Steps in the Human Resource Planning Process

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Steps in the Human Resource Planning Process

Designing the Management System

• A crosscutting issue in human resource planning is to ensure that a proper system is in place to handle the process. The overall aim of this system is to manage human resources in line with organizational goals. The system is in charge of human resource plans, policies, procedures and best practices. For example, the system should track emerging human resource management trends, such as outsourcing certain non-core functions, adopting flexible work practices and the increased use of information technology, and, if appropriate, implement them.

Environmental Analysis

• The first step in the human resource planning process is to understand the context of human resource management. Human resource mangers should understand both internal and external environments. Data on external environments includes the following: the general status of the economy, industry, technology and competition; labor market regulations and trends; unemployment rate; skills available; and the age and sex distribution of the labor force. Internal data required include short- and long-term organizational plans and strategies and the current status of the organization's human resources.

Forecasting Human Resource Demand

• The aim of forecasting is to determine the number and type of employees needed in the future. Forecasting should consider the past and the present requirements as well as future organizational directions. Bottom-up forecasting is one of the methods used to estimate future human resource needs by gathering human resource needs of various organizational units.

Analyzing Supply

• Organizations can hire personnel from internal and external sources. The skill inventories method is one of the techniques used to keep track of internal supply. Skill inventories are manual or computerized systems that keep records of employee experience, education and special skills. A forecast of the supply of employees projected to join the organization from outside sources, given current recruitment activities, is also necessary.

Reconciliation and Planning

• The final step in human resource planning is developing action plans based on the gathered data, analysis and available alternatives. The key issue is that the plans should be acceptable to both top management and employees. Plans should be prioritized and their key players and barriers to success identified. Some of these plans include employee utilization plan, appraisal plan, training and management development plan and human resource supply plan.

Human Resource Planning Process

Human resource planning process is the foundation of an effective workforce. The development of an organization is attributable to its committed and dedicated workforce. [pic]
The term human resource implies human capital that operates an organization. The word planning suggests, a course of action. And lastly, process is the method of operation. Thus, the human resource planning process is defined as, 'a course of action that the human capital takes up for a methodical achievement of predetermined goals'. The definition of human resource does not end here. The term includes, its management, which primarily involves issues related to the workforce. Human resource management (HRM) is the strategic and coherent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business.

A company may have all the financial resources it may need. But what if the manpower employed to manage the finances isn't well trained? Well, nothing more than your finances going down the drain. The recent 'Satyam' fraud was due to poor control of the management board. Improper human capital may gain the output, but not the desired one in terms of quality. As the earlier mentioned definition...
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