Human Resource Planning

The association between human resource planning and strategic planning is very important because it is necessary to know the future direction of the company in order to be able to predict human resource requirements: whether growth or decline should be expected, and what kind of employee qualifications would be needed, etc. Furthermore, the current and future supply of human resource capabilities in the business and the market should be taken into account.

In general, planning is defined as the selection and organization of the most adequate method to achieve the goal. In another definition, planning is known as the decisions and preparations made today for the future.

Human resource planning is the process of hiring the right number of employees with the right qualifications at the right time and at the right place to ensure the organizational requirements.

Human resource planning provides qualitative and quantitative information about the human resources that would be employed in businesses in the future.

• The first stage is about collecting and analyzing data from labour inventory and forecasts.
• The second stage is about determining labour targets and plans and getting support from top management.
• The third stage is about planning and applying present and future plans and promotions for having the right person at the right time in organizations.
• The fourth phase is about controlling and estimating human resource planning. With control and estimation, managers could know if they reach their goals or not.

Human resource managers cannot decide what to plan without executives and top managers. They cannot succeed in human resource planning without the support of top management.

For the achievement of business goals, two main objectives should be fulfilled in human resources planning. The first one allows for business forecasts and plans on recruitments and layoffs in the present and future. The second one helps the business inadequate usage of the knowledge and skills of the current workforce.

• Human resources planning helps the business to provide a systematic process from the determination of human resources requirements to the placement and improvement of the employees.
• Human resources planning allows for the execution of legal and regulatory measures in a timely and accurate manner in business.
• Human resource planning eliminates uncertainties about the future expectations of the staff.
• With an effective human resources planning, identifying and solving the problems of employees’ become easier, and the managers’ workload is reduced.

Since human resources planning provides a more effective and efficient work environment in businesses, it has a positive impact on the success of the business.

Demographic Factors

Legal Regulations

Economic Factors

Technology

Personal characteristics such as age, gender, race, language, education, etc. are important for organizations

Changing laws also force organizations to be careful in the planning process. For example, changes in the regulations on retirement age, severance payments and the employment of individuals with disabilities could lead to planning revisions.

Economic data are significant in human resources planning, similar to several other fields. The national economy has a great impact especially on the supply and demand of human resources. Businesses tend to lay off employees during the economic recession and increase employment during the times when the economy expands and the demand increases. An increase in interest rates leads to a decrease in investments and employment. Furthermore, the continuous increase in personnel costs in countries with high inflation rate is another factor to consider.

initially, the already available jobs are analyzed, and then the labour force skills inventory is developed.

Workforce skills inventory is a study that reflects the individual traits of existing employees such as talents, skills, education, and experiences.

• Replacement of Persons
• Labor Turnover
• Expansion Plans
• Technological Changes
• Assessing Needs

Human resource planning depends on two types of information: data from external and internal environment (Schuler and Jackson, 2006). External environmental data contain economy, technology, competition, labor markets, demographic and social trends, and government regulations. Each of the factors has an impact on business plans and human resource needs.

The second type of information is internal information. Internal information is from the inside of the organization. This information contains short and long term organizational plans and strategies.

Delphi Technique typically includes at least two rounds of experts answering questions and giving justification for their answers, providing the opportunity between rounds for changes and revisions.

According to Cascio (1995), there are seven categories of information included in a skill inventory. These are personal data, skills, special qualifications, salary or experiences, business data, individual capacity, and special preferences.

The civilian labor force: This type of labor supply includes people who are:

(a) sixteen years old or older,

(b) not in the military service,

(c) employed or seeking a job.

The labor reserve: This type of labor supply includes students, homemakers, and retired people. The labor force participation rate is the percentage of the total working-age population currently in the labor force