A Human Resource Planning is a systematic process of forecasting both the prospective demand for and supply of manpower, and employment of skills with the objectives of the organization. The objective of HRP is to ensure the best fit between employees and jobs while avoiding manpower shortages or surpluses.
The need for human resource planning in organization is realize for the following reasons:
Human resource planning is important to organization because it benefits the organization in several ways.
It is also know as top down approach of HR planning under which top level make and efforts to prepare the draft of HR planning. Actually, it is a management-driven approach under which the HR planning is regard as a number's game. It is base on the analysis of Human Resource Management Information System and HR Inventory Level. On the basis of information provide by HRIS. The demand of manpower can be possible to forecast using different quantitative tools and techniques. Such as trend analysis, mathematical models, economic models, market analysis, and so on. The focus of this approach is to forecast human resource surplus and shortages in an organization. In this approach major role is play by top management.
This approach is also know as bottom up approach of HR planning under which the subordinates make an effort to prepare the draft of HR planning. Hence, it is also call sub-ordinate-driven approach of HR planning. It focuses on individual employee concerns. It is concern with matching organizational needs with employee needs. Moreover, it focuses on employee's training, development and creativity. Similarly, compensation, incentives, employee safety, welfare, motivation and promotion etc. are the primary concerns of this approach. In this approach, major role is play by lower level employees.
This is call mixed approach because it combines both top-down and bottom-up approaches of HR planning. In fact, the effort is complete to balance the antagonism between employees and the management. Hence, it tends to produce the best result that ever produce by either of the methods. Moreover, it is also regard as a Management by Objective(MBO) approach of HR planning. There is a equal participation of each level of employees of the organization.
Need for and Importance of HRP:
The need for human resource planning in organization is realize for the following reasons:
- Despite growing unemployment, there has been shortage of human resources with require skills, qualification and capabilities to carry on works. Hence the need for human resource planning.
- Large numbers of employees, who retire, die, leave organizations, or become incapacitate because of physical or mental ailments, need to be replace by the new employees. Human resource planning ensures smooth supply of workers without interruption.
- Human resource planning is also essential in the face of mark rise in workforce turnover which is unavoidable and even beneficial. Voluntary quits, discharges, marriages, promotions and seasonal fluctuations in business are the examples of factors leading to workforce turnover in organizations. These cause constant ebb and flow in the work force in many organizations.
- Technological changes and globalization usher in change in the method of products and distribution of production and services and in management techniques. These changes may also require a change in the skills of employees, as well as change in the number of employees require. It is human resource planning that enables organizations to cope with such changes.
- Human resource planning is also need in order to meet the needs of expansion and diversification programs of an organization.
- The need for human resource planning is also felt in order to identify areas of surplus personnel or areas in which there is shortage of personnel. Then, in case of surplus personnel, it can be redeploy in other areas of organization. Conversely, in case of shortage of personnel, it can be made good by downsizing the work force.
Human resource planning is important to organization because it benefits the organization in several ways.
Various approaches to HRP
Quantitative Approach
It is also know as top down approach of HR planning under which top level make and efforts to prepare the draft of HR planning. Actually, it is a management-driven approach under which the HR planning is regard as a number's game. It is base on the analysis of Human Resource Management Information System and HR Inventory Level. On the basis of information provide by HRIS. The demand of manpower can be possible to forecast using different quantitative tools and techniques. Such as trend analysis, mathematical models, economic models, market analysis, and so on. The focus of this approach is to forecast human resource surplus and shortages in an organization. In this approach major role is play by top management.
Qualitative Approach
This approach is also know as bottom up approach of HR planning under which the subordinates make an effort to prepare the draft of HR planning. Hence, it is also call sub-ordinate-driven approach of HR planning. It focuses on individual employee concerns. It is concern with matching organizational needs with employee needs. Moreover, it focuses on employee's training, development and creativity. Similarly, compensation, incentives, employee safety, welfare, motivation and promotion etc. are the primary concerns of this approach. In this approach, major role is play by lower level employees.
Mixed Approach
This is call mixed approach because it combines both top-down and bottom-up approaches of HR planning. In fact, the effort is complete to balance the antagonism between employees and the management. Hence, it tends to produce the best result that ever produce by either of the methods. Moreover, it is also regard as a Management by Objective(MBO) approach of HR planning. There is a equal participation of each level of employees of the organization.
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