HR PLANNING'S ROLE IN HRM

THE ROLE OF HR PLANNING IS TO HELP HRM TO PROVIDE

A PLANNED PROGRAM OF HUMAN RESOURCES TO THE COMPANY/
VARIOUS DEPARTMENTS TO ACHIEVE THEIR OBJECTIVES/STRATEGIES.
In most companies, HRM is part of senior management.
HRM makes contribution to the development of
-corporate mission statement
-corporate objectives
-corporate strategy.
Normally the senior management team or TOP management would
consists of
-ceo or managing director
-corporate planning manager
-finance manager
-marketing manager
-manufacturing manager
-sales manager
-supply chain manager
-HR manager
etc.
STEP 1[a]
TOP management would
-evaluate the current [ last 12 months] performance against the
objectives / target set previously, which includes return on investment,
profitability , etc and also the performance of various departments
like marketing, sales, HR, manufacturing, etc etc.
STEP 1 [b]
TOP management will also evaluate the current mission,objectives,
strategies and policies.
----------------------------------------------STEP 2[a ]
CEO or MD will take the summary of the evaluation of the current
performance to the board for review.
STEP 2 [ b ]
Based on the review plus the external environmental factors,
the board will make decisions on
-new mission statement
-new corporate objectives
-new corporate governance
------------------------------------------------------------STEP 3 [ a ]

TOP management will scan and assess the company's

external environment --political/ economic/social/ technology.
to determine the strategic factors that pose as
OPPORTUNITIES / THREATS.
STEP 3 [ b ]
TOP management will scan and assess the company's
internal environment --structure/ culture/resources etc
to determine the strategic factors that pose as
OPPORTUNITIES / THREATS.
STEP 3[ c ]
TOP MANAGEMENT will analyze the the strengths / weaknesses
of the organization and pinpoint the problems areas that needs
attention and the strengths that could be exploited.
STEP 4
Based on the above analyses, TOP management will generate,
evaluate, and select the best strategic factors.
STEP 5
TOP management will review and revise [ if necessary ] the
mission statement and corporate objectives.
STEP 6
TOP management will generate and evaluate strategy alternatives
and objectives.
STEP 7
This final corporate mission statement, objectives and strategies
becomes the foundation information for the various departments
to work out their departmental objectives/strategies/plans.
STEP 8
After working out their respective objectives/strategies/plans
and the budgets , the departmental managers send their
respective information to the TOP management for
approval.
STEP 9
On receiving the approved package from the TOP management,
the departmental managers develop the implementation plan.
STEP 10.

NOW you have mission/objectives/strategies/plans/budget/schedules.

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FACTORS WHICH INFLUENCE HR PLANNING ARE
-as the economy grows/declines, the demand for HR resources
changes not only in quantity but also in quality/ types.
-social pressure to provide the right environment for employees.
-political pressure to employ local population, irrespective
of skills/ knowledge.
-legal challenges to recruitment / compensation on
discrimination .
-technology changes means getting right type of people
or provide the right type of training.
-competitive pressure to get the right talent at the right
compensation.
-strategic planning seeks strategic HR planning.
-BUDGET constraint put pressure on HR to get the
best resources for the least.
-sales / production increases in business, puts pressure
on HR to recruit more.
-sales / production decreases in business, puts pressure
on HR to rationalise recruitment.
-new venture means demand for new type of skills/ knowledge.
-acquisitions / mergers means rationalization of HR.
-Organization development means HR implementing new
structure, new culture, new systems etc.
-Job redesign means HR implementing new
methods, new process, new systems etc.
-Globalization means managing HR diversity, new culture
change, new training etc.
-HR challenges / difficulties include
*managing retirement
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*managing voluntary retirement schemes

