The Purpose & Process of Human Resource Planning

by Pallab Dutta; Updated September 26, 2017

Human resource (HR) planning is perhaps the most vital business practice in an organization or business. The set of processes and initiatives pertaining to recruiting, selecting and hiring of new candidates, managing of employees, analyzing current and future workforce requirements and training the workforce and new inductees are all integral to the human resource planning process. Strategic and focused HR planning helps organizations to handle long-term human resource needs, address organizational goals and achieve business-defined goals.

Match Organizational Goals

Once the HR department charts out the broad human resources development strategy and recruitment and selection policies in collaboration with top management, the HR staff starts planning to determine human resource needs and allocate budgetary resources. People and employee-centric initiatives have to be rolled out to match overall, strategic long-term corporate objectives. The HR department is responsible for executing all the tasks and responsibilities pertaining to the implementation and success of these initiatives and programs.

Competitive Forces

The war for talent and human resources in a globalized and interconnected marketplace has become even more intense. HR departments have to take cognizance of fast-changing realities and make flexible plans to meet the demand for future workforce requirements as well as address the current needs of existing employees. Evolution of business practices and fast-paced turnover of technologies necessitates regular training of current employees in order to keep them sharp-edged and competitive.

Skills Improvement

The key to sustained success and long-term profitability of an organization is the consistent performance of its employees. Training and development initiatives and workforce and staff-based programs form an integral part of the continuous process of skills development. HR also plays a role in ensuring employee buy-in and acceptance of such a crucial workforce improvement metric. This process involves developing better teamwork and work ethics, learning new skills, refreshing technologies and acquiring new certifications and educational qualifications, if needed.

Performance Reviews

Performance reviews are integral to any human resource planning process. Conducting performance reviews reflects the commitment of employers to acknowledge the role and importance of employees in the success of an organization. A rigorous, accurate and periodic performance review of workers and staff members, detailed assessment of performance and subsequent rewards recognitions and benefits keeps employees enthused and motivated toward meeting organizational goals. These reviews are also initiated and planned by the HR department and executed by managers and supervisors.

Mentorship and Informal Management

Employees seek approval and recognition from business owners, managers and top management and HR personnel in order to stay enthused and motivated to perform their assigned roles and responsibilities. Human resource planning is also about managing employees and their aspirations, needs and specific requirements at all levels. HR personnel and managers should mentor newly inducted hires, encourage and empathize with veteran employees and generally act as a vital resource and informal sounding board for all workers and staff.

About the Author

Based out of the metropolitan Washington D.C. area, Pallab Dutta has written on business, technology and management issues since 1994. He has freelanced for “The Wall Street Journal," “The Economic Times” and “The Times of India." Dutta holds a Bachelor of Science in economics from Bombay University and a Diploma in modern information systems from IIT Bombay.