steps in human resource planning

steps in human resource planning

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.

Steps In Human Resource Planning HRP Process

HRP is done by the HRD manager. He is supported by the HRD department. He takes following Steps in the process of Human Resource Planning HRP.

1. Review of Organisation's Objectives

The HRD Manager first studies the objectives of the organisation. Then he prepares a list of all the activities (jobs) that are required to achieve the objectives. He also does Job's analysis.

2. Estimation of Manpower Requirements

The HRD manager then estimates the manpower requirement of the organisation. That is, he finds out how many people (manager and employers) will be required to do all the jobs in the organisation. Estimation of manpower requirements must be made in terms of quantity and quality.

3. Estimation of Manpower Supply

The HRD manager then estimates the manpower supply. That is, he finds out how many managers, and employers are available in the organisation.

4. Comparison of Manpower

The HRD manager then compares the manpower requirements and manpower supply.

5. In case of no difference

If there is no difference between the manpower requirements and the manpower supply, then the HRD manager does not take any action. This is because manpower requirements are equal to the manpower supply.

6. In case of difference

If there is a difference between the manpower requirements and the manpower supply the HRD manager takes the following actions.

If the manpower requirements are less then the manpower supply then there is a surplus.

During manpower surplus, the HRD manager takes the following actions :-

  1. Termination i.e removal of staff.
  2. Lay-off.
  3. Voluntary retirement.

If the manpower requirements are greater than the manpower supply then there is manpower shortage.

During manpower shortage, the HRD manager takes the following actions :-

  1. Promotions
  2. Overtime
  3. Training to improve quality.
  4. Hire staff from outside, etc.

7. Motivation of Manpower

HRP also motivates the employers and managers by providing, financial and non-financial incentives.

8. Monitoring Manpower Requirements

The HRD manager must continuously monitor the manpower requirements. This is because many employees and managers leave the organisation by resignation, retirement, etc. and new work force must take their place fill the manpower gap. This helps in uninterruptible functioning of the organisation.

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.

The steps for effective HR planning encompass demand forecasting, supply forecasting, audit, reconciliation or affecting a demand-supply fit, and control.

Human resource planning is a systematic analysis of HR needs to ensure the availability of the correct number of employees with the necessary skills at the right time. The increased competitive nature of business that makes workforce flexibility an imperative need has raised the importance of human resource planning.

The steps to HR Planning start with forecasting the number and type of employees needed in the future. This requires a good understanding of the internal and external environment of the enterprise.

The major aspects of the internal environment that affect HR Planning include short-term and long-term organizational plans and strategies, and the status of the organization's human resources. The major aspects of an enterprise’s external environment that impacts HR planning include the general status of the economy, developments in technology, level of competition, labor market trends and regulations, demographic trends and the like.

For instance, an organization planning to launch a new product would require additional marketing staff, and an organization looking to open a new branch would require more office staff. An organization looking to close down unprofitable branches might look to retrench workers. Similarly, technological developments might prompt the organization to shift to reliance on fewer numbers of technically skilled workers rather than depend on a large pool of manual labor.

Correct forecasting of human resource requirements contributes significantly to the competitiveness of the enterprise. Organizations forecasting more workers than required retain surplus or under-utilized staff, and organizations that fail to grasp the full extent of human resources required find themselves overstretched and unable to seize opportunities.

The two major methods of forecasting are judgmental methods such as Delphi technique or managerial estimates, and various mathematical models such as time series, personnel and productivity ratios, regression analysis, and the like.

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

Process/Steps of Human Resource Planning(HRP)

HR Planning | Human Resource Management


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.
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