Human Resource Planning Process

  • Post last modified:18 September 2021
  • Reading time:5 mins read

The process of human resource planning starts with considering the organisational objectives and strategies. In this process, both external and internal assessments of HR needs and supply sources must be done and after this forecasting is developed.

The key to assessing internal human resources is having solid and complete information, which is accessible through a human resource information system (HRIS). Once the assessments are done, forecasts must be developed to identify the mismatch between HR supply and HR demand. The HR strategies and plans to address the imbalance, both short and long term plan, must be developed.

Human Resource Planning Process

For top managers, careful attention given to each step is beneficial and supervisors to meet their staffing requirements. The process of human resource planning consists of the following steps given below:

  1. Assessing Current Human Resources
  2. Job Analysis
  3. Analyzing the Organisational Plans
  4. Forecasting HR Demand
  5. Supply Forecasting
  6. Matching Demand and Supply of HR

Assessing Current Human Resources

The first step of HRP is to assess the current status of the organisation’s human resource which is an internal analysis that includes the inventory of employees and skill already available within the organisation and job analysis. Thus the assessment of HR includes the following steps:

HR Inventory

This is the common method to assess the current status of the organisation’s human resources. It prepares reports on the basis of forms completed by employees and then checked by the supervisor which includes the list of employees, education, training, prior experience, current position, performance rating, salary rating and specialized skills etc.

HR inventory helps HRP for determining the skill, training and development program and number of people should be hired in the future. It can also provide crucial information for identifying current or future threats to the organisation ability to perform.

The assessment of the current status of HR is based on the following two techniques.

  • HR information (HRIS): The most effective technique to provide the current state of HR in the organisation is HRIS. It is the method by which organisation collects, maintains, analyse and report information on people on job.

    HRIS is typically designed to fulfill the HRM informational needs of the organisation and it includes the management of basic records, benefits administration, planning, skills inventories, training and development data, performance appraisal and job evaluation information. HRIS facilitates both planning and identifying person for current transfer or promotion.

  • Succession Planning: Succession planning is the process of identifying future managerial staffing needs and making plans and strategies for the development of managers to meet those future requirements. It focuses on the development of competent employees and takes the long term view of the organisation’s human resource needs.

    This technique fetch the information from HR inventory specially expand the information of current performance, promotional ability, development needs and take plans for long term growth potential. It is directly directed to the HRP to help the organisation for future needs of HRM.

Job Analysis

Job analysis is the process of identifying the job and skills, abilities, and responsibilities that are required for an individual to accomplish the task or job assigned. It provides the complete information about the job and the qualification needed to accomplish the job. Job analysis outcomes are job description, job specification and job evaluation.

Analyzing the Organisational Plans

The organisational plan and strategies direct the whole activity of the organisation and it also determines the future HR needs. On the basis of total revenue anticipated, the organisation can attempt to establish the number and proper mix of human resources needed to reach this revenue.

Therefore, there are various components in an organisation’s plan such as production plan, marketing plan, sales plan, plan for expansion etc. determines the activity of HRM, needed to achieve those objectives.

Forecasting HR Demand

Once the information about the current status of manpower is gathered and analyzed and HR objectives are determined, on this basis, future HR needs are forecasted. HR forecasting will be done on the basis of job analysis and facilitate demand forecasting. This step analyze the HR needs for the future in terms of skill, value, capabilities with a number of HR ultimately based on the organisation’s plan and strategies.

Supply Forecasting

After having complete information about the demand, this step analyzed the source of HR supply needed for the future to ensure the availability at right time at the right place. Supply forecasting analyzed the HR inventory and determined the addition and reduction in HR.

There are two sources of HR supply available: first is internal and second is external supply. Internal supply can be done from promotion, transfer and demotion and external supply which is done with new recruitment of employees from various sources.

Matching Demand and Supply of HR

This last step ensures the balance between HR demand in the organisation and supply in the market. It results into the balance, shortage and overstaffing or we can say that if the organisation is in the stage of shortage, then demand is increased and if overstaffing is predicted then the HR should be transferred or can be cut the number of employees.

In this step the HR manager should play a vital role in analyzing and balancing the HR demand and supply, as well as the right action plan, should be taken for it.

Reference

  1. P.Reilly, “Human Resource Planning”, The Institute of Employment Studies, London 1997
  2. J. Walker, “Human Resource Planning: 1990s Style”, Human Resource Planning, 13, 1990

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