The Human Resource Planning Process

The HR Planning Process

1. Environment Scanning:
• Systematic monitoring of the external forces influencing the organization.
• Internal and external environment
• External: economic factors, technological changes (automation, robotics)
• Demographic changes: age, composition and literacy
• Political and legislative issues, laws, social concerns, child care, education, facilities and priorities
2. Organization objectives and Policies:
• HR plan need to be based on organization objectives
• Number of employees, characteristics of employees
• Vacancies to filled by
• Promotions
• Hiring from outside
• Training and development objectives
• Union constraints, how to enrich jobs
• Downsizing to make it more competitive
• Level of automation ( production and operation)
• Adaptive and flexible workforce
3. HR demand forecast:
• The process of estimating the quality and quantity of people required to meet future needs of organization
• Managerial Judgment
• Ratio trend analysis
• Regression analysis
• Work study analysis
• Delphi technique
• Flow models: time, categories(states), count annual movement(flows), probability of transition from one state to another
4. HR supply forecast:
• Source of procurement
• From within and outside an organization, after making allowance for absenteeism, internal movement and promotions, wastage and change in hours
• The supply analysis covers:
• Existing human resource
• Internal source of supply
• External source of supply
• Skills and abilities
• Skills inventories
5. HR programming:
• Personnel demand and personnel supply must be balanced
• Programming:
• Right employees
• At the Right time
6. HR plan implementation:
• Converting plans into action
• Shortage: Recruitment and selection, T&D, retention, rewards, redeployment, succession plan
• Surplus: Restricted hiring, reduced hours, VRS, layoffs
7. Control and evaluation:
• HRP plan should include budgets, targets, and standards
• Establish reporting procedure