Human Resource Planning Process

Top 5 Steps of Human Resource Planning Process

Human Resource Planning

The human resource planning process can be defined as a process of forecasting the organization’s demand for and supply of the manpower needed in near future. This is also known as manpower planning or human capital planning. Human resource planning is always considered an integral part of an organization’s strategic management. The human resource planning process analyzes the present human resources of the company depending on future business requirements.

The human resource planning process not only focuses on filling vacant positions but also emphasizes hiring the right people for the right position. The organization’s objectives must be clarified to complete successful human capital planning. The setting of the organization’s objectives must include what types of manpower are required for a specific position. The overall human resource planning process is conducted by the human resource department in any organization.

Read:12 Employee Engagement Activities to make Employees Happy


Objectives of Human Resource Planning

There are lots of objectives behind the human resources planning process such as;

  • Successful implementation of the boarding process,
  • Managing skill matrix to comply with business goals,
  • Helps organization to adjust the modern economy,
  • Ensure the effectiveness of the Recruitment Process,
  • Save organization from risk etc.


Steps of the Human Resource Planning Process

Manpower planning or HR planning process is conducted by following the below steps.


Step 1: Analyzing present manpower capacity

The first and foremost step of manpower planning is to analyze the present manpower capacity of the organization. Here, analyzing present manpower capacity refers to analyzing employee performance based on employee numbers, qualifications, skills, performance ratings, and compensations. Only authentic information can be gathered if there is a proper performance evaluation system in place. Otherwise, we have to take data from concerned managers who directly involve in people management. Managers can give information regarding present constraints and future demands. Analyzing current manpower capacity can help organizations to complete proper manpower planning which will ensure organizational development.


Step 2: Forecasting future HR requirements

In this step, HR Managers have to forecast future HR requirements based on the business goal of the organization. HR Manager will then collect information or market trends in order to justify requirements or for understanding the requirements accurately. Of course, there are a number of factors affecting human resource planning such as vacancies, retirements, promotions, and end-of-contract terms. Skill Matrix helps a lot to complete forecasting demand and supply of human resources in the light of business goals.

There are two types of forecasting such as:

  • Qualitative: This analyzes behavioral and performance-related issues and impacts.
  • Quantitative: Quantitative forecasting is mostly focused on statistical and objective analysis.


Step 3: Identify HR gaps

This step of manpower planning or HR planning process helps to find out the gap between the availability of resources and the demand of the company for achieving goals. Now need to find out manpower needs according to the business goal strategy. This is the step of finalizing the gap between the present and expected qualification of manpower.


Step-4: Human Resource Planning Strategy & Implementation

This step can be divided into 2 stages i.e., the planning stage and the implementation stage.

(a) Planning Stage- As gaps are identified through the previous 3 steps, now need to develop an accurate action plan to fulfill the requirements. You have to determine the source of hiring and the process of developing their skills to meet the requirement. You must have to include a training and development strategy to comply with the required skill set. The plan should have to develop by following the 3W strategy that stands for below-

W= What

W= Who

W= When


(b) Implementation Stage- This is the most challenging section and most organizations fail to achieve goals due to proper execution. Lack of confidence is one of the major causes of failure in implementation. Improve the confidence level of your team members who will be responsible for implementing your plan.


Step-5: Review, Feedback, and Control

Please must have to follow the PDCA cycle (P=Plan, D=Do, C=Check, and A=Act) in order to complete a successful implementation of the Human Resource Planning Process. Check thoroughly whether your planning is moving in the right direction or not. Confirm regular monitoring and take feedback regarding success towards goals. Don’t forget to set a control mechanism. Set Training and Development programs and plan training through a training calendar.

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Characteristics of Human Resource Planning

Human Resources Planning Process forecasts the organization’s demand for and supply of the manpower needed in the near future. As a result, it’s a critical analytical task. The human resource planning process is mostly future-oriented and is required for modern organizations, as it can drive organizations to ultimate benefits. The characteristics of an effective human resource planning process are as below:

  1. Future-Oriented: Human resource planning analyzes future manpower requirements of the organization in light of the business goals of the company. It helps the organization develop a skill matrix or skill inventory for future reference. HR planning has the scope to develop an organization’s HR strategy.
  2. Continuous Process: Human resource planning is a continuous process to comply with the strategic goals of the organization. It’s a continuous process because today’s HR planning may not be applicable for next month or next year due to available changes in business goals and strategy.
  3. Recruitment of Right People in the Right Place: Human resource planning process ensures the recruitment of the right people in the right place and at the right time. It increases the effectiveness of HR activity.
  4. Determination of Demand and Supply: Human resource planning process is mostly involved in determining the demand for and supply of the manpower needed in the near future.
  5. Reduces External Influence: The HR planning process can extremely reduce external influences in the case of recruitment and selection.

Most organizations don’t have strategic human resource planning processes. But it is the ultimate requirement for organizational growth. Having strategic HR planning is the most urgent and crucial requirement for the growth of the organization in light of the modern economy.


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