Key factors to be considered when developing a HR plan for an organization

 

Robbins (2001) defines HRP as “the process by which an organization ensures that it has the right number and kinds of people at the right places, at the right time, capable of effectively and efficiently completing those tasks that will help the organization achieve its overall objectives”. Further describe the Human resource planning (HRP) it is a strategy used by a company to maintain a steady stream of skilled employees while avoiding employee shortages or surpluses. When organization has a good HRP strategy in place can mean productivity and profitability for a company. (Hayes, 2021)

There are four general steps in the HRP process. Those are identifying the current supply of employees, determining the future of the workforce, balancing between labor supply and demand, and developing plans that support the company's goals.

When developing a human resource plan for the organization they are some considerable factors and those can be identified as below.

• Employment – When the country has grater unemployment rate, Company has pressure from the government to recruit employees to the organization. It will affect to shortage of employees
• Technological changes – Technology change day by day in the world and employee have to update their knowledge and skills. Sometimes organization introduces new technology to employees. Company always need to think about training and development of employees when planning the HR. And also need to recruit highly skill employees to the organization
• Organizational changes – Organizational changes able to see time to time and this is one of the key factors once plan the human resource of the organization
• Demographic changes – Sometimes organization has to face demographic changes when HR planning
• Culture – Organizational culture also one of factors affecting to the HR planning
• Shortage of skill because of labour turnover – Sometimes organization has to face labour turnover and it has factor to affect the labour turn over
• Pressure groups – Organization has different pressure groups and this also one of the factors
• Economic factors – In here consider the money availability for training, salaries and equipment and also external economic factors also affected to human resource planning. Those are level of economic development, international activities etc.
• Environmental factors – Business location is one of the factors relating to this. Sometimes able to see weather changes of some areas those are factors affecting to the HR planning
• Political and Legal System – This is most significant area and legal system affect generally to the HR planning because this will change time to time. HR manager have to update new employment law  
• Social factors - Social factors may influence the organization’s HR planning. Where there is a clear discrepancy of one social group, it’s a good idea to build in ways of opening up new opportunities.
• Company policies and strategies – Sometimes this also affected to HR planning of the organization. This factor affected to diversification and expansion also. Sometimes some company not give chance to women employees as policy in there HR planning team need to consider this.
• Trade unions of the organization - There are many influences from the trade unions to the HRM planning process. Because sometime organization has excess employees but they cannot get actions against them trade unions involve this. (Vaishnavi D, 2019, iEduNote.com, 2019)

Reference:

Hayes, A. (2021). How Human Resource Planning (HRP) Works. [online] Investopedia. Available at: https://www.investopedia.com/terms/h/human-resource-planning.asp.

Vaishnavi D (2019). Factors Affecting Human Resource Planning. [online] Essays, Research Papers and Articles on Business Management. Available at: https://www.businessmanagementideas.com/human-resource-planning/factors-affecting-human-resource-planning/19956.