Human Resource Planning Process- Meaning and its Steps

Human Resource Planning Process, Meaning and its steps

Before jumping into the Human Resource Planning Process, I want to ask one question from you??

Have you Ever thought that Do Firm also plan for your Interview as you plan?

What do you think Firm calls anyone for interview and select them?? If you are thinking this, then you are taking this trouble free.

But the reality is not simple like this. The firm also plans the requirement of the applicants according to their need. This will make them available the best applicant for the best Job . This planning is known as Human Resource Planning.


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So, let’s quickly know What is HR Planning?? Then, let’s get started.


What is HR Planning?


HR Planning is the process of selecting the right no. of people to the right job at the right time. In simple words, its work to meet the supply of human resources according to the firm’s demand.


Importance of Human Resource Planning-


Importance of Human Resource Planning
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  • Reservoir of Talent- Every Firm wants its employees to be skilled and efficient. No one wants to hire those employees who can’t work in their particular industry.

So, they focus on Collecting talented employees rather than hiring employees on less salary package.


  • Prepare People for Future- If Any firm wants to be for the long run, they should be updated themselves with the latest technologies. But having that is not enough, we should also prepare our employees in a way so that they can be comfortable in a flexible environment.

  • Expand the Business- If you plan your human resources effectively for the right job, then it will definitely help you to expand your business.

  • Succession Planning- The main Importance of the Human Resource Planning  is to succeed their main motive. That is to select the right applicant for the right job at the right time.

Objectives of Human Resource Planning-


  • Forecast Personnel Requirement- The important objective of Human Resource Planning is to forecast the requirement of employees. The requirement can be based on so many factors like by increasing the demand for the product. That also requires more sales force or it can be the behaviour of the employees who are not happy with their salary or unnecessary bonuses etc.

  • Cope with changes- In this, the firm prepares its employees in a way so that they can cope up with changes.

  • Use Existing manpower productively- HR planning is not only limited to the planning for the new employees. But in this, they also train their existing employees in such a way to get more productive results.

  • Promote Employees in a systematic manner- Let’s assume the selection of employees has been done. If they work according to our HR Planning, then firm can also give them promotion to retain their productivity for a long time.

Steps in the Human Resource Planning Process-


Human Resource Planning Process Steps
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As it’s already been talk over that the HR Planning is not an easy task. It involves the various steps which firms have to notice while applying Human Resource Planning Process which are as follows-


1. Forecasting the Demand of HR- Firstly, we have to forecast whether we have a requirement of Employees or not. According To that, we forecast which also depends upon the following factors-


  • External Challenges- This factor plays a great role in Human Resource Planning Process. The challenges can be economic development, social, political, technological development, competition etc.

  • Organizational Decision- We can have a demand of 20 employees but all depends upon the decision of Organization. What the Top Level decide, that becomes the decision. So, organizational decision plays a great role in forecasting the demand.

  • Workforce Factor- Demand creates the necessity of workforce. Firm have to consider the future demand of product so that they can forecast the workforce.

If there will be a requirement of Human resources in future, then they take this to another step otherwise not.


  • Forecasting Techniques- We can also forecast the demand by the forecasting techniques like Workforce Analysis, Job Analysis and so on.

By these factors we can forecast the demand of Human Resources.


2. Preparing Manpower Inventory/ Supply Forecast- After forecasting the demand of Human resources, now We have to forecast the supply. What is the supply of employees outside which depends upon two factors-


  • Internal Factors- These factors are the requirement of the firm which they want like the Age, Experience, Sex etc.

  • External Factors- The factors which firm have to be kept in mind while looking for the HR from outside. These are labor supply in case of workers, Competitor Salary Packages , Best Campuses in case of Campus Placement etc.

3. Determining Manpower Gaps- In this, they compare the existing employees with the forecast demand. They will be able to know about the manpower gaps either in quantitative or qualitative.

So, this will give them a correct knowledge of how much employees they require.


4. Formulating HR Plans- After determining the gaps of Manpower, firm formulates the HR Plans which includes-


  • Recruitment Plan- It is a pre- strategy to hire the employees. This plan helps the company to find their qualified applicants for the job.

It includes the Job Frame, Job Description, Deadlines, Interviewers,  questions asked in the interview and so on.


  • Training Plan- A training plan involves the employees to go on for training in order to do fewer mistakes.

  • Productivity Plan- In this plan, HR tries to increase the productivity of employees by motivating them. This can be through providing incentives for more sales, bonuses etc.

  • Redeployment Plan- Redeployment plan includes the transfers, promotions from time to time for deserving employees so that they can retain in the firm for the long time.

Effective HR Planning-


  • Objectives- Effective HR Planning will be the one when there will be objectives. Unless You don’t have taken a decision of how much employees you need an objective. You can’t do the above tasks properly.

  • Top Management Support- Every Dept. has its own requirements but the final decision will be taken from the Top Level. So, there should be top-level management support but they will give approval to the necessary requirements, not any requirements.

  • HR Information System- There should be a good HR Information System. This will help them to know the correct requirement of candidates will be given to the top level.

  • Coordination- Coordination is the key to proper Human Resource Planning Process. If there is good coordination, then the planning will obviously be good and also they will implement the same.

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