Human Resource Planning

Human Resource Planning (HRP) is the process of predicting future human resource requirements for an organization and creating plans to successfully address those needs. It guarantees that, in order to accomplish organizational goals, the appropriate number of workers with the appropriate skills are available when needed.

Job Requirements – Role and Importance of job

The skills, education, experience and traits that an employer expects someone to have to be successful in a job position. Prospective candidates can use job requirements to determine whether they are qualified for the job. Job requirements are also known as: Selection criteria, Prerequisites Qualification. Common job requirements: Work experience, Skills, Education, Professional licenses, Specific knowledge, Personal traits and attributes, Languages, Physical ability etc.

Importance of Job

A job provides income that we need to pay for our basic needs such as food, clothing, and a place to live. A job provides people with a sense of fulfillment, productivity, and purpose. It can connect you with others, which can help you learn more about the world by interacting with customers, clients or coworkers and feel more connected to society. A job offers an opportunity to learn new skills such as customer service, organization or public speaking. Some jobs offer an opportunity to move our bodies throughout the day, which may contribute to overall health.

Job Analysis

A formal study of job. A process by which information about each activity involved in a job is systematically observed and recorded. Qualification needed for doing the job are identified. One of the most important activities performed by a human resource manager. Components of Job Analysis: Job description, job specification and job evaluation.

Job analysis provides information about jobs currently being done and the knowledge, skills, and abilities that individuals need to perform the job adequately.
– DeCenzo and Robbins

Methods of Job Analysis

Observation Method

The persons holding the job are observed and relevant points are recorded by the observer.

Individual Interview Method

Interview (could be both structured and unstructured) is done between the job analyst and the job incumbent.

Group Interview Method

Group of employees holding a particular job position are interviewed and the data is recorded by the job analyst.

Technical Conference Method

The job-related data is collected from job experts or supervisors through interview.

Diary Method

The job incumbent requires to record all the activities that he/she performs while being on the job.

Functional Job Analysis

The job analyst conducts interviews with the job incumbents, supervisors, observes sites and then prepares document by doing proper research.

Process of Job Analysis (Steps)

• Collection of background information
• Selection of representative position to be analyzed
• Collection of job analysis data
• Developing a job description
• Developing a job specialization

Outcomes of Job Analysis

Job Description

An important outcome of job analysis. A profile of job. A written statement of what the jobholder does. Accurately reflect the duties and responsibilities of the position not a person.

Components of Job Description

Job Title: Brief description of the job

Location of the job: Department, physical location

Relationship: Responsible to and responsible for

Job summary: General nature of job

Duties and responsibilities: What the employee does

Authority: Right to make decision

Accountabilities: Answerability for standard of performance

Job Description

Position : HR Manager
Responsible to: Director, HRD
Level: 10
Location : Central Office
Responsible for: Team of Administrative HR in the division
Duties and Responsibilities

Develops, organizes and directs the activities of the Human Resources department.

Oversees staff welfare, attendance and absence.

Coordinates recruitment efforts, including drafting job description formats, placing job ads and interviewing candidates.

Conducts employee orientation and staff development programs.

Maintains and revises the organization’s policies and procedures.

Oversees workplace conflict resolution processes.

Promotes the health and safety of the workforce.

Authorities
The manager shall judiciously exercise the authority as defined by the Board of Directors.

Job Specification

A profile of human characteristics needed for performing the job. A document that identifies the qualifications required by a job.

“The job specification states the minimum acceptable human qualifications the incumbent must possess to perform the job successfully”.
-DeCenzo and Robbins

Components of Job Specification

• Education and training
• Experience
• Physical health
• Skills
• Abilities
• Maturity

CG Instant Noodles
Job Specification

Position : Marketing Manager

Level : 8

Location : Central Office Sanepa. Frequent visit to different parts of the country.

Responsible for : Market area expansion.

Responsible to : Director Sales Department

Job Specifications

Education : MBA with specialization in Marketing

Experience : 3 years experience in related field.

Training : Consumer behavior, Sales Management.

Physical Health : Good health, emotional stability.

Skills : Excellent oral and written communication skills.

Abilities : Ready to travel throughout the country and abroad.

Maturity : Capable of assuming increased responsibility in two years.

Job Evaluation

A systematic way of determining the value/worth of a job in relation to other jobs in an organization.
It tries to make a systematic comparison between jobs to assess their relative worth for the purpose of establishing a rational pay structure.

