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What Human resource planning is and the main stages involved in the planning process that insure the right mix of numbers and types of employees deployed across the firm.

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Human resource planning is a strategy for the acquisition, utilisation, improvement and retention of an enterprise's human resources (Mullins 2005). This essay will show in depth what Human resource planning is and the main stages involved in the planning process that insure the right mix of numbers and types of employees deployed across the firm, achieve the strategic goals of the organization. The Institute of Personnel and Development (IPD) defines Human Resource Planning as: "the systematic and continuing process of analysing an organisation's human resource needs under changing conditions and developing personnel policies appropriate to the longer term effectiveness of the organisation. It is an integral part of corporate planning and budgeting procedures since human resource costs and forecasts both affect and are affected by longer term corporate plans" Human resource planning is not always certain, as it is not a science, mistakes are bound to occur. However, it can assist organisations to foresee changes and identify trends in staffing resources, and to adopt personnel policies which help to avoid major problems (Mullins 2005). A Human resource plan aims to reconcile differences between supply and demand. There are many factors that affect the demand for labour such as: the objectives of the company and its future plans; market demand for the company's product; the technology used by the company; the product range etc. ...read more.


It can also show surpluses in capabilities that may provide opportunities for efficiencies and responsiveness - skills, people and knowledge that may be underused, so the organization could consider new opportunities and ventures that would capitalize on these human resources. By doing an analysis on current staff, organizations are able to see if their work force is being utilized efficiently, with knowledge of any known future changes and further availability of key staff. The second stage of Human resource planning is the analysis of the organization's future plans. This includes consideration of changes and losses to the organization - replacements for retirements, leavers, transfers and promotions; incremental improvements in staff performance and current programmes of staff development - possible improvements in production, redeployment of existing manpower, planned changes in output levels; and external environmental factors such as the likely availability of labour, areas of potential new developments or markets, and changes in legislation - planned introduction of new methods and equipment, planned reorganization of work, the impact of changes in employment law or collective agreements. Analysis of the organization's future plans is done in the form of ratio-trend analysis - identifies areas where performance has improved or deteriorated over time; work-study or organization and methods (O&M) techniques - time-study and thorough analysis of the work done to establish the person-hours needed per unit of output; managerial judgment - managers make estimates of labour needs, flows and availabilities, executive reviews, succession planning, vacancy analysis. ...read more.


If there were too few staff managers would have to consider recruitment, redeployment, promotion or demotion, extension of the contracts of those about to retire, use of freelance, agency or temporary staff, overtime, productivity bargaining, automation or elimination of jobs, increase capital investment to increase productivity e.g. by introduction of new technology. This stage lets managers know what to expect in the future if these situations arise. The fifth and final stage is the selection of best alternatives and implementation of the human resource plan with monitoring and review procedures. Each plan developed by each organization will be unique because it will address and be dependent upon different issues. The implementation of the plan should be assessed regularly as part of the overall review of objectives. It serves as a tool to direct, manage and reinforce actions within the organization to address key management issues. Once prepared, its implementation and the subsequent monitoring of results are essential to addressing the issues effectively. Most organizations want Human resource planning systems which are responsive to change with assumptions being easily modified, that allow flexibility in supply and are simple to understand and use and not too time demanding. However to operate such systems, organizations need appropriate demand models, good monitoring and corrective action processes and an understanding on how resourcing works in the organization. If HRP techniques are ignored, decisions will still be taken, but without the benefit of understanding their implications. ...read more.

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