Figure 1
What is Human Resource Planning?
Human resource planning can be defined as the continuous process of systematic planning to achieve the optimal utilization of quality employees, which is the most valuable asset of an organization. This creates a better balance between employees and jobs, preventing staff shortages or redundancies.
Importance of HR planning
Human resource planning enables businesses to meet current and future human resource needs, allowing human resource managers to predict and develop new skills, and provide businesses with an optimal balance of staff according to existing technical kits and size. Will be given. Education is also a pathway for future development that provides a pool of talent that can fill a leadership role in proper planning. Over time, human resource planning helps to capitalize on human capital management and business strategy.(William Goddard;2020)
HR planning Methodology
Predicting workforce demand is at the heart of human resource planning, and requires HR professionals to have a broad and in-depth vision of their organization and an understanding of the various factors involved in formulating a plan. There are seven key steps in the design process that can be applied to specific entrepreneurial situations:
Figure 2: 7 Steps of HRP
1. Analyze Objectives
Before beginning the human resource planning process, the objectives of the various departments of the organization should be identified. Every department of marketing, manufacturing, finance, sales, etc. has specific expectations regarding specific human resources. Those objectives may include recruiting new employees for the process, reducing the number of employees by automating the process, or improving the knowledge and skills levels of existing employees.
By analyzing the objectives of each department in the organization, HR managers can identify the changes needed for the future of the organization.
2. Inventory current human resources
Once the required changes have been identified, the HR planning team should create an inventory of current HRs in the organization. This should include the number of employees currently in the organization, their capacities, capabilities, and performance abilities. This will help the HR team identify ways to meet future job requirements and create estimates for the internal and external recruitment required.
3. Forecast the demand and the supply of employees
Based on the objectives of the various departments in organization and the available human resources, the HR planning team can predict the demand for employees. In addition, the supply of employees should be predicted based on the potential of the organization and the employee market.
4. Estimate Gaps
The HR team can help identify potential future gaps by making a comparison between supply and demand. Gaps can occur as well as job shortages as well as job surpluses. Job shortages indicate the number of employees needed to be recruited and indicate redundancies or transfers between departments. In addition, gaps can be used as an indication of training and development needs for employees
5. Formulate Plan
Once the employment gaps have been estimated, the HR team should prepare a plan for recruitment, training, development, termination, inter-departmental transfers, promotions or early retirement based on the needs of the organization. The employment plan may vary based on the estimated deficit or surplus when predicting the supply and demand phase.
6. Implement Plan
Once the HR plan has been prepared, the HR department should implement the plan within the organization. This should be in line with the aims and objectives of the organization as well as the aims and objectives of each department of the organization.
7. Monitor, Control and feedback
After Human Resource Plan is implemented, the plan should be continuously monitored to ensure that the plan aligns with the objectives of the departments. Necessary controls should be put in place to ensure that there are no flaws in the human resource plan that has been put in place and that feedback should be received at each level. In order for the Human Resource Plan to be successful, the necessary changes must be implemented in line with the feedback received in the ongoing process. (econpost.com;2021)
How human resource planning affects the organization
It is important for the organization in several areas such as enables a business to optimize human resource utilization, reduce labor turnover, increase productivity, and reduce employee distractions and absenteeism.
The five business management functions of planning, organizing, directing, directing and controlling depend on the supervision and action of human resource planners to execute them effectively. At the organizational level, good human resource planning enables the enterprise to optimize its deployment and utilization of existing talent, and to identify the need for additional or alternative skills in advance and in more detail.
In addition to optimizing the use of skills, planning activities provide the organization with a clear path for the future, both in terms of anticipating skills requirements and creating a succession sequence for developing and transferring skills within the organizational hierarchy. Strategic workforce planning allows managers to easily adapt to changes when employees retire or leave the organization and when it comes time to promote or transfer staff.
In times of economic uncertainty, human resource planning becomes an added value to the organization, as it has the power to predict and prevent far-sighted staff decisions. For example, unnecessarily redundancies can cost enterprises the ability of unions to lag behind and the immediate loss of talented people who require time, labor, expense, and training.
For the employee, a comprehensive and well-executed HR plan can provide enhanced communication with management and greater connection with the vision and objectives of the enterprise. An HR scheme with provisions for incentives can enhance the employee's relationship with the organization, their commitment to its progress and their sense of job satisfaction. (William Goddard;2020)
Referances: https://itchronicles.com/human-resources/why-is-human-resource-planning-important/
https://www.econposts.com/human-resources-management/7-steps-of-human-resources-planning/
Human resource planning is important to understand future human resource needs and target right people for the organization. Having right kind of people at right place will affect smooth functioning of an organization. Well written article. Good luck!!
ReplyDeleteThank you for your valuable response
DeleteYou have clearly describe the HR planning methodology and how HRM planning affected to the organization. By reading this article we can get a good idea about HRM Planning.
ReplyDeleteThank you so much for your valuable response
DeleteThe HRM planning process was effectively explained. As you indicated in your essay, HR planning methodology and human resource planning have an impact on the business, thus having a well-organized HR Professional to lead the team is essential. Good luck!!
ReplyDeleteThank you so much for your valuable response
DeleteYou clearly explained How human resource planning affects the organization and important for the organization in several areas such as enables a business to optimize human resource utilization, reduce labor turnover, increase productivity, and reduce employee distractions and absenteeism.👍
ReplyDeleteThank you so much for your valuable response
DeleteHi Chathurika,
ReplyDeleteIt’s a great post. I want to know what is the difference between human resource management (HRM) and HRP? Is HRP is a part of HRM?
hi Mafaz, thanks for commenting .yes there is a difference between HRM & HRP. Human resource planning is one of the most important aspects of human resource management. In addition, human resource management covers a wide range of issues, including wages management, training and development, employee discipline administration, health and safety, and grievance redressal.
DeleteEmployees are the most important part of an organization and to get the maximum from employees the organization needs to implement strong HRM system. HRP is playing vital role in retaining and attracting quality and knowledgeable employees. Good Luck.
ReplyDeletethank you for your valuable comment
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