Course Code: HRM 301

Course Title: Human Resource Management

Sec- 01

Term Report on “Human Resource Planning”

Submitted to: Tamanna Binte Zaman

Lecturer
CIU Business School
Chittagong Independent University

Submitted by: HR Warriors

Group Members:
1. Aldrich Theo Martin 16201133
2. Priya Mallick 19101016
3. Jannatul Ferdoues Nimni 19101039
4. Humaira Alam 19101002
5. Subaha Salsabil Urbana 19201045

Date of Submission: 28th November, 2020

 Acknowledgement
In preparation of our assignment, we had to take the help and guidance of some respected
persons, who deserve our deepest gratitude. As the completion of this assignment gave us
much pleasure, we would like to show our gratitude Ms. Tamanna Binte Zaman, Course
Instructor, on Chittagong Independent University for giving us a good guideline for
assignment. We would also like to expand our gratitude to all those who have directly and
indirectly guided me in writing this assignment.
Date: 28th November, 2020

To
Tamanna Binte Zaman
Lecturer
CIU Business School
Chittagong Independent University
Jamal khan, Chittagong

Subject: Letter of Transmittal

Dear Ma’am,

It is a pleasure on our part to submit an assignment focused on “Human Resource Planning”.

We have gathered vast knowledge during the preparation of this assignment. Our efforts will
be rewarded only if it could satisfy you.

We have put our best efforts to complete this assignment. We wish for your hearty
consideration, if there is any deviation in the assignment.

Sincerely,
HR Warriors
CIU Business School
Chittagong Independent University
Methodology:

To make this report we needed to collect different data. Those data and information were
collected from various sources.

Two types of sources:

1. Primary Data : We couldn’t collect any data from primary source. We mainly focused on
secondary data.

2. Secondary Data : We have collected our secondary data from the internet. The links are
given in the reference part of the report.
Table of Contents:

1. Introduction
2. Importance of Human Resource Planning
3. Features of Human Resource Planning
4. Objectives of Human Resource Planning
5. HRP Process
6. Needs of HRP
7. Recommendation
8. Benefits of Human Resource Planning
9. Types of HRP
10. Approach to HR Planning
11. Forecasting Methods of Personnel planning
12. Effective guidelines for human resource planning
13. The challenges which may be faced by human resource planning
14 Human Resources Information System (HRIS)
15 Barriers to Human Resource Planning
16 Conclusion
Human Resource Planning

1. Introduction:
Before we go any further it would seem helpful to clarify what we mean by human resource
planning (HRP) and how we would distinguish it from other concepts.
We would define HRP as:
Using this definition some would see HRP as synonymous with manpower planning. Human
resource planning is the process by which a management determines how an organization
should move from its current manpower position to its desired manpower position. Through
planning a management strives to have the right number and right kinds of people at right
places, at the right time to do things which result in both the organization and the individual
receiving the maximum long range benefits.
According to Dale S, Beach,
Human resource planning is a process of determining and assuring that the organization will
have an adequate number of qualified people available at the proper times, performing jobs
which meet the needs of the enterprise and which provide satisfaction for the individuals
involved.
According to Leon c. Megginson,
Human resources planning is integrated approach to performing the planning aspects of the
personal function in order to have a sufficient supply of adequately developed and motivate
people to perform the duties and tasks required to must organizational objectives and satisfy
the individual needs and goals of organization members.
HRP is one of the important decisions a company can make. After all, a company is only as
good as its employees, and a high level of employee engagement can be essential for a
company has the best employees and the best practices in place, it can mean the difference
between sluggishness and productivity helping to lead a company to profitability.
2. Importance of human resource planning (HRP):
The important of human resource planning are as follows-
a) Developing the men power: It focuses on building great men power to support
organization mission and to achieve its objectives.
b) Enhancement in the skills and capabilities of the employees: HRP also focuses on the
continuous development of employees. Therefore, organization conducts various training
sessions, seminars, conferences etc. to enhance the overall skills and capabilities of its
employees.
c) Effective utilization of resource: The greatest resource which an organization has is its
manpower. Therefore, with the help of HRP, organizations try to utilize their full
 potential towards its goals and develop them as an asset for the future requirement of the
organization.
d) Increased efficiency and effectiveness of employees: Due to HRP, organization
provides a great working environment to its employees along with the best tools and
equipment possible. This motivates the employees to work harder in the competitive
working atmosphere of the organization to achieve their targets and objectives.
e) Helps in coping the change: organization are always preparing for any sudden change in
technology, politics, tastes and preferences etc. therefore, they have flexibility in their
objectives and train their employees to work efficiently regardless of the situation to
survive and grow themselves in the changing environment.
f) Increasing investments in human resource: Human resource is greatest asset of an
organization. Any investment in its human resource will provide the highest gain to
organization. Therefore, organization invests heavy amount on HRP to focus on the
knowledge, skills, and abilities of the employees.

