Process of human resource planning
planning is knowing where to go and how to get there. Human resource planning process consists of the following process:-
- Assessing current human resources
- Forecasting human resource demand
- Forecasting human resource supply
- Matching demand and supply forecasts
- Preparation of HR action plan
Assessing current human resources:-
This step looks at job currently being done and the people doing those jobs. It is based on:-
- Human resource inventory
- Human resource information system
- Job analysis
Forecasting human resource demand:-
Forecasting human resource demand in the terms of quantity and quality is an important aspect human resource planning. It is the time bound process of determining future needs for human resource. factors that affect the human resource demand forecast are:-
- External environment forces
- Organizational objectives
- Business plan
- work force factor
Forecasting human resource supply:-
Supply forecasting estimates future sources of human resource that are likely to be available from inside and outside the organization. Its concern is filling projected job openings in the organization. Factors that affects the forecasting the human resource supply are :-
- Internal sources forecasts
- Potential additions to human resource inventory
- Potential losses to human resource inventory
- External sources forecasts
- Labor market
Matching demand and supply forecasts:-
Demand and supply forecasts of human resources are matched to determined future human resource requirements. Additional human resource will be needed to meet the shortages.
Preparation of action plans:-
Action plans are prepared to deal with shortages and surpluses of human resources. They specify timer bound specific activities for implementation purpose. Thy can be:-
- Recruitment action plan
- Development action plan
- Retention action plan
- Promotion action plan
Importance of human resource planning
Human Resource Planning (HRP) is of paramount importance to organizations for several reasons. It plays a crucial role in ensuring that an organization’s workforce is well-prepared, aligned with strategic objectives, and capable of meeting current and future challenges. Here are the key reasons why HRP is essential:-
- Supports Strategic Goals
- Talent Acquisition
- Cost Control
- Quality of Workforce
- Adaptation to Change
- Employee Development
- Succession Planning
- Improved Decision
- Reduces Turnover
Supports Strategic Goals:-
HRP helps organizations align their workforce with their strategic goals and objectives. It ensures that the right talent is in place to execute the company’s business plans effectively.
Talent Acquisition:-
By forecasting future workforce needs, HRP enables organizations to proactively recruit and hire the talent required to fill skill gaps and support growth initiatives.
Cost Control:-
Effective HRP can help manage labor costs. It prevents overstaffing or understaffing situations, reducing unnecessary expenses and optimizing the use of resources.
Quality of Workforce:-
HRP considers the skills, competencies, and qualifications needed for various roles. This results in a more skilled and capable workforce, which enhances overall productivity and performance.
Adaptation to Change:-
In a rapidly changing business environment, HRP helps organizations adapt to technological advancements, market shifts, and economic fluctuations by ensuring the workforce is prepared for these changes.
Employee Development:-
HRP identifies areas where training and development are necessary, enabling employees to acquire new skills and knowledge to meet evolving job requirements.
Succession Planning:-
It identifies potential leaders and successors within the organization, reducing leadership gaps and ensuring continuity in key roles.
Improved Decision-Making:-
HRP provides data and insights that support informed decision-making related to hiring, training, promotions, and resource allocation.
Reduces Turnover:-
By addressing talent shortages and enhancing career development opportunities, HRP can help reduce employee turnover, which is often costly and disruptive.
