Book Manpower Planning.pdf

MANPOWER PLANNING

2. HumanResourcePlanningand
InformationSystem
(WithCaseStudies)
(AspertheNewSyllabusofMumbaiUniversityforT.Y.BMS,SemesterVI)
R.Krishnamoorthy
B.Sc.(Agri.),M.M.M.,P.G.D.H.R.M.
VisitingProfessor,ManagementInstitutes,
FormerlyNationalSalesManager,
SandozAgroDivisionand
GeneralManager(HR),
SyngentaCropProtectionDivision,Mumbai.
Prof.NitinKamat
B.E.(Electrical)
VisitingProfessor,ManagementInstitutes,
MentorandGuideforCOEPP.G.Students,
MDPConsultantforWelingkarDLP,Matunga,
MDFinessLearningConsultant.
Mr.ChinmayNitinKamat
(DCE,PGDBM)
CorporateTrainer,
AppilesConceptofLateralThinking,"WOW"
AdultsLearningTechniques,
SystematicLearningApproach,
OfficialHRTrainerforManyCompanies.
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4. Preface
ItgivesusgreatpleasuretopresenttheFirstEditionofthebookon“Human
ResourcePlanningandInformationSystem”tothestudentsofBachelorof
ManagementStudies.Thisbookiswrittenonthelinesofthenewsyllabus
prescribedbytheUniversityofMumbai.Casestudieshavebeenincludedtoenable
thestudentstolearntheapplicationoftheprinciplesofHumanResource
ManagementandInformationSystem.
Werequestthestudents,teachersandotherstoprovideconstructive
suggestionstofurtherimprovethecontentsandqualityofthebook.
WearethankfultoHimalayaPublishingHousePvt.Ltd.fortheirkindco-
operationandexcellentserviceinbringingoutthefirsteditionofthebook.
Mumbai Authors

5. Syllabus
HumanResourcePlanningandInformationSystem
CourseCode:UBMSFSVI.15
Sr.No.Modules No.ofLectures
1 OverviewofHumanResourcePlanning(HRP) 15
2 JobAnalysis,RecruitmentandSelection 15
3 HRPPractitioner,AspectsofHRPandEvaluation 15
4 HumanResourceInformationSystems 15
Total 60
Objectives
1.ToUnderstandtheConceptandProcessofHRP
2.ToUnderstandtheWaysofmatchingJobRequirementsandHumanResourceAvailability
3.ToExploretheconceptofStrategicHRP
4.ToUnderstandtheapplicationsofHRIS
Sr.No. Modules/Units
1 OverviewofHumanResourcePlanning(HRP)
(a)OverviewofHumanResourcePlanning(HRP):HumanResourcePlanning–Meaning,
Features,Scope,Approaches,LevelsofHRP,Types,Tools,ActivitiesforHRP,
RequirementsforEffectiveHRPlanning.
ProcessofHRP–StepsinHRP,HRDemandForecasting–Factors,Techniques–
(ConceptsOnly)ManagerialJudgement,RatioTrendAnalysis,RegressionAnalysis,Work
StudyTechnique,DelphiTechnique.HRSupplyForecasting–Factors,Techniques–
(ConceptsOnly)SkillsInventories,SuccessionPlans,ReplacementCharts,StaffingTables.
BarriersinEffectiveImplementationofHRPandWaystoOvercomeThem.
StrategicHumanResourcePlanning–MeaningandObjectives.
LinkbetweenStrategicPlanningandHRPthroughPeople,FinanceandTechnology.
HRPolicy–MeaningandImportance.
HRProgramme–MeaningandContents.
2 JobAnalysis,RecruitmentandSelection
(a)JobAnalysis,RecruitmentandSelection:JobAnalysis–Meaning,Features,Advantages.
JobDesign–Concept,Issues,JobRedesign–Meaning,Process,Benefits.
MatchingHumanResourceRequirementandAvailabilitythrough–Retention–Meaning,
Strategies,Resourcing–Meaning,Types.Flexibility–FlexibleWorkPractices,
Downsizing–Meaning,Reasons,Lay-off–Meaning,Reasons.
Recruitment–MeaningandFactorsaffectingRecruitment,EthicalIssuesinRecruitment
andSelection.EmployeeSelectionTests–Meaning,AdvantagesandLimitations.
HumanResourceAudit–Meaning,Need,Objectives,Process,Areas.

