What is Human Resource Planning? The process of forecasting the supply and demand for human resources within an organization and developing action plans for aligning the two.

What are the benefits of HR Planning?

Human Resource Planning Through HR planning, an organization is able to generate a list of future human resource needs and a plan for meeting them. To derive HR needs, the organization must forecast its demand and supply.

Human Resource Planning (Cont.) Demand forecasting involves predicting the number and types of people the organization will need at some future point in time. Supply forecasting involves estimating which organizational positions are expected to be already filled. Forecast Demand Supply HR Needs

Human Resource Planning (Cont.) Demand Forecasting An organization predicts needed workforce size on the basis of certain business factors. A business factor is an attribute of the business such as sales volume or market share, which closely relates to the size of the needed workforce. Is used when an organization operates in a stable environment.

Human Resource Planning (Cont.) Supply Forecasting Steps to supply forecasting Step 1: Organization groups its positions by title, function, and level of responsibility. Step 2: Estimate within each job group, how many of its current employees will: Remain in their positions during the planning period. How many will move to another position. How many will leave the organization.

Human Resource Planning (Cont.) Estimating Future HR Needs A firm derives its specific staffing needs by combining the results of the supply and demand forecasts within each job group Forecast Demand Supply HR Needs