Human Resource Planning (HRP)| The evolving role of HRP in today’s organization

Human Resource Planning (HRP)| The evolving role of HRP in today’s organization

HRP - Learning objectives

Diagram1.1

Introduction & Meaning of HRP

It is pertinent to mention at the very outset that the first part of human resource strategy is HRP. All other HR activities such as and for hiring, training and development remuneration, appraisal, And Labour relations are derived from HRP.

As an integrative part of strategic management, HRP is variously called strategic manpower planning, or employment planning. The expression manpower planning was prevalent during the mid-20th century where Statistical Techniques were used to forecast and plan future employment needs. With the passage of time, the scope of HRP widened and the term manpower planning could not capture the widened scope of planning. Hence, the contemporary term HRP, we may assume that HRP and Employment planning conveys identical meaning. However, employment planning is not found in popular usage.

In simple terms, HRP is understood as the process of forecasting an organization's future demand for, and supply of the right type of people in the right number. So, it is only after this that the HRM department can initiate the recruitment and selection process. Human Resource Planning is a subsystem in the total organizational planning.

Evolving nature of HRP - aligned with business strategy

Over time, the role of HRP has evolved from that of mere projecting HR needs towards a strategic one.

Earlier, HRP was a routine and isolated activity. But now it is aligned with business strategy. Scope of HRP has also widened with the passage of time from the mere projection of HR needs, HRP now is taken as the base for all other HR activities.

Diagram1.2

Importance of HRP

The fact that the HRP is integrated with business strategy speaks volumes about the significance of HRP. The following points elaborate on the role of HRP in today's organization.

Personnel needs taken care of

Basically, HRP gives the number and type of people required in the coming period. When these numbers are adhered to, organizations will be assured of the right number and the right type of employees. In the absence of HRP, organizations tend to run the risk of short is or problem of surplus Labour force.

Part of strategic planning

HR management has become an integral part of strategic management process. Altogether, activities of HRM- planning, hiring, training, remunerating and maintaining must be merged with strategic management. Human Resource planning can become part of strategic planning at two ends at the beginning of strategic planning and at the end of the strategic planning process (Diagram1.3)

Diagram:1.3

Creating highly talented personnel

In today’s era, jobs are becoming highly intellectual and incumbents are getting professionalized.

Skilled and qualified people are known for job-hopping, thereby creating frequent shortages in the organization. Manpower planning helps prevent such shortages. Furthermore, technology changes will often upgrade some jobs and degree others. HRP helps in preventing both shortages and surplus of manpower at any given point of time.

HRP facilitates succession planning finding a replacement for a retiring executive. A quick replacement and ensures continuity of business. Any delays lead to lobbying, speculation, gossiping, confusion and lowering productivity.

Replacement planning generates two questions and answers them:

•         Who will replace the outgoing CEO?
•        From which pole of talent will the incumbent be selected and how will he or she be groomed?

International strategies

International expansion strategies’ depend upon HRP. The ability of the department’s to fill key jobs with foreign national and the assignment of employees from within or across national borders is a major challenge facing by International businesses. With the upward trend towards Global operation, the need for HRP will grow, as well as the need to integrate HRP more closely into the organizations strategic plans. More and more, HRP will grow important as the process of meeting staffing needs from foreign countries and the attendant cultural, language and developmental considerations grow complex. In the absence of effective HRP and subsequent attention to employing, recruitment, selection, placement, development and career planning, the growing competition for foreign executives may lead to expensive and strategically disruptive turnover among key decision-makers.

Foundation for personal function

Imperatively, HRP offers essential information for designing and implementing personal functions, such as recruitment, selection, personal moment transfers, promotions, layoff and training and development.

HRP document is of great help in preparing job description and job specification and also in employee hiring. The fundamental duty of any HR department is to hire the right people for the right jobs. The perfect match between job and ability can be ensured when there is clarity about the competencies expected of a hiree. HRP provides this clarity. It provides enough inputs for the training department to design an appropriate training program. HRP exercise shall be useful to review compensation practices and packages which would help attract and retain talent. Benefits and incentives may also be reviewed in light of the HRP document.

Developing Global leaders is yet another contribution from HRP. MNC’s like Microsoft, Toyota and IBM have well-set policies and procedures to identify potential talent and rotate such people globally so as to enable then to become world-class leaders. HRP helps in identifying talent, making a list of vacant Global assignments and preparing action plans for rotation.

Increasing Investments in Human Resources

Another compelling reason for HRP is the investment an organization makes in its human resources. Human Assets, as opposed to Physical assets, can increase in value. An employee who gradually develops his or her skills and abilities becomes a more valuable resource. Because an organization makes investments in it's personal either through direct training for job assignments, it is important that employees are used effectively throughout their careers. The Rupee value of a trained, flexible, motivated and productive workforce is difficult to determine although attempts are being made to do so, as in HR accounting (HRA). An increasing number of Executives are acknowledging that the quality of the workforce can be responsible for significant differences in short-run and long-run performances.

Resistance to change and move

There is a growing resistance among employees to change and move. There is also a growing emphasis on self-evaluation and on evaluation of loyalty and dedication to the organization. All these changes are making it more difficult for the organization to assume that it can move its employees around anywhere and anytime it wants, does increase the importance and the necessity of planning ahead.

Unite the perspective of line and staff managers

HRP helps unite the perspectives of both line as well as staff managers. Although HRP is initiated and executed by the corporate HR staff, it requires the inputs and Corporation of all managers within an organization. An individual manager responsible for the area knows better the needs of a particular unit or department than anyone else. Communication between HR staff and line manager is essential for the success of HR planning initiatives.

Other benefits

Following are other potential benefits of HRP:

Number 1: upper management has a better view of the HR dimensions of business decisions

Number 2: personnel cost maybe less because the management can anticipate imbalances before day become unmanageable and expensive

Number 3: more time is provided to locate talent

Number 4: better opportunities exist to include women and minority groups in future growth plans 

Number5: better planning of assignments to develop managers can be done, and

Number 6: major and successful demands on local labour markets can be made.

To conclude, the respective evolving scope of HRP as compared to its traditional scope and its Integration & contribution to the overall business strategy has established the evolving role of HR in today’s progressive organizations’.

How can an organization develop accurate HR Strategic Plans when there are so many rapidly changing environmental factors