What is process of Human Resource Planning?

Are you looking for an article which explains process of Human Resource Planning? Then your search ends here. Read this article, herein the detail about process of Human Resource Planning is given. Also the important points of Demand forecasting and Supply forecasting is given. This article highlights the various techniques used while the Human Resource Planning, what are the challenges need to be faced during Human Resource Planning. Apart from various methodologies are briefed in this article.

Steps in process of Human Resource Planning:

Are you looking for the steps for the process of Human Resource Planning? There are basically eight steps involved in this process. However, in this article we will see first three steps. The steps involved in this process are :
1. The very first step is analysis for organisational plans.
2. After analysis Demand forecasting is required. Basically, organisation sets some plans for execution. So in order to satisfy that requirement, demand or number human resources need to be calculated and it is nothing but the demand forecasting.
3. Like Demand forecasting, there is Supply forecasting. For getting data as well as information related to the present number of human resources. This will help to forecast the upcoming changes in the human resource capacity.
4. The next important step is calculating or estimating the net human resource.
5. There is need to have specific plan for layoff, redeployment, and retrenchment. These terms will be explained in detail in the article.
6. The deficit occurs in the organisation, if any case numbers of resources present in the organisation are less or more than the requirement then such surplus resources need to be managed. The specific plans need to be set to overcome bad period of organisation.
7. Do we need plan for development, recruitment, or internal mobility? Yes off course, the proper plan is required for development, recruitment, or internal mobility in order to satisfy the future demand. This situation may occur if demand of people is more than the existing number of employees in the organization.
8. If any case, there is no sufficient number of employees available or present in the organisation in order to satisfy the current demand. So how to tackle such situation. So proper plan is set to handle such kind of situations. The various references are set and accordingly plan is executed.

The steps involved in the process we have mentioned above. These are important eight steps of human resource planning. So if someone wants to do human resource planning, then these steps are needed to be followed. It is not required that, these steps are executed one after other. Any steps can be executed at any time. Each step involved in the process is independent of other. For a case, first step, or last step, second step or third step, fifth step sixth step, second step or seventh step can be executed simultaneously. There is no restriction on execution of the steps in sequence as these steps are not depending on each other.

Analysing the Organisational Plans:

It can be first step for process of Human Resource Planning, however, as we mentioned the steps for process of Human Resource Planning are independent so it can be possible that this step get carried out further. But in most of the cases and depending upon the organisations decision, the Analysing the Organisational Plans is done as first for planning. These steps have very much importance in whole life of human resource planning. This analysis gives out much information and data which can be further process in order to get actual implementation and co-operation in the organisation.

Forecasting the Overall Human Resource Requirements:

Do you know what is Managerial Judgement or statistical Technique or Work study Technique? For what purpose these methods are used? So these important things we are going to discuss in this section of our article. We should know what skills of employees are, what the capabilities of each employee are, or what knowledge level of individual one is. So can we come to know it? So for this job design analysis of existing one is necessary. Also clear analysis of job is must requirement for it and then it reviewed by experience person in that domain knowledge. After analysing it, job is required to be redesigned and again analysed but this time we have to keep our views towards the organisational goals. During this time, future skill demand, future values needs, knowledge base, capabilities of each employee, quantity of work in future, proposed future programs, proposed plan of organisation, various activities expected, task involving in upcoming releases is also need to be kept in mind for designing and re analysing. If we look at overall aspect then we can come to conclusion that, future human resources, and organisational demand forecasting is basic need of such design. So finally come to the point where we will discuss the important methodology involved in the forecasting. There are various methods of forecasting, however following methods are very much popular in now a days -
a) Managerial Judgement
b) Statistical Techniques
c) Work Study Techniques

Lets discuss each one methodology here -
a)Managerial Judgement:
If you look at the organisations management then we come to know that, the success of company is totally dependent on the management of every aspect of company. However, in small scale companies we come across the unorganization in various aspects. So there is lack of properly planned and specifically designed management. In such case, the managerial judgement plays a vital role. Most of the decisions are taken by higher management. Generally, in small scale organisation, manager or supervisor takes the decision and depending on that the analysis is done and appropriate action is taken on it. Such managers thinks the current workload of employee, current efficiency of individual, current ability of each employee of each department and based on that analysis they decide what would be the future workload of each employee, what would be the future efficiency of individual and finally what would be the future ability of each employee present in individual department. You may be curious about, how it is done? So the explanation of your query would be, it is done by sending the proposals which varies depending upon the various factors, such proposals are sent to top official managers and off course with the organisational approach. After that top management of the organisation plans for resources, then take appropriate and fissile actions for resource hiring or lay off depending on the situation. They also prepare various plans such as organisational plans, departmental plans and human resource plans to decide which is having first priority to execute. All these decision are taken by top management and work item as send to below levels for execution.

b) Statistical Techniques:
What is Statistical Techniques involved in process of Human Resources planning? What are the types of statistical techniques? Basically, there are two types of techniques involved int eh statistical techniques and these are Ratio – trend analysis and second is Econometric models.

