Human Resource Planning, Features, Process, Importance

Human Resource Planning (HRP) is a systematic process of identifying and addressing an organization’s human resource needs to achieve its objectives. It involves forecasting the future demand for and supply of human resources, assessing current workforce capabilities, and developing strategies to bridge the gap between the two. HRP ensures that the right number of people with the right skills are available at the right time to meet organizational goals.

Features of Human Resource Planning:

• Well Defined Objectives

Enterprise’s objectives and goals in its strategic planning and operating planning may form the objectives of human resource planning. Human resource needs are planned on the basis of company’s goals. Besides, human resource planning has its own objectives like developing human resources, updating technical expertise, career planning of individual executives and people, ensuring better commitment of people and so on.

• Determining Human Resource Reeds

Human resource plan must incorporate the human resource needs of the enterprise. The thinking will have to be done in advance so that the persons are available at a time when they are required. For this purpose, an enterprise will have to undertake recruiting, selecting and training process also.

• Keeping Manpower Inventory

It includes the inventory of present manpower in the organization. The executive should know the persons who will be available to him for undertaking higher responsibilities in the near future.

• Adjusting Demand and Supply

Manpower needs have to be planned well in advance as suitable persons are available in future. If sufficient persons will not be available in future then efforts should be .made to start recruitment process well in advance. The demand and supply of personnel should be planned in advance.

• Creating Proper Work Environment

Besides estimating and employing personnel, human resource planning also ensures that working conditions are created. Employees should like to work in the organization and they should get proper job satisfaction.

HR Planning Process:

• Current HR Supply:

Assessment of the current human resource availability in the organization is the foremost step in HR Planning. It includes a comprehensive study of the human resource strength of the organization in terms of numbers, skills, talents, competencies, qualifications, experience, age, tenures, performance ratings, designations, grades, compensations, benefits, etc. At this stage, the consultants may conduct extensive interviews with the managers to understand the critical HR issues they face and workforce capabilities they consider basic or crucial for various business processes.

• Future HR Demand:

Analysis of the future workforce requirements of the business is the second step in HR Planning. All the known HR variables like attrition, lay-offs, foreseeable vacancies, retirements, promotions, pre-set transfers, etc. are taken into consideration while determining future HR demand. Further, certain unknown workforce variables like competitive factors, resignations, abrupt transfers or dismissals are also included in the scope of analysis.

• Demand Forecast:

Next step is to match the current supply with the future demand of HR, and create a demand forecast. Here, it is also essential to understand the business strategy and objectives in the long run so that the workforce demand forecast is such that it is aligned to the organizational goals.

• HR Sourcing Strategy and Implementation:

After reviewing the gaps in the HR supply and demand, the HR Consulting Firm develops plans to meet these gaps as per the demand forecast created by them. This may include conducting communication programs with employees, relocation, talent acquisition, recruitment and outsourcing, talent management, training and coaching, and revision of policies. The plans are, then, implemented taking into confidence the mangers so as to make the process of execution smooth and efficient. Here, it is important to note that all the regulatory and legal compliances are being followed by the consultants to prevent any untoward situation coming from the employees.

Objectives of Human Resource Planning:

1. 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.

2. 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.

3. 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.

4. Determine Manpower Gap

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

5. 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.

6. Analyze Current Workforce

HRP volunteers to assist in analyzing the competency of present workforce. It determines the current workforce strengths and abilities.

7. 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.

8. Realizing Organizational Goals

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

Importance of Human Resource Planning:

• It gives the company the right kind of workforce at the right time frame and in right figures.
• In striking a balance between demand-for and supply-of resources, HRP helps in the optimum usage of resources and also in reducing the labor cost.
• Cautiously forecasting the future helps to supervise manpower in a better way, thus pitfalls can be avoided.
• It helps the organization to develop a succession plan for all its employees. In this way, it creates a way for internal promotions.
• It compels the organization to evaluate the weaknesses and strengths of personnel thereby making the management to take remedial measures.
• The organization as a whole is benefited when it comes to increase in productivity, profit, skills, etc., thus giving an edge over its competitors.