What is Human Resource Planning?
Human Resource Planning (HRP) is the process of forecasting the future human resource requirements of the organization and determining as to how the existing human resource capacity of the organization can be utilized to fulfill these requirements. It, thus, focuses on the basic economic concept of demand and supply in context to the human resource capacity of the organization.
It is the HRP process which helps the management of the organization in meeting the future demand of human resource in the organization with the supply of the appropriate people in appropriate numbers at the appropriate time and place.
Further, it is only after proper analysis of the HR requirements can the process of recruitment and selection be initiated by the management. Also, HRP is essential in successfully achieving the strategies and objectives of organization.
In fact, with the element of strategies and long term objectives of the organization being widely associated with human resource planning these days, HR Planning has now became Strategic HR Planning.
Though, HR Planning may sound quite simple a process of managing the numbers in terms of human resource requirement of the organization, yet, the actual activity may involve the HR manager to face many roadblocks owing to the effect of the current workforce in the organization, pressure to meet the business objectives and prevailing workforce market condition. HR Planning, thus, help the organization in many ways as follows:
- HR managers are in a stage of anticipating the workforce requirements rather than getting surprised by the change of events
- Prevent the business from falling into the trap of shifting workforce market, a common concern among all industries and sectors
- Work proactively as the expansion in the workforce market is not always in conjunction with the workforce requirement of the organization in terms of professional experience, talent needs, skills, etc.
- Organizations in growth phase may face the challenge of meeting the need for critical set of skills, competencies and talent to meet their strategic objectives so they can stand well-prepared to meet the HR needs
- Considering the organizational goals, HR Planning allows the identification, selection and development of required talent or competency within the organization.
It is, therefore, suitable on the part of the organization to opt for HR Planning to prevent any unnecessary hurdles in its workforce needs. An HR Consulting Firm can provide the organization with a comprehensive HR assessment and planning to meet its future requirements in the most cost-effective and timely manner.
An HR Planning process simply involves the following four broad steps:
- 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.
Hence, a properly conducted process of HR Planning by an HR Consulting Firm helps the organization in meeting its goals and objectives in timely manner with the right HR strength in action.
|❮❮ Previous||Next ❯❯|
- Importance of HRM
- Scope of HRM
- Various Processes in HRM
- The HRM Function
- Functions of a Human Resource Manager
Authorship/Referencing - About the Author(s)
The article is Written By Prachi Juneja and Reviewed By Management Study Guide Content Team. MSG Content Team comprises experienced Faculty Member, Professionals and Subject Matter Experts. We are a ISO 2001:2015 Certified Education Provider. To Know more, click on About Us. The use of this material is free for learning and education purpose. Please reference authorship of content used, including link(s) to ManagementStudyGuide.com and the content page url.
- H R Management - Introduction
- Importance of HRM
- Scope of HRM
- Various Processes in HRM
- What is Human Resource Planning ?
- The HRM Function
- Functions of a Human Resource Manager
- Staffing Role of the HR Manager
- Role of HRM in Leadership Development
- Role of HR in People Empowerment
- Talent Management and HRM
- Management of Contractors
- Performance Management as a HR Management Concept
- Successful Performance Management
- Hiring Strategies
- Social Media Profiles for Hiring Decisions
- Importance of Background Checks
- Retention Strategies
- Strategic HRM
- Global HRM
- Personnel Management vs HRM
- Managing Employee Performance
- Performance Appraisal Process
- Performance Appraisal Interview
- Managing Employee Relations
- Employee Rewards and Recognition
- Variable Pay
- Diversity in Organizations
- Managing Workforce Diversity
- Workplace Health and Safety
- Workplace Safety Programs
- OSHA Safety Manual
- HR Challenges
- Human Resource Audit
- Hiring in Shadow of Stagnating Growth
- The Challenges of Managing Attrition
- Employee Separation Process
- Tips for Pursuing a Career in HRM
- Role of HRM in Recessionary Times
- People Manager vs. Project Manager
- Use of Contract Staff & Temp Workers
- The Necessity of Drafting Proper and Foolproof Employment Contracts
- Importance of Vacation Planning
- Hiring & Firing of Workers: Perspectives
- What to do if You are Laid Off from Job
- Termination and Outplacement
- Emotional Intelligence for Professionals
- Assigning Key Responsibility Areas (KRAs) to Employees
- Role of HR in Performance Appraisals
- HR Policies and Procedures Manual and Employee Handbook
- Managing Downsizing in Organizations
- Managing Attrition in Organizations
- Rise of the Temp Jobs and the Freelance/Sharing Economy
- What is Blind Hiring and Its Implications for the HR Profession
- How Human Resource Managers should Manage Ethical Issues and Ensure Compliance ?
