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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.

Human Resource Planning Process

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.
The objectives can vary across the several departments in the
organization such as the personnel demand may differ in marketing,
finance, production, HR department, based on their roles or functions.

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.
Also, the future vacancies can be estimated, so as to plan for the
manpower from both the internal (within the current employees) and the
external (hiring candidates from outside) sources. Thus, it is to be
ensured that reservoir of talent is maintained to meet any vacancy
arising in the near future.

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.
Here, the required skills of personnel for a particular job are matched
with the job description and specification.

4. Analyzing the Manpower Gaps: After forecasting the demand and


supply, the manpower gaps can be easily evaluated. In case the
demand is more than the supply of human resources, that means there
is a deficit, and thus, new candidates are to be hired.
Whereas, if the Demand is less than supply, there arises a surplus in
the human resources, and hence, the employees have to be removed
either in the form of termination, retirement, layoff, transfer, etc.

5. 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.
6. 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.
After the employment plan, the training programmes are conducted to
equip the new employees as well as the old ones with the requisite skills
to be performed on a particular job.

7. 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.
At this stage, the firm has to decide the success of the plan and control
the deficiencies, if any.

Thus, human resource planning is a continuous process that begins with the
objectives of Human Resource planning and ends with the appraisal or
feedback and control of the planning process.

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