human resource planning steps

human resource planning steps

Steps in Human Resource Planning (explained with diagram)

Steps in Human Resource Planning (explained with diagram)!

Human resource planning is a process through which the right candidate for the right job is ensured. For conducting any process, the foremost essential task is to develop the organizational objective to be achieved through conducting the said process.

Six steps in human resource planning are presented in Figure 5.3.

1. Analysing Organizational Objectives:

The objective to be achieved in future in various fields such as production, marketing, finance, expansion and sales gives the idea about the work to be done in the organization.

2. Inventory of Present Human Resources:

From the updated human resource information storage sys­tem, the current number of employees, their capacity, perfor­mance and potential can be analysed. To fill the various job requirements, the internal sources (i.e., employees from within the organization) and external sources (i.e., candidates from various placement agencies) can be estimated.

3. Forecasting Demand and Supply of Human Resource:

The human resources required at different positions according to their job profile are to be estimated. The available internal and external sources to fulfill those requirements are also measured. There should be proper matching of job description and job specification of one particular work, and the pro­file of the person should be suitable to it.

4. Estimating Manpower Gaps:

Comparison of human resource demand and human resource supply will provide with the surplus or deficit of human resource. Deficit represents the number of people to be employed, whereas surplus represents termination. Extensive use of proper training and development programme can be done to upgrade the skills of employees.

5. Formulating the Human Resource Action Plan:

The human resource plan depends on whether there is deficit or surplus in the organization. Accord­ingly, the plan may be finalized either for new recruitment, training, interdepartmental transfer in case of deficit of termination, or voluntary retirement schemes and redeployment in case of surplus.

6. Monitoring, Control and Feedback:

It mainly involves implementation of the human resource action plan. Human resources are allocated according to the requirements, and inventories are updated over a period. The plan is monitored strictly to identify the deficiencies and remove it. Comparison between the human resource plan and its actual implementation is done to ensure the appropriate action and the availability of the required number of employees for various jobs.

Human resource planning – Process steps

In today’s knowledge economy an organization’s most valuable asset is its human resources – its employees. Their skills and knowledge, as well as their relationships with key customers, can often be irreplaceable and can determine an organization’s success. So much so, human resource planning is now an integral part of an organization’s strategy.

The human resource planning is a four-step process that analyzes current human resources, forecasts future requirements, identifies areas where there are gaps, and then implements a plan to tighten up those gaps. Breaking it down, the objectives of human resource planning are to make sure you have the right number of people in the right jobs at the right time.

What are steps in the human resource planning process?

Step 1: Assess your current human resource capacity

Start by looking at your current human resources state of play. This will involve analyzing the HR strength of your organization across factors including employee numbers, skills, qualifications, experience, age, contracts, performance ratings, titles, and compensations. During this phase, it’s a good idea to gather insight from your managers who can provide real-world feedback on the human resource issues they face, as well as areas in which they think changes are necessary.

Step 2: Forecast future HR requirements

You will then need to look at the future HR needs of your organization and how human resources will be applied to meet these organizational goals. HR managers will typically look at the market or sectoral trends, new technologies that could automate certain processes, as well as industry analysis in order to gauge future requirements. Of course, there are a number of factors affecting human resource planning such as natural employee attrition, layoffs, likely vacancies, retirements, promotions and end of contract terms. Above all of this, you will need to understand the goals of the organization: are you entering a new market, launching new products or services, expanding into new areas. Forecasting HR demand is a complex task based on several dynamics. Being informed and having a seat, or at least an ear, at boardroom level is essential if you are to make accurate HR projections.

An effective human resource plan walks the fine line between supply and demand. By assessing the current HR capacity and projecting future requirements you should have a clear picture of any gaps that exist. Using your HR forecast you can better judge if there will be a skills gap, for example. Should you upskill existing employees or recruit employees who are already qualified in specific areas? Are all current employees being utilized in the right areas or would their skills be better suited to different roles?

Step 4: Integrate the plan with your organization’s overall strategy

After you’ve assessed your current human resources capacity, projected future HR demands and identified the gaps, the final step is to integrate your human resources plan with your organizational strategy. On a practical level, you will need a dedicated budget for human resources recruiting, training or redundancies, and you will also need management buy-in across the business. You will need cooperation and the necessary finances in order to implement the plan and a collaborative approach from all departments to put it into practice. Learn about the benefits of strategic human resource management.

