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MB0043 Q.3 Explain the critical steps in Human Resource Planning system.

By admin - Last updated: Wednesday, April 6, 2011 - Save & Share - 12 Comments

Ans. by Mohit Bansal through mail
We will attempt to discuss in details the critical steps that are part of the above system.
A. Purpose of Human Resource Planning: Human Resource Planning fulfils individual as well as organizational goals. What it essentially amounts to is “striking a balance” between the future human resources needs and the future enterprise needs. And this is done with the clear objective of maximizing the future return on investment in human resources. And this objective may be laid down for a short-term (i.e.for one year).

B. Estimating/Forecasting the future Manpower Requirements: the first step in the process is to arrive at the desired organizational structure at a given point in time. Mapping this structure with the existing structure helps in identifying the gap in resources requirement. The number and type of employees

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needed have to be determined. In addition to the structure there are a number of external factors that affect this determination. They include business forecasts, competitor strategy, expansion plans, product/skills mix changes, profit/revenue growth projections, in addition to management philosophy and government policies. This step also includes an analysis of the external labour/talent environment, its demographics, demand/supply of the required talent, and cost considerations.

C. Auditing Human Resources: Once the future human resource needs are estimated, the next step is to determine the present supply of manpower resources. This is done through what is called “Skills Inventory”. A skills inventory contains data about each employee’s skills, abilities, work preferences and other items of information which indicate his worth to the company. Skills inventory are also referred to as competency dictionaries. This information is usually retained as part of the performance management system with the HR department. This step in the HRP system helps identify the existing profile of the manpower and its efficiency. It helps highlight where the organization is vs. where it ought to be. The step concludes with identifying clear gaps in the skills/ manpower mix required to meet the upcoming business objectives.

D. Job Analysis: After having decided how many persons would be needed, it is necessary to prepare a job analysis. The recorded details of training, skills, qualification, abilities, experience and responsibilities, etc. as needed for a job are studied. Job analysis includes the preparation of

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job descriptions and job specifications.

E. Developing a Human Resource Plan: This step refers t the development and implementation of the human resource plan, which consists in finding out the sources of labour supply with a view to making an effective use of these sources. Some important considerations at this point are:

• Specific roles/disciplines being hired for, of them which roles are pivotal for the business
• Competencies and capabilities needed
• Manager vs. employee hiring
• Hire internally vs. External sourcing
• Planning for new skills through training existing staff vs. hiring new teams
• In case of surpluses, planning for redeployment/ reduction in workforce as required
• Succession planning for key positions in the company

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12 Responses to “MB0043 Q.3 Explain the critical steps in Human Resource Planning system.”

Comment from anand kumar
Time April 7, 2011 at 1:57 pm

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Comment from shilpee kumari
Time April 15, 2011 at 10:54 am

what is competency?how it can be linked to the HR system.
plz……….. answer this question.i need it.

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Time April 30, 2011 at 11:27 pm

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