Human Resource Planning Process Or Steps Of HR Planning

Human Resource Planning Process is how an organization forecasts future business and environmental forces and figures out what kind and how much labor and staffing they require to be able to meet business and customer demands. Factors that impact this process includes impending retirements and transitions, the availiabilty of employees who contain specific skill sets and also the change in the environment that may require existing employees to undergo special traning. Human resource planning assess the labor requirement for the future, being either short or long term. The human resource planning process is ongoing and beings with a set of objections, moves onto analysis of employee resources, and concludes at the review of HR planning.

Major steps involved in human resource planning process:

  1. Analyzing Human Resources – The assessment of human resource planning begins with environmental analysis, where the external (PEST) and internal (objectives, resources and structure) are analyzed to assess the current staff at the organization. After the analysis of external and internal forces, HR will be able to find the internal strengths along with the weaknesses of the organization, and on the other side, the opportunties and threats, also known as a SWOT analysis. Moreover, it includes an inventory of the workers and skills already available within the organization and a comprehensive job analysis.
  2. HR Demand Forecasting – Human Resources forecasting is the process of estimating the demand and supply of labor in the company in terms of quantity and quality. It is important to meet the future staffing requirements of the organization to achieve certain goals. With the help of the organization’s currentl employment situation and analysis of plans and procedures, the organization can estimate future human resources. A year-by-year analysis should be performed annual for every significant level and type.
  3. HR Supply Forecasting – On the other side of economics is supply, which is another part of HR Planning Process. It is about estimating the supply of labor given the current resources and future availability of HR in the organization. Through this, one could predict the future sources of labor that may be available from outside the organization. Sources such as promotions, transfers, job growth, are internal, whereas hiring new employees are external sources.
  4. Finding a Balance – Finding a balance with demand and supply is another step of human resource planning. It involves the forecast of future demand and supply of HR.The matching process refers to bring demand and supply to a balance so that shortages so a company can avoid surpluses and shortages. In the case of a shortage an organization has to hire more employees and in a surplus, HR must find a way to cut down the number of staff members.
  5. Plan of Action – In the last phase of the human resource planning process, the HR plan is finalized through the delegation of different HR activities. The major activities which are required to execute the HR plan are recruitment, selection, placement, training and development, socialization, and finally following up with control and evaluation of performance of HR to figure out if the planning matches the goals and policies. This plan of action should be updated according to change in time and conditions.