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Human Resource Planning Process – Human Resource Management |Management Notes

Human Resource Planning Process

Human Resource Planning (Manpower Planning) is the process of determining an organization’s human resource needs of the right people at the right time and right place who are capable and will help to achieve the organization’s overall objectives efficiently and effectively.

The process/steps of human resource planning are as follows:

  • Understanding the goals and plans of the Organization
  • Assessment of the current Human Resources Situation
  • Human Resource Forecasting (Demand and Supply)
  • Implementation of the program (Action plan)
  • Evaluation and Feedback (Audit and Adjustment)

Human Resource Planning Process

Understanding the goals and plans of the Organization

Understanding the goals and plans of the Organization as a Human Resource Planning Process

➨ This is the first step of Human Resource planning.

➨ The organization’s objectives and strategies influence the Human resource planning process because HR planning must be derived from organizational objectives as it is a part of the overall strategic planning of the organization.

➨ Therefore, it is imperative to understand the goals and plans of the organization to make an appropriate HR plan.

Assessment of the current Human Resources Situation

Assessment of the current Human Resources Situation as a Human Resource Planning Process

➡ This is the second step of Human resource planning. This step begins with developing a profile of current employees in the organization.

➡ Internal analysis of employees is done which includes collecting information about the workers and the skills they possess.

➡ The main motive in this step is to generate an effective and detailed human resource inventory report which includes complete information on employees by name, education, training, prior employment, current position, performance ratings, salary level, languages spoken, capabilities, and specialized skills.

➡ This HR inventory report helps to know what stock of HR the organization has in terms of quality and quantity.

Human Resource Forecasting (Demand and Supply)

Human Resource Forecasting (Demand and Supply) as a Human Resource Planning Process

➡ This is the third step of Human Resource Planning. In this step demand for the people and appropriate type and skills for given periods in future years is determined, and the supply of the people is estimated.

➡ HR forecasting is essential to estimate staff requirements in future periods. (the external and internal supply of manpower, the external and internal demand for manpower, and, the comparison of demand and supply).

➡ Forecasted HR availability is generally less than the current workforce because of retirements, quits, disability, death, early retirements, etc.

Implementation of the program (Action plan)

Implementation of the program (Action plan) as a Human Resource Planning Process

➡ This is the fourth step in HR planning. In this step, the HR plan should be converted into action.

➡ Implementation of an HR plan means recruitment, selection, placement, performance appraisal, career development, promotion, transfer, layoff, retirement, training and development, motivation and compensation, etc.

Evaluation and Feedback (Audit and Adjustment)

Evaluation and Feedback (Audit and Adjustment) as a Human Resource Planning Process

➡ This is the fifth and final step of HR planning. Sometimes, the programs for meeting HR targets may be unable to attain the objectives because of various reasons.

➡ Therefore, we need to measure progress to control and evaluate to identify if the changes in the HR plans are made necessary because of changed conditions or because some of the original planning assumptions have gone wrong.

Examples of Human Resource Planning Process

Human Resource Planning (HRP) is a strategic process that involves identifying and addressing current and future human resource needs within an organization. The process typically includes several key steps. Here are some examples of the human resource planning process:

  1. Environmental Scan:
    • Objective: Understand the external and internal factors that may impact the organization’s workforce.
    • Activities:
      • Analyzing industry trends.
      • Reviewing economic conditions.
      • Assessing technological advancements.
      • Examining legal and regulatory changes.
  2. Organizational Analysis:
    • Objective: Evaluate the current state of the organization and its strategic objectives.
    • Activities:
      • Reviewing the organization’s structure, culture, and processes.
      • Identifying the organization’s mission, vision, and goals.
      • Assessing the current workforce capabilities and skills.
  3. Job Analysis and Job Design:
    • Objective: Understand the tasks, responsibilities, and qualifications required for each job within the organization.
    • Activities:
      • Conducting job analyses to determine job specifications.
      • Designing or redesigning jobs to align with organizational goals.
      • Identifying key competencies needed for each position.
  4. Forecasting Future Workforce Needs:
    • Objective: Predict the future demand for and supply of human resources.
    • Activities:
      • Analyzing historical data on turnover and retention rates.
      • Using statistical models to project future workforce requirements.
      • Assessing workforce demographics and retirement trends.
  5. Skills Inventory:
    • Objective: Assess the existing skills and competencies of the current workforce.
    • Activities:
      • Creating and maintaining employee skill profiles.
      • Conducting skills assessments or competency evaluations.
      • Identifying gaps between current skills and future requirements.
  6. Recruitment and Selection Planning:
    • Objective: Develop strategies to attract and select the right talent.
    • Activities:
      • Identifying sources for potential candidates.
      • Developing recruitment campaigns.
      • Establishing selection criteria and processes.
  7. Training and Development Plans:
    • Objective: Address skill gaps and enhance the capabilities of the workforce.
    • Activities:
      • Identifying training needs based on job requirements.
      • Designing training programs.
      • Implementing ongoing professional development initiatives.
  8. Succession Planning:
    • Objective: Ensure a pipeline of talent for key positions within the organization.
    • Activities:
      • Identifying critical positions and key talent.
      • Developing and grooming high-potential employees.
      • Implementing plans for seamless leadership transitions.
  9. Monitoring and Evaluation:
    • Objective: Regularly assess and adjust the HR plans based on changing circumstances.
    • Activities:
      • Monitoring workforce metrics and key performance indicators.
      • Gathering feedback from managers and employees.
      • Making adjustments to the HR plan as needed.
  10. Legal Compliance:
    • Objective: Ensure that all HR activities comply with relevant laws and regulations.
    • Activities:
      • Staying informed about labor laws, equal opportunity regulations, and other relevant legislation.
      • Conducting regular audits to ensure compliance.
      • Updating policies and procedures to align with legal requirements.

References

  • Viter, I. (2023, December 13). Human Resource Planning Done Right: A Step-by-Step Guide. Runn. https://www.runn.io/blog/human-resource-planning-hrp
  • Bajaj, S. (2024, January 9). What is Human Resource Planning (HRP)?: Process, Benefits, and Examples. CallHippo. https://callhippo.com/blog/general/human-resource-planning

Smirti

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