6. 3 HRPPractitioner,AspectsofHRPandEvaluation
(a)HRPPractitioner,AspectsofHRPandEvaluation:
HRPPractitioner:Meaning,Role.
HRPManagementProcess:
EstablishHRPDepartmentGoalsandObjectives
CreatingHRPDepartmentStructure
StaffingtheHRPDepartment
IssuingOrders
ResolvingConflicts
Communicating
PlanningforNeededResources
DealingwithPowerandPolitics–MeaningandTypesofPower
HRPasaTooltoEnhanceOrganisationalProductivity
ImpactofGlobalisationonHRP.
AspectsofHRP:PerformanceManagement,CareerManagement,ManagementTraining
andDevelopment,MultiSkillDevelopment.
ReturnonInvestmentinHRP–MeaningandImportance.
HRPEvaluation–Meaning,Need,Process,IssuestobeConsideredduringHRP
Evaluation.
SelectedStrategicOptionsandHRPImplications:RestructuringanditsImpactonHRP,
MergersandAcquisitionsanditsImpactonHRP,OutsourcinganditsImpactonHRP.
4 HumanResourceInformationSystems
(a)HumanResourceInformationSystems:
DataInformationNeedsforHRManager–ContentsandUsageofData.
HRIS–Meaning,Features,Evolution,Objectives,Essentials,Components,Functions,
StepsinDesigningofHRIS,HRISSubsystems,MechanismsofHRIS,Benefits,
Limitations,BarriersinEffectiveImplementationofHRIS.
SecurityIssuesinHumanResourceInformationSystems.
HRISforHRP
TrendsinHRIS
HRBooksforFurtherReading
1.AswathappaA.(2011),HumanResourceManagement,TextandCases,TataMcGraw-Hill
PublishingCompanyLimited,WestPatelNagar,NewDelhi-110008.
2.EdwinB.Flippo(2010),PrinciplesofPersonnelManagement,McGraw-HillPublications,
NewDelhi-110008.
3.GaryDresslerandBijuVarkey(2013),HumanResourceManagement,PearsonEducation,
NewDelhi-110017.
4.GeorgeBohlanderandScottSnell(2008),HumanResourceManagement,Cengage
LearningPrivateLimited,AlphsBuilding,56-Janpat,NewDelhi-110001.
5.MamoriaC.BandGoankarS.V(2010)HumanResourceManagement,HimalayaPublishing
House,Girgaon,Mumai-400004.
6.SubbaRao(2014),EssentialsofHumanResourceManagementandIndustrialRelations,
HimalayaPublishingHouse,Girgaon,Mumbai-400004.

8. PaperPattern
Duration:2.5hours 75Marks
N.B.:5questionsof15markseach.
Allquestionsarecompulsory.
Q.1.Attemptanytwo:
(a) 7.5Marks
(b) 7.5Marks
(c) 7.5Marks
Q.2.Attemptanytwo:
(a) 7.5Marks
(b) 7.5Marks
(c) 7.5Marks
Q.3.Attemptanytwo:
(a) 7.5Marks
(b) 7.5Marks
(c) 7.5Marks
Q.4.Attemptanytwo:
(a) 7.5Marks
(b) 7.5Marks
(c) 7.5Marks
Q.5.CaseStudy 15Marks

9. Contents
PartI:OverviewofHumanResourcePlanning
1.HumanResourcePlanning 1–11
2.StrategicHumanResourcePlanning 12–17
3.HumanResourcePolicyandProgramme 18–26
PartII:JobAnalysis,RecruitmentandSelection
4.JobAnalysis,JobDesignandJobEvaluation 27–46
5.MatchingHumanResourceRequirementandAvailability 47–64
6.RecruitmentandSelection 65–93
7.HumanResourceAudit 94–97
PartIII:HRPPractitioner,AspectsofHRPand
Evaluation
8.AspectsofHumanResourcePlanningandEvaluation 98–124
9.PerformanceManagementandStrategicOptionsofHumanResourcePlanning125–172
PartIV:HumanResourceInformationSystem
10.HumanResourceInformationSystem 173–199
11.SecurityIssuesandTrendsinHumanResourceInformationSystem 200–223