3. Features of Human resource planning:

a) Futuristic: Human resource planning helps to determine the future need of
manpower, so it is futuristic by nature. HRP is a future- oriented process and is
always ready to face any new change in the future within or outside the organization
and continuously and develops the organizational men power as per those future
needs and requirements.
b) Continuous process: Human resource planning is a continuous process. There is a
cycle of hiring and firing of employees which keep continuously moving just like the
cycle of life and death. An employee once hired in the organization cannot work for
whole life. They have to leave the organization at some point due to retirement, death,
change in job, fired due to poor work etc.
c) Having men power inventory: Human resource planning helps in creating this large
inventory of men power. There are several departments in an organization which
heads several employees under it which have several skills and abilities. These
employees coordinate with each other for the achievement of the objectives of the
organization.
d) Adjusting demand/supply: HRP Estimates the number of manpower required in the
organization to continue its operations and then searches for the prospective employee
who with his service can provide the best value to the organization. In this way, HRP
matches the demand and supply of manpower in the organization.
e) Creating a healthy environment: It is the moral duty of the organization to fulfill all
their needs and provide the best atmosphere for their work. Here, HRP helps in
creating the best possible environment for the employees by providing them with the
best tools and equipment, guidance, emotional support and hand-holding in the tough
time.

4. Objectives of HRP
The objective of human resource (HR) planning is to ensure the best fit between
employees and jobs, while avoiding manpower shortages or surpluses. The three key
elements of the HR planning process are forecasting labor demand, analyzing present
labor supply, and balancing projected labor demand and supply.

Human Resource Planning is required to meet the following objectives:

a) Provide Information:

The information obtained through HRP is highly important for identifying surplus and
unutilized human resources. It also renders a comprehensive skill inventory, which
facilitates decision making, like, in promotions. In this way HRP provides information
which can be used for other management functions.

b) Effective Utilization of Human Resource:

Planning for human resources is the main responsibility of management to ensure

effective utilization of present and future manpower. Manpower planning is
complementary to organization planning.

c) Economic Development:

At the national level, manpower planning is required for economic development. It is

particularly helpful in the creating employment in educational reforms and in
geographical mobility of talent.

d) Determine Manpower Gap:

Manpower planning examine the gaps in existing manpower so that suitable training
programs may be developed for building specific skills, required in future.

e) To Forecast Human Resource Requirements:

HRP to determine the future human resource needed in an organization. In the

absence of such a plan, it would be difficult to have the services of the right kind of
people at the right time.

f) Analyze Current Workforce:

HRP volunteers to assist in analyzing the competency of present workforce. It

determines the current workforce strengths and abilities.

g) Effective Management of Change:

Proper HR planning aims at coping with severed changes in market conditions,

technology products and government regulations in an effective way. These changes
 call for continuous allocation or reallocation of skills evidently in the absence of
planning there might be underutilization of human resource.

h) Realizing Organizational Goals:

HRP helps the organization in its effectively meeting the needs of expansion,
diversification and other growth strategies.

5. HRP Process:

The Human Resource Planning is a process of forecasting the organization’s

demand for and supply of manpower needs in the near future.

a. 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.

b. 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.

c. 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.
 d. 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.

e. 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.

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

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

g. 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.

6. Needs of HRP:
Human resource planning is viewed as foreseeing the human resource needs of an
organization and providing of human resources.

a. Replacement of Persons: A good number of employees are to be replaced in the

undertaking because of retirement, old age, death etc. So there will be a need to
prepare and train persons for taking up vacant jobs in an enterprise.
 b.  Labor Turnover: Labor turnover takes place in all enterprises. However, the
degree of labor turnover may vary from company to company but it cannot be
eliminated altogether. There is always a need to recruit new employees to take up the
jobs of those who have left the undertaking.

