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Unit 3: HR Planning, Recruitment, Selection, Placement and Induction

less than the number of persons required, then, there will be disruptions in the work Notes
production will be hampered, the pace of production will be slow and the employees
burdened with more work. If on the other hand, there is surplus manpower in the organization,
there will be unnecessary financial burden on the organization in the form of a large pay
bill if employees are retained in the organization, or if they are terminated the compensation
will have to be paid to the retrenched employees. Therefore, it is necessary to have only
the adequate number of persons to attain the objectives of the organization.
In order to achieve the objectives of the organization, the HR planner should keep in mind
the timing and scheduling of HR planning. Furthermore, the management has to be persuaded
to use the results of manpower planning studies.

Manpower planning can also be used as an important aid in formulating
and designing the training and development programmes for the
employees because it takes into account the anticipated changes in the
HR requirements of the organizations.

3.1.2 Importance of HR Planning
The HR planning is a highly important and useful activity. Without clear-cut planning, an
estimation of the organization’s human resource needs is reduced to mere guesswork. If used
properly, it offers a number of benefits. These are:

1. Planning defines future manpower needs and this becomes the basis of recruiting and
developing personnel.
2. Employees can be trained, motivated and developed in advance and this helps in
meeting future needs for high-quality employees.
3. Change in technology has attached more importance to knowledge and skill resulting
in surplus manpower in some areas and shortage in other areas. HR planning helps
in creating a balance in such a situation.
4. Jobs are becoming more and more knowledge-oriented. This has resulted in a changed
profile of HR. Because of increased emphasis on knowledge, recruitment costs have
also increased. To avoid the high cost of recruitment, proper HR planning is necessary.
5. The organization can have a reservoir of talent at any point. People with requisite
skills are readily available to carry out the assigned tasks.
6. Planning facilitates the preparation of an appropriate manpower budget for each
department. This in turn, helps in controlling manpower costs by avoiding shortages/
excesses in manpower supply.
7. Systematic HR planning forces top management of an organization to participate
actively in total HR management functions. When there is active involvement of top
management, they will appreciate the real value of human resources in achieving
organizational effectiveness.
8. Systematic HRP forces top management of an organization to participate actively in
total HRM functions. When there is active involvement of top management, they will
appreciate the real value of human resources in achieving organizational effectiveness.

3.1.3 Process of HR Planning
With the expansion of business, adoption of complex technology and professional management
techniques, the process of HR planning has assumed greater significance. It consists of the
following stages:

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