- Issues Related to Human Resource Management in the Hospitality Sector
- Human Resource Management in the Times of Emerging Digital Economy
- Human Resource Management in the Age of Acceleration
- How to Manage Star Performers and High Achievers
- Actualizing a High Trust Organization
- HRM Strategies for an Increasingly Complex, Uncertain, and Volatile World
- How Human Resource Managers can deal with Difficult Employees
- Why Human Resource Management Must Change for the Coming Robotics Revolution
- How Silicon Valley Firms are Implementing Innovative Human Resources Policies
- Effective HRM Strategies to Smoothen and Sweeten the Downsizing and the Layoff Process
- How HR (Human Resources) Function Can Save Time by Automating Routine Tasks
- How HR Managers Can Help Employees Avoid Burnout and Manage Stress
- Human Resource Management Strategies to Diversify the Workforce
- What is an HR Scorecard and How it Helps Contemporary Organizations?
- How Using the HR Scorecard Creates Long Term Value for Organizations
- How Technology Can Help in Collection of Metrics for the HR Scorecard
- HR Scorecard: Aligning People, Strategy, and Performance
- How Using the HR Scorecard Can Address Organizational Dysfunction
- Human Resource Management Best Practices in Contemporary Organizations
- Using HR Scorecard with Analytics to Actualize Next Generation Performance
- How the HR Scorecard Helps Actualize Cross Functional Excellence in Organizations
- How the HR Scorecard can Help Gig Economy Firms to Manage Freelancers Better
- How the HR Scorecard Helps Organizations to Actualize Change Management Initiatives
- How Innovative HR Policies boost Employee Productivity and Organizational Effectiveness
- Changing Recruitment Strategies of Corporates and Tips to Get Hired
- What is Social Mirror and How it Determines Individual Success in Career and Life
- What Do Hiring Managers Look for in Applicants when Making Hiring Decisions
- Why the Future of Work is Virtual, Gig Based, and Cognitive and its implications for HR
- Why HR Managers Must Enforce Data Security and Information Protection Policies
- Why Corporates Must Have Wellness Managers as well as HR Managers
- What is Employee Ghosting and How HR Managers and Organizations Can Deal with it
- The Increasing Popularity of Corporate Wellness Programs and What HR Can Do
- What Experienced HR Managers Watch Out For When Recruiting Candidates
- The Importance of Data Driven Analytics and HR Scorecard Dashboards for Corporates
- What Hiring Managers Look Out For During the Recruitment and Selection Process?
- The Growing Popularity of Flex Work and HR Strategies to Deal with It
- What the Case of Amazonís AI Powered Recruitment Tool Means for Other Corporates
- Pay Cuts vs. Lay-Offs
- Game Changers or Slave Drivers? Human Resource Managers in the Gig Economy Firms
- Preparing for the Workplace of Tomorrow: Some HRM Strategies for the Digital Age
- The Managerial Challenge: Using Early Warning Systems to Spot Signs of Trouble
- Top HR Trends for 2019: Technological Convergence and Smarter HR Management
- How Should HR Managers Deal With Occupational Hazards at the Workplace?
