Human Resource Planning Process Or Steps Of HR Planning

Human resource planning is a process through which the company anticipates future business and environmental forces. Human resources planning assess the manpower requirement for future period of time. It attempts to provide sufficient manpower required to perform organizational activities. HR planning is a continuous process which starts with identification of HR objectives, move through analysis of manpower resources and ends at appraisal of HR planning. Following are the major steps involved in human resource planning:

1. Assessing Human Resources
The assessment of HR begins with environmental analysis, under which the external (PEST) and internal (objectives, resources and structure) are analyzed to assess the currently available HR inventory level. After the analysis of external and internal forces of the organization, it will be easier for HR manager to find out the internal strengths as well as weakness of the organization in one hand and opportunities and threats on the other. Moreover, it includes an inventory of the workers and skills already available within the organization and a comprehensive job analysis.

2. Demand Forecasting
HR forecasting is the process of estimating demand for and supply of HR in an organization. Demand forecasting is a process of determining future needs for HR in terms of quantity and quality. It is done to meet the future personnel requirements of the organization to achieve the desired level of output. Future human resource need can be estimated with the help of the organization's current human resource situation and analysis of organizational plans an procedures. It will be necessary to perform a year-by-year analysis for every significant level and type.

3. Supply Forecasting
Supply is another side of human resource assessment. It is concerned with the estimation of supply of manpower given the analysis of current resource and future availability of human resource in the organization. It estimates the future sources of HR that are likely to be available from within an outside the organization. Internal source includes promotion, transfer, job enlargement and enrichment, whereas external source includes recruitment of fresh candidates who are capable of performing well in the organization.

4. Matching Demand And Supply
It is another step of human resource planning. It is concerned with bringing the forecast of future demand and supply of HR.The matching process refers to bring demand and supply in an equilibrium position so that shortages and over staffing position will be solved. In case of shortages an organization has to hire more required number of employees. Conversely, in the case of over staffing it has to reduce the level of existing employment. Hence, it is concluded that this matching process gives knowledge about requirements and sources of HR.

5. Action Plan
It is the last phase of human resource planning which is concerned with surplus and shortages of human resource. Under it, the HR plan is executed through the designation of different HR activities. The major activities which are required to execute the HR plan are recruitment, selection, placement, training and development, socialization etc. Finally, this step is followed by control and evaluation of performance of HR to check whether the HR planning matches the HR objectives and policies. This action plan should be updated according to change in time ans conditions.


  1. Hi,

    Fundamentals of Human Resource Management planning is an important component of strategic HR management. It links HR management directly to the strategic plan of your organization. Thanks a lot.

  2. Before starting a business it is very necessary to plan a strategic management and for that purpose human resource is very important.
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  3. It doesn't sound very important to an employer to have a good relationship with his employees but it surely plays a vital role in the overall success of the business. Thus, many multinational companies give emphasis on human resource just like any other tasks.

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  7. Human Resource Department is one of that department in any organization where in there is an handful amount of support extended for the operational process of the organization. In one another way, the legitimate support which an organization gets in order to grow the brand value as well as the company's standard in the market.

    The process defined here are some of the lucrative ways to define the organizational process from the organizer point of view, I mean the HR point of view, but some more points also contributes essence which are not being described here. But the main objective of any of the HR department is to how the rules are to be followed as per the legal and government norms. The possible way of HR compliance which is the legalized form of approach meant for every organization does have to be followed in order to avoid unnecessary consequences.

  8. Human Resource Department is important for every professional and MNC companies and their businesses.Because they have the expertise to run the organization as successfully.
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  9. nice topic !
    Human resource planning is the process whereby organizations determine the staffing
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  11. Great information available in the post as well as site. Good effort to aware the HR . Planning is an important component of strategic Business management


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