Human Resource Planning

The report discusses the importance of Human Resource Planning (HRP) for an organization's survival and prosperity. It highlights how HRP helps in estimating future manpower requirements, identifying talented employees, and taking suitable actions to supply the right kind of persons considering current business operations and future activities. The report also explores internal and external factors that affect HR planning, including employment trends, replacement needs, productivity, and expansion. Furthermore, it discusses various demand and supply forecasting models, such as Executive Judgment and Supply Forecasting Method. Finally, the report presents a gap analysis and budget recommendations for Leon's Furniture to address its HR, finance, and training and development gaps.

Running head: HUMAN RESOURCE PLANNING
HUMAN RESOURCE PLANNING
[Document subtitle]

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HUMAN RESOURCE PLANNING
EXECUTIVE SUMMARY
Human Resource Management is very important for the survival and prosperity of an
organization. Procurement of right kind and right number of employees is the first operative
function of Human Resource Management. Before selecting the right man for the right job, it
becomes necessary to determine the quality and quantity of people required in the organization.
This is the primary function of Human Resource Planning. It is the planning of Human
Resources. It is also called manpower planning/ personnel planning/ employment planning. It is
only after Human Resource Planning that the Human Resource department can initiate the
recruitment and selection process. Therefore Human Resource Planning is a sub-system of
organizational planning. In this report, we have discussed the impact of environmental scanning
on HR Planning of Leon’s Furniture. Various models of demand and supply forecasting are
discussed. Furthermore, gap and budget analysis along with recommendations are discussed in
the later sections of this report.

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Company background, business & HR strategy
About Leon’s furniture
Among the top names of Furniture companies in Canada, Leon’s Furniture was incorporated in
1909 by Ablan Leon which started its business into blankets, linens, shoes and pants and other
soft category goods and now is a global leader into World class furniture dealer, appliances with
latest technology and many more. Leon’s Furniture is marketing the electronics, appliances and
furniture of middle range. The Business strategy of Leon’s Furniture includes expanding its
business across globe, providing quality products with less cost incurring and achieving the goals
and objectives of organization. As the organization collects the data about matters which
specifically relates to supply and demand of workforce and also abilities, skills and knowledge
which is required to plan for current needs of workforce (Azizi, Majid, et al., 2016).
Internal and External Factors to Forecast Key Group
As it was discussed in business strategy, as Leon's furniture decided to expand its business on
global basis they are doing succession planning to infuse manpower for successful achievement
of their organizational goals. Forecasting of demand for human resources depends on certain
factors such as:
 Employment trend in the organization for at least last five years to be traced
to determine the future needs.
 Organization has to find out the replacement needs due to retirement, death, resignation,
termination etc.

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HUMAN RESOURCE PLANNING
 To improve productivity organization needs better employees with skills and potential.
Productivity leads to growth but depends on the demands for the product of the enterprise in
the market.
 Expansion of the organization leads to hiring of more skilled persons. The base of human
resource forecast is the annual budget. Manufacturing plan depends upon the budget.
Expansion in production leads to more hiring of skills and technology.
Analyzing Short-Term and Long Term Demand and Supply for Key group
Demand Forecasting Model
Executive Judgment: Executive or Managerial Judgment method is the most suitable for smaller
enterprises because they do not afford to have work study technique. Under this method the
executives sit together and determine the future manpower requirements of the enterprise and
submit the proposal to the top management for approval. This approach is known as ‘bottom up’
approach. Sometimes the members of top management sit together and determine the needs on
the advice of personnel department. The forecasts so prepared sent for review to the
departmental heads and after their consent approved the need. This is known as ‘top down’
approach (Ellram, et al., 2013).
Supply Forecasting Method
Supply forecasting involves taking a stock of existing HR inventory HR Managers have to
calculate the rate of labor turnover, conduct exit interviews etc. This helps them forecast, the rate
of potential loss, causes of loss etc. Potentials added to the present inventory of human resources
minimize the impact of potential losses (Yuan, et al., 2014).

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HUMAN RESOURCE PLANNING
Gap Analysis and Budget Recommendations
Gaps were assessed in three focus area- HR, Finance and training and Development.
HR: There is a huge gap of more than 25% in the required vs functional HR Genralists. The
existing generalists possess poor knowledge of the domain. No dedication from them in work
delivered.
Finance: Shortage of Audit officer. Absenteeism is seen from this department. Poor motivation
level of Audit officers-untimely payment of incentives etc. Lack of professional knowledge in
CS. No dedication towards work (Lee, et al., 2016).
Training and Development: Less number of personnel in this department. Less motivation in existing
team (Zutshi, Ambika, et al., 2016).
Budget: The total budget for these 3 areas is Rs. 332464 Lakhs. The summary of Budget under
each department allocated is given below:
S.No Major Gaps Budget(In lakh) Person Responsible
1 Human Resource: Shortage
of HR Generalists
Rs. 23422 HR/Recruitment Cell
2 Finance: Audit personnel Rs. 25622 HR/Recruitment Cell
3 Finance: CS Rs. 26222 HR/Recruitment Cell
4 IT: IT Software Engineer Rs. 23499 HR/Recruitment Cell
5 Training and Development:
Manager
Rs. 22199 HR/Recruitment Cell

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Findings and Recommendations
On the basis of the report we arrive at the conclusion that Human Resource Planning is an
indispensable part for any organization. An organization enjoys many advantages of having a
well-built HR planning system like it helps in estimating future manpower requirements of the
organization. An entity contains a number of jobs requiring highly specialized knowledge. And
there is a shortage of skilled employees. HR Planning helps to identify such talents and ensures
adequate supply of such talented employees thereby alleviating the problem of shortage in the
organization. With frequent changes and development in field of technology, an effective HRP
helps by supplying the right person with right skills. It understands manpower requirements and
takes suitable actions to supply the right kind of persons, considering the current business
operations and future activities of the organization.

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REFERENCES
Azizi, Majid, Nemat Mohebbi, and Fabio De Felice. "Evaluation of Sustainable Development of
Wooden Furniture Industry Using Multi criteria Decision Making Method." Agriculture and
Agricultural Science Procedia 8 (2016): 387-394.
Ellram, Lisa M., Wendy L. Tate, and Edward G. Feitzinger. "Factor‐market rivalry and
competition for supply chain resources." Journal of Supply Chain Management 49.1 (2013): 29-
46.
Lee, Dickson. "The viability of China’s wood furniture industry." (2016).
Yuan, Naxin, et al. "Analysis of Inhalable Dust Produced in Manufacturing of Wooden
Furniture." BioResources 9.4 (2014): 7257-7266.
Zutshi, Ambika, et al. "Reflections of environmental management implementation in
furniture." International Journal of Retail & Distribution Management 44.8 (2016): 840-859.