Impact of Human Resource Planning on Job Performance

Human resource planning is an integral part of any organization. Bratton and Gold (2007) states, that human resource planning is the process of systematically forecasting the future demand and supply for employees, and the deployment of their skills within the strategic objectives of the firm. Those persons involved in HR planning need to understand the nature and value of the contribution which individuals can bring. The HR planning process has four key phases, which are, environmental scanning, forecasting HR demand, HR supply analysis and action planning.

The first step in HR planning is conducting a situation analysis also known as environmental scanning. Environmental scanning is a process that systematically surveys and interprets relevant data to identify external opportunities and threats. Data must be collected on social trends, demographics, political changes, industrial and technological changes and current/new competitors. HR managers must analyze how these factors can impact recruitment, development and the ability of the firm to keep employees with the appropriate skills.

The next step is demand forecasting, which means determining future needs for HR in terms of quantity and quality. It is done to meet the future personnel requirements of the organization to achieve the desired level of output. Future human resource needs can be estimated with the help of the organization's current human resource situation and analysis of organizational plans and procedures. 

Human resource managers estimate the supply by conducting an analysis of current resources and future availability of human resources in the firm. The supply of people is projected from current employees through calculations about expected leavers, retirements and promotions.

The action plan is the last phase of human resource planning process and is executed through the designation of different HR activities. The major activities which are required to execute the HR plan are recruitment, selection, placement, training and development. Plan depends on if there is a deficit or surplus. For a surplus, voluntary retirement schemes or redeployment. Following this, evaluation and control must be done to see if HR planning matches with objectives, strategy and policy.

HR planning is concerned with the provision of a framework that allows a firm to integrate key HR practices so that it may meet the needs of employees, enhance potential and meet performance needs of business strategy. It identifies HR practices that need to be altered and Effective HR planning helps the organization work smoothly and aids managers in making the right decisions. Forecasting can give HR managers an idea of who is needed, how many are needed and whether these persons should be outsourced or not. (Bhattacharyya, 2006) Supply analysis can also identify capability gaps which are the lack of sufficient skills, people and knowledge that will prevent successful implementation of the strategy. The plan should also be continuously updated in order to adapt to changing conditions.