If the undertaking is able to foresee turnover rate properly then efforts in advance are
made to recruit and train employees so that work does not suffer for want of
employees.

c. Expansion Plans: Whenever there is a proposal to expand or diversify the

enterprise, more employees will be needed to occupy new jobs. In such situations the
human resource planning is necessary.

d.  Technological Changes: With research and new inventions, technological changes
are coming rapidly. There may be need to give fresh training to personnel. In addition,
there may also be a need to infuse fresh blood into the enterprise. Human resource
planning will be helpful in coping to the new demands of the enterprise.

e. Assessing Future Requirements: Human resource planning is also needed to

assess whether there is any shortage or surplus employees in the undertaking. If there
is less number of employees than needed, it will badly affect the work. On the other
hand, if more persons are working than needed then it will increase labor costs, etc.
Human resource planning ensures the employment of right employees.

7. Recommendation:

A Human Resource Audit provides a detailed assessment of HR management

activities and practices. This audit assessment identifies gaps between current
operating procedures and recommended practices. It also outlines recommendations
and practical solutions to close the gap between current practices and proven HR best
practices.

After several HR audits for numerous organizations over many years, there are five
recommendations that pop up most often in the HR audit report. By addressing these
top five areas for improvement, companies can limit liability and fines and improve
employee/employer relationships.

a. Complete or Correct 1-9 Forms For All Employees.

An employer is required to have a completed I-9 form on file for each employee on
the payroll. This includes both full-time and part-time employees.
When reviewing I-9 forms, common errors include:

 Employee did not sign the top section

 Proper forms of documentation are not provided
 Information on documentation appears in wrong areas on the form
 Hire date is missing
 Company information is incomplete or missing
 Company representative signature is missing
Immigration and Customs Enforcement (ICE) requires the correction of I-9 forms to
be done in a very specific way. Even correcting forms may not relieve a company
from ICE fines and penalties.

b. Develop or Revise Employee Handbook.

All companies need an employee handbook whether they have 10 employees or

thousands of employees. This handbook provides information on the company’s
policies, procedures, and benefits. It outlines management and human resource best
practices and provides the employee with an understanding of company expectations.

The contents of the employee handbook varies depending on the number of

employees at the company. For example, a company with less than 50 employees is
not required to comply with the Family and Medical Leave Act (FMLA) and is not
required to have an FMLA policy in the handbook.

Handbooks need to be reviewed and updated to ensure compliance with changes in

laws and regulations. They also need to reflect changes in company benefits and
policies. Every employee receives a copy of the employee handbook and signs an
acknowledgment form stating they have received and read the handbook.

c: Develop Or Update Job Descriptions.

The job description is an important part of various HR processes including hiring,

orientation, and employee performance management. Each position within the
company needs a one. Both employee and manager should have a copy of their job
description, and a signed job description should be filed in the employee’s personnel
file.

Review your job descriptions on an annual basis to prevent them from being outdated.
Make sure you reflect the current duties performed by each employee. This also helps
employees understand their job duties, and can be the basis for their performance
evaluations.
 d: Develop An Interviewing/Hiring Process And Provide Training For
Managers.

A structured interviewing and hiring process ensures the company selects the most
qualified applicants for all open positions. Develop guidelines and procedures for the
process and follow them for all hiring decisions.

Provide managers who are interviewing and hiring employees proper interviewing
skills training. Otherwise, they may ask discriminatory questions or questions that are
not relevant to the position.

Behavioral interviewing techniques are very helpful to understand an applicant’s past

skills and experience. It helps determine if the candidate’s skills and experience are
relevant to the skills and experience required for the position. Training in behavioral
interviewing helps the hiring manager better identify and select the applicant that is
the most skilled and the best fit for the position and the company.

e: Develop Or Revise The Performance Evaluation Process.

An excellent employee performance evaluation process is a win-win for the company

and the employee. All employees should receive feedback on their performance
whether it’s positive feedback or constructive feedback.

As mentioned in Recommendation #3, job descriptions are an important part of the

performance evaluation process. If the employee and the manager do not have a
current job description for the employee’s position, it is difficult for the employee to
understand their job expectations and for the manager to effectively evaluate job
performance.

