Human Resource Planning Process

DEFINITION:
“The process of analyzing and identifying the need for and availability of Human Resources so
that the Organization can meet its objectives.”
OR
“The Process of determining an Organization’s human resources needs.”
TYPES:
There are seen steps of human resources planning process.
1. Organization structure and design
2. Analyze internal inventories
3. Scanning the External Environment
4. Forecasting
5. Survey of People Available
6. Organizational Need for People
7. HR Strategies & Plans

Organizational
Objectives &
Strategies

Scanning the Analyze Internal

External inventory of HR
Environment Capabilities

Forecasting

Organizational Survey of People

Need for People Available

HR Strategies &
Plans
 1. Organization structure and design
It has five steps.
1) Mission statement of the company
determining what business in the organization will be in.
2) Objectives & goals
setting Objectives & goals
3) Strategy
determining how goals and objectives will be attained.
4) Organizational structure
determining what jobs need to be done and by whom.
5) People/employees
matching skills, knowledge and abilities to required jobs.
Components of mission statement
It has nine components
1. Customer
2. Product or services
3. Markets
4. Technologies
5. Concern or survival & growth
6. Philosophy organization
7. Self-concept organization (strength)
8. Concern for public images
9. Concern for employees

2. Analyze internal inventories

It is further divided into two parts
(1) Internal Environment
(2) External Environment
(1) Internal Environment
It is further divided into two parts
(1) Auditing jobs and skills
(2) Organizational capabilities inventories
(1) Auditing jobs and skills
It has four parts.
(1) What jobs exists now?
(2) How many individuals are performing each job?
(3) How essential is each job?
(4) What jobs will be needed in the future?
 (2) Organizational capabilities inventories
By Utilizing different databases in an HRIS (human resource information
system), it is possible to identify the employees SKA’S. planners can use these
inventories to determine long term needs for staffing and HR development.
Database systems containing the records and qualifications of each employee that
can be accessed to facilitate employment planning decisions.
3. Scanning the External Environment
It has four parts.
(1) Opportunities
(2) Negative threats
(3) Entry barriers
(4) Exit barriers
4. Forecasting
Forecasting is the use of Information from the Past and Present to identify expected
future conditions.
It is further divided into two parts.
(1) Forecasting demand for human resources
(2) Forecasting supply for human resources
(1) Forecasting demand for human resources
It has four methods
(1) Trend analysis
(2) Ratio analysis
(3) Scattered plot
(4) Markov analysis

(2) Forecasting supply for human resources

It is divided into two parts
1. Forecasting internal HR supply
2. Forecasting external HR supply
1. Forecasting internal HR supply
It is further divided into two parts.
1. Through promotion, lateral moves and termination
2. Succession analysis
2. Forecasting external HR supply
By following four factors which affect the external HR supply
1. Individuals demographics
2. Technological development and shits
3. Action of competing employers
4. Government Regulation pressure
5. Survey of People Available
6. Organizational Need for People
7. HR Strategies & Plans
The means used to anticipate and manage the supply of and demand for human
resources. Provide overall direction for the way in which HR activities will be developed
and managed.
There are three types of strategies & plans.
1. Overall Strategic Plan
2. Human Resources Strategic Plan
3. HR Activities