The document outlines a 6-step model for developing a strategic human resource plan: 1) setting strategic direction, 2) designing the HR management system, 3) planning total workforce, 4) generating required human resources, 5) investing in HR development and performance, and 6) assessing and sustaining organizational competence. Each step includes recommended actions and focuses on aligning HR with organizational goals, designing HR policies and practices, determining manpower needs, recruiting and developing employees, and evaluating HR strategy. Benefits of HR planning include improved decision making, lower costs, anticipated talent needs, and management development. Problems can include inaccurate forecasting, lack of management support, employee resistance, and coordination challenges.

1. A STRATEGIC HUMAN RESOURCE PLANNING MODEL
There is no single approach to developing a Human Resources Strategy. The specific approach
will vary from one organization to another. Even so, an excellent approach towards an HR
Strategic Management System is evident in the model presented below. This approach identifies
six specific steps in developing an HR Strategy: -
1. Setting the strategic direction
2. Designing the Human Resource Management System
3. Planning the total workforce
4. Generating the required human resources
5. Investing in human resource development and performance
6. Assessing and sustaining organizational competence and performance
Using the process model discussed earlier, the specific components of the HR Strategic Plan are
discussed in greater detail below.

2. 1. Setting the strategic direction
This process focuses on aligning human resource policies to support the accomplishment of the
Company’s mission, vision, goals and strategies. Successful companies continuously identify
and adopt innovative human resource management policies and practices to sustain that
advantage. More importantly, they structure work and design training, performance management,
pay, and reward policies to help members of the organization succeed in achieving desired
organizational outcomes.
Recommended actions: -
 Conduct an external environmental scan and evaluate its impact on the organization
 Identify the organization’s vision, mission and guiding principles
 Identify the mission’s outcomes and strategic goals
 Consult all relevant stakeholders
 Evaluate the impact of legislation on the organization
2. Designing the Human Resource Management System
This stage focuses on the selection, design and alignment of HRM plans, policies and practices.
Various options may be open to the organization such as drawing on industry best practices. A

3. good approach in selecting the appropriate HRM policies, procedures and practices is to identify
the appropriate HRM practices which support the organization’s strategic intent as it relates to
recruitment, training, career planning and reward management.
Recommended actions: -
 Identify appropriate human resource plans, policies and practices needed to support
organizational objectives
 Identify relevant human resource best practices
 Conduct an employment systems review
3. Planning the total workforce
Determining future business requirements, especially those relating to manpower requirements,
represents one of the most challenging tasks facing human resource practitioners.
Recommended actions: -
 Determine the appropriate organizational structure to support the strategic objectives
 Structure jobs (competencies, tasks and activities) around key activities
 Develop a workforce plan designed to support the organizations strategic objectives
 Compile workforce profiles, identifying designated groups, an inventory of current workforce
competencies, competencies required in the future and identified gaps in competencies
4. Generating the required human resources

4. This process focuses on recruiting, hiring, classifying, training and assigning employees based
on the strategic imperatives of the organization’s workforce plan.
Recommended actions: -
 Evaluate recruitment and selection practices in light of the organization’s strategic objectives
 Develop and implement a comprehensive workplace skills plan (with a thorough training
needs analysis)
 Implement a learnership strategy
 Adopt or clarify occupational levels and category classifications
5. Investing in human resource development and performance
Traditional approaches to career planning, performance appraisals, reward management and
employee development must be re-appraised in light of the vision, characteristics and mission
outcomes as reflected in the HRM plans, policies, and practices.
Recommended actions: -
 Identify appropriate policies, procedures and practices in respect of
 Career pathing
 Performance appraisals
 Employee development and learning
 Reward Management (compensation and benefits)
 Promotions and job assignments
 Separation

5. 6. Assessing and sustaining organizational competence and performance
Recommended actions:-
 Evaluate organization culture and climate
 Implement succession planning
 Evaluate HR strategy using quantifiable measures, e.g. balanced scorecard
 Revise and adapt HR strategy
Conclusion
While HR strategies must be developed to support the achievement of the organization’s
objectives, it is a two-way process. HR strategies can themselves be critical inputs in determining
the strategic initiatives for the organization. A fatal error, however, is to develop and implement
HR strategies without having regard for the goals and objectives which the organization has
explicitly or implicitly identified. A common mistake is the development of workplace skills plans
which are not linked to any strategic goals or objectives or which have no affirmative action
components.
Similarly, the isolated identification of affirmative action numerical targets without first
conducting a workforce and succession planning exercise is in most instances, simply meaningless.
BENEFITS OF HUMAN RESOURCES PLANNING(HRP)
By formulating a well-conceived Human Resources Planning(HRP), some benefits can be
accrued by the organization as well as by human resource management.
1. A better view of the business decision
Upper management has a better view of the human resource dimensions of business decisions.
Benefits of Human Resource Planning directing optimum business process view to management
people to take a further decision for expanding the business operation.