While companies often have an evaluation form, evaluations may not be a company
priority and not completed on a consistent basis. An effective evaluation system also
requires managers be trained on the requirements of the evaluation process.
Conducting employee evaluations on a consistent basis improves employee
performance and the employee/manager relationship.

8. Benefits of Human Resource Planning

A Better View to the business decision

HR planning leads to a better overall view of the business’s decisions by employees

and the public. The actions taken by the organization become systematic and
process-oriented, thus taking personal feelings out of the equation.

 Retaining top talents

 When a human resource plan is thoughtfully executed, organizations can better
retain top talents. As any organization knows, getting a talented individual hired in
is only half the battle– incentivizing them to stay can be another matter entirely.

 Minimum Cost

Attracting and retaining talent costs money, there’s no getting around it. Human
resource planning, however, allows organizations to minimize the money they
spend on these areas, thus reducing costs overall and leading to more efficient
operation. 

 Managing employees

Employee management can be a challenge for any organization, big or small. A

solid human resource plan ensures the right employees are placed in management
roles.

9. Types of HRP:

 Thereare two types of Human Resource Planning (HRP). Hard Human Resource

Planning. Soft Human Resource Planning. HRP based on quantitative analysis in
order to ensure that the right number of the right sort of people are available when
needed is called Hard Human Resource Planning. 

 Soft
human resource planning is concerned with ensuring the availability of people
with the right type of attitudes and motivation who are committed to the
organization and engaged in their work, and behave accordingly.

10. Approach to HR planning:  

o Quantitative Approach. It is also known as top down approach of HR

planning under which top level make and efforts to prepare the draft
of HR planning. 

o Qualitative Approach. A qualitative “approach” is a general way of

thinking about conducting qualitative research. It describes, either
explicitly or implicitly, the purpose of the qualitative research, the role of
the researcher(s), the stages of research.

o Mixed Approach.The term “mixed methods” refers to an

emergent methodology of research that advances the systematic
 integration, or “mixing,” of quantitative and qualitative data within a
single investigation or sustained program of inquiry. ... Integrating the
data during data collection, analysis, or discussion.

11. Forecasting Methods of Personnel planning

For demand:
There are many techniques so far developed to forecast the demand for human resource.

Trend
analysis

Ratio
Scatter plot
analysis
1. Trend analysis
2. Ratio analysis
3. Scatter plot
1. Trend analysis:
Trend analysis means studying variations in the firm’s employment levels over the past years.
It can provide an initial rough estimate of future staffing needs. However, employment levels
rarely depend just on the passage of time. Other factors (like productivity and retirements for
instance) and changing skill needs will influence impending workforce needs. The purpose is
to identify trends that might continue. It provides an initial estimate.
2. Ratio analysis:
Ratio analysis is a forecasting technique for determining future staff requirements by using
ratios between, for example, sales volume and number of employees needed. It means
making forecasts based on the ratio between any casual factor and the number of employees
required. Like trend analysis, ratio analysis assumes that things like productivity remain
about same. If sales productivity were to rise or fall, the ratio of salespeople would change.
3. Scatter plot:
A scatter plot is a graphical method used to help identify the relationship between two
variables. If an HR manager can forecast the level of business activity, he should also be able
to estimate personnel requirements.

Managerial judgment will play a big role, whichever forecasting technique HR managers’
use. Rarely, any historical trend or relationship will simply continue unchanged into the
future.

HR managers have to modify the forecast based on factors- such as projected turnover or a
desire to enter new markets. It is sometimes difficult to take a long term perspective,
particularly when market conditions change dramatically.

For supply:
Human resource supply forecasting is the process of estimating availability of human
resource followed after demand for testing of human resource. For forecasting supply of
human resource we need to consider internal and external supply.
Internal supply of human resource available by way of transfers, promotions, retired
employees and recall of laid- off employees etc. Source of external supply of human resource
is availability of labor force in the market and new recruitment.

External supply of human resource depends on some factors mentioned below.

1. Supply and demand of jobs
2. Literacy rate of nation
3. Rate of population
4. Industry and expected growth rate and levels
5. Technological development
6. Compensation system based on education, experience, skill and age.
The most important techniques for forecasting of human resource supply are Succession
analysis and Markov analysis.

