Page 29 - DMGT406_HUMAN_RESOURCE_MANAGEMENT

Human Resource Management

Notes

Notes Accuracy: Projecting manpower needs over a period of time is a risky one. It's not
possible to track the current and future trends correctly and convert the same into
meaningful action guidelines. Factors such as absenteeism, labour turnover, seasonal
trends in demand, competitive pressures, technological changes and a host of other factors
may turn the best of manpower plans into fashionable, decorative pieces.

Support: Planning is generally undertaken to improve overall efficiency. In the name of
cost cutting, this may ultimately help management weed out unwanted labour at various
levels. The few efficient ones that survive such frequent onslaughts complain about
increased workload. Support from management is equally missing on more than one
occasion. They are unwilling to commit funds for building an appropriate human resource
information system. The time and effort involved - with no tangible, immediate gains –
often force them to look the 'other way'.
Numbers game: HRP, in the final analysis, may suffer due to an excessive focus on the
quantitative aspects. The quality side of the coin (consisting of employee motivation,
morale, career prospects, training avenues, etc.) may be discounted thoroughly.

2.3 HRP Process

The process of human resource planning is one of the most crucial, complex and continuing
managerial function. This process has gained importance in India with the increase in size of the
enterprises, complex manufacturing process, and adoption of professional management
techniques. It is a multi-step process.

2.3.1 Steps in HR Planning

1. Investigation: It is the primary stage of HRP in any organisation. In this stage, organisations
try to develop their awareness about the detailed manpower scenario with a holistic view,
looking at their current manpower. A SWOT analysis can reveal a better picture with due
consideration of the external environment, performance and productivity trends, working
practices, operational and strategic plans. Scientific homework, at this stage itself can help
to identify present and future skill gaps. For a better result, SWOT analysis can proceed a
cause-effect diagram (fish-bone diagram), which is simple to comprehend. While doing
external manpower review, macro level issues need to be understood with due cognizance
to the relevant literatures like Annual Economic Survey, Year Book on Indian Labour,
Survey of Indian Industries, ILO International Year Book on Labour, various reports of
Planning Commission on manpower, etc. Internal manpower review has to be done with
enterprise-wide current operational data, like; marketing, finance, performance data,
current employment practices and methods, etc. Also internal manpower review is done
with a futuristic view with due cognizance to strategic plans and objectives.

2. Forecasting: After adequate investigation, in the next phase of HRP process, analysis of
demand and supply of manpower is done. There are different models of demand forecasting.
Manpower supply analysis is done considering both internal and external supply. While
doing internal supply analysis, career planning and development, training and
development and succession plan aspects are considered along with corporate policies
and procedures. For example, 'promotion from within' as a corporate policy may or may
not exist in a particular organisation. Where it exists, it has to be understood for which
levels it is applicable, is it a time-scale (seniority) promotion or promotion on merit, is
there any policy on this, etc. Interestingly promotional decision is a prerogative of

22 LOVELY PROFESSIONAL UNIVERSITY