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The following steps may be undertaken for formulating an effective HR plan

1. Conducting SWOT analysis for designing corporate plan and strategies.

2. Reviewing the organization's goals, objectives and strategies.

3. Developing human resource objectives and strategies

4. Determining overall human resource needs

5. Making analysis of annual financial budget

6. Forecasting the demand and supply of human resource.

7. Making inventory of the existing workforces

8. Developing HR policies.

9. Prepare a HR budget

10. Developing an action program through recruitment, selection and training.

11. Control and evaluation of the program.

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