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.
The steps involved in the HRP process are as follows:
1. Analyzing Business Objectives and Policies
The human resources planning process starts with the identification of the objectives of the different
departments in the organization. each department such as management, marketing, production, finance,
sales, etc. can have different objectives and they have specific expectations related to human resources.
The objectives can include recruiting new employees for the process, reducing the number of
employees by automating processes or improving the knowledge and skill levels of existing employees.
2. Study Existing Manpower Inventory
Once the necessary changes are identified, the Human resources planning team should create an
inventory of the current human resources available in the organization. This should include the current
number of employees available in the organization, their capacities, capabilities, and performance
abilities. This helps the human resources team to identify the methods of filling the upcoming job
requirements and to create estimates for internal and external recruitments that will be necessary.
3. Forecasting Demand and Supply
Based on the objectives of the different departments of the organization and the inventory of the
available resources, the Human resources planning team can forecast the demand of the employees.
Apart from that, based on the availability in the organization and the employee market, the supply of
the employees should be forecasted.
4. Performing Gap Analysis
Conducting a comparison between the demand and the supply of the employee availability can help
the human resources team to identify the gaps that can arise in the foreseeable future. The gaps can
arise as employment deficits as well as employment surpluses. Employment deficits indicate the
number of employees that need to be recruited and the employment surpluses indicates the job
terminations or transfers between departments. Apart from that, the gaps can be used as an indication
of the training and development requirements for the employees.
5. Formulating and Implementing HRP
Once the employment gaps are estimated, the Human resources planning team should formulate a plan
for the recruitment, training, development, termination, interdepartmental transfers, promotion, or
early retirement of employees based on the requirements of the organization. The employment plan
can vary based on the deficit or the surplus estimated in forecasting the demand and supply stage.
6. Training and Development
Once the human resources plan is formulated, the human resources department should implement the
plan in the organization. This should be aligned with the goals and objectives of the organization as
well as the goals and objectives of each department of the organization.
7. Evaluation and Control
Once the human resources plan is implemented, the plan should be monitored continuously to ensure
the alignment of the plan to the objectives of the departments. The necessary controls should be put in
place and the feedback at each level should be obtained to measure any defects in the implemented
human resources plan. The necessary changes should be implemented according to the feedback
obtained in the ongoing process in order to make the human resources plan a success.
B) As of now business is functioning without HRP, and, yes, it can be a challenge to get the plans in
place, but the benefits far outweigh the drawbacks.
Among other things, Planning can help our business with following steps:
1. Anticipate workforce needs in a changing market
2. Plan for short-term and long-term growth
3. Improve operations
4. Facilitate staffing changes
5. Avoid talent shortage
6. Stay ahead of the technology curve
7. Remain agile as the market evolves
8. Maintain compliance with government laws and regulations
Human capital management is one of the most important parts of our business. HRP helps you
maximize that potential.
There are challenges as beneficial and powerful as human resource planning is, it is not without
its drawbacks and challenges. For one thing, HRP relies on forecasting, which is an imperfect art and
is never and can never be 100% accurate but we can cost cut. Similarly, you can never account for the
ambiguity in the market and the rapid change that could come out of nowhere. There may be some
error when you forecast the future of your workforce. That error will affect the other steps on this list
for the good or the bad (depending on how accurate your forecast is). Realistically, though, that can’t
be helped and all you can do is give it your best shot. If you discover errors in your forecasting, you
can always return to step one and start the process over with the new information.
There are challenges of the workforce planning process:
1. Resistant workforce
2. Inefficient information systems
3. Overall cost
4. Time and effort
when you are aware of these challenges going in, you can take steps to overcome them right away
so that you can get to the benefits sooner. Scheduling and communication are key components of an
effective human resource planning process. Our team’s schedule is the cornerstone on which you build
their work experience. If the schedule doesn’t satisfy all parties employees and management alike our
business suffers. Similarly, clear communication with all your employees fosters a strong team and
keeps everyone in the loop about employee performance, inventory, standard operating procedures,
customer satisfaction, and our business as a whole.