*managing terminations
*managing leave of absence.
*managing part time workers/ causals.
*managing layoffs
-Balancing the INTERNAL SUPPLY ESTIMATES AND
EXTERNAL SUPPLY ESTIMATES.
*INTERNAL SUPPLY ESTIMATES
-staff skills inventories
-management inventories
-replacements requirements
-transition requirements
*EXTERNAL SUPPLY ESTIMATES
-labor market supply
-community attitude
-demographic trends
*MANAGING WORK OPTIONS
-shorter weeks
-flexitime
-telecommuting
-virtual organizations.
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IN case of HR, which is a department by itself,
This final corporate mission statement, objectives and strategies
becomes the foundation information for the HR department
to work out your departmental objectives/strategies/plans.
STEP A
Discuss with the various other departments like sales/ production/
distribution/accounting/ IT etc about their requirements
-for manpower
-recruitments
-replacements
-training
etc etc
Once you get their departmental requirements, HRM develops
-HR PLANNING WHICH INCLUDES

-recruitment /selection plans / programs/ procedures/ priorities

-training plans / programs/ procedures/ priorities
-rewards plans / programs/ procedures/ priorities
-development plans / programs/ procedures/ priorities
-payroll plans / programs/ procedures/ priorities
- performance management plans / programs/ procedures/ priorities
-staff/organization communication plans / programs/ procedures/ priorities
-Induction / Orientation plans
-career / talent Developement plan
-Compensation development plans
-Performance Appraisal plans
-Industrial Relations plans
-Counselling/ mentoring plans
-Promotions programs
-Transfers
-Staff amenities.
etc.
etc etc
-HR POLICIES
-HR PROCEDURES
-HR PRACTICES.
ETC.
================================================== =
HR PLANNING
The penalities for not being correctly staffed are costly.
Understaffing loses the businesses economies of scale and
specialization, sales, customers and profits.
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Overstaffing is wasteful and expensive, if sustained, and it

is costly to eliminate because of modern legislation in respect of
redundancy payments, consultation, minimum periods of notice, etc.
It also reduces the competitive efficiency of the business.
HR Planning includes
1.Assessment / Audit of the current manpower profile
-numbers
-skills
-ages
-flexibility
-sex
-experience
-capabilities
-character
-potential
and also
-normal turnover,
-staff movements planned
-retirements
-succession planning
etc.
2. Corporate Mission
3. Corporate Objective
4. Corporate Strategy
5.Corporate Organization Policy/ Budget Guidelines.
6. Corporate HR objective/ strategy
7. Corporate Industrial Relations Policy
8. Corporate Sales forecasts [ 3 or 5 or 10 years ]
9. Corporate Product Plans [ 3 or 5 or 10 years ]
10. Corporate Production forecasts. [ 3 or 5 or 10 years ]
BASED ON THE ABOVE , YOU DEVELOP A SERIES OF
CRUDE FORECASTS OF STAFF REQUIRED.

Now review the following

1.The impact of technological change on task needs.
2. Variations in the efficiency, productivity, flexibility of labor as a
result of training, work study organizational change, new motivations, etc.
3. Changes in employment practices [ e.g. subcontractors or
outsourcing etc ]
4.Other variations due to new legislations like new health requirements,
safety requirements etc.
5.Changes in government policies like tax/ tariff etc
6. Labor demand and supply .
7. Skills levels availability
What should emerge from this analysis / reviews is a "thought out"
and logical staffing demand schedule for varying dates in the future
which can then be compared with the crude supply schedule.
The comparison will then indicate what steps must be taken to
achieve a balance.
This will involve now
-recruitment / selection plan.
-training plan
-retraining plan
-early retirement plan
-redundancy plan
-changes in workforce utilization plan
-succession plan.
-personnel and career plans
These plans will help to bring supply and demand into equilibrium,
not just as a one-off but as a continual workforce planning
exercise the inputs to which will need constant varying to reflect
the actual as against predicted experience on the supply side
and changes in production actually achieved as against forecast
on the demand side.
THE ABOVE APPROACH / CONTENTS IS THE SAME WHETHER
IT IS HR PLANNING FOR 1 YEAR OR 5 YEARS.
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2) Why has HR planning increased in importance.

BECAUSE OF
-globalization
-economic growth
-demand for skilled workers
-mobility of workers
-need for productivity improvements
-need for efficient growth
-diversity in workforce
-forward planning of resorces
-provides a planned hr resources
-controls wastage.
etc etc
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