Human Resource Planning Process

The Human Resource Planning is a process of forecasting the organization’s demand for and supply
of manpower needs in the near future.

1. Determining the Objectives of Human Resource Planning: The foremost step in every
process is the determination of the objectives for which the process is to be carried on. The
objective for which the manpower planning is to be done should be defined precisely, so as
to ensure that a right number of people for the right kind of job are selected.

2. Analyzing Current Manpower Inventory: The next step is to analyze the current manpower
supply in the organization through the stored information about the employees in terms of
their experience, proficiency, skills, etc. required to perform a particular job.

3. Forecasting Demand and Supply of Human Resources: Once the inventory of talented
manpower is maintained; the next step is to match the demand for the manpower arising in
the future with the supply or available resources with the organization.

4. Employment Plan/Action Plan: Once the manpower gaps are evaluated, the action plan is to
be formulated accordingly. In a case of a deficit, the firm may go either for recruitment,
training, interdepartmental transfer plans whereas in the case of a surplus, the voluntary
retirement schemes, redeployment, transfer, layoff, could be followed.

5. Training and Development: The training is not only for the new joinees but also for the
existing employees who are required to update their skills from time to time.

6. Appraisal of Manpower Planning: Finally, the effectiveness of the manpower planning

process is to be evaluated. Here the human resource plan is compared with its actual
implementation to ensure the availability of a number of employees for several jobs.

What is HR forecasting?
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.
Why is HR forecasting important?
HR forecasting is important because it ensures organizations can operate responsibly, avoiding costs
associated with lost productivity or over-staffing.

Strategies for effective HR forecasting

Here are several strategies your HR department can implement for effective forecasting:
Delphi method
The Delphi method sources the opinion of multiple experts to analyze a problem. It uses an
intermediary to facilitate idea-sharing without personal biases or unproductive debate.
Trend analysis
A trend analysis strategy uses historical data about the company's previous staffing to predict its
future needs.
Ratio analysis
Ratio analysis functions similarly to trend analysis because it establishes a connection between key
metrics and total staffing. It prioritizes identifying the exact ratio that enables a business to operate
well and then applies it to the future.
Supply forecasting
Supply forecasting refers to the strategy where businesses analyze their internal and external access
to qualified candidates. Internally, companies assess their teams to determine who they could
promote or laterally transition into open roles. They review employees' qualifications and
performance evaluations and decide how to use them as a replacement for someone planning to
retire or resign.

problems in the process of human resource planning

The main problems in the process of human resource planning are as follows:

Process
1. Inaccuracy:
Human resource planning involves forecasting the demand for and supply of human
resources. Projecting manpower needs over a period of time is risky.
Factors such as absenteeism, labour turnover, seasonal trends in demand, competitive
pressures, technological changes and a host of other factors may turn the rest of
manpower plans into fashionable, decorative pieces.

Uncertainties:
Technological changes and market fluctuations are uncertainties, which serve as
constraints to human resource planning. It is risky to depend upon general estimates of
manpower in the face of rapid changes in environment.

3. Lack of support:
Planning is generally undertaken to improve overall efficiency. In the name of cost
cutting, this may ultimately help management weed out unwanted labour at various
levels.

Numbers’ game:
In some companies, human resource planning is used as a numbers game. There is too
much focus on the quantitative aspect to ensure the flow of people in and out of the
organisation. Such an exclusive focus overtakes the more important dimension, i.e., the
quality of human resources.

HR planning, in the final analysis, may suffer due to an excessive focus on the
quantitative aspects.

5. Employees Resistance:
Employees and trade unions feel that due to widespread unemployment, people will be
available for jobs as and when required. Moreover they feel that human resource
planning increases their workload and regulates them through productivity bargaining.
6. Employers Resistance:
Employers may also resist human resource planning feeling that it increases the cost of
manpower.

7. Lack of Purpose:
Managers and human resource specialists do not fully understand human planning
process and lack a strong sense of purpose.

8. Time and Expenses:

Manpower planning is a time-consuming and expensive exercise. A good deal of time
and cost are involved in data collection and forecasting.