10. Chapter
1
HUMANRESOURCEPLANNING
MeaningofHumanResourcePlanning(HRP)
Humanresourceisoneoftheimportantfactorsofproductionandperformanceofthe
organisationisdirectlyrelatedtothequalityofitshumanresource.HumanResourcePlanning(HRP)
isconcernedwiththeplanningthefuturemanpowerrequirementsofanorganisation.Itincludes
replacementplansandmanagerialsuccessionplans.HRPensuresthattheorganisationhastheright
numberandtypeofpeopleattherightplaces,attherighttime,doingtherightjobforthebenefitof
theindividualandtheorganisation.HRPrelatestomanpoweravailabilityinanorganisation.Itisan
integralpartofcorporateplanning.Everyorganisationplansforotherfactorsofproductionsuchas
money,machineandmarketanditshouldalsoplanforhumanresources.
HRPisthefirststepinrecruitment,selectionandplacementofemployees.HRPisalsoknownas
ManpowerPlanning,PersonnelPlanningorEmploymentPlanning.
DefinitionsofHumanResourcePlanning
1.AccordingtoDaleS.Beach,“Itisaprocessfordeterminingandassuringthatthe
organisationwillhaveanadequatenumberofqualifiedpersons,availableattheproper
times,performingjobswhichmeettheneedsoftheenterpriseandwhichprovide
satisfactionfortheindividualsinvolved”.
2.ColemanhasdefinedHRPasthe“processofdeterminingmanpowerrequirementsandthe
meansformeetingthoserequirementsinordertocarrytheintegratedplanofthe
organisation”.
3.StainerdefinesHRPas“Strategyfortheacquisition,utilisation,improvementand
preservationofanenterprise’shumanresources.Itrelatestoestablishingjobspecifications
orthequalitativerequirementsofjobs,determiningthenumberofpersonnelrequiredand
developingsourcesofmanpower”.
FeaturesofHumanResourcePlanning(HRP)
1.Facilitatesestimationofthenumberandtypeofpeoplerequiredforanorganisation.
2.Controlofmanpowercostispossiblebyhavingoptimumnumberofpeopleinan
organisation.
3.Manpowerplanninghelpstheorganisationinfillingupvacanciescausedbyretirement,
resignationetc.

11. 2 HumanResourcePlanningandInformationSystem
4.Manpowerplanningensuresthatthecompanyhastherightnumberandkindpeopleatthe
rightplaces,attherighttimeanddoingrightthings.
5.Manpowerplanninghelpsinemployeedevelopmentthroughtraininganddevelopment
programmes.
6.Manpowerplanningisascientificprocessandemployeesareselectedbasedonjob
requirements,withoutanybias.Thispromotescordialrelationsbetweenemployeesand
management.
7.HRPisapartofstrategicplanningprocess.
ObjectivesofHumanResourcePlanning
1.Estimatehumanresourcerequirementsofanorganisationtomeetpresentandfuture
needs.
2.Copewithchangesinbusinessenvironment:HRPenablestheorganisationtocopewith
changessuchascompetition,technologicalchangesandGovernmentregulations.These
changesmayimpactthenumberandtypeofpeoplerequiredintheorganisation.
3.Meettheneedsoftheenterprise:HRPwillhelptoavoidoverstaffingandunderstaffing.
4.Recruitmentandselection:HRPisascientificprocessandensuresthatgoodworkersare
availableasandwhenrequired.
5.Maintainingproductionlevel:Factorssuchasillness,absenteeismaffecttheproductionof
goodsandHRPconsidersallthesefactorstoarriveatoptimumrequirementofhuman
resourcestomaintaintheproductionlevelasperplan.
6.Industrialrelations:Adequatenumberandtypeofemployeesbasedontheproductionplan
willenabletheorganisationtoachievetheproductiontargets.Atthesametime,the
employeeswillbesatisfiedwiththeirperformanceleadingtogoodrelationsbetween
employeesandthemanagement.
NeedforHumanResourcePlanning
1.Tomeetthemanpowerrequirementofanorganisationandalsoforecastingthecostof
labour.
2.Expansionofanorganisationisthebasicindicationofthegrowthoftheorganisationand
humanresourceplanningisrequiredtokeeptheproductionatthehighestleveltomeetthe
increasingdemandfortheproductsinthemarketplace.
3.Duetotechnologicalchanges,themanagementmayrequireskilledlabour.Existing
employeesaretobeprovidedwithtrainingandnewemployeesaretobeinductedafter
propertrainingandHRPplaysamajorroleinthisscenario.
4.Frequentlabourturnoverwhichisofcourseunavoidable,shouldbemonitoredandproper
replacementshouldbeavailabletokeepthehighstandardofproduction.
5.EachjobmayrequiresspecificskillsandHRPprovidesmanpowerwiththerequired
knowledge,skillsandattitude.
6.Unproductivelabourandshortageoflabourleadtoproductionlosses.Bothproblemsare
seriousandHRPcanovercometheseproblems.