“Job evaluation seeks to determine the relative worth of each job so that salary differentials can be established. In job evaluation only jobs are rated unlike in performance appraisal where only jobholders are rated.”
-K. Aswathappa

Reasons for Job Evaluation

To establish a systematic and formal structure of jobs based on their worth to the organization,

To justify the current pay scale or to develop a new equitable pay scale,

To provide a basis to bargain for wages,

To identify pay ranges for different jobs in the organization.

To comply with labor legislation, and

To develop a basis for a performance-based pay system.

Job Design

A process of determining specific tasks to be included in a job and the methods of performing those tasks.
Specifies the contents of job. A properly designed job motivates the employees. Job design sets the contents of a job, fixes the duties and responsibilities of the job, the methods of doing the job, and the relationships between the job holder and his superiors, subordinates, and colleagues.

Methods of Job Design

1. Classical Approach/ Method (Scientific Management Method)

This method of job design is based on the principles of scientific management of F.W. Taylor.

This method advocates one best method of doing job.

Job is designed on the basis of organizational requirement.

Purpose is to simplify the tasks and breaks them down into small work units.

Different method under classical approach: work simplification, job rotation, and job enlargement

Work Simplification

A process through which the job is broken down into small work units. Each unit of work is assigned to a worker who is supposed to perform well.

Job Rotation

The activity in which employees move from job to job without any changes in
the job.

Job Enlargement

Horizontal expansion of the scope, areas and duties of a job under which tasks with the similar nature and characteristics are added in a single job.

2. Herzberg’s Job Enrichment Method

Jobs are made challenging and meaningful by increasing responsibility, autonomy and growth opportunities.
More planning and control responsibilities are added to the job with less supervision. Employees get autonomy in planning and controlling their performance. A job is called enriched when the nature of job is exciting, challenging, and creative.

Job Enrichment Techniques

Specific Task: assign specific tasks to the individual to develop expertise.

Job Scope: add variety to tasks by increasing job scope.

Assign Natural Work Unit: give an employee complete work unit such as, department.

Self-set Standard: allow employees to set targets for performance.

Minimum Control: provide greater job freedom to employees with less supervision.

Employee Accountability: make employees accountable for own performance.

Feedback: provide feedback to employees about performance result.

3. Job Characteristics Method

Proposed by Hackman and Oldham in 1980.

Explains in detail how managers can make job more interesting and motivating.

Assumption is that three key psychological aspects of a job holder determine his motivation, satisfaction, and performance on the job.

Experienced meaningfulness: the degree to which the job holder experiences his job as important and worthy.

Experienced responsibility: the degree to which the job holder feels personally responsible and accountable towards his work.

Knowledge of result: the degree to which individuals continuously understand how effectively they are performing the job.

Five core job characteristics that can make a job more engaging and satisfying for employees are:
Skill Variety: use of different skills and abilities
Task Identity: doing the whole piece of work
Task Significance: work has meaning, it is worth while doing.
Autonomy: give the individual substantial freedom.
Feedback: information on performance.

4. Work Team Method

Work teams are self-directed teams.

They are a group of employees with widely defined jobs and responsibilities to achieve specific goal.

They solve problems, implement solutions, and take full responsibility for outcomes.

Team members are highly committed, decide collectively, interact continuously, work closely, determine work assignments and working methods and practice self-supervision.

They evaluate each other’s performance.

5. Socio-Technical Approach

Considers both social aspect ( organizational culture, leadership style, communication workplace environment etc.) and technical aspects(tools, systems, processes etc.) of the organization.

Jobs are designed according to individual needs and organizational requirements.

Merges the technical needs of the organization with the social needs of the employees.

6. Modified Work Schedule

Based on modification of work schedule.

Some common types are: shorter work week, flexible time, job sharing and homework.
Shorter work week: Workers work ten hours each day for four days.
Job sharing: A technique through which a particular job is shared between two or more employees.
Home work: Employees do the assigned work at home such as, report writing, typing etc.
Flex time: A plan for allowing employees to select their own workday schedule

Outcome of Job Design

Higher productivity and quality of work,

Higher job satisfaction,

Lower absence and

Lower employee turnover

Human Resource Planning (HRP)

Act of pre-determining future human resource needs. Process of making pre-assessment of the people available already and required more to make organizational work. Process of getting the right number of qualified people into the right jobs at the right time. Process of analyzing and identifying the need for and availability of human resource so that organization can meet its objectives.

Definition of Human Resource Planning

Human resource planning (HRP) is a process of determining and assuring that the organization will have an adequate number of qualified persons, available at the proper times performing jobs which meet the needs of the enterprise and which provide satisfaction for the individuals involved.
-Dale S. Beach

Characteristics of Human Resource Planning

Goal Directed: directed towards achieving HRM as well as overall organizational goals.