- How HR Managers Must Deal with Legal and Regulatory Challenges in Organizations
- How HR Managers Must Address the Pay Disparities and Pay Gaps in Organizations
- How HR Managers can Make the On-boarding Process more Pleasant and Effective
- Why HR Managers Must Treat the Exit Interviews as Feedback and Learning Experiences
- The Importance of Due Diligence in Human Resource Management Processes
- The HRM Challenge: Managing the Millennials Entering the Workforce
- The Future of Human Resource Management in an Agile Driven and Automated World
- The What, Why, and How of the Difficult Decision to Fire Employees in Organizations
- How Using Blockchain Can Transform the HR Function and Change the Way it Works
- Corporate Corruption and the HRM Function: Legal, Ethical, and Moral Perspectives
- How Predictive Analytics Helps HR Managers Make Better Hiring Decisions
- Skills that the HR Professionals Need to have to be Successful in the Present Times
- The HRM Challenge: Promoting Diversity and Inclusivity in Illiberal and Charged Times
- Role and the Importance of Human Resource Managers in Recessionary Times
- How Blockchain can Help Human Resource Managers in Efficient Management
- HR Professionals and the Law: The What, Why, and How of Awareness of Laws
- Is the European Model of HRM Better than the American Model? Some Perspectives
- The Staffing Challenge in MNCs: Expatriates or Locals in Overseas Locations
- The HRM Challenge: Managing Opinionated Employees in Polarized and Divisive Times
- Why Auditing of the HR Function is Necessary and Important in the Present Times
- The Role of the HR in How Corporates Can Win (and Lose) the Global Race for Talent
- The Changing Nature of Employment and Impact on Professionals and Societies
- Fixing Fraud and Biases in the Recruitment Process and Making it Fair and Transparent
- HRM Strategies in Non Profits and How Similar and Different are They from Corporates
- Organizational and HRM Strategies for Virtual Workplaces and Remote Workforces
- The Role of Feedback in Enhancing Employee Performance and Productivity
- The Role of Monetary and Non Monetary Incentives in Enhancing Employee Performance
- Will Hire and Fire at Will Labour Laws Work in the Indian Socio-Economic Context?
- How Insights from Behavioural Science Can Help Corporates in People Management
- What is Ghosting and How it Disrupts the Hiring Process and Ways to Tackle this Menace
- How Staffing Agencies Need Better Regulation in the Corporate Ecosystem
- How Corporates Have to Let Go of Legacy Employees in an Empathic, Yet, Firm Manner
- Designing an Effective Pay and Perks Package across the Organizational Hierarchy
- Why Do Some Excel in the Interviews, But, Fail on the Job and How HR Can Fix This?
- Why Technology Can Diminish the Role of HR Function, but, Not Eliminate It Altogether
- The Challenges of Recruiting and Onboarding Remote Employees in Virtual Workplaces
- The Importance of Values in Human Resource Management in the Post Pandemic World
- Why We Need Employee Friendly Laws and HR Policies in the Post Pandemic World
- What is Second Chance Hiring and Why It Matters in the Present Times of Distress?
- Pandemic and Lay off: Putting People over Business
- The Hype and Realities of Networking in an Interconnected World and Leveraging Them
- What is Blind Hiring and How it Promotes Diversity and Inclusivity Efforts in Corporates
- What is Great Resignation? What can be done to Address the Mass Attrition Trend
- Why are American Millennials Burning Out and Quitting Jobs in Record Numbers?
- As American Corporates Order Employees Back to Office, What Are the HR Challenges?
- What Is Quiet Quitting, Why It Matters, And How Is It Impacting American Corporates?
- As Tech Firms Layoff Thousands, Is the Party Over and What It Means For Indian IT
- After Quiet Quitting Comes Quiet Hiring! What It Is, And Why It Would Be Trending In 2023!
- Quiet Hiring vs. Traditional Hiring: A Comparative Analysis and What Works When and Why
- White Collar American Workers are burning out More Than Ever! Here are the Reasons Why!
- Who are Boomerang Employees?
- Why is Everyone Talking About Artificial Intelligence Suddenly and How it Matters to All of Us?
- Heres Why Businesses in the United States are Finding it Hard to Hire Workers
- HR Challenge: Both Ageism and Youngism are Forms of Discrimination at the Workplace!