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Human Resource Planning Process - Coggle Diagram
Human Resource Planning Process
Definiton
Continual process of systematic planning ahead to ensure that an organization's most important asset quality employees is used to its full potential. Human resource planning guarantees that employees and jobs are a good match while preventing labour shortages or surpluses.
Procedure is divided into four phases. They include analysing current labour supply, projecting labour demand, balancing predicted labour demand with supply, and assisting in the achievement of organizational objectives. HRP is a crucial investment for any company since it allows them to remain productive and profitable.
Key takeaways
• Human resource planning is a company's approach for ensuring a consistent supply of trained workers while avoiding staff shortages or surpluses.
• A good Human Resource Plan can increase a company's productivity and profitability.
• The HRP process has four broad steps: recognizing the existing employee supply, determining the workforce's future, balancing labour supply and demand, and establishing plans that support the company's goals.
Steps of HRP
Step 1: Environment Analysis
External
Government regulations
Economic conditions
Technological advancements
Workforce demographics
Internal
Unions
Culture & Conflict
Step 2: Inventory current human resource
Compile available inventory in the orgainsation
Step 3: Forecast demand & supply of employees
Forcecast D&S of employee based on organsation goals and available inventory
Step 4: Estimate gaps
Step 5: Adapt of employee availability
Employee Shortage
Demand>Supply
Overtime
Recruitment
Sub-Contracting
Employee Surplus
Demand<Supply
Restricted Hiring
Reduced hours
Early retirement
Layoff
Downsizing
Benefits & Challenges
Benefits
Better view of business decisions
Minimal costs
Employee management
Better utilisation
Adaptation to technological change
Retaining top talents
Facilitating expansion programmes
Challenges
Inaccuracy
Uncertainties
Lack of support
Number's game
Employee's resistance
Employer's resistance
Time & Expenses