6. 2.Minimum cost
HR costs maybe lower because management can anticipate imbalances before they become
unmanageable and expensive.
3. Anticipated talent
More time is available to locate talent because needs are anticipated and identified before the
actual staffing is required. The talent pool recruiting and selection process leads to the
company’s ideology to sustain longer.
4. Management Development
Proper Human Resource Planning(HRP) can ensure the development of managers through
proper training programs. There are several types of training sessions generally implemented
through human resource planning.
5. Improved Utilization
Human Resource Planning (HRP) improves the methods of utilization of human resources of an
organization.
6. The economy in hiring
Effective HR planning(HRP) can set a system of hiring a human resource for the organization
with minimum cost and effort. So, the economy in hiring is another biggest benefits of human
resource planning.
7.Information base
Human Resource Planning(HRP) helps in expanding the human resource management
information base to assist other human resource activities and other organizational units.
8. Coordination
Coordination of different human resource management programs and activities is possible with
the help of a well-established HR Planning(HRP).
9. Reduction of wastage
A proper manpower policy will reduce the wastage rate.
10. Corporate Asset
Manpower planning stresses the value of human resources as corporate assets.
11. Gradual Growth
Interest in manpower planning is increasing because the size of the organization is gradually
increasing.

7. PROBLEMS OF THE HUMAN RESOURCE PLANNING
Man power planning is not always successful; the main problems are described below:
1. Accuracy of Forecasting: Human Resource planning involves the forecasting the demand and
supply of human resources. Thus the effectiveness of planning depends on the accuracy of
forecasts. If the forecast is not correct planning will be defective. Inaccuracy depends when
departmental forecasts are merely prepare with out critical review.
2. Identity Crisis: Many of the organization’s human resources do not the whole process of
human
resource planning. Because of this, there is generally an identity crisis. Till the specialist are
developed a strong sense of purpose, planning will be effective.
3. Support of the Top Management: HR Planning requires full and wholeheartedness support
from the top management. In the absence of this support and commitment, it would not be
possible to ensure the necessary resources, cooperation and support for the success of human
resources planning.
4. Resistance from the Employees: Employees and the Trade Unions resist manpower planning.
They feel that this planning increases their overall workload and regulates them through
productivity bargaining. They are also feel that it would lead to wide spread unemployment,
especially of unskilled workers.
5. Insufficient Initial Efforts: Successful HR Planning flourishes slowly and gradually.
Sometimes sophisticated technologies are forcefully introduced just because competitors have
adopted
them. These may not be possible unless matched with the needs and environment of the
particular enterprises.
6. Management Information System: Effectiveness of planning depends on the reliability of the
information system. In the most of Indian industries, HR Information System has not fully
developed. In the absence of reliable data it would not be possible to have effective planning.
7. Uncertainties: It is the risky to depend on general estimates of manpower in the face of rapid
changes in the environment. Absenteeism, turnovers, seasonal employments, technological
changes and market conditions are the factors of major uncertainties which serve as constraints

8. to manpower planning. Although discounts are made for these factors while preparing the plan,
but these factors cannot be estimated correctly.
8. Expensive and Time Consuming: HR planning is an expensive and time consuming process.
Employers may resist manpower planning feeling that it increases the cost of manpower.
9. Coordination with other Managerial Functions: There is general tendency of manpower
planners to remain aloof from the other operating managers and become totally absorbed in their
own world. To be effective man power planning must be integrated with other management
functions.
10. Unbalanced Approach: Many human resources experts give more importance on the
quantitive
aspects of manpower to ensure that there is adequate flow of people in and out of the
organization. The over look the qualitative aspects like career development and planning, skill
development, morale etc. are overlooked by them. Such unbalanced approach affects the
effectiveness
of the human resources planning.