Q1 EXPLAIN HR PLANNING AND THE VARIOUS FACTORS THAT

INFLUENCE/AFFECT PLANNING.

ANS) HRP is the process of an FORECASTING an organization’s future

demand for, and supply of people:
of the right TYPE
in the right NUMBER
at the right PLACE
at the right TIME
at the right COST,
who are capable of effectively and efficiently completing those tasks that
will help the organization to achieve its over all objectives.

Factors Affecting ( Positively / Negatively ) HRP ARE AS FOLLOWS:

1) THE TYPE OF ORGANIZATION

THE TYPE OF ORGANIZATION DETERMINES THE PRODUCTION

PROCESSES AND ACCORDINGLY, THE NUMBER & TYPE OF
EMPLOYEES NEEDED ( WORKMEN / SUPERVISORY / MANAGERIAL) .

E. g. : - A Tyre factory is a highly labor-intensive, mostly

non-automated, process industry . So, the need
for more skilled workers arises.

- Whereas, a highly automatic industry, needs

less workmen / supervisors / managers.)

- IT & Telecom : Shortage of right talents.

- Manufacturing : Less demand

2) ORGANIZATIONAL STRATEGY

ORGANIZATIONAL STRATEGY DEFINES HR NEEDS.

E.g. - 1.A STRATEGY OF INTERNAL EMPLOYEE GROWTH MEANS

REQUIREMENT OF ADDITIONAL PERSONS, ESPECIALLY AT
JR. LEVEL

2. ACQUISITIONS OR MERGERS WILL MEAN TO PLAN FOR LAY-

OFFS, TRANSFERS, DOWN-SIZING, ETC.
3) BUSINESS STRATEGY

BUSINESS STRATEGY DECIDES WHETHER TO BE;

a. PROACTIVE (TO BE LEADER) OR REACTIVE (TO BE FOLLOWER).

(E.g. - TCS / Infosys / Wipro (Leaders)
- PCS (Follower)

b. NARROW OR FOCUSSED (AT ALL LOCATIONS OR ONLY IN

SELECT AREAS).
(E.g. - AUTOMATION,
- PRODUCT LAUNCH,
- LOCAL / GLOBAL FOCUS).

4) ORGANISATION’S GROWTH CYCLES & PLANNING

WHEN AN ORGNANIZATION ENTERS ITS GROWTH STAGE, OR IF IT IS A

LARGE ORGANIZATION, HRP IS UNAVOIDABLE.
(E.g.: - Aditya Birla Group (Growing)
- Indian Oil (Large organization)

AT DECLINING STAGE OF ORGANIZATION, HRP TAKES REVERSE

FOCUS AND STARTS LAYING-OFF, DOWN-SIZING, TRANSFERS, ETC.
(E.g.: - Jet Airways, Kingfisher Airlines, etc.)

5) LEGAL / POLITICAL

a. POLITICAL CHANGE RESULTS INTO MAKING CHANGES IN LABOUR

POLICIES ETC. INTRODUCED BY PREVIOUS GOVT.

b. LAWS RELATING TO :

TERMS & CONDITIONS OF EMPLOYMENT (PERMANENT /

TEMPORARY / CONTRACT). (E.g. Bajaj)

WORKING CONDITIONS (NO. OF WORKING HOURS, REST TIME).

PAYMENT OF WAGES (MINIMUM WAGES, BENEFITS).

(Higher the cost of labor, lesser the in-take of manpower.
Otherwise, the cost of operation will increase).(E.g. Labor in Mumbai)

INDUSTRIAL DISPUTES (TERMINATION).(E.g. Terminate only legally)

c. ALL HRP ACTIVITIES ARE AFFECTED BY THE VARIOUS LABOR LAWS

IN ONE WAY OR THE OTHER.
6) ECONOMIC

a. BETTER ECONOMY LEADS TO BUSINESS GROWTH,RESULTING INTO

ADDITIONAL IN-TAKE.

b. REVERSE ECONOMY WILL CEASE IN-TAKE OR RESULT

INTO SURPLUS OF EMPLOYEES.

7) SOCIAL

SONS-OF-THE SOIL DEMAND.

