Human Resource Planning Process

It is not just a matter of number of employees you have but it covers the whole company's operation as well as other external environment. In Human Resource Planning Process, you will see yourself going through four main phrase:

1. Scanning external environment

• Workforce composition (Gender, racial, educational changes.....)
• Work pattern (Use of contingent workers, alternative work schedule, sharing jobs..)
• Government influences (Govt. trade policies and restrictions affect HRP)
• Economic conditions (Business cycle of recession and boom, inflation, unemployment,........)
• Geographic and competitive concerns (Other employers in the area, employee resistance to geographical relocation......)
• Technological changes
• Society/Culture
• Labor Unions

2. Internal Analysis of People & Jobs

• Auditing jobs (What jobs now exist?; what characteristics of anticipated jobs?; How many individuals are performing each job?; What are the reporting relationships of jobs?..........)
• Auditing skills (Skills; data from HRD; employee skill inventory: education, training, promotability, specific attitude, geographic preferences.....; management inventory: manager’s past performance, strength, weakness, and potential for advancement

3. Forecasting HR Demand

• Judgmental Methods (Delphi Technique; Brainstorming: Criticism is prohibited, Freewheeling is welcomed, Quantity is wanted, Combination & improvement are sought; NGT; Estimates...)
• Mathematical Methods (Regression analysis; Productivity ratios; Staffing ratios.....)
• External labor supply (Individuals     entering  /   leaving    workforce; Individuals graduating from schools and college; Changing workforce  composition and patterns; Economic forecasts  for   the  next  few    years; Technological     developments     and      shifts; Actions of competing employers; Government regulations and pressures)
• Internal labor supply ( Skills inventory, replacement chart, management inventory....)

4. Reconciling Demand & Supply

• If estimates show that the internal supply of labor is too large, then managers need to make plans to reduce the number of employees through such measures as early retirement programs, layoffs, reduced hours, restricted hiring..... 
• If additional employees are necessary, then plans must be made for promoting and transferring current organization members, if desirable, as well as for hiring new employees.
  

Human Resource Planning Process