnel requirements enables the organization to determine

proper sources of recruitment. The required personnel can be selected either from internal
or external sources.

The organization can also adopt a proper selection procedure depending upon the needs
of the jobs. Proper tests can be designed to select the right candidate for the right job.
3. Placement of Personnel:
HRP facilitates proper placement of the employees in the organization. Placement refers
to fitting the right person at the right place of work. Proper placement brings job
satisfaction to the employees and enhances employees’ efficiency. The selected personnel
are placed at the right place of work. Persons are placed in those departments or in those
areas where there is shortage of personnel. If there is a surplus, then that personnel can be
shifted to some other areas or departments as the case may be.
4. Performance Appraisal:
HRP assists in performance appraisal of the employees in the organization. It refers to
find out the quality of performance of different employees in relation to the requirements
of each job. When related to the employees if there are weaknesses then additional
training or some other measures can be undertaken.

5. Promotions:
HRP ensures right promotion of the employees in the organization. Promotion involves
higher position, higher powers and higher pay. The organization would be in a position to
promote the right person depending upon the performance appraisal reports.
6. Training:
It involves imparting knowledge and skills, developing attitudes, skills and social
behavior of the employee.

HRP identifies the training needs of personnel Training & Development trainings
includes the training for
1. Apprentices.
2. Workers
3. Foreman and Supervisors
4. Junior executives and
5. Management Staff.

7.Transfer:
HRP facilitates proper transfer of the employees in the organization. HRP has its own
way to transfer i.e. side-ways movement of the employees in the organization. There may
be a situation where there is surplus personnel in one department and shortage in another
department. This situation can be corrected by effecting transfers at the right time.
8.Career Development:
Career development refers to developing careers of the employees in the organization.
HRP is conducted taking into consideration the long range plans of the organization. The
plans are made known to members of the organization. The employees can plan for their
careers with in the organization once they come to know the qualification and qualities
that would be required to implement the long range plans.

9. Organizational Development:
It takes place when there are better results in the form of higher productivity or
efficiency. It also ensures the development of the organization. It avoids surplus or
shortage of personnel in the organization. The organization with qualified and able
personnel can easily solve the problems of low productivity absenteeism, inter
departmental conflicts, resistance to change etc.

10. Motivation of Personnel:

HRP is concerned not only with the identification of the personnel in terms of quality and
quantity but it is also concerned with the improvement and motivation of the human
resources. The organization would make every possible effort to have dedicated and
committed personnel at all levels in the organization.

PROCESS OF HRP

The process of HRP begins with a review of organizational strategies and objectives.
Such review enables an organization to forecast personnel requirements and the internal
supply of personnel. It can be formulate with the following steps.

HUMAN RESOURCES PLANNING PROCESS

COMPANY OBJECTIVES AND STRATEGIC PLANS (Market, forecast, production

objectives/process, capital/Fin plants)

Personnel requirements Make Personnel Supply

Forecast comparison Forecast

Estimating HR requirements Based on objectives and top Management Approval

Personnel Surplus Personnel shortage

Take action take action
a) Lay off a) Recruitment
b) Terminate b) Productivity
c) Voluntary Retirement etc c) Retraining

The long range could be 5 years, while 10 to 15 years span could be used for a
perspective plan. Long-range plans must be made on the basis of various trends in the
economy and in the labor market, and on long-term trends in the production. Long-range
plans are general rather than specific, flexible rather than rigid.
Nevertheless, a plan can be extremely useful in identifying factors and trends that need to
be reckoned with the early warning on possible problems. While formulating the HRP
process its important to know the period for which the plan will apply, then the specific
corporate objectives and strategies should be clear.
1. Review of Organizational Objectives:
The first step in HRP is to review the objectives of the organization. Proper review of the
objectives will enable the organization to make a proper list of the various activities that
would be required to achieve the objectives. To undertake the activities, the organization
can be determining the required work force in terms of quality and quantity. A proper job
analysis needed to be conducted at this stage.

2. Personnel requirements forecast:

Their needs to fine out the requirements of human resources undertake the various
activities. The human requirements forecast must be both in terms of quality ands
quantity.
3. Personnel supply forecast:
It is important to forecast availability of manpower. The required manpower may be
available with in the company, or they may be required from the labor market.

4.Make comparison:
Its necessary to make a comparison between personnel requirement and personnel supply
to find out whether the required personnel is available or not.
5. Personnel shortage/surplus
The comparison between personnel requirement and supply would indicate whether there
are any differences. It human resource requirements are equal to human resource supply,
then there are no differences and no action need to be taken.

If a shortage is there efforts are made to meet it either by new recruitment or promotion
from within, or by developing the existing staff. If there is a surplus it is to be decided
how it will be dealt with. Management can be ensuring control of labor costs by avoiding
both shortage and surpluses of manpower through proper manpower planning.

The comparison may reveal differences between the human resource requirements and
supply. The action will be taken as
1. If personnel Surplus:
1. Lay off
2. Voluntary requirements
3. Termination etc
2. If personnel shortage:
1. Hire
2. Promotion
3. Overtime
4. Training to improve quality
6. Motivating the man power:
Every organization should motivate their employees in such manner, which will be help
in the increase in productivity and quality of the organization. An important aspect of
human resource planning is to motivate the personnel by providing monetary and non-
monetary incentives.
7Monitoring Personnel Requirements

The organization needs to monitor the requirements of personnel. This is because there is
constant need for additional personnel, as some of the existing personnel do leave the
organization due to registration, retirement and so on.

After the review of organizational strategies and objectives in the above manner based on
the problems and need I'll easily formulate effective HRP process.