Succession analysis:
Once a company has forecast the demand for labor, it needs an indication of the firm’s labor
supply. Determining the internal labor supply calls for a detailed analysis of how many
people are currently in various job categories or have specific skills within the organization.
The planner then modifies this analysis to reflect changes expected in the near future as a
result of retirements, promotions, transfers, voluntary turnover and terminations. Demand
forecasting helps in determining the number and type of personnel or human resources are
required in future. The next step in human resource planning is forecasting supply of human
resource. The purpose of supply forecasting is to determine the size and quality of present
and potential human resources available from within and outside the organization to meet the
future demand of human resources. Supply forecast is the estimate of the number and kind of
potential personnel that could be available to the organization.

Estimating Internal Labor Supply for a Given Unit

Figure1.1
The above figure illustrates that internal supply forecasting can be estimated based on the
following:
1. Current staffing level
2. Projected outflows this year
3. Projected inflows this year
Markov analysis:
Transition probability matrix is developed to determine the probabilities of
job incumbents remaining in their jobs for the forecasting period.

Andrei Andreyevich Markov (June 14, 1856 - July 20, 1922)

The technique is named after Russian mathematician Andrei Andreyevich Markov.
A transition matrix or markov matrix can be used to model the internal flow of human
resources. This matrix simply show as probabilities the average rate of historical movement
from one job to another. Figure 1.2 presents a very simple transition matrix. For a line
worker, for example, there is a 20% probability of being gone in 12 months, a 0% probability
of promotion to manager, a 15% probability of promotion to supervisor, and a 65%
probability of being a line worker this time next year. Such transition matrices form the bases
for computer simulations of the internal flow of people through a large organization over
time.

Figure- 1.2

12. Effective guidelines for human resource planning

A good HR plan should also include a succession plan, so we can limit disruptions to our
business should there be a change in management or structure.

There are five critical steps to creating an effective HR plan for our company.
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A. Assess your current workforce:

Our first step in HR planning is identifying your current employee’s knowledge, skills and
abilities. This includes evaluating your employees’ strengths, education levels and additional
training or certifications. But we shouldn’t stop there. We should also consider what talents
they have beyond their current job descriptions. For example, our data entry employee may
also have a knack for building customer relationships. We can pick up on these less obvious
talents by getting to know our employees through regular conversations – both formal and
informal. And chances are our personnel files already contain a wealth of information you
need to help monitor your employee’s talents and skills, such as:

1. Resume

2. Continuing education history

3. Performance appraisals

4. Projects completed

Having a system (like an interactive organizational chart) to capture and archive our
employees’ information can make keeping track of our employees’ talents easier. At the same
time, our employees will feel more valued if it’s clear that you’re making note of their
strengths.

In addition, performance reviews can help us determine when employees are willing and able
to assume additional responsibilities. When employees consistently rank high in all
categories, it is a good indicator they may be ready to take on some more challenging work.
Not all employees want to move to other positions, though. If this is the case, look for ways
to challenge them in their current roles.

B. Create employee development plans:

Having qualified employees is only one step when building a long-term, winning workforce.
To make a real impact, your employees’ work needs to support the company’s growth goals.
We can do this by making an employee development plan for our employees. This will help
us create clear direction on how to increase their skills and advance their careers so that our
business can forge ahead. Follow these steps to help make sure our employees’ development
plans are on point.

1. Consider business goals: Before we set objectives for employees, we should try to align
their development plan with our company’s needs.
2. Talk to employees: Don’t just assume that we know our employees’ skill levels and career
aspirations.
3. Decide what skills employees need: Once we’ve looked at each of your employees’
abilities and experience, as well as your company’s needs, decide exactly what skills each
person needs to acquire.
4. Create an action plan: Once we know what the objectives are, we can figure out how our
employee will go about achieving them.
5. Apply the new skills in the workplace: Set up some opportunities where our employees
can quickly apply the new skills to the job and get feedback.
It’s important that our company doesn’t neglect the employees we already have – especially
top performers. Even for our high achievers, there’s always room for improvement, and they
still need development-focused attention from us. Also make sure our employee development
plans have a positive connotation in our company (and that they’re not viewed as a form of
corrective action) by presenting them as an opportunity to maximize potential, grow and get
better all around. The top reason employees stay with a company is they feel challenged by
their work, according to an Aberdeen report. In fact, 34 percent reported that they are sticking
with their current employer because they foresee an opportunity to be part of the future
growth of the company.