Future Oriented: forecasts the types and size of HR for future.

Quantitative and Qualitative: addresses HR needs both in qualitative and quantitative terms.

Time Horizon: prepared for short term as well as long term as per the requirement.

Part of Corporate Planning: required to implement the corporate plan of organization.

Part of Acquisition Function: starting point of HRM. Serves as a foundation for HRM.

Determination of Demand and Supply of HR: determines demand & supply of HR and matches between demand & supply.

Environmental Effect: affected by environmental changes.

Importance of Human Resource Planning

Uncertainty Reduction

Objective Focused

Environmental Adaptation

Acquisition of Human Resource

Utilization of Human Resource

Development of Human Resource

Control of Human Resource

Improve Labor Relation

Purpose of Human Resource Planning

Assess Future Manpower Needs: Human resource planning helps the organization in identifying future manpower requirements for organizations.

Identify Manpower Gap: Human resource planning helps in finding out the surplus or deficit of employees in an organization. Accordingly, it makes a plan to overcome these gaps.

Determination of Training and Development Needs: Human resources planning aims at providing various training to all employees as per the requirement of market needs.

Ensures Optimum Use of Manpower: HRP process aims at providing job to individuals according to his knowledge, skills, and experience.

Meet Expansion and Diversification Needs: HRP supports the organization in its various expansion, diversification, and modernization programs. It formulates plans for meeting the employee requirements as per the expansion plan.

Estimates Human Resource Cost: HRP facilitates the preparation of the budget by estimating the cost of each and every human resource working in the organization.

The Basic Elements of Human Resource Planning

Assessing Current HR

It is to look at jobs currently being done and the people doing those jobs.

It is done with the help of HR inventory, HR information system
and job analysis.

Forecast Labor Requirement (Forecast HR Demand)

Organization’s projected demand for human resources.

A process of determining future needs for HR in terms of quantity and quality.

It is done to meet the future HR requirements of the organization to achieve desired level of output.

The techniques used are: Management Judgment, Expert Forecast, Statistical Analysis, Mathematical Model etc.

Forecast Labor Availability (Forecasting HR Supply)

Concerned with the estimation of supply of manpower in the organization

Measures the number of people likely to be available from within and outside the organization, after making internal movements and promotions, wastage and changes in hours and other conditions of work.

The techniques used are: Replacement Chart, Succession Planning, Markov Analysis, Management Judgment, Statistical Techniques etc.

Determine Gaps

When supply exceeds demand, HR surplus is identified and when demand exceeds supply, HR shortage is identified. The closer the gap between demand and supply, the better for the organization to goes into human resource procuring.

Develop Action Plan

Concerned with surplus and shortage of HR

HR plan is executed through the designation of different HR activities like; recruitment, selection, placement, training etc.

HR Inventory /Skills Inventory

A manual or computerized records summarizing employee’s education, experience, interest, skills and so on, which are used to identify internal candidates eligible for transfer or promotion. Consists of up to date information regarding the qualification of the employees. Provides information to managers on what individual employees can do. Purpose of preparing HR inventory is to find out the size and quality of personnel available within the organization.

Information included in this inventory are:

Personal Data- age, sex, marital status

Skills- education, job experience, training

Special qualification- special achievement

Salary and job history- present and past salary, various jobs held

Company data- seniority, retirement information

Capacity of individual- health information

Special preference of individual- geographic location, type of job.

Replacement Planning

Replacement planning refers to the process of finding replacement employees for key managerial positions. A replacement plan ensures continuity in operations and also focuses on how the vital positions can be filled within a short time. Replacement planning focuses on filling an immediate need for a specific critical role. A replacement plan must identify one to three persons for all key positions who could come in during an emergency situation.

Succession Planning

The process of identifying the critical positions within your organization and developing action plans for individuals to assume those positions.

A process of developing talent to replace executive, leadership or other key employees when they transition to another role, leave the company, are fired, retire or die.

Benefits of Succession Planning

• Continuity
• Career Planning
• Development
• Talent Management

Conclusion

A proactive strategy for controlling labor needs is Human Resource Planning. Through the methodical evaluation of existing resources and forecasting of future requirements, HRP guarantees that an organization stays competitive, adaptable, and prepared to meet its strategic goals. It is a vital component of successful organizational success and the cornerstone of efficient human resource management.

Frequently Asked Questions (FAQ)

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