Page 46 - DMGT406_HUMAN_RESOURCE_MANAGEMENT

Unit 2: Human Resource Planning

offering competitive salaries. While assessing manpower needs at various locations, the Notes
following things are generally taken into account:
Manpower Needs

1. Details of previous selections in each centre
2. Current employee strength in each centre
3. Sanctioned posts for each centre
4. Number of vacancies, likely to arise due to competition, unforeseen events,
expansion, etc.
5. Surplus, if any, from other centres.
6. Over and above the next vacancies that are likely to arise in each centre, two additional
posts have been earmarked so as to serve as a 'cushion' to absorb sudden fluctuations.
The actual details about trading assistants in various centres were:

Details of Employees and Posts
1. Number of people with 2 years' experience : 94
2. Number eligible for promotion to next grade : 28
3. Number of vacancies on hand : 25

4. Number on rolls : 142
5. Anticipated needs to be filled up owing to market
conditions : 24 ('two' in each centre)

6. 'Reserve' to be kept over and above sanctioned posts : 5
7. Total requirements over a period of 12 months : 54
In the first batch, it was planned to hire 25 people having one year's exposure to online
market operations, in the 5000 -8500 grade. The chief HR manager arrived at Mumbai to
coordinate the recruitment activity. The Mumbai office got the fax message from
headquarters on Monday advocating caution and restraint while hiring trading assistants.
Around 150 short listed graduates have been called for the interview on that day.
Questions

1. Prepare a comprehensive human resource plan for each centre of MFSL.
2. Looking at the scenario, what should the chief HR manager do?
3. Is it advisable to decentralise the hiring process, so as to avoid problems of the
nature mentioned above? Why? Why not?

2.7 Summary

 Human resources planning is defined as the process for identifying an organisation's
current and future human resource requirements, developing and implementing plans to
meet these requirements and monitoring their overall effectiveness.
 HR Planning is essentially the process of getting the right number of qualified people into
the right job at the right time so that an organisation can meet its objectives.
 Organisations use HRP as a means of achieving greater effectiveness.

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