12. 3HumanResourcePlanning
7.Replacementofpersonnel:Existingmanpowermaybeaffectedduetoretirement,
resignation,retrenchmentetc.andHRPisrequiredtoassesstheshortagesandarrangefor
recruitment.
8.Tomeetdepartment-wisemanpowerrequirements:Theorganisationasawholemay
havetherequirednumberofemployees,buttheremaybesurplus/shortageofstaffina
particulardepartment.HRPplaysamajorroleincorrectingsuchimbalances.
ImportanceofHumanResourcePlanning
1.Humanresourceplanningworksasacostsavingdevice.Itmaintainsabalancebetween
demandandsupply.
2.Needforqualityworkforceissatisfiedbyeffectivehumanresourceplanning.
3.Byimpartingtraining,employees’knowledgeandskillsareincreased.Itisanopportunity
todevelopthehiddentalentsofemployees.
4.Toincreaselabourproductivityhumanresourceplanningrequired.
5.Supplyofworkforcewithoutinterruptionispossible.
6.Governmentpolicyregardingreservationinemploymentbringsaboutchangesinthe
demandandsupplyofhumanresources.
7.ToimprovetheQualityofWorkLifeofemployeesintheorganisation.
ScopeofHumanResourcePlanning
1.Humanresourcedemandforecastingisaprocessofforecastingboththequantityand
qualityofmanpowerrequiredbytheorganisation.
2.Humanresourcesupplyforecastingincludescurrentinventoryofemployeesandother
factorssuchasknowledge,skills,productivitylevel,employeeturnover,absenteeismrate
etc.
3.Basedonprojectedmanpowerrequirementsandinventoryofhumanresources,HR
departmentdeterminesthequantitativeandqualitativegapsinthemanpower.Thisforms
thebasisforHRplans.
4.HRdepartmentdevelopsanactionplansothatsupplywillbeequaltodemand,i.e.,the
rightnumberofpeoplewithdesiredskillswillbeavailableatspecifiedtimeinthefuture.
FactorsAffectingHumanResourcePlanning
Thefuturerequirementsofhumanresourcedependuponanumberoffactorsasshownbelow.
ExternalFactors InternalFactors
1.Governmentpolicies 1.Companystrategies
2.Economicfactors 2.HRpolicies
3.Businessenvironmentfactors 3.Planningperiod
4.Informationtechnology 4.Jobanalysis
5.Leveloftechnology 5.Expansionprogramme

13. 4 HumanResourcePlanningandInformationSystem
6Competition 6.Production/Salesestimates
7.Production/Operationspolicy
8.TradeUnion
9.Lossofmanpower
10.Employeeworkload
11.Typeoforganisation
12.OrganisationCycle
Fig.1.1:HumanResourcePlanning
ExternalFactors
1.Governmentpolicieswithregardtoliberalisation,industrialrelations,religion/castebased
jobreservations,ageexemptions,sonsofthesoil,etc.,willaffectHumanResourcePlanning.
Example:TheGovernmenthasgivenlicenceforcommercialbankingoperationsto
MicrofinanceInstitution“Bandhan”
2.Economicfactors:Iftheeconomicsituationisencouraging,itmayleadtoincreasein
productionandsalesandmoreemploymentopportunities.
3.Externalbusinessenvironmentfactorswillinfluenceproductvolumesandmixof
productionanddemandforhumanresources.
4.Informationtechnologyinitiativesonsupplychainmanagement,enterpriseresource
planning,computeraideddesign,etc.,haveinfluencedthequantityandqualityofmanpower
requiredintheorganisation.
5.Leveloftechnologyalsoaffectsthetypeofhumanresourcerequiredintheorganisation.
Computerisationinrailways,postaldepartment,banks,airlines,etc.,canreducethe
headcountincertaindepartmentsandatthesametimeprovideopportunitiestoqualified
people.
6.Whenthebusinessishighlycompetitive,companiesmaygoforleanorganisationreducing
thenumberofemployees.Atthesametime,thesecompaniesmayalsolookforpeoplewith
criticalskillstosucceedinacompetitiveenvironment.
InternalFactors
1.Companystrategiesonexpansion,diversification,acquisition,etc.,willaffectthe
requirementofhumanresources.
2.HRpoliciesonqualityofpeople,compensation,careerprospects,organisationculturewill
influencehumanresourceplan.
3.Planningperiod,i.e.,short-term/long-termforecasthavetobeconsideredwhileplanning
forhumanresources.
4.Jobanalysisconsistingofjobdescriptionandjobspecificationdeterminesthetypeof
humanresourcerequired.
5.Underexpansionprogramme,thecompanynormallyneedsmorenumberofpeoplein
production/salesandmarketingetc.

