HRM Functions

What is Human Resource Planning (HRP)?

Human Resource Planning (HRP), also known as Manpower Planning, is the process by which management ensures that it has the right number and the right kind of people, at the right place, at the right time, capable of completing tasks that help the organization achieve its objectives.

It is a strategy for the acquisition, utilization, improvement, and preservation of an enterprise’s human resources.

Key Definitions:

• Coleman: “The process of determination of manpower requirements and means of meeting those requirements in order to carry out the integrated plan of the organization.”

• Stainer: “Strategy for the acquisition, utilization, improvement and preservation of an enterprise’s human resources.”

Why is HRP Necessary? (Significance)

HRP is crucial for organizations of all sizes, but it is often more formalized in larger organizations due to their complexity.

1. Identify Gaps: It identifies areas of surplus (too many) or shortage (too few) of personnel.

2. Technology Adaptation: To meet the challenges of changing technology, existing employees need training or new skilled people need to be hired.

3. Skills Matching: Every organization needs specific skills, knowledge, and aptitude. HRP ensures these are available.

4. Labour Turnover: Employees inevitably leave (turnover). HRP prepares for replacements.

5. Expansion: Growth programs require a larger, planned workforce.

Why is HRP more common in Large Organizations? Large organizations have complex structures, multiple departments, and vast employee numbers. Without formal planning, managing talent, predicting turnover, and aligning thousands of employees with strategic goals becomes impossible. Small organizations often manage with informal, ad-hoc planning.

The Human Resource Planning Process (7 Steps)

The HRP process is a multi-step, continuous function that links HR management with the overall strategic plan.

Step 1: Investigation (Analysis)

This is the primary stage. The organization analyzes the current manpower scenario using a SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats). It involves:

• External Review: Looking at macro-economic trends, labour market data, and government reports.

• Internal Review: Analyzing current operational data, marketing plans, and financial goals to understand future needs.

Step 2: Forecasting (Demand & Supply)

After investigation, the organization forecasts its needs.

• Demand Forecasting: Estimating the number and type of people required for future jobs.

• Supply Forecasting: Estimating the availability of current and potential employees.

  • Internal Supply: Analyzing current staff for promotion, transfer, or training.

  • External Supply: Analyzing the labour market for new hires.

Step 3: Inventory (Taking Stock)

This involves taking stock of the current employees. An HR Inventory (or Skills Inventory) details the names, ages, locations, skills, and qualifications of everyone in the organization. This reveals what skills are immediately available to meet the forecasted demand.

Step 4: Audit

The HR Audit systematically examines the inventory data. It looks at trends in:

• Labour Turnover

• Age and sex groupings

• Absenteeism

• Training costs This helps predict future HR scenarios (e.g., “In 5 years, 20% of our managers will retire”).

Step 5: HR Resource Plan (Career Planning)

Based on the audit, the organization creates plans for Career Planning and Succession Planning. The goal is to align the organization’s objectives with the development potential of its employees.

Step 6: Actioning the Plan

The plan is put into action. It requires:

• Clear direction (“Know where you are going”).

• Top management support.

• Knowledge of available financial and physical resources. The HR plan becomes part of the corporate long-range plan.

Step 7: Utilization & Control

The final stage measures success.

• Quantitative: Productivity trends, manpower costs.

• Qualitative: Employee morale, industrial relations, and grievance patterns.

Integration with Strategic Planning

Strategic Human Resource Planning (SHRP) serves as the link between HR management and the overall strategic plan of the organization.

• The Goal: To ensure that HR strategies (hiring, training, rewarding) support the business strategies (expansion, cost-cutting, innovation).

• Example: If the business strategy is “Innovation,” the HR strategy must focus on hiring creative talent and rewarding new ideas.

Factors Influencing SHRP:

1. Political & Economic Climate: Government spending, taxes, and banking stability affect hiring.

2. Technological Developments: Automation may reduce the need for manual labour but increase the need for IT skills.

3. Company Strategies: Plans for growth, diversification, or downsizing directly dictate HR needs.

Human Resource Information System (HRIS)

HRIS is a software or online solution for data entry, tracking, and information needs of the HR function. It serves as a central database for decision-making.

Components of HRIS:

• Management of Employee Information: Personal details, pay history, attendance.

• Reporting & Analysis: Turnover rates, absenteeism data.

• Benefits Administration: Insurance, leave tracking.

• Applicant Tracking: Managing resumes and recruitment.

Why HRIS? It replaces costly, inaccurate, and fragmented manual records. It allows for faster decision-making and better data security.

Rightsizing the Enterprise

Rightsizing is the process of transforming an organization to get the most from limited resources. It often involves reducing support personnel to match the current needs of the business (unlike “Downsizing,” which is often just cost-cutting).