C. Create a succession plan:

With business growth comes change. It’s inevitable. Whether it’s a shift in the executive team
or a reorganization of departments, we need to be prepared. A succession plan can help us
minimize disruption by identifying critical roles in our business and employees who have the
skills to immediately assume these positions, should someone leave. We may choose to
involve employees directly in creating our succession plan. This would mean having
conversations with all of our employees to find out what their career goals are, where they
see themselves in the future, and what development they feel they need in order to get there.
We can also create our succession plan behind the scenes. The choice really depends on what
our organization’s culture is like.
In addition, we should always be prepared to keep our employees well informed about
changes and explain how exactly a change may affect them. Transparency eases anxiety and
keeps our employees from imagining negative reasons for the changes.

D. Perform a gap analysis:

A gap analysis helps us identify what resources our company has and what we’ll need in the
future. When performing a gap analysis, we’ll assess your HR practices and infrastructure to
determine where our company is falling short. For example, some of our HR practices may
be designed to fit where our company was five years ago, but don’t meet our needs today or
where we plan to be soon. After a gap analysis, we can improve our current procedures and
implement new practices that will better support our business’s growth.

E. Decide how to increase resources for the future:

As our business grows, so will our

staffing needs. To find the best people for the job and our business, you must know what
we’re looking for.

Review the information we have gathered about your current workforce. Do we have enough
people? Do they have the right skills and know-how to help you achieve our business goals?

This information can help us decide what jobs need to be filled and who would be the best fit.
From there, we can determine if we can promote from within or if we’ll need to recruit new
talent as our business grows. This is where our skills inventory is especially helpful. Do we
already have a potential fit within? Do we need the skills to be mastered already, or could
they be attained through training? Many times a current employee who is a known culture fit
is worth some additional training.

Try to resolve potential issues before bringing in a new employee. Make sure that the
environment is right to attract and retain top talent. Otherwise, we may find ourselves
constantly replacing employees.

We need to remember that HR planning is an ongoing process. Our strategy should be

reviewed regularly and updated as our organization changes.

13. The challenges which may be faced by human resource planning

Human resource planning is about ensuring that the organization has the employees it will
need in the future, in the right jobs, with the right skills, and it's one of the most challenging
types of planning we cover on this site. In fact, it may be the most complex kind of planning
a company can undertake. The criteria which faced mentioned below:
a. Human resource planning can only be as good as the ability of the company to predict
what will happen outside the company, economic trends, upturns, downturns, what
competitors are doing, and a raft of other things the company has no control over. Often HR
staff don't have the skills and background to predict these events with any success.
b. The pace of change is so quick in the workplace that it's hard to predict what skills (and
therefore, what employees, will be needed in even the near future.
c. People make decisions about their own careers, whether to stay or go, and these days,
there's much more movement of employees from company to company. No longer do
employees expect to stay at the same company for decades, and often their "moves" occur
without warning, and even with two week’s notice. When people are involved, prediction
becomes much harder.
d. Company growth (or for that matter, contraction) is difficult to predict in today's world.
Successful companies can crash and burn quickly, or lose revenue, resulting in a need to lay
off staff in an uncontrolled and unplanned way. The flip side is that as companies succeed
and expand, not only do they need more employees, but the skills they require will change.
e. Human resources planning needs to be linked to the overall strategic direction of the
company, and HR needs to have a seat at the strategic table to both define that strategic
direction, and to have information about corporate strategy. Unfortunately, HR is still seen as
a nuts and bolts part of the organization rather than a strategic lever to make things happen.
Not only is HR left "unheard", but the skills of HR staff are often not strategic in nature, but
oriented towards the completion of short term tasks, like getting people hired, or more
tactical functions.

14. Human Resources Information System (HRIS):

HRIS stands for Human Resources Information System. The HRIS is a system that is used to
collect and store data on an organization’s employees. HRIS shape an integration between
human resource management (HRM) and Information Technology. HRIS support planning,
administration, decision-making, and control. The system supports applications such as
employee selection and placement, payroll, pension and benefits management, intake and
training projections, career-pathing, equity monitoring, and productivity evaluation. These
information systems increase administrative efficiency and produce reports capable of
improving decision-making. HRIS meet the needs of a number of organizational
stakeholders. Typically, the people in the firm who interact with the HRIS are segmented into
three groups: (1) HR professionals, (2) managers in functional areas (production, marketing,
engineering etc. and (3) employees. HR professionals rely on the HRIS in fulfilling job
functions like regulatory reporting and compliance, compensation analysis, payroll, pension,
and profit-sharing administration, skill inventory, benefits administration etc. Thus, for the
HR professional there is an increasing reliance on the HRIS to fulfill even the most
elementary job tasks. Additionally, it also includes skill testing, assessment and development,
resume processing, recruitment and retention, team and project management and
development.
15. Barriers to Human Resource Planning:
Various barriers can inhibit successful planning. In order for plans to be effective and to yield
the desired results, managers must identify any potential barriers and work to overcome them.
The common barriers that inhibit successful planning are as follows:

a. Inability to plan or inadequate planning:

Managers are not born with the ability to plan. Some managers are not successful planners
because they lack the background, education, and/or ability. Others may have never been
taught how to plan. When these two types of managers take the time to plan, they may not
know how to conduct planning as a process.

b. Lack of commitment to the planning process:

 The development of a plan is hard work; it is much easier for a manager to claim that he or
she doesn't have the time to work through the required planning process than to actually
devote the time to developing a plan. (The latter, of course, would save them more time in the
long run!) Another possible reason for lack of commitment can be fear of failure. As a result,
managers may choose to do little or nothing to help in the planning process.
c. Inferior information: 

Facts that are out-of-date, of poor quality, or of insufficient quantity can be major barriers to
planning. No matter how well managers plan, if they are basing their planning on inferior
information, their plans will probably fail.

d. Focusing on the present at the expense of the future: Failure to consider the long-term
effects of a plan because of emphasis on short-term problems may lead to trouble in
preparing for the future. Managers should try to keep the big picture - their long-term goals -
in mind when developing their plans.

e. Too much reliance on the organization's planning department: 

Many companies have a planning department or a planning and development team. These
departments conduct studies, do research, build models, and project probable results, but they
do not implement plans. Planning department results are aids in planning and should be used
only as such. Formulating the plan is still the manager's responsibility.

f. Concentrating on controllable variables:

Managers can find themselves concentrating on the things and events that they can control,
such as new product development, but then fail to consider outside factors, such as a poor
economy. One reason may be that managers demonstrate a decided preference for the known
and an aversion to the unknown.

16. Conclusion:

In conclusion, the process of human resource planning is vital in assessing both the current
and future personnel needs of an organization in terms of quantity as well as quality. It is a
fundamental process that directly links human resource activities to the organizational plans
and objectives. Furthermore, this process cushions organizations from different challenges by
preparing it for different factors, external and internal that may affect its activities. It should
thus be taken serious considering that it determines the successful implementation and
achievement of an organization's objectives and goals.
Reference

1. P Dalvi, Human Resource Planning: Definition, Importance, Objectives, Process &

Prerequisites.
https://www.economicsdiscussion.net/human-resource-management/human-resource-
planning-definition-importance-objectives-process-prerequisites/31575
2. Tamanna R, Importance of Human Resource Planning
https://www.businessmanagementideas.com/human-resource-planning/importance-of-human-
resource-planning/19973
3. Jacki Kilbride, A Complete Guide On Human Resource Planning
https://www.techfunnel.com/hr-tech/human-resource-planning/

4. Objectives of HRP : https://www.economicsdiscussion.net/human-resource-

planning/human-resource-planning-objectives/31734

5.HRP process: https://businessjargons.com/human-resource-planning-process.html

6. Needs of HRP : https://www.yourarticlelibrary.com/hrm/hrp-needs-and-objectives-of-

human-resource-planning-explained/25932

7. http://www.ijbmi.org/papers/Vol(2)1/Version_3/H0216368.pdf
8. https://www.iedunote.com/forecasting-human-resources
9. Gary Dessler, Human Resource Management,15th edition
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%20important%20techniques%20for,Succession%20analysis%20and%20Markov
%20analysis.&text=Once%20a%20company%20has%20forecast,of%20the%20firm's
%20labour%20supply.
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resources-strate
12. http://work911.com/planningmaster/Human_Resource_Planning
13. Erik van Vulpen, What is an HRIS? An HR Practitioner’s Guide
https://www.analyticsinhr.com/blog/human-resources-information-system-hris/
14. What are the barriers of human resource planning?
https://www.answers.com/Q/What_are_the_barriers_of_human_resource_planning