- NANO PROJECT : RESULT OF SOCIO-POLITICAL

COMPULSION
- Negative for West Bengal
- Positive for Gujarat

8) TIME HORIZONS

a. SHORT-TERM PLAN

( HRP FOR A PERIOD OF 6 MONTHS TO ONE YEAR FOR

ORGANIZATIONS OPERATING IN UNCERTAIN ENVIRONMENT)
(e.g. IT, BPO)

b. LONG-TERM PLAN

( 3 YEARS TO 20 YEARS FOR STABLE ENVIRONMENT )

(e.g. UNIVERSITY, COLLEGES, ETC.)

9) TYPE & QUALITY OF INFORMATION FOR HRP

NON-AVAILABILLITY OF THE TYPE AND LEVELS OF

INFORMATION ACCURATELY AND TIMELY.

(E.g. - Inaccurate / inadequate information affects

business plan.

- Inaccurate / inadequate internal manpower data

affects meeting requirements through internal source.
10) TYPE OF INFORMATION REQUIRED

a. STRATEGIC INFORMATION
b. GENERAL ORGNL INFORMATION
c. SPECIFIC INFORMATION NECESSARY FOR HRP

11) NATURE OF JOBS BEING FILLED

a. EASY TO FILL VACANCIES OF WORKERS

b. DIFFICULT OF SUPERVISORS & MANAGERS.
c. SO, VACANCIES SHOULD BE ANTICIPATED TO GET SUFFICIENT
LEAD-TIME TO ACQUIRE RIGHT PERSONS.

Q2. EXPLAIN HR AUDIT AND ITS BENEFITS

ANS) HR Audit means the systematic verification of job analysis

and design, recruitment and selection, orientation and
placement, training and development, performance appraisal
and job evaluation, employee and executive remuneration,
motivation and

morale, participative management, communication, welfare

and social security, safety and health, industrial relations,
trade unionism, and disputes and their resolution. HR audit is
very much useful to achieve the organizational goal and also is
a vital tool which helps to assess the effectiveness of HR
functions of an organization.

Benefits of HR Audit:

It provides the various benefits to the organization. These are:

• It helps to find out the proper contribution of the HR

department towards the organization.
• Development of the professional image of the HR
department of the organization.
• Reduce the HR cost.
• Motivation of the HR personnel.
• Find out the problems and solve them smoothly.
• Provides timely legal requirement.
• Sound Performance Appraisal Systems.
• Systematic job analysis.
 • Smooth adoption of the changing mindset.

Q3) EXPLAIN HRP PROCESS WITH THE HELP PROCESS FLOW CHART

ANS) Steps in the Human Resource Planning Process

1) Designing the Management System

A crosscutting issue in human resource planning is to ensure that a
proper system is in place to handle the process. The overall aim of this
system is to manage human resources in line with organizational goals.
The system is in charge of human resource plans, policies, procedures
and best practices. For example, the system should track emerging
human resource management trends, such as outsourcing certain non-
core functions, adopting flexible work practices and the increased use of
information technology, and, if appropriate, implement them.

2) Environmental Analysis
The first step in the human resource planning process is to understand
the context of human resource management. Human resource mangers
should understand both internal and external environments. Data on
external environments includes the following: the general status of the
economy, industry, technology and competition; labor market
regulations and trends; unemployment rate; skills available; and the
age and sex distribution of the labor force. Internal data required
include short- and long-term organizational plans and strategies and the
current status of the organization's human resources.

3) Forecasting Human Resource Demand

The aim of forecasting is to determine the number and type of employees
needed in the future. Forecasting should consider the past and the present
requirements as well as future organizational directions. Bottom-up
forecasting is one of the methods used to estimate future human resource
needs by gathering human resource needs of various organizational units.
4) Analyzing Supply
Organizations can hire personnel from internal and external sources. The
skill inventories method is one of the techniques used to keep track of
internal supply. Skill inventories are manual or computerized systems that
keep records of employee experience, education and special skills. A
forecast of the supply of employees projected to join the organization from
outside sources, given current recruitment activities, is also necessary.

5) Reconciliation and Planning

The final step in human resource planning is developing action plans based
on the gathered data, analysis and available alternatives. The key issue is
that the plans should be acceptable to both top management and employees.
Plans should be prioritized and their key players and barriers to success
identified. Some of these plans include employee utilization plan, appraisal
plan, training and management development plan and human resource
supply plan.