Let’s discuss in details these techniques,

i)Ratio – Trend Analysis:
Ratio – Trend Analysis is one of the good techniques which is used for Forecasting the Overall Human Resource Requirements. There are various levels involved in it. The level such as sales level, production level, activity level, direct employees level, indirect employees level and work load level, these are the level involved in it. In this method, ratio is calculated using the previous data which is related to number of employees of each category and different levels in which they are working, the levels which we have mentioned above. Based on these rations, the future ration is estimated and using that predication is done. It is very useful technique and will help to analysis in fast manner. It is very effective technique and generally gives positive outcome from it. Generally this kind of technique is used in small scale as well as large scale companies as well.

ii)Econometric Models:
The second type of model is Econometric Models. As like in Ratio – Trend Analysis model, in this model also the data from previous record is used for modelling purpose. Related to this type of modelling, the related variable are get linked and new specific model is prepared for human resource planning. Proper analysis is done and depending on the availability of resources the further planning is done. The basic requirement of human power along with other things such as production, activities, investments, workloads are determined using this analysis. These kinds of models are also famous in now days in small scale as well as big organization.

C) Work Study Techniques:
After Managerial Judgement and Statistical Techniques the Work Study Technique is another technique which is used for forecasting the Overall Human Resource Requirements. Work Study Techniques is generally used where volume of work is measurable. The work is determined and mapped properly to individual and then it is measured. If such kind of measuring is easy one, in that case Work Study Techniques is more suitable. Using this technique, the various activities, like production activity or other activities are estimated with effectively. However, in order to do it, man hours are required done the unit of work to perform or produce it. These techniques definitely help in ability, skills, knowledge of each and every employee of organization. Depending upon various factors which have influence on it, the technique is appropriately implemented. Using various calculations, the number of employees required in the organization is estimated rather calculated.

There are other methods also exists for estimation of Human Resource Demand. Would like to know about it? If want the details of these methods? Here we have briefly explained those -
• One more method which is similar to managerial judgement and it is estimates which are based on experience opinions of heads from heads of departments.
• There are charts are also available using which analysis is done such charts are called Organisation succession charts, such charts are very useful for analysis.
• One more very simple and important method of analysis is Work Study Method. The production, activities, skills, charts, knowledge, employee, number of tasks, current positions, various aspects of organisation, policies involved and number of active member are considered during the analysis process.
• If you are expert in technology, or equipment or layouts or design, then estimation can be done using equipment, technology or layout as well as design also.
• Historical records of production data is one of the good technique to analysis and if very effective
• Job analysis technique is very much popular for forecasting the Overall Human Resource Requirements.
• Do you know Statistical Methods? Yes this method is also used for analysis purpose. This technique is divided into two parts, and that is Projection of basic manpower ratios and second is regression and correlation analysis.

As in above section we have discussed many more aspects of analysis for forecasting the Overall Human Resource Requirements. Depending upon the situation the appropriate technique is needed to be used.

Supply Forecasting:

Supply Forecasting is also one of the step for the process of Human Resource planning. For Supply Forecasting the data of human resources is required. However, this data should be of present human resources not the future human resource demand. Based on it the further analysis is done.
Existing Inventory:
Existing Inventory is very important aspect and it is required for analysis and planning of human resources. The number of human resource inventory, designation of employee, number of departments in which they are working are have equal importance in it. So the given or existing data should have details of all these things. Not merely mentioning is sufficient for proper analysis.
The major principal and dimensions of human resources is briefly given as:

a) The number which are related to total number of employee currently working in the organisation is required along with it, the details such as number of employee department – wise, sex – wise and designation – wise is need to be noted. The technical and other skill possessing employee along with what is number for employee who are on payroll is also required.
b) Another important data is nothing but Job Family Inventory. This specifically includes the count and different kind of category exists for employees. Production engineer, maintenance engineer with related to mechanical field, or site supervisor, site engineer with related to Civil field are the example of this kind of data. These kinds of jobs or responsibilities having common characteristics hence they are grouped in this type of category.
c) The last and most important type of data is Age Inventory. Age Inventory data mostly includes the data employee as age – wise. The number of employees are grouped in age wise first then into category type. So that the grouping will encourage the difference in various kind of functionality at the working site. This will also helps to enhance the business and achieve the organisational goals which were set during the start of organization.