Human Resource Planning Process

Human Resource Planning

Human Resource Planning 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 called manpower planning or human capital planning. Human resource planning is considered as an integral part of an organization’s strategic management. Human resource planning process is involved in analyzing current human resources depending on forecasts of future business requirements.

The human resource planning process not only focuses on filling vacant positions, but also emphasizes on hiring right people for the right position. Organization’s objectives must be clarified to complete a successful human capital planning. Setting of organization’s objectives must include what types of manpower is required for specific position. The overall human resource planning process is conducted by 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 human resources planning process such as;

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


Steps of Human Resource Planning Process

Manpower planning or HR planning process is conducted by following 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 of present manpower capacity refers to analyzing employee’s 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 concern managers who directly involve in people management. Managers can give information regarding present constrains and future demands. Analyzing of current manpower capacity can help organization to complete proper manpower planning which will ensure organization’s growth.


Step 2: Forecasting future HR requirements

In this step HR Managers have to forecast future HR requirement based on 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 goal.

There are two types of forecasting such as:

  • Qualitative: This analyzes behavioral and performance related issues and impacts.
  • Quantitative: Quantitative forecasting 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 against availability of resources and 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 gap between present and expected qualification of manpower.


Step-4: Human Resource Planning Strategy & Implementation

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

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

W= What

W= Who

W= When


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


Step-5: Review, Feedback and Control

Please follow PDCA cycle (P=Plan, D=Do, C=Check and A=Act) in order to complete a successful implementation of Human Resource Planning Process. Check thoroughly whether you 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 program and plan trainings through training calendar.

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Characteristics of Human Resource Planning

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

  1. Future Oriented: Human resource planning analyzes future manpower requirement of the organization in light of business goals of the company. It helps organization of develop skill matrix or skill inventory for future reference. HR planning has the scope to develop organization’s HR strategy.
  2. Continuous Process: Human resource planning is a continuous process to comply with strategic goals of the organization. It’s a continuous process because todays 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 Right Place: Human resource planning process ensures the recruitment of right people in right place and in 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 near future.
  5. Reduces External Influence: HR planning process can extremely reduce external influences in case of recruitment and selection.



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


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