14. 5HumanResourcePlanning
“Bandhan–ProposedBankRequiresQualifiedProfessionals”
Source:TimesofIndia,July2,2014.

15. 6 HumanResourcePlanningandInformationSystem
6.Production/Salesestimatesareimportantinputsfordeterminingmanpowerrequirements.
7.Production/Operationspoliciesonin-houseproduction,thirdpartyproduction,changesin
process,techniquesorinstallationofnewmachineryorbetterrawmaterial,etc.,will
influencethequalityandquantityofmanpowerrequired.
8.ThetermsandconditionsofworkingofemployeesunderUnionAgreementwillaffect
humanresourceplanning.
9.Lossofmanpowerduetoleave,sickness,transfer,resignations,absenteeism,etc.,arealso
considered.
10.UnderWorkloadAnalysis,thecompanytriestofindoutthenumberandtypeofpeople
requiredforvariousjobsinrelationtoplannedoutput.
11.Typeoforganisation.
12.OrganisationCycle.
HumanResourcePlanningatdifferentLevels
HRPiscarriedatdifferentlevelsbyinstitutionsasshownbelow:
1.AtNationallevel,theforecastismadefortheentirenationbyGovernment
2.Sectorlevel:Therequirementsofmanpoweratsectorleveli.e.agriculture,industry;service
isprojectedbasedonGovernmentpolicy.
3.Industrylevel:Manpowerplanningforparticularindustryliketextiles,chemicalsetc.is
predicted.
4.Unitlevelpertainstohumanresourceneedsofanorganization.
5.DepartmentLevel,theforecastcoversthemanpowerneedsofadepartmentorasection
6.AtJoblevel,themanpowerneedsofaparticularjobfamilylikeelectricalengineeringare
assessed.
Timeframe:Companiesfollowshorttermforecasting(uptooneyear)andlongtermforecasting
thatcoversaperiodoffiveyearsorevenmoredependingupontheopportunitiesandchallengesfacing
theindustry.
Stepsin/ProcessofHumanResourcePlanning
Humanresourceplanningisamanagementactivityaimedatacquisition,utilisation,improvement
andpreservationofhumanresourcesoftheorganisation.Itensuresthattheorganisationhasright
numberandrighttypeofpeopletodeliveraparticularlevelofoutputinthefuture.HRPisaforward
lookingmulti-stepprocessandinvolvesthefollowing:
1.Decidingthegoals/objectives:Basedonthecorporateobjectives,estimatesonthedemand
andsupplyofhumanresourcecanbemadebytheHRdepartment.HRPiscarriedoutfor
varyingtimeperiods,i.e.,short-termplans(uptotwoyears)andlong-termplansextending
foraperiodoffiveyearsorevenmore.
2.Estimatingfutureorganisationalstructureandhumanresourcerequirements:External
andinternalfactorssuchasGovernmentpolicy,competition,businessforecasts,expansion
ofbusiness,managementpoliciesonrecruitment,termsandconditionsofemployment,etc.