Phases of Rightsizing:

1. Identify potential candidates for change.

2. Assess costs and make a plan.

3. nImplement and appraise the solutions.

 Components of Job Analysis (In Detail)

Job Analysis is a fundamental tool for HRP. It helps find out the abilities or skills required to do a job efficiently. It consists of two key components:

1. Job Description (The “What”)

A written statement detailing the duties, responsibilities, and conditions of the job.

• Job Title

• Duties & Responsibilities

• Working Conditions

• Machines/Tools Used

• Supervision Given/Received

2. Job Specification (The “Who”)

A statement of the minimum acceptable human qualities necessary to perform the job.

• Education & Qualifications

• Experience Required

• Skills (Technical, Communication)

• Physical Requirements

• Personality Traits

What is Job Analysis? (Concepts & Components)

In Human Resource Management, understanding “work” is fundamental. Before you can hire, train, or pay someone, you need to define exactly what they will be doing. This is where Job Analysis comes in.

Job Analysis is a formal and detailed examination of jobs. It is a systematic investigation of the tasks, duties, and responsibilities necessary to do a job. It identifies what people do and what they require to do it satisfactorily.

Key Definitions:

• Task: A single work activity (e.g., typing a letter).

• Duty: A sequence of related tasks (e.g., sorting and delivering mail).

• Position: A collection of tasks performed by one person.

• Job: A group of similar positions (e.g., All “Technical Assistants” hold the same job, but have different positions).

The Modern View: Traditionally, jobs were seen as rigid and static. Today, jobs are “rigid solutions to an elastic problem.” They are flexible, adaptable, and constantly changing with technology and competition.

Why is Job Analysis Important?

Job Analysis is the foundation for almost every HR function. Its key uses include:

1. Organization & Manpower Planning: Assessing human needs and defining labor requirements.

2. Recruitment & Selection: Providing realistic standards for hiring the right person.

3. Wage & Salary Administration: Determining the worth of a job to set fair compensation.

4. Job Reengineering: Improving efficiency through:

   • Industrial Engineering: Operational analysis, motion studies.

   • Human Engineering: Matching jobs to human capabilities.

5. Training & Development: Determining the content of training programs based on job needs.

6. Performance Appraisal: Establishing clear standards to measure employee contribution.

7. Health & Safety: Identifying hazardous conditions to prevent accidents.

The 5-Step Job Analysis Process

Conducting a job analysis is a systematic process involving five key steps:

Step 1: Collection of Background Information

Review existing information such as organization charts (to see where the job fits), class specifications, and old job descriptions.

Step 2: Selection of Representative Positions

Analyzing every single job takes too long. Instead, select a few representative positions to analyze in depth.

Step 3: Collection of Job Analysis Data

Gather data on job features, required qualifications, and requirements from employees who actually perform the job.

• Techniques Used: Observation, Questionnaires, Interviews, Log Records, Critical Incidents, Checklists.

Step 4: Developing a Job Description

Convert the collected data into a Job Description. This is a written statement describing the main features, duties, and responsibilities of the job.

Step 5: Developing a Job Specification

The final step is to convert the Job Description into a Job Specification. This details the personal qualities, traits, skills, and background a person needs to perform the job.

Job Description vs. Job Specification

These are the two immediate “products” of Job Analysis.

1. Job Description (The “What”)

A written statement that describes the job, not the person. It explains duties, responsibilities, and working conditions.

• Components:

  • Job Identification: Title, department, location, code.

  • Job Summary: A quick snapshot of the job’s content.

  • Duties & Responsibilities: The heart of the description. What needs to be done and how.

  • Relation to Other Jobs: Vertical (who you report to) and horizontal relationships.

  • Supervision: Span of control (number of people supervised).

  • Working Conditions: Environment (temperature, noise) and potential hazards.

2. Job Specification (The “Who”)

A statement of the minimum acceptable human qualities necessary to perform the job. It guides hiring and testing.

• Components:

  • Physical Characteristics: Health, strength, vision, coordination.

  • Psychological Characteristics: Manual dexterity, mechanical aptitude, analytical ability, mental concentration.

  • Personal Characteristics: Appearance, manners, leadership, initiative, emotional stability.

  • Responsibilities: Supervision of others, safety responsibility, financial trust.

  • Demographics: Age, sex, education, experience.

🔍 What Aspects of a Job are Analyzed?

A thorough analysis collects information on five core areas:

1. Duties and Tasks: Frequency, duration, effort, and complexity of tasks.

2. Environment: Physical conditions, unpleasant odors, temperature extremes, and risks.

3. Tools and Equipment: Specific machines, tools, or protective clothing used.

4. Relationships: Supervision given/received and interactions with internal/external people.

5. Requirements: The Knowledge, Skills, and Abilities (KSAs) required.