HRP
is influenced by several factors. The most important of the factors that affect
HRP are
1. Type and Strategy of the
Organization: Type of the organization determines the
production processes involve, number and type of staff needed and the
supervisory and managerial personnel required. HR need is also defined by the
strategic plan of organization. If the organization has a plan for organic
growth then organization need to hire additional employees. On the other hand
If the organization is going for mergers and acquisition, then organization
need to plan for layoffs, as mergers can create, duplicate or overlap positions
that can be handled more efficiently with fewer employees. Organization first
decides whether to be reactive or proactive in HRP. Organizations either
carefully anticipate the needs and systematically plan to fill the need in
advance (proactive) or can simply react to the needs as they arise (reactive).
Likewise, the organization must determine the width of the HR plan. Organization
can choose a narrow focus by planning in only one or two HR areas like
recruitment and
selection
or can have a broad perspective by planning in all areas including training and
remuneration. The nature of HR plan is also decides upon the formality of the
plan. It can decides to have an informal plan that lies mostly in the minds of
the managers and personnel staff or can have a formal plan which is properly
documented in writing The nature of HR plan is also depended upon the
flexibility that is practiced in the organization. HR plan should have the ability to anticipate and deal
with contingencies. Organizations frame HRP in such a way that it can contain
many contingencies, which reflect different scenarios thereby assuring that the
plan is flexible and adaptable.
2. Organizational Growth Cycles
and Planning: All organizations pass through
different stages of growth from the day of its inception. The stage of growth
in which an organization is determines the nature and extends of HRP. Small
organizations in the earlier stages of growth may not have well defined
personnel planning. But as the organization enters the growth stage they feel
the need to plan its human resource. At
this
stage organization gives emphasis upon employee development. But as the organization reaches the mature stage it
experience less flexibility and variability resulting in low growth rate. HR
planning becomes more formalized and less flexible and less innovative and
problem like retirement and possible retrenchment
dominate
planning.
During
the declining stage of the organization HRP takes a different focus like
planning to do the layoff, retrenchment and retirement. In declining situation
planning always becomes reactive in nature towards the financial and sales
distress faced by the company.
3. Environmental Uncertainties: Political, social and economic changes
affect all organizations and the fluctuations that are happening in these
environments affect organizations drastically. Personnel planners deal with
such environmental uncertainties by carefully formulating recruitment,
selection, training and development policies and programmes. The balance in the
organization is achieved through careful succession
planning,
promotion channels, layoffs, flexi time, job sharing, retirement, VRS and other
personnel related arrangements.
4. Time Horizons: HR plans can be short term or long
term. Short term plans spans from six months to one year, while long term plans
spread over three to twenty years. The extent of time period depends upon the
degree of uncertainty that is prevailing in an organizations environment.
Greater the uncertainty, shorter the plan time horizon and vice versa.
5. Type and Quality of
information: The information used to forecast
personnel needs originates from a multitude of sources. The forecast depends to
a large extent upon the type of information and the quality of data that is
available to personnel planners. The quality and accuracy of information depend
upon the clarity with which the organizational decision makers have defined
their strategy, structure, budgets,
production
schedule and so on.
6. Nature of Jobs Being Filled: Personnel planners need to be really
careful with respect to the nature of the jobs being filled in the
organization. Employees belonging to lower level who need very limited skills can
be recruited hastily but, while hiring employees for higher posts, selection
and recruitment need to be carried out with high discretion. Organization need
to anticipate vacancies far in advance as possible, to
provide
sufficient time to recruit suitable candidate.
7. Outsourcing: Several organizations outsource part of
their work to outside parties in the form of subcontract. Outsourcing is a
regular feature both in the public sector as well as in the private sector companies.
Many of the organizations have surplus labour and hence instead of hiring more
people they go for outsourcing. Outsourcing is usually done for non critical
activities. Outsourcing of non- critical activities through subcontracting
determines HRP.
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