16. 7HumanResourcePlanning
tobeconsideredwhileestimatingtheorganisationalstructureandhumanresource
requirements.
3.Inventoryofpresenthumanresources:Theobjectiveistofindoutthesizeandqualityof
peoplewithinanorganisation.Everyorganisationhastwomajorsourcesofsupplyof
manpower.
(a)Internalsupplyofmanpower:Manyorganisationsmaintain‘SkillsInventory’of
employeeswhichcontaindetailssuchasage,gender,education,experience,
knowledge,skills,joblevel,pastperformanceandpotentialofexistingemployees.
SuchinformationcanbeeasilyretrievedfromcomputerisedHRISsystem.
(b)Externalmanpowersupply:Whentheorganisationgrowsrapidlyorwhenitisnot
abletofindpeopleinternallytofillupvacancies,ithastolookintooutsidesourcesfor
supplyofmanpower.
4.Determiningmanpowergaps:Existingnumberofemployeesandtheirskillscanbe
comparedwithforecastedmanpowerneedstodeterminegapsintheworkforce.Demandand
supplyforecastwillgiveusthenumberofpeopletobeadded/separatedandthisformsthe
basisforHRactionplans.
Examples:Therecanbetwosituations,i.e.,(a)Supplyofhumanresourcemorethanthe
demandoftheorganisationand(b)Supplyofhumanresourceislessthanthedemandofthe
organisation.Whenthesupplyismore,wecanconductstrictselectionmethodstoweedout
theinefficientcandidates.Whenthesupplyisless,wecantrytodevelopourown
employeesbygivingthemtrainingorencouragethemwithincentivestoshoulderhigher
responsibilities.
Similarly,matchingofpresentemployeeswiththeirpresentjobsmayberequiredwhile
preparingshort-termHRplans.Wecannotexpectaperfectmatchbetweenjobsand
individuals.Iftheemployeeislessqualifiedthanthepresentrequirements,thefollowing
stepscanbetaken,i.e.,providetraining,transfer,providesomeassistancetotheemployee
andseparationoftheincumbentifrequired.Whentheemployeeismorequalifiedthanthe
jobrequirement,adjustmentssuchasjobenlargement,additionalcharge,special
assignmentsandpromotioncanbemade.
5.FormulatingHRPlans:Oncethehumanresourcerequirementisidentified,HRhasto
prepareadetailedplanforrecruitment,training,redundancy,retention,redeployment,etc.
6.Evaluatingeffectivenessofhumanresourceplanning:TheentireHRplanhastobe
closelymonitoredtoremoveanydeficiencies.Progressoftheimplementationhastobe
comparedwiththeoriginalHRplanandappropriateactionhastobetakentoensurethat
rightnumberandtypeofpeopleareavailableasperplan.
DemandandSupplyForecastingofHumanResource
Requirements
Humanresourcerequirementplanningisinfluencedbyanumberofexternalandinternalfactors
anditisachallengingjobtopredictfuturequantityandqualityofmanpowerrequirements.

17. 8 HumanResourcePlanningandInformationSystem
DemandForecastingofHumanResourceRequirements
1.TrendAnalysisinvolvesstudyofanorganisation’semploymentneedsoveraperiodof
yearstopredictfutureneeds.Wecanstudythenumberofemployeesattheendofeachyear
forthelastfiveyears.Itprovidesanestimateofthefuturehumanresourceneeds.However,
changessuchasexpansionofbusiness,increaseinproduction,salesvolumes,etc.willaffect
themanpowerrequirements.
2.RatioAnalysisinvolvesmakingforecastsbasedonratio.Example:Volumeofsalesin
units/valueandthenumberofsalesrepresentativesneededtoachievethesalestarget.
3.ScatterPlotMethodisusedtoidentifytherelationshipbetweentwovariables.
Example:Relationshipbetweenthenumberofbedsinahospitalandnumberofnurses
required.
4.WorkloadAnalysis:Thecompanytriestocalculatethenumberofpersonsrequiredfor
variousjobswithreferencetoplannedoutput.Example:Commercialbanksfollow
workloadanalysismethodforassessingthehumanresourcerequirements.
5.WorkforceAnalysis:Lossofmanpowerduetocausal,sickandprivilegeleave,transfer,
retirementandretrenchmentetc.tobeconsideredforworkingoutmanpowerrequirements.
6.JobAnalysisiscarriedouttofindoutknowledge,skills,attituderequiredtodothejob
efficiently.
7.ManagerialJudgement:Seniormanagersarriveatmanpowerrequirementsbasedontheir
pastexperience.
8.ComputerisedForecasts:Nowadays,manycompaniesmakeuseofcomputerstoforecast
humanresourcerequirements.Suchforecastsenablethemanagertoincludemorevariables
intohisprojections.Example:Byprojectingproductionandsalesfigures,futurestaffneeds
tomaintainthevolumeofoutputcanbedetermined,usingsoftwarepackages.
9.DelphiMethod:Inthismethod,theindependentopinionsaresoughtfromagroupof
experts.Theexperthastorespondtoachecklistofquestionsthatarerelevanttotheforecast.
Theopinionsandresponsesareanalyzedandiftherearemajordifferencesonanyparticular
issue,furtherdiscussionstakeplaceandfinalforecastisprepared.
SupplyForecastingofHumanResourceRequirements
1.StaffingTableshowsnumberofemployeesineachjobtogetherwiththeirage,gender,
qualification,position,experience,etc.Thishelpstoknowwhetherthecurrentemployees
areproperlyutilisedornot.
2.Historicaldataonpromotion,transferandturnoverisusedtoestimatefutureavailabilityof
workforce.
3.SkillsInventoryisanassessmentofknowledge,skills,experienceandgrowthpotentialof
currentemployeestobekeptupdatedeveryyear.Wecanassessthesuitabilityofcurrent
employeesforfuturejobrequirements.
4.AgeInventoryshowsage-wisenumberandcategoryofemployeesanditisusefulforfuture
selectionandpromotionofemployees.
5.Personalreplacementchartsshowthepresentperformanceandpromotabilityofinside
candidatesforimportantpositionssuchasGeneralManager,VicePresident,etc.

