Five Steps of Human Resources Planning

What Is Human Resource Planning (HRP)?

Human resource planning (HRP) is the continuous process of systematic planning to achieve optimum use of an organization's most valuable asset-quality employees. Human resources planning ensures the best fit between employees and jobs while avoiding manpower shortages or surpluses. HRP is an important investment for any business as it allows companies to remain both productive and profitable.

Figure 01:Top five steps of Human Resource Planning By HRMCMATRIX

To retain employees and remain competitive, HRP often looks at organizational design, employee motivation, succession planning, and increasing return on investment overall. 5 steps of HRP as follows;

1. Analysis of Organizational Plans and Objectives

2.Analysis of Human Resource Planning Objectives

3.Forecasting for Human Resource Requirement

4.Assessment of Supply of Human Resources

5.Matching Demand and Supply

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

                                             1.Analysis of Organizational Plans and Objectives

Human resource planning is a part of overall plan of organization. Human resource planning process begins with the analysis of overall plan of the organization into departmental, sectional and sub-sectional plans and functional plans like sales, marketing, technological plans. This break up of overall plan provides for assessing the human resource requirement for each department and activity. Besides analyzing the organizational plans, the objectives of the organization are also analyzed. 

Organizational analysis is the process of appraising the growth, personnel, operations, and work environment of an entity. Undertaking an organizational analysis is beneficial, as it enables management to identify areas of weakness and then find approaches for eliminating the problems.

                                            2.Analysis of Human Resource Planning Objectives

Human resource planning is a part of corporate plan. Its objectives are to be fixed in the light of corporate objectives. The emphasis is given on future requirements than the present one. The main purpose of human resource planning is to match the present and future manpower needs of the organization. These objectives should be integrated with the objectives of all the functional areas of the organization. The emphasis should also be given on to maximize the return on investment in human resources.

                                            3 .Forecasting for Human Resource Requirement

HR forecasting is the process of predicting how a company's staffing needs change with time so that it can remain prepared to operate successfully. Organizations use HR forecasting to decide to hire more people, reduce their staffing or adjust how they divide responsibilities.

The correct forecasting for required human resources for the organization becomes simple if design and structure of the jobs examined thoroughly keeping in view the skills, potentialities and knowledge required to perform them and make an estimate for the future requirements. Some factors dominating the forecast for human resources such as Expansion of the enterprise, Mergers and acquisitions, Retirement, death, resignation and terminations, Change in style of leadership, Improvement in productivity.

                    

                                                 4.Assessment of Supply of Human Resources  

Conducting a supply analysis involves understanding the current workforce and how it is projected to change over time, due to attrition and other trends. To make assessment of supply of human resources for the organization it should begin with the current human resource inventory of the organization. It is also known as auditing of human resource to be undertaken by the departments of the organization where complete information regarding skills, abilities, qualifications, capacity for hard work is available and so also the quantity and quality of human resources manning various positions, the probable retirements.

The supply of human resources may be less because of layoffs, dismissals, voluntary retirements, retirements, deaths etc. If the supply is less than the demand for or is inadequate to meet the requirement for human resources then it can be fulfilled through external sources. The graduates from educational institutions serve the purpose.

                                                      5.Matching Demand and Supply

Matching the demand and supply is where the hiring process gets tricky—and where the rest of the human resources management planning process comes into place. It is one of the objectives of human resource planning to assess the demand for and supply of human resources and match both to know shortages and surpluses on both the side in kind and in number. This will enable the human resource department to know overstaffing or understaffing.

The organization must follow the human resource philosophy as a guiding principle. Career planning must be kept in view while planning for human resources.   

Conclusion:

Human resources planning should be flexible enough to control and meet staffing challenges  always. HRP starts by assessing and auditing the current capacity of human resources. Therefore it should be followed these 5 steps in HRP in a company and it helps to strategically reach business goals.       

References:    

What is Organizational Analysis? [online] Available at: https://corporatefinanceinstitute.com/resources/management/organizational-analysis/[Accessed on 25th Apr.2023]

Human Resource Planning (HRP) Meaning, Process, and Examples [online] Available at:   https://www.investopedia.com/terms/h/human-resource planning.[Accessed on 25th Apr.2023]

Top 5 Steps Involved in Human Resource Planning Process [online] Available at: https://www.yourarticlelibrary.com/human-resource-planning/top-5-steps-involved-in-human-resource-planning-process/60204 [Accessed on 25th Apr.2023]

What is HR forecasting? [online] Available at:https://www.indeed.com/career-advice/career-development/hr-forecasting.[Accessed on 25th Apr.2023]

Supply Analysis [online] Available at:https://hr.nih.gov/workforce/workforce-planning/supply-analysis.[Accessed on 25th Apr.2023]

4 steps to strategic human resource planning [online] Available at:  https://www.lucidchart.com/blog/what-is-the-human-resources-planning-process.[Accessed on 25th Apr.2023]