Human Resource Planning Scope, Purpose and Factors

Table of Contents:-

Scope of Human Resource Planning
Purpose of Human Resource Planning
Factors Influencing Human Resource Planning

Scope of Human Resource Planning

The scope of human resource planning not only includes identifying the manpower requirement but also includes the following:

1) Fulfilling Manpower Need

HRP can only satisfy the needs of the human resources in the organization when it carries out its functions of planning, recruiting and selecting, induction and placement, training and development, transfer and promotion, compensation and motivation effectively.

2) Predicting Human Resources Issues

HRP tries to maintain a balance between the existing resources and the expected future positions in the organisation. It helps in identifying whether the manpower is adequate or not both in terms of quantity and quality.

3) Maintaining the Current Manpower Inventory

This may require maintaining data about the employees relating to the different variables like skills, potential, work preferences, etc.

4) Projecting Future Human Resource Requirements

Projecting the demand for manpower in the organisation requires a lot of calculations, mathematical calculations, analysing the environment from different perspectives and formulating specific plans for the future.

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Purpose of Human Resource Planning

The purpose of HRP is as follows:

1) Analysing Manpower Gap

Human resource planning tries to identify the gap between the existing resources and future requirements by imparting training and sharpening skills.

2) Optimum Utilisation of Human Resources

The first and foremost important responsibility of the HRP is to ensure the maximum utilisation of the existing and future human resources within the organisation.

3) Achieving Organisational Objectives

HRP especially focuses on the needs relating to growth, expansion, diversification or any other strategy for the growth of the organisation.

4) Efficient Change Management

HRP of a firm helps to take necessary measures to meet day-to-day environmental changes like changes in products, market conditions, technological upgrades, policy changes by the government, etc.

5) Evaluation of the Current Workforce

Human resource planning mainly evaluates the existing workforce to know about its strengths and weaknesses.

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6) Furnishing the Accurate Details

HRP provides detailed information about idle or underutilised human resources. It also assists in the decision-making of allied fields of management related to promotions, etc.

7) Assessing Manpower Requirements

HRP plays a very important role in assessing the future requirements of human resources with accuracy. If a well-planned HRP does not exist, then it would be hard for the organisation to have the right type of people at the right time.

Factors Influencing Human Resource Planning

Various factors influence human resource planning. These factors can be classified as follows:

1) External Factors

External factors are those factors which externally influence human resource planning. They include:

i) Legislative Provisions

Various provisions relating to labour laws, reservations in recruitment, and initiated by the government, etc. affect HRP.

ii) Level of Economic Development

The level of human resource development in the country is determined by the level of economic development. This helps to determine the future supply of human resources.

iii) Business Environment

The environment in which the business operates comprises the external and internal factors which influence the business. These kinds of environmental factors have an impact on the total volume of the product mix and accordingly, the human resources supply in the future is also influenced.

iv) Technological Advancements

Technology can be defined as the phenomenon of applying knowledge practically which may give rise to new inventions. The type of human resources required is also influenced by the level of technology.

v) Global Influences

Factors which have a worldwide impact on aspects like the supply and demand of manpower in various regions of the world also influence human resource planning.

2) Internal Factors

These are those factors which internally influence human resource planning. These factors are summarised as follows:

i) Firm’s Plans and Guidelines

The company’s strategy for growth, expansion or diversification dictates the need for human resources in terms of quantity and quality within the organisation.

ii) Rules and Regulations for Human Resources

The specified rules and regulations for human resources within the organisation regarding the skills required, the amount of compensation, provisions for the workforce, etc., affect HRP.

iii) Job Analysis

It is a comprehensive study of a particular job concerning the skill to accomplish a particular task. The comprehensive study of the job helps to determine the type of skills required in the persons to be recruited within the firm.

iv) Perspective of Timeframe

The HRP of the organisation varies from company to company according to the environment in which it is operating. If the environment is relatively stable, the company can go for long-term planning but if the environment in which the company operates is highly dynamic, it is recommended for the company to opt for short-term planning.

v) Reliability and Credibility of Information

Effective planning is based on accurate data about related factors. In every organisation, HRP is based on data relating to factors like the capital budget, organisational structure, level of technology, functional area objectives, job analysis, sources of recruitment, retirement plans, etc.

vi) Policies for the Firm’s Operational and Production System

The HRP of a firm is also based on the company’s decision regarding the quantity to be produced or to be purchased from the market. It decides the number of persons required for the production of the same within the system.

vii) Trade Unions

The various measures taken by the trade unions to safeguard the employees’ interests will have an impact on the HRP. The decisions regarding the working hours, sources for recruitment, etc., have an impact on the HRP.

viii) Phases of Organisational Lifecycle

The different phases of the organisational lifecycle will have a due impact on the HRP of the firm. In the growth stage of the firm, the employees will be required to recruit additionally to cope with growing demand whereas, at the same time in the declining stage, employees will be retrenched to cut costs. In both cases, human resource planning is very important.