18. 9HumanResourcePlanning
6.ComputerisedHRISsystemprovidesvaluableinformationaboutallcategoriesof
employeesintheorganisationanditcanbeusedforselectionofpeoplebasedonage,
qualification,knowledge,skills,experienceandpastperformance.
BarrierstoHumanResourcePlanning
ManycompaniesdonotgiveimportancetoHumanResourcePlanningandthereasonsaregiven
below.
1.Time-consuming,labouriousandcostlyprocessandrequirestheservicesofexperts.
2.Inourcountry,thereissurplusmanpowerandmanagersdonotgivemuchimportanceto
HRP.
3.Predictingmanpowerrequirementsisatoughjobasitisinfluencedbyanumberof
externalandinternalfactors.
4.Traditionalmanagement:Traditionallymanagedcompaniesarenotinterestedinlong-
termplanningofmanpowerandtheyrecruitpeopleasandwhenrequired.
5.ChangingBusinessEnvironment.Lotofchangesaretakingplaceduetopolitical,
economicandtechnologicalfactorsandthesefactorscanaffectemploymentsituationinthe
country.
6.Manpowerplanningismorerelevanttoindustrieswherethereisshortageofskilled
manpower.
7.Non-involvementofdepartmentalmanagersmakesHRPineffective
8.ManyHRmanagersdonothavegoodunderstandingofbusinessoperationsandtheytreat
HRPasamathematicalprocess.Theeffectivenessdependsuponbalancingbetween
quantitativeandqualitativeapproachestoHRP.
GuidelinesforEffectiveHumanResourcePlanning
1.OneofthemajorchallengesinHRPistochangethevalues,beliefsandnormsestablished
bythetopmanagement.Topmanagementsupportisrequiredforeffectivehumanresource
planningandimplementation.
2.TheorganizationshouldhaveaclearcutHRPolicydealingwithHumanResourcePlanning
3.TheHRmanagerlookingafterHRPshouldhaverequiredknowledgeandskillsin
manpowerplanning.
4.TheHRshouldhavegoodunderstandingofbusinessoperationsandchangestakingplacein
businessenvironmentduetopolitical,social,economic,technicalandecologicalfactors.
5.Humanresourceplanningshouldbeadoptedtomeettheorganizationalchanges.
6.HRPplansshouldhepreparedbyalldepartmentalmanagerstoimprovetheaccuracyof
manpowerplanning.Furtherseniormanagersshouldbeinvolvedinimplementationof
Humanresourceplanningintheorganization.
7.Up-datedpersonnelrecordsshouldbeavailableforplanningandeffectiveimplementation
ofHRP
8.HRPshouldbecentralizedsothattheHRmanagercanco-ordinatewithother
departments/managersintheorganization.

19. 10 HumanResourcePlanningandInformationSystem
Questions
1.Howcanorganisationsplanforhumanresourcesinaneffectivemanner?
2.Writeaboutthestepsinvolvedinmanpowerplanningprocessintheorganisation.
3.DescribetheobjectivesandimportanceofHRplanning.
4.DefineHumanResourcePlanningandexplainthesignificanceofHRP.
5.WhatarethefactorsthatinfluenceHRP?
6.Writeshortnotesonthefollowing:
(a)Staffingtable
(b)HRIS
(c)Employeeseparation
(d)LimitationofHRPlanning

