Page 30 - DMGT406_HUMAN_RESOURCE_MANAGEMENT

Unit 2: Human Resource Planning

management, hence an employee, prima facie cannot contest such a decision of management Notes
in a court of law, unless otherwise he or she can prove that such a decision has prejudiced
his or her interest. The onus of proving this lies with the employee concerned. Many
organisations have their documented promotion policy, to address to the problem of
personal bias in promotional decision. External supply analysis is done considering macro-
level issues to understand their availability. Since current employment practice is to
employ people for a given time period, employment status also needs to be assessed in
terms of availability. Demand forecasting helps in identifying requirements of manpower
for various positions at different points of time. What should be the status of employment
(permanent, temporary, part-time contract labour, sub-contracting, etc.) will depend to
some extent also on the nature of position. While in abroad, they have the flexibility to
hire for all positions from employee leasing companies on assignment basis, in our country
the scope of such engagement is limited to some specific jobs only. Moreover, people are
by nature sensitized for contractual employment terms. This practice however, is slowly
catching up and since it is a total transition of attitude, it will take some time to settle
down. May be in 5-10 years time, job mobility will increase and people of the new-age
will consider it normal.
HR planning requires that we gather data on the organizational goals objectives. One
should understand where the organization wants to go and how it wants to get to that
point. The needs of the employees are derived from the corporate objectives of the
organization. They stem from shorter and medium-term objectives and their conversion
into action budgets.
3. Inventory: After knowing what human resources are required in the organization, the
next step is to take stock of the current employees in the organization. The HR inventory
should not only relate to data concerning numbers, ages, and locations, but also an analysis
of individuals and skills. Skills inventory provides valid information on professional and
technical skills and other qualifications provided in the firm. It reveals what skills are
immediately available when compared to the forecasted HR requirements.

Did u know? Markov analysis: This technique uses historical rates of promotions, transfer
and turnover to estimate future availabilities in the workforce. Based on past probabilities,
one can estimate the number of employees who will be in various positions with the
organization in future.
4. Audit: We do not live in a static world and our HR resources can transform dramatically.
HR inventory calls for collection of data, the HR audit requires systematic examination
and analysis of this data. The audit looks at what had occurred in the past and at present in
terms of labour turnover, age and sex groupings, training costs and absence. Based on this
information, one can then be able to predict what will happen to HR in the future, in the
organization.
5. HR Resource Plan: Here, we look at career planning and HR plans. People are the greatest
assets in any organization. The organization is at liberty to develop its staff at full pace in
the way ideally suited to their individual capacities. The main reason is that the
organization's objectives should be aligned as near as possible, or matched, in order to
give optimum scope for the developing potential of its employees. Therefore, career
planning may also be referred to as HR planning or succession planning.

6. Actioning of Plan: There are three fundamentals necessary for this step:
(i) Know where you are going.

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