Process/Steps of Human Resource Planning (HRP) | Human Resource Management

Process/Steps of Human Resource Planning(HRP)

HR Planning | Human Resource Management

BBA | BBA-BI | BBA-TT | BCIS

Human Resource planning (Manpower Planning) is the process of determining organization’s human resource needs of right people at right time and right place which are capable and will help to achieve organization’s overall objectives efficiently and effectively. The process/steps of human resource planning are as follows:

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

Therefore, it is very important to understand the goals and plans of the organization in order to make appropriate HR plan.

  • Human Resource Forecasting (Demand and Supply): This is the third step of Human Resource Planning. In this step demand for the people and appropriate type and skills for given time periods in future years is determined, and also supply of the people is estimated. HR forecasting is essential to estimate staff requirements at future time period.(the external and internal supply of manpower, the external and internal demand for manpower and , comparison of demand and supply).Forecasted HR availability is generally less than current workforce because of retirements, quits, disabled , death , early retirements, etc.

What is 'Human Resource Planning - HRP'

Human resource planning, or HRP, is the ongoing, continuous process of systematic planning to achieve optimum use of an organization's most valuable asset — its human resources. The objective of human resource planning is to ensure the best fit between employees and jobs while avoiding manpower shortages or surpluses. The four key steps of the human resources planning process are analyzing present labor supply, forecasting labor demand, balancing projected labor demand with supply and supporting organizational goals.

Strategic Financial Management .

BREAKING DOWN 'Human Resource Planning - HRP'

The human resources plan needs to be flexible enough to meet short-term staffing challenges while adapting to changing conditions in the business environment over the longer term. Human resource planning starts by assessing and auditing the current capacity of human resources.

The first step of human resource planning is to identify the company's strengths and weaknesses in the current labor pool. This is when a company performs a comprehensive audit of the skills, demographics, qualifications, experience and compensation of every worker. HR then has to determine if these statistics fit in line with the company's goals. Does the firm need to hire more staff to compete in a future marketplace, or are more automated tools necessary to capture more market share from competitors? Is the status quo acceptable, or should the company reorganize its staff so that it can make more money?

HR forecasts demand based on the strategic goals of the company. HR managers may examine market trends, industry analyses and technological improvements to try to come up with ways to meet the company's goals. Forecasting possible retirements is also one major facet that needs to be considered when businesses assess future staffing levels. Do retired employees need to be replaced, or can new technology do the job? Does a company need more full-time workers, part-time help or outsourced labor?

The next step involves striking a balance between supply and demand. At this point, HR creates a gap analysis that lays out specific needs to narrow the supply of the company's labor versus future demand. Should employees learn new skills in the future? Does the company need more managers? Do all employees play to their strengths in their current roles?

The answers to these questions let HR determine how to proceed, which is the final phase of the human resources planning process. HR must now take practical steps to integrate its plan with the rest of the company. The department needs a budget, the ability to implement the plan and a collaborative effort with all departments to make the plan happen.

The overall goal of HR planning is to have the optimal amount of staff to make the most money for the company. Because the goals and strategies of the company change over time, human resource planning is a regular occurrence.

Steps in the Human Resource Planning Process

Designing the Management System

A crosscutting issue in human resource planning is to ensure that a proper system is in place to handle the process. The overall aim of this system is to manage human resources in line with organizational goals. The system covers human resource plans, policies, procedures and best practices. For example, it should track emerging human resource management trends -- such as outsourcing certain non-core functions, adopting flexible work practices and the increased use of information technology -- and, if appropriate, implement them.

The first step in the human resource planning process is to understand the context of human resource management. Human resource mangers should understand both internal and external environments. Data on external environments includes the general status of the economy, industry, technology and competition; labor market regulations and trends; unemployment rate; skills available; and the age and gender distribution of the labor force. Internal data required include short- and long-term organizational plans and strategies and the current status of the organization’s human resources.

Forecasting Human Resource Demand

The aim of forecasting is to determine the number and type of employees needed in the future. Forecasting should consider the past and the present requirements as well as future organizational directions. Bottom-up forecasting is one of the methods used to estimate future human resource needs by gathering human resource needs of various organizational units.

Organizations can hire personnel from internal and external sources. The skill inventories method is one of the techniques used to keep track of internal supply. Skill inventories are manual or computerized systems that keep records of employee experience, education and special skills. A forecast of the supply of employees projected to join the organization from outside sources, given current recruitment activities, is also necessary.

The final step in human resource planning is developing action plans based on the gathered data, analysis and available alternatives. The key issue is that the plans should be acceptable to both top management and employees. Plans should be prioritized and their key players and barriers to success identified. Some of these plans include employee utilization plan, appraisal plan, training and management development plan and human resource supply plan.

Alfred Sarkissian holds a master’s degree in industrial management. With experience in business and public policy, he has covered intellectual property rights, industrial policy and technology policy for various publications.

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