Forecasting personnel needs, analysing personnel supply, and matching demand – supply variables through personnel-related programmes are all part of HRP. The HR planning process is impacted by the overall company goals and the business environment.
Environmental Scanning
The systematic monitoring of the external factors impacting the organisation is referred to as environmental scanning. The forces listed below are necessary for effective HRP:
- Economic variables, such as national and regional economic situations.
- Changes in technology
- Changes in demographics, such as age, composition, and literacy
- Laws and administrative decisions, as well as political and legislative issues
- Child care, educational facilities, and priority are all social problems.
Organizational Objectives and Policies
HR plans are frequently developed from organisational goals. Organizational objectives should be used to determine specific personnel requirements in terms of quantity and qualities.
The HR department must describe its goal for HR usage in the business once the organisational objectives have been defined, communicated, and understood by all parties involved.
HR Demand Forecast
HR Demand Forecasting is the practise of projecting the future number and quality of people necessary to satisfy the organization's future demands. When translated into action, the annual budget and long-term business plan provide the foundation for HR forecasting.
For example, in a manufacturing business, the sales budget will serve as the foundation for a production plan that specifies the quantity and kind of items to be produced during each period. This will serve as the foundation for the organization's decision on the amount of hours each skilled person should work. The quality and quantity of employees necessary for the task may be determined after the number of hours required is known.
Internal and external factors influence demand forecasting: external factors include competition, the economy, laws and regulatory bodies, technological changes, and socioeconomic aspects; internal factors involve budgetary constraints, production levels, new products and services, organisational structure, and employee separations.
HR Supply Prediction
The HR department's supply forecast decides whether it will be able to hire the needed number of employees. After accounting for absenteeism, internal moves and promotions, wastage and changes in hours, and other work circumstances, the supply forecast determines the amount of employees expected to be available from within and outside an organisation.
HR Programming
Once a company's personnel need and supply have been anticipated, the demand and supply must be matched in order for vacancies to be filled by the right people at the right time.
HR Plan Implementation
Putting an HR plan into action is what HR implementation is all about. As part of the HR plan execution, a variety of actions are taken. When programmes like recruiting, selection, and placement, training and development, retraining and redeployment, retention plans, and succession plans are combined, they make up the HR plan's implementation section.
Control and Evaluation
The final part of the HRP process is control and evaluation. Budgets, objectives, and standards are all included in any HR plan. The organization's progress will be assessed and tracked against the plan. During this last phase, the organisation will assess the number of individuals hired in comparison to the established (both those in post and those in pipeline) and the number of people recruited in comparison to the recruiting objectives. In addition, the cost of employment is compared to the budget, as well as the amount of waste that has accrued, so that corrective action may be taken in the future.
