The process or steps of human resource planning involves the following steps:-
- Establishment of objectives of human resource planning.
- Preparation of current skill.
- Demand forecasting.
- Supply forecasting.
- Gap analysis.
- Action plan for redistribution discharge.
- Employment plan.
- Training and Development Programme.
This process and steps are asked by four (4) types of questions like:-
- Discuss the process of human resource planning.
- Explain the process of human resource planning.
- Describe the process of human resource planning.
- What is the process of human resource planning?
Process/Steps of Human Resource Planning
Human resource planning is an ongoing process as shown in a diagram or figure. The manager responsible for human resource planning has to be concerned with all the process at all time. He helps to formulate the process of employment plan and training and development program. So, the brief explanation of the steps in the human resource planning process is given below…
1. Objectives of human resource planning:
The main purpose of this planning is to relate future human resources to future business needs so as to maximize future investment or return in human resources. Manpower planning is totally interrelated with the plans of the organization because it helps to focus on the long term achievements or repercussions.
Once the incorrect forecast of future requirements of human resources is made, it may not be possible to recorrect the problems or errors in the short-run.
[Note: Human Resource Planning is also known as manpower planning].
2. Skill Inventory:
A skills inventory helps in explaining the education, skills, and experiences of current employees. This process of inventory varies according to the size of the organization and the complexity of a business. Some firms use commercial software. Other firms use computer programs. Some small firms use worksheets to prepare the skills inventory.
If an organization wants to understand the nature of the development and recruitment programs, then it is very important to evaluate the inventory of different skills existing in the organization.
3. Demand forecasting:
Evaluation of current manpower supply may need to be done by occupations, by function, by the department, or by the level of qualifications. They forecast the positions of demand according to the requirements of manpower skills and their activities. The major contents of future manpower demand are:
(a) Replacement Needs:
In an organization, the need for replacement arises from the retirement, death, termination, and resignation of employees or workers. The activities of replacement needs may relate to definite manpower groups like supervisory, clerical, skilled, unskilled, etc.
But in some groups like managerial or supervisory groups, it is very difficult to forecast the things because the managerial skills (management development cycle takes a very long time or procedure).
(b) Employment Trends:
In this, the manpower planning department evaluates the groups of employees with their past working records and try to know the trending employee group of an organization. This technique plays an effective role to develop an employment trend.
Manpower planning is related to the improvement of productivity because high productivity improves the growth level of a firm.
4. Supply forecasting:
Along with demand forecasting, it is equally very important to predict the supply of different types of individuals. This can be categorized into two parts such as Internal and External.
Internal supply is more important for manpower planning because it comprises the employee who is working in the organization and external supply comprises the outsiders like suppliers, competitors, and so on.
5. Gap Analysis:
Manpower planners help to identify the gaps by comparing demand forecasts with supply forecasts. They establish the comparison of surplus or deficit of human resources. Deficit suggests the number of individuals who are selected from outside whereas surplus implies the inner individuals.
Similarly, gaps arise the difference in terms of aptitude, skills, knowledge. If the employee is weak then it will be trained whereas if the employee is excellent then he will be given a good job.
6. Action plan for redistribution discharge:
It includes the following measures like:-
- Transfer of individuals from the departments of more manpower to those having a shortage of manpower or employees.
- Create employment facilities.
- provide training to surplus individuals.
- Provide placement services.
7. Employment Plan:
The next step of personnel planning is to determine how the firms can obtain the quality and quantity of human resources to meet the motives as reflected by the manager’s forecast. Long-term employment program is very time taken process or activity to make employment successful. It includes various steps like recruitment, selection, transfer, placement, and promotion.
8. Training and Development Programme:
Another purpose of evaluating the demand forecasting and manpower inventory is to find out the training and development needs in the organization. An organization provides the facilities of training to our employees so that they can improve themselves.
And as well as, an organization provides development programmes so that the existing employees can easily upgrade themselves.
So, these are the proper steps of the human resource planning process.