PROCESS OF HUMAN RESOURCES PLANNING
Process of Human Resources Planning consists of the following steps :
1. Analyzing organizational plans.
2. Demand Forecasting: forecasting the overall human resources requirements in accordance with the organizational plans.
3. Supply Forecasting : Obtaining the data and information about the present inventory of human resources and forecast the future changes in the human resources inventory.
4. Estimating the net human resources requirements.
5. In case of future surplus ,plan for redeployment, retrenchment and lay-off.
6. In case of future deficit, forecast the future supply of human resources from all sources with reference to plans of other companies.
7. Plan for recruitment ,development and internal mobility if future supply is more than or equal to net human resources requirements.
8. Plan to modify or adjust the organizational plan if future supply will be inadequate with reference to future net requirements.
The eight steps of human resources planning are depicted in the figure given below in the order mentioned above .But the same order need not be followed in the actual planning process as the steps are interdependent and sometimes, the first step and the last step may be processed simultaneously .And the planner sometimes may not explicitly process some steps .However, it is helped to the planner to plan for HR effectively without any complications if he/she has an idea about all steps of HRP. These are discussed in detail given below.
Analyzing the Organizational Plans
The process of human resources planning should start with analyzing the organizational plan into production plan, technological plan, plans for expansion ,diversification etc,. marketing plan, sales plan financial plan .Each plan can be further analyzed into sub units. Detailed programs should be formulated on the basis of unit-wise plans. Practicability of each programs should be ensured .Analysis of organizational plans and programs helps in forecasting the demand for human resources as it provides the quantum of future work activity.
Forecasting the Overall Human Resources Requirements
The jobs should be redesigned and reanalyzed keeping in view the organizational and unit-wise plans and programs ,future work quantum ,future activity or task analysis. future skills values, knowledge and capabilities of present employees and prospective employees. Job analysis and forecasts about the future components of HR facilitate demand forecasting .One of the important aspects of demand forecasting is the forecasting of the quality of human resources (skill knowledge values, capabilities etc )in addition to quantity of human resources .Important forecasting methods are :
1. Managerial judgement;
2. Statistical techniques;
3. Work study techniques.
Small organizations resort to the management â€“judgement approach. This method the managers or supervisors who are well acquainted with the workload efficiency and ability of employees think about their future workload, future capabilities of employees and decide on the number and type of HR to be required. The management at the top compares the proposals with the organizational plans makes necessary arrangements and finalizes the plans. Alternatively this exercise can also be done by the top management which in turn sends the information at the top prepares the organizational plans, departmental plans and human resources plans. But the best approach is participative approach, where both the management at the top and supervisors at the bottom meet and decide on the human resources needs based on the experience of the supervisors and the plans formulated by the top officials.