Human Resource Planning Process 

HRP activity follow a process. That it goes through sequential and interdependent steps as explained below. The HRP process influence the corporate strategy and in turn influenced by it. The HRP process may incorporate all the stages show in below figure. The HR planning process may not always give exact forecasts. To be effective it should be a continuous process with provision for control and review. 

1. Understanding Goals and Plans of the Organization 

The planning process is influenced by overall organizational goals and environment of business. It implies that the objectives of the HR plan must be derived from organizational objectives. HR planning is a part of the overall strategic planning for the entire enterprise. HR managers need data on possible corporate expansion, new products, new plants, and new markets and so on.

Major steps in the Human Resource Planning Process 

a. Know goals and plans of organization: Strategic planning; public policy, social trends, economic conditions, technology, market conditions, strengths and weaknesses of organization, projected outputs for planning periods. 

b. Current Human Resource Situation: Skills inventory: numbers of people grouped by job, department, organizational level, location, age, education, in-service training completed, performance. 

c. Human Resource forecasts 

1. Present workforce: project retirements, layoffs, promotions, quits for planning periods. 
2. Demand for people: translate plans and forecast for organization into demand for employees for planning periods. 
3. Comparison of demand with supply: Net additions or subtractions found by comparing (a) with (b). 

d. Implementation Programs: Recruitment, selection and placement, performance appraisal, career planning, transfer; transfer, promotion, layoff; training and development; motivation and compensation. 

e. Audit and Adjustment: Measure implementation progress, compare with plan, take corrective action. Change human resources plans if enterprise plans are altered, periodically update skills and inventory, forecast and implantation programs. 

The existing HR within the organization constitutes an important input into the development of the overall strategic plans for the enterprise. Furthermore, the output of the planning process explained above provides data upon which HR plans and projections can be based (for details see relationship of HRP to strategic planning topic in this book). Once the organizational objectives are specified, communicated and understood by all concerned, the HR department must specify its objectives with regard to HR utilization in the organization.

2. Assessment of Current HR Situation

It is the second step in HRP process. In this step HR planners prepare the inventory of staff presently within the organization. It is basically stock taking exercise undertaken by HR planners. What stock of human resources does the organization have in terms of their quantity and quality? To answer this question, the human resource inventory has to be prepared. 

3.Human Resource Forecasts (Demand and Supply)

The HR forecast is a determination of the demand for people. It determines the appropriate type and skills for given time periods in future such as one, three and five years. The forecast also prepares an estimate of supply of the people who will be available for the selected time periods. HR forecasting is essential to estimate staff requirements at some future time period. Such factors are of two types: (i) the external and internal supply of manpower, and (ii) the external and internal demand for manpower and ,(iii) comparison of demand with supply

Box: HR Inventory: Management Inventory/Skills Inventory 

The profile of HR inventory can provide crucial information for identifying current or future opportunities and threats to the organization's ability to perform. Young, energetic and skilled workforce is and indication of current or future organizations. Lack of adequate skills and talents in the workforce is definitely a threat to the organization's future/. The items included in the HR inventory are : (i) skill composition, (ii) age and sex, (iii) education level, (iv) work experience, (v) training, (vi) performance rating, (vii) language spoken, (viii) overall capabilities, etc. The answers to these factors are fundamental to the HR planner which he can get from the HR inventory. 

Human Resource Information System (HRIS) 

It is crucial in the process of preparing HR inventory, HRIS provide an excellent database for the HR planners as well as for others. The HRIS facilitates, obtaining HR data in a logical, valid and reliable manner. It is done in order to assist in managerial decision making,. Modern organizations now use computers in managing the HRIS. Thus, within no time, complete and organized information can be obtained in the desired format. 

4. Implementation Programs (Action Plan) 

Implementation requires converting an HR plan into action. A set of action program are initiated as a part of HR plan implementation. Some examples of implementation programs are : recruitment, selection, placement, performance appraisal, career development, promotion, transfer, layoff, retirement, training and development, motivation and compensation, etc. 

5. Audit and Adjustment (or Control and Evaluation)

It represents the fifth and final step in the HRP process. For any of the various reasons, the programs for meeting the HR targets may be unable to attain the objectives. Therefore, a system for measuring progress should be set up. Many measures can be used depending upon the specific program being evaluated. Control and evaluation is also necessary to identify if changes in the HR plans are made necessary. It becomes  necessary because of : (a) changed conditions or (b) because some of the original planning assumptions have gone wrong.