20. 11HumanResourcePlanning
CaseStudyforPractice
SuccessionPlanning
Thediewascast.PremNathDivan,executivechairmanofVertigo,thecountry’slargestengineering
projectorganisation,decidedtoswitchtracksforacareerinacademics.Divanwasstillsixyearsshortof
thecompany’sretirementageof65.HisprematureexitwasboundtocreateaflutterattheVertigoboard.
HavingjoinedVertigoasamanagementtraineesoonaftercollege,hehadgraduallyrisenthroughthe
hierarchytotakeaboardpositionasthemarketingdirectorofthefirm,hehadbecomethePresidentfive
yearslaterandtheyoungestchairmanofthecompanyat45.But,bythetimehewas50,thewhizkidhad
acquiredalargerthanlifeimageofarolemodelforyoungmanagersandastatesmanwhosymbolisedthe
bestandbrightestfaceofIndianmanagement.Onhiswife’ssuggestionthatitwouldbewisetodiscussthe
movewithoneofhistrustedcolleaguesbeforemakingaformalannouncementofhisintentiontoseek
prematureretirement.DivancalledonRamcharanSaxena,asolicitorwhohasbeenontheVertigoboard
foroveradecade.SaxenawassurprisedatDivan’splan.Buthewasunfazed.“Ifthatiswhatyouwantto
dofortherestofyourlife,wecanonlywishyouwell”,hetoldhim.“Theboardwillmissyou.Butthe
businessshouldgetdowntothetaskofchoosingsuccessor.Thesooneritisdone,thebetter”.
“Ithinkthechoiceisquiteobvious,”saidDivan,“RanjanWarrior.Heisgoodand…”Divanwas
takenabacktoseeSaxena’sgrimface.“Youdon’thaveanythingagainsthim,doyou?”heaskedhim.“No,
no,”saidSaxena,“Heisgood.Afinancialstrategistandavisionary.Hisconceptualskillshaveservedthe
companywell.Buthehasalwayshadstaffrolewithnolineexperience.Whatweneedissomeonefrom
operations.LikeRichardCrasta”.“Richardknowsthingsinsideoutalright,”saidDivan,“Butheisjusta
doer.Nofireinthebelly.Vertigoneedssomeonewhounderstandsthevalueofpowerandknowshowto
useit.Likeme.LikeRanjan”.“Thatisjusttheproblem”,saidSaxena.“Prem,letmetellyousomething.
Ranjanisamaninyourownimage.Everyoneknownsthatheisyourprotégé.Andprotégésarenever
popular.HehasgeneratedalotofresentmentamongseniorVertigoexecutivesandtherewouldbearevolt
ifheweretosucceedyou.Anexodusissomethingwecan’taffordtohaveonourhands.Weshouldthink
ofsomeoneelseintheinterestofstabilityoftopmanagement”.Divancouldnotbelievewhatheheard.He
hadalwayshimselfonhishands-onstylethoughthehadhiseartotheground.“HowcouldIlosetouch?”
hewondered,somewhatshaken.
“Whenyouaretheboss,peopleacceptyourauthoritywithoutquestion,”continuedSaxena.“Inany
case,youhavebeensuccessfulatVertigoanditisdifficulttoarguewithsuccess.Butthemomentyou
announceyourintentiontoleave,theaurabeginstofadeaway.Andindecidingonyoursuccessor,the
boardwillseekyouropinion,withdueregardtoyourjudgement.Theboardmembersmustdowhatintheir
viewisrightforthecompany.Havingsaidthat,mayIalsomentionthatifthereisashowdowninthe
boardroom,youcouldalwayschoosetostayon?Wewouldlikeit.Orwecouldbringinanoutsider”.
“Ihavefinalisedmycareerplansandthereisnoquestionofstayingonbeyondsixmonthsfromnow,”said
Divan.“Theboardisscheduledtomeetnextmonth.Letusshelvethemattertillthen.Inthemeantime,I
relyonyou,Ram,tokeepthisdiscussionbetweenthetwoofus”.“Ofcourse,yes,”saidSaxena.
Onhiswayhome,Divanthoughtaboutthematterindetail.Bringinganoutsiderwouldundoallhis
life’sworkatVertigo.Therewereconsiderationslikecultureandcompatibility,whichwereparamount.
Thechairmanhadtobeaninsideman.“Richardlacksstature,”Divansaidtohimself.“RanjanistheoneI
havebeengrooming,butheavens,theflipsideofitallhadmissedmecompletely.ThereisnowayIcan
allowasplitatthetopjustbeforeIquit.Imustleaveonahighnoteinmyowninterest.Imustfindaway
outoftheimminentmess”.
Question
1.WhatshouldDivando?