Human Resource Planning

Human resource planning is a process through which the company anticipates future business and environmental forces. The strategy articulates the need as it exists today and the plan necessitates formulation of the goals and action plan for achievement of the people plan. The process facilitates hiring and retaining the right profile of people at varying job, positions, places and time frames depending on the organisational need. The HR Planning purpose and goals are to ensure optimum and effective use of human resources currently employed, to research and reconfigure new skill set to cope with organisational needs given, to assess the employability of the human resource given changing skills and competencies and to analyse the people market environment and its changes as it affects the firm competition.

HR Planning has major steps involved. The first process is assessing human resources. This begins with environmental analysis, under which the external (PEST) and internal (objectives, resources and structure) are analysed to assess the currently available HR inventory level. After the analysis of external and internal forces of the organization, it will be easier for HR manager to find out the internal strengths as well as weakness of the organizations and opportunities and threats on the other hand. The second process is demand forecasting. HR forecasting is the process of estimating demand for and supply of HR in an organization. Demand forecasting is a process of determining future needs for HR in terms of quantity and quality. This is done to meet the future personnel requirements of the organization to achieve the desired level of output. It will be necessary to perform a year-by-year analysis for every significant level and type. The third process is supply forecasting. This is concerned with the estimation of supply of manpower given the analysis of current resource and future availability of human resource in the organization. It estimates the future...