Human resource (HR) planning is the most vital part of HR. In this process, a complete study of the existing personnel resources and the resources that are likely to be required in the future is done. There are several demerits of both over- and understaffing. With overstaffing, the company loses in the form of excessive salaries and under utilization of skills. When understaffing is resorted to, the company loses customers, orders, profits economies of specialization and scale.
HR planning involves the devising of appropriate strategies for matching the requirements of the staff and the available vacant positions.
Planning and Forecasting
The HR department must make planning and forecasting a religious exercise. For this, an evaluation and contrast of the past and future is made. Today's needs and resources vis
-a-vistomorrow's needs and resources are studied.
For instance, the present demand for an organization that makes shirts is 100 shirts, and if, in the event that the demand goes up by 150 percent, the manpower and resources required to meet the demand is studied. The company needs to analyze whether it could function with the same staff by increasing machinery or whether it needs to increase staff. The most profitable trade-off is chosen.
The HR department defines the job requirements. The defined requirements are then tabulated. These are skill set that the chosen candidate is required to possess. Then, the HR department starts recruiting. The HR decides whether to fill in vacancies with internal candidates or to call them from outside. The shortlisted candidates are then tested gruelingly. These tests are usually one or a combination of personal interviews, written tests, group discussions and reviews of past credentials. The companies more often than not follow a step-by-step elimination process, i.e., a candidate who passes step 1 progresses to step 2.
Planning for Vacancies and Contingencies
The work of the HR department doesn't end with choosing the right candidate; his replacement also needs to be thought of. There could be promotions, terminations, retirements or inter- and intracompany transfers. Also, the present staff might leave in lieu of better opportunities outside. The demand and production might go up considerably resulting in demand for extra personnel.
All these factors need to be diligently taken into consideration. Again, the planning for future vacancies starts.
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