Human Resource Planning | Management Optional Notes for UPSC PDF Download

Human Resource Planning in Organizations

• Human resource planning is a crucial organizational function aimed at ensuring the availability of the right people in the right positions at the right time. This process is essential for helping managers navigate uncertainties and adapt to changes in technology, society, regulations, and the environment. 
• Effective human resource planning involves analyzing an organization's human resource needs in evolving conditions and devising the necessary actions to meet those needs (Biswajeet 2010). The primary goal of human resource planning is to optimize the utilization of human resources, ensure their continuous development, secure the production capacity required for organizational objectives, align human resources activities with organizational goals, and enhance overall organizational productivity.
• If the human resource team executes this process effectively, it can significantly contribute to the success of companies. According to Fajana (2002), human resource planning is a systematic and ongoing process that involves analyzing an organization's human resource needs in the face of changing conditions and formulating personnel policies conducive to the long-term effectiveness of the organization. 
• It plays a crucial role in business planning and budgeting procedures, as both human resource costs and forecasts influence and are influenced by longer-term corporate plans. Citing Mondy et al. (1996), planning is described as a systematic analysis of human resource needs to ensure the availability of the correct number of employees with the necessary skills when needed. The planning process entails forecasting human resource requirements within organizations and implementing appropriate actions, such as recruitment, training, and career development, based on identified needs. 
• Planning is conducted within the framework of the firm's goals and general policies, influenced by public policies, technological changes, and the availability of manpower. The success of human resource planning lies in its accurate coordination of each specified element, essentially aligning the proper resources with the business needs in both the short and long term goals of the company.
• To achieve effective human resource planning in the long term, organizations must adhere to specific procedures to ensure that they possess the right number and type of individuals in the correct positions and at the appropriate times to achieve their objectives. Employers should focus on both attracting and retaining employees, fostering an employment relationship grounded in a mutual understanding of expectations. 
• Furthermore, organizations should make efforts to anticipate how potential employees may behave in the future and contribute to the organization's needs (Newill and Shackleton, 2000). The forecasting of future manpower requirements stands out as a crucial component of manpower planning. This process is based on production and sales budgets, workload analysis, workforce analysis, and estimations of absenteeism and turnover.

Human Resource Planning Process

• Forecasting future manpower requirements involves both quantitative and qualitative considerations. Before making these forecasts, various factors must be taken into account. Analyzing the employment trend over the past five years is a crucial factor in manpower forecasting. Productivity, which encompasses better utilization of existing manpower, technological improvements, and aligning skills with job requirements, is another essential consideration. Absenteeism, indicating situations where individuals are unable to attend work as scheduled, should be considered when estimating manpower demand. The organization's expansion and growth plans must be meticulously assessed to understand their potential impact on future manpower requirements.
• After determining the suitable candidates required, the subsequent step involves planning how the organization can acquire these individuals. Strategies and programs need to be developed for recruitment, selection, training, internal transfers, promotions, and performance appraisal to meet future manpower requirements. Management experts stress the importance of designing development plans to ensure a continuous supply of trained individuals capable of taking on roles as they become available through promotion, recruitment, or training, thereby preventing shortages in the long run.
• Accurate forecasting is a critical issue in manpower planning, as inaccurate forecasts lead to inaccurate planning. Inaccuracy is exacerbated when departmental forecasts are prepared without rigorous review. An identity crisis is another challenge, as many human resource managers may not fully comprehend the entire manpower planning process. Resistance from employees and trade unions is a common problem, with concerns about increased workloads, productivity bargaining, and potential unemployment. The effectiveness of planning is contingent on the reliability of the information system, and in many Indian industries, the human resource information system is not well-developed, hindering effective planning. Some professionals argue that manpower planning is an expensive and time-consuming process, potentially leading employers to resist it due to increased manpower costs.

Succession Planning

• Succession planning is a systematic process wherein senior executives evaluate both their top executives and lower-level officers to identify multiple backup candidates for each senior position. This methodical approach involves determining future leadership needs and identifying individuals who align best with those requirements. Succession planning leverages the internal workforce to meet future employment needs within the organization. It entails assessing the skills and capabilities of current employees to identify potential future positions they could assume when other employees vacate their roles. To implement effective succession planning, organizations should establish a pool of candidates with high leadership potential.
• Succession planning holds specific relevance to business and strategic planning. The establishment of a formal succession plan provides a structured framework for organizations to implement mentorship and training programs. These programs offer aspiring business leaders the opportunity to learn and ideally adopt the traits and habits that contribute to business success. The primary goal of succession planning is to advance individuals within the organization, emphasizing internal selection. 
• When executed effectively, succession planning proves beneficial to the organization's human resource planning and can positively impact organizational performance. Despite the numerous advantages, scholars have identified potential challenges associated with succession planning, including the "crowned prince syndrome," talent drain, and the management of extensive human resources information. 
• To implement a succession planning model successfully, it is essential to determine resource needs for implementation, identify potential barriers, update or develop job descriptions, prepare the organization for change, establish a communication plan, engage stakeholders and secure their support, identify and enlist champions of change within leadership, implement strategies on a pilot basis if necessary, and align succession strategies with HR, recognition, workforce planning, assessment, recruitment, and training strategies.

Succession Planning Model

Failure of HR Planning

• In-depth analysis of HR Planning reveals that inadequate HR planning or its absence in an organization can lead to increased costs and financial deficits. This shortfall may result in the need to fill positions urgently, raising costs and hindering effective work performance. Employees may be required to work unnecessary overtime, leading to decreased effort due to exhaustion. 
• The lack of HR planning puts employees at a disadvantage as their personal schedules are disrupted, and they are denied the opportunity to plan for their career development. When facing a shortage of staff, organizations should not resort to indiscriminate hiring, as other cost-effective options such as training and staff transfers need to be carefully considered.

Conclusion

In summary, Human Resource Planning aims to fulfill manpower requirements and organize recruited resources for productive activities. Essentially, it involves gathering information, setting objectives, and making decisions to enable the organization to achieve its goals. Human Resource Planning provides insights into the number of people needed, the skills, knowledge, and competencies required, whether existing human resources can meet identified needs, whether further training and development are necessary, and if recruitment is required. This process is crucial for aligning business strategy with operations, identifying skill requirements for different job levels.