Top 5 steps of human resource planning process

Human Resource Planning can be defined as a process of forecasting the organization’s demand for and supply of the manpower needed in near future. This is also called manpower planning or human capital planning. Human resource planning is considered as an integral part of an organization’s strategic management. Human resource planning process is involved in analyzing current human resources depending on forecasts of future business requirements.

The human resource planning process not only focuses on filling vacant positions, but also emphasizes on hiring right people for the right position. Organization’s objectives must be clarified to complete a successful human capital planning. Setting of organization’s objectives must include what types of manpower is required for specific position. The overall human resource planning process is conducted by human resource department in any organization.

1. Top 5 Steps of Human Resource Planning Process

Human Resource Planning
Human Resource Planning can be defined as a process of forecasting the organization’s
demand for and supply of the manpower needed in near future. This is also called manpower
planning or human capital planning. Human resource planning is considered as an integral
part of an organization’s strategic management. Human resource planning process is
involved in analyzing current human resources depending on forecasts of future business
requirements.
The human resource planning process not only focuses on filling vacant positions, but also
emphasizes on hiring right people for the right position. Organization’s objectives must be
clarified to complete a successful human capital planning. Setting of organization’s objectives
must include what types of manpower is required for specific position. The overall human
resource planning process is conducted by human resource department in any organization.
Read:
Objectives of Human Resource Planning
There are lots of objectives behind human resources planning process such as;
1) Successful implementation of boarding process,
2) Managing skill matrix to comply with business goals,
3) Helps organization to adjust with modern economy,
4) Ensure effectiveness of Recruitment Process,
5) Save organization from risk etc.

Steps of Human Resource Planning Process
Manpower planning or HR planning process is conducted by following below steps.

Step 1: Analyzing present manpower capacity

2. The first and foremost step of manpower planning is to analyze the present manpower
capacity of the organization. Here, analyzing of present manpower capacity refers to
analyzing employee’s performance based on employee numbers, qualifications, skills,
performance ratings and compensations. Only authentic information can be gathered if there
is a proper performance evaluation system in place. Otherwise, we have to take data from
concern managers who directly involve in people management. Managers can give
information regarding present constrains and future demands. Analyzing of current
manpower capacity can help organization to complete proper manpower planning which will
ensure organization’s growth.

Step 2: Forecasting future HR requirements
In this step HR Managers have to forecast future HR requirement based on business goal of
the organization. HR Manager will then collect information or market trends in order to
justify requirements or for understanding the requirements accurately. Of course, there are
a number of factors affecting human resource planning such as vacancies, retirements,
promotions and end of contract terms. Skill Matrix helps a lot to complete forecasting
demand and supply of human resources in the light of business goal.
There are two types of forecasting such as:
• Qualitative: This analyzes behavioral and performance related issues and
impacts.
• Quantitative: Quantitative forecasting mostly focused on statistical and
objective analysis.

Step 3: Identify HR gaps
This step of manpower planning or HR planning process helps to find out the gap against
availability of resources and demand of the company for achieving goals. Now need to find
out manpower needs according to the business goal strategy. This is the step of
finalizing gap between present and expected qualification of manpower.

Step-4: Human Resource Planning Strategy & Implementation

3. This step can be divided into 2 parts i.e., planning stage and implementation stage.

(a) Planning Stage- As HR gaps are identified through previous 3 steps, now need to
develop an action plan to fulfill the requirements and meet forecasting. You have to
determine the source of hiring and process of developing their skills to meet the
requirement. You must have to include training and development strategy to comply
with required skill set. Plan should have to develop by following 3W strategy that
stands for below-
W= What
W= Who
W= When

(b) Implementation Stage- This is the most challenging section and most of the
organization fail to achieve goal due to proper execution. Lack of confidence is one of
the major causes of failure for implementation. Improve confidence level of your team
members who will be responsible for implementing your plan.

Step-5: Review, Feedback and Control
Please follow PDCA cycle (P=Plan, D=Do, C=Check and A=Act) in order to complete a
successful implementation of Human Resource Planning Process. Check thoroughly
whether you planning is moving in the right direction or not. Confirm regular
monitoring and take feedback regarding success towards goals. Don’t forget to set a
control mechanism.

Characteristics of Human Resource Planning
Human Resources Planning Process forecasts organization’s demand for and supply of the
manpower needed in near future. As a result, it’s a critical analytical task. Human resource
planning process is mostly required in every modern organization, as many benefits can be
driven from the process. The characteristics of an effective human resource planning process
are as below:

4. 1. Future Oriented: Human resource planning analyzes future manpower requirement of
the organization in light of business goals of the company. It helps organization of
develop skill matrix or skill inventory for future reference. HR planning has the scope
to develop organization’s HR strategy.
2. Continuous Process: Human resource planning is a continuous process to comply with
strategic goals of the organization. It’s a continuous process because todays HR
planning may not be applicable for next month or next year due to available changes
in business goals and strategy.
3. Recruitment of Right People in Right Place: Human resource planning process ensures
the recruitment of right people in right place and in right time. It increases the
effectiveness of HR activity.
4. Determination of Demand and Supply: Human resource planning process is mostly
involved in determining the demand for and supply of the manpower needed in near
future.
5. Reduces External Influence: HR planning process can extremely reduce external
influences in case of recruitment and selection.
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Conclusion:
Most of the organizations don’t have strategic human resource planning process. But it is the
ultimate requirement for organizational growth. Having a strategic HR planning is the most
urgent and crucial requirement for growth of the organization in the light of modern
economy.
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