What is the final step in the HR planning process?
Definition: The Human Resource Planning Process critically analyses, forecasts, and allocates human resources as per business goals. It assists organizations in estimating their existing as well as future manpower requirements. Show
This process is carried out in all organizations, big or small. We can also refer to it as Manpower Requirement Process. It serves as a bridge between the firm’s Human Resource Management (HRM) and its strategic plan. The process is time-consuming. As it covers the addition/elimination of the job positions. Thus, managers need to conduct an in-depth analysis to estimate manpower requirements. We can compile the complete process into seven steps. The initial five steps in the Human Resource Planning Process include:
However, the last two steps consist of ‘Training‘ and ‘Control’ of the appointed staff. The HR managers use the HRP process as a base for managerial decision-making. Also, it is a vital element that facilitates succession planning in the long term. Content: Human Resource Planning Process
What is Human Resource Planning?Human Resource Planning (HRP) determines the requirement of personnel as per organizational objectives. The ultimate aim of HRP is the optimum allocation of a qualified workforce. In HRP, the manager recruits human resources for present and future requirements. It involves recruiting the correct number of people to meet organizational goals. Steps in the Human Resource Planning ProcessThe steps involved in the HRP process are as follows:
Analyzing Business Objectives and PoliciesThe initial step in the HRP process is the analysis of business objectives. The HR manager will conduct a detailed analysis of the business’s vision and mission. Subsequently, design the HRP objectives and policies in the direction of the firm’s goals. One must try to estimate and reach the justified quantity of human resources. In this step, the managers create policies on the following HR processes:
Study Existing Manpower InventoryIt is the second step after mapping out HRP objectives and policies. The managers need to study their existing workforce skills and capabilities. We must find out whether the present staff can fulfill the future demand. We must consider the following factors at the time of the manpower inventory study:
Forecasting Demand and Supply1. Demand Forecasting With the ever-changing environment, the HR demand varies from time to time. We must anticipate the future HR requirements to achieve multiple goals. The managers find out the number of people with adequate skills to develop a staff mix. In this stage, we can make projections regarding:
Techniques for Demand Forecasting:
2. Supply Forecasting After demand forecasting, we must assess the firm’s capabilities to supply the required workforce. Managers may procure personnel from within and outside the firm. An alternative name for supply forecasting is Bench Forecasting. Sources of human resources supply:
We must analyze the sufficiency of the existing workforce first. After that, go for the internal and external sources of supply. Supply forecasting helps in estimating:
Techniques for Supply Forecasting:
Performing Gap AnalysisHere, the net human resource requirement is to be estimated. For this, we need to reconcile the forecasted demand and supply. Variance calculation between future demand and supply is known as Gap Analysis. Both qualitative and quantitative gap is investigated. The result of this analysis is either Surplus or Deficit of human resource requirements.
Formulating and Implementing HRPAn action plan is formulated and implemented based on the gap analysis. The HR manager may take the following actions: In the case of Surplus:
In case of Deficit:
Training and DevelopmentIt is the next step after the successful implementation of the action plan. Training & development programs are organized for fresh recruits. These programs help employees develop the required skills to perform their job efficiently. Training is of two types:
Evaluation and ControlIt is the last and final step in the human resource planning process. One must test whether the implementation of the action plan meets the HRP objectives. Timely review and control help in error detection and taking corrective measures. AdvantagesHRP process is advantageous to firm in following ways:
Factors Affecting the Human Resource Planning ProcessInternal Factors
External Factors
Example of Human Resource Planning ProcessLets us understand the Human Resource Planning process by taking the example of Mojo Ltd. Mojo Ltd. is a toy manufacturer and plans to open another corporate office in the city. The HR manager of Mojo Ltd. has to plan net manpower requirements for the upcoming financial year. We will see how the manager uses the HRP process model for efficient staffing.
Final WordsThe human resources planning process model is used to estimate future HR requirements. It is a systematic approach by which managers can meet their HRP objectives. What are the steps in an HR planning process?Five Planning Steps Every Organization Should Use. Analysis of Organizational Plans and Objectives. ... . Preparing a Human Resources Inventory. ... . Assessing Future Supply and Demand. ... . Matching Supply and Demand. ... . Establishing an Action Plan.. What are the 6 steps in HR planning?Here are six steps you can use in your HR planning process:. Make HR objectives. ... . Analyze the current workforce. ... . Determine HR supply and demand. ... . Create an action plan. ... . Continue to train and develop. ... . Evaluate the plan.. What are the 7 steps in human resource planning?Seven Steps to Human Resource Planning. Step One: Analyze Organizational Objectives. ... . Step Two: Inventory Current Human Resources. ... . Step Three: Forecast Demand. ... . Step Four: Estimate Gaps. ... . Step Five: Formulate the Human Resource Action Plan. ... . Step Six: Integrating/Implementing the Plan. ... . Step Seven: Monitoring, Control, and Feedback.. |