Human Resource Planning is a vital part of an organization to achieve its goal. It is an ultimate process of getting right kind of person to carry out their role at right time that leads to the overall growth of the organization along with the satisfaction of the working individual in the organization.
In this article we will discuss the process of Human Resource Planning. We have already discussed in our previous blogs before regarding the importance, benefit and challenges etc.
You may also read: Why Human Resource Planning is important?
Detailed Process of Human Resource Planning
Human resource planning process consist many fundamental areas which can be explained in some sub-parts as below:
Table of Contents
Analyzing Organizational Plan
The process of Human resource planning should start with analyzing the overall organizational plan and the derivative plans like production plan, technological plan, marketing plan, diversification plan, financial plan etc.
Analysis of organizational plans and programme helps in forecasting the demand of human resource as it provide the quantum of future work activities.
Forecasting the Overall Human Resource Requirement
The existing job design and analysis may be thoroughly be reviewed keeping in mind the future capabilities, knowledge and skills of present employees considering the future organizational plan.
One of the important aspect of demand forecasting is the forecasting of the qualities in addition to quantities of human resource.
Supply forecasting
The first steps of forecasting the future supply of human resource is to obtain the data and information about present human resource already available in the organization. It also considers planning for potential losses and addition and the source of supply of required human resource.
Existing Inventory
The data relating to present human resource inventory in terms of human resource component, number, designation wise and department wise should be obtained. It also considers local non-local wise inventory, sex-wise inventory, skill-wise inventory, qualification and salary wise inventory etc.
Potential Losses
The second step of supply forecasting is estimations of future losses of human resources of each department and of entire organization. Potential losses to the organization include voluntary quits, deaths, retirements, dismissal, layoffs, disablement due to ill-death or accidents etc.
The reason for potential losses can be classified as:
- Permanent total loss.
- Permanent partial loss.
- Temporary total loss.
- Temporary partial loss.
Permanent total loss arise due to labour turnover and labour turnover can be calculated via following formula:
Labour Turnover Rate= Number of employee left during a specific period of time/Average number of employee during the same period*100
Permanent partial loss consist of wastage of skills capabilities etc. due to illness and accident.
Temporary total loss of human resource is due to absenteeism and deputation out.
Temporary partial loss includes consultancy, advisory and other services offered by employees to others. Potential addition should be estimated after forecasting potential loss.
Potential Addition
Similar to potential loss there will be addition to present inventory of human resource. Potential addition may arise due to new hiring for the launch of new product and services, internship programme, surveys, promotion and transfer of existing employees etc.
Analyzing the source of Supply
The source of supply should be analyzed with a view to ensure that availability of required human resource at the time of its need. Both the internal and external factor affecting manpower supply should be analyzed. internal factor includes training facilities, salary levels, benefits, inter-personnel relations, growth and promotional opportunities etc.
External factor can be classifies in two: local factors and national factors.
Estimating the Net Human Resource Requirement
Newt human resource requirement in terms of numbers and components are to be determined in relation to overall human resource requirements (demand forecast) for a future period of time and supply forecasts for that time. The difference between overall human resources to be found out.
Action plan for Redeployment, Redundancy and Retrenchment
If future surplus is estimated in some jobs and departments then employee can be redeployed in other jobs and departments where the deficit employee is estimated. Organization should conduct training or orientation before deployment on employees. Redeployment takes place in the form of transfer. And if there is a requirement of redundancy or retrenchment then organization advices to take consultation of Trade union if any or pay notice period to the particular employee and full payment of the notice period immediately after the redundancy or retrenchment.
Forecasting Future Supply from all Source
If deficit estimated in any department management has to forecast the future supply of human resources from various sources like internal sources, comparable organizations, educational and training institutes, employment exchange and online job portal etc.
Action Plan for recruitment, Development
If the forecast relating to future supply of manpower from internal sources of the organization shows favorable trends, the management may prefer internal candidates and plan for promotion, transfer and training and development of such promoted/transferred employee to get their maximum productivity.
Recruitment and selection plan covers the number and type of employees required. When they are required for the job, time required for recruitment and selection process, recruitment sources, recruitment techniques to be used, selection procedure to be adopted to appoint required candidates. It also cover time factor for induction, preliminary training and placement.
Modify the Organizational Plan
If future supply of human resources from all the external sources is estimated to be inadequate or less than the requirement, the manpower planner has to suggest the management to alter or modify the organizational plan.
In view of shortage of certain categories of employees the organization has to take not only of recruitment but also of the existing employees.
Retention Plan
Retention of existing manpower in an organization considered as the art of the organization because it becomes tough to find some categories of employees. So, it better to retain the existing manpower who has already serving for the company.
Retention of existing manpower includes adjustment in salary, providing opportunities for self development, better medical facilities, providing flexible working time and better working environment, providing social security benefits and scope for innovation etc.
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I hope this article will help you to understand the detail process of Human resource Planning. If you have any query write down the in comment section.