According to Gary Kessler (2003), human resource planning is the process of deciding what positions the firm will have to fill and how to fill them. It is the process where we review systematically human resources requirement in order to make sure the requirement number of employees with the required skills are available when we need them. For instance, when the demand for the firm's products or services increases.
It's also effect to labor demand. But when the demands of the products and services decreased, the demand of the products will be decreased too. The process involves forecasting human resources requirements and availability. These considerations will be compared to determine what action to be taken. If there are deviations between the estimation, the managers have to make several steps to eliminate the gap and balance the supply and demand of the workers.
Usually, estimating labor demand and supply lead the manager faces one of these three circumstances. Labor demand equal labor supply. Labor supply exceed labor demand and labor demand exceed labor supply. The first scenario is when the labor demand is expected to match labor supply. In this situation, the firm can replace the quits employees with personal from the inside or hiring new employees from the outside. The firm may also transfer or redeployed the internal workers with training programs or development. The second scenario, labor supply is exceeds labor demand. The firm can use a few steps to deal with the surplus of the employees. For examples, the organization does not hire new employees.
They are not going to find any replacement for the employees who leave. For those employees who are hourly paid, the hours of work is cut and the firm can implement work sharing among them. The organization can also introduce early retirement incentive with some of the retirement attractive package to the present employees. Some organization chooses to terminate the workers for a few reasons. This is not an easy decision because lying off the workers is under the rules of federal and labor law. Usually the managers used either merit or seniority to fire the workers.
Published by Mr. firdaus
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