The main objectives of Human Resource Planning are as follows: 1.

To determine the number of employees to be employed: If organization has more number of employees than actually required, then the workforce will consist of underutilized staff. In contrast, if the opposite management is made, staff may be overstretched, making it hard or impossible to meet production or service deadlines at the quality level expected. You should ask following questions for planning right number of employees: (a) How can output be improved through your understanding about the interrelation between productivity, work organization and technological development? What does this mean for staff numbers? (b) What techniques can be used to establish workforce requirements? (c) Have more flexible work arrangements been considered? (d) How is the staff you need to be acquired? The principles can be applied to any exercise to define workforce requirements, whether it be a business start-up, a relocation, or the opening of new factory or office. 2. To retain highly skilled staff: In this competitive world it is very important for the organization to retain its skilled staff. Thus organizations should do following: (a) Monitor the extent of resignation (b) Discover the reasons for it (c) Establish what it is costing the organization (d) Compare loss rates with other similar organizations. Without understanding of above points, management may be unaware of how many good quality workers are being lost. This will cost the organization directly through the bill for separation, recruitment and induction, but also through a loss of long-term capability. 3. To manage an effective downsizing programme: This is a very common issue for managers but yet the most difficult one. A downsizing strategy reduces the workforce for improving profitability or reducing costs. For this you need to answer following question: How is the workforce to be cut painlessly, while at the same time protecting the long-term interests of the organization? This is difficult for every manager because of business necessities and at the same time employee anxieties. Such an analysis can be presented to senior managers so that the cost benefit of various methods of reduction can be assessed, and the time taken to meet targets established.

Reasons for Firms to Downsize: Reduce layers of management to increase decision making speed and get closer to the customer. Sharpen focus on core competencies of the firm, and outsource peripheral activities. Generate positive reactions from shareholders in order to improve valuation of stock price. Increase productivity. But before downsizing effects of it should also be taken into consideration. It has mixed effects on firm performance that is there may be some short-term costs savings, but long-term profitability and valuation not strongly affected. Firms reputation as a good employer suffers. For example, Apple Computers reputation as good employer declined after several layoffs in 1990s. Downsizing forces re-thinking of Employment Strategy i.e. Lifelong employment policies may not be credible after a downsizing. For example, IBM abandoned lifelong policy after several layoffs in early 1990s. 4. To find out the procedure for recruiting the upcoming managers: Many senior managers are troubled by this issue. They have seen traditional career paths disappear. They have had to bring in senior staff from elsewhere. But they recognise that while this may have dealt with a short-term skills shortage, it has not solved the longer term question of managerial supply: what sort, how many, and where will they come from? To address these questions you need to understand: (a) The present career system (including patterns of promotion and movement, of recruitment and wastage) (b) The characteristics of those who currently occupy senior positions (c) The organizations future supply of talent. Now see Figure 1.1 which summarizes the various objectives of Human Resource Planning (HRP).

Figure 1.1: Summary of Objectives of HRP