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Process of Human Resource Planning

The following are the major steps involved in Human Resource Planning


1. Analysis of Organizational Plans and Objectives

Human Resource planning is a part of overall plan of a business organisation. Plans
relating to technology, production, marketing, finance, expansion and diversification give an idea
about the volume of future work activity. Each plan can further be analyzed into sub-plans and
detailed programmes. It is also important to decide the time horizon for which Human Resource
plans are to be prepared. The future organization structure and job design should be made clear and
changes in the organization structure should be examined so as to anticipate its Human Resource

requirements in future.

2. Forecasting Demand for Human Resources

Human Resource planning starts with the estimation of the number and type of Human
Resource required at different levels and in different departments. The main steps involved in
Human Resource Planning process are

(a) to determine and to identify present and prospective needs of Human Resource, (b) to discover and
recruit the required number of persons.
(c) to select the right number and type from the available people.
(d) to hire and place in the positions for which they are qualified,
(e) to provide information to the selected people about the nature of work assigned to them,
(f) to Promote or to transfer as per the needs and the performance of employees, (g) to denote if the
employees are disinterested or their performance is not up to the mark,
(h) to terminate if they are not needed or their performance is below standard and shows no hopes of
improvement. It is the most crucial area of Human Resource Development. Human Resource
Development manager must give attention to place right individual to the right job Human
Resources, recruitment, selection ,Training and Placement of employees. This calls for the adoption
of a systematic procedure to complete recruitment and selection.

3. Forecasting Supply of Human Resources

One of the important functions of Human Resources planning is to deal with allocation of
persons to different departments depending upon the work-load and requirements of the
departments in future. While allocating Human Resource to different departments, care should be
taken to consider appointments based on promotions and transfers. Allocation of Human Resource

should be so planned that available manpower is put to full use.

4. Estimating Manpower Gaps

Net Human Resource requirements gaps can be identified by comparing demand and supply
forecasts. Such a comparison will reveal either deficit or surplus of Human Resources in future.
Deficits suggest the number of persons to be recruited from outside whereas surplus implies
redundant to be redeployed or terminated. Similarly, gaps may occur in terms of knowledge, skills
and aptitudes. Employees deficient in qualifications can be trained whereas employees with higher
skills may be given more challenging jobs as a part of job enrichment.

5. Matching Demand and Supply 

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.
Once the manpower gaps are identified, plans are prepared to bridge these gaps. Plans to meet the
surplus manpower may be redeployment in other departments and retrenchment in consultation,
with the trade unions. People may be persuaded to quit voluntarily retirement. Deficit can be met
through Human Resource planning ,recruitment, selection, transfer, promotion, and training plans.
Realistic plans for the procurement and development of manpower should be made after considering

the macro and micro environment which affect the manpower objectives of the organization

Problems of Human Resource Planning

Effective human resource planning is a pre requisite for successful human resource
management practices. However, there are certain factors-internal to organization and external to itwhich affect the effectiveness of human resource management adversely.

1. Improper linkage between HRP and corporate strategy

In the absence of proper linkage between HRP and corporate strategy ,neither HRM nor any
of its subsystem will contribute effectively.HRP Is the basis of further activities for HRM and
therefore must be linked to corporate strategic management process at the initial stage.

2. Inadequate appreciation of human resource management

Another problem that comes in the way of effective human resource planning is the lack of
adequate realization of HRP. Many organization which have not realized the importance of human
assets in this competitive environment believe that people are available when they are needed
because of increasing unemployment .

3. Rigidity of attitudes

The third factor responsible for ineffective HRP is the rigidity of attitudes on the part of top
management as well as human resource managers. In the old culture human resources have been
considered as subordinate factors.

4. Conflict between short term and long term plan

Another source from where in effectiveness in human resource planning emerges is the
conflict between long term and short term plans. Long term planning offers more flexibility at the
same time short term planning is more subjected to inflexibility.

5. inappropriate human resource information system

The effectiveness of human resource information depends on the timely availability of
relevant information regarding contingent factors which are considered while formulating human
resource planning. If the human resources information has not been well developed in an
organization the projections for the future may at best be in the form of some pluses and minuses.

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