Steps of Human Resource Planning

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Steps or Process of Human Resource Planning:

The below-mentioned article provides a full explanation of the Steps or Process of Human Resource Planning

The process of manpower or human resource planning involves the following steps-

1. Determination of objectives of human resources planning

2. Preparation of current skill

3. Demand forecasting

4. Supply forecasting

5. Gap analysis

6. Action plan

7. Employment plan

8. Training and Development Program.

1. Determination of objectives of human resources planning-

This is the first or primary step of human resource planning and it means, the ultimate purpose of manpower planning is to relate future human resources to future enterprise needs so as to maximize the future return on investment in human resources.

Manpower planning must be integrated with the overall organizational plans. Manpower planning should be done carefully as it has got long-term discussions.

2. Preparation of current skill-

This is the second or secondary step and it means the scarcity of talent, difficulty of discovering it and the time required to develop it fully have forced big organizations to think about their manpower in a systematic way.

They attempt to know the inventory of human resources, develop and appraise their executives, draw up management succession plans and calculate the replacements that will be needed because of retirements and their causes.

3. Demand forecasting-

This is the third or territory step and it means analysis of current manpower supply may need to be done by department, by function, by occupations, or by a level of skill or qualifications. It should be noted that the assessment of demand for the operative personnel presents fewer problems of uncertainty can be adjusted accordingly.

The major determinants of future manpower demand are:

(i) Employment trends

(ii) Replacement Needs

(iii) Productivity

(iv) Absenteeism

(v) Growth and Expansion

4. Supply forecasting-

This is the fourth step and it means an along with demand forecasting, it is equally important of forecast the supply of different types of personnel with the organization at the cut date of human resource planning.

There are two sources of supply of manpower- internal and external. But internal supply is more important for manpower planning. It comprises of the employees working in the organization who can be promoted or transferred to fill up various jobs as and when they fall vacant.

5. Gap analysis-

This is the fifth step and it means manpower planners can identify manpower gaps by comparing demand forecasts with supply forecasts. Once the manpower gaps are identified, plans are prepared to bridge these gaps.

6. Action plan –

This is the sixth step and it means is stipulated that there would be surplus manpower of certain categories, a plan has to be made for the redeployment of such personnel.

Repayment may include the following measures:

(i) Transfer of personnel from the departments with surplus manpower to those having the shortage of manpower.

(ii) Employment

(iii) Provide training to surplus personnel and offer them outplacement services.

7. Employment plan-

This is the seventh step and it means is the next phase of personnel planning is to determine how the organization can obtain the quality and quantity of human resources required to meet the objectives as reflected by the personal forecast.

Long-term employment programme must be chalked out to meet the forecast deficits of manpower in the coming years. It will include steps like recruitment, selection, placement, transfer, and promotion.

However, Human Resource Planning is also a part of Human Resource Management.

8. Training and Development Program-

This is the eighth step and it means is another purpose of assessing the manpower inventory and demand forecasting is to find out the training and development needs in the organization. The operative employees must be given appropriate training so that they may learn the required skills.

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