Mhr523 chapter 5: human resources planning (textbook notes) As illustrated in figure 5. 1, key steps in the hrp process include analyzing forecasted labour supply, forecasting labour demands, and then planning and implementing hr programs to balance supply and demand. o o. Lack of or inadequate human resources planning within an organization can result in significant costs when unstaffed positions create costly inefficiencies and when severance pay is required for large numbers of employees being laid off. It can also create situations in which one department is laying off employees while another is hiring individuals with similar skills, which can reduce morale or productivity and can often result in turnover. The greater concern is that ineffective hrp can lead to an organization"s inability to accomplish short-term operational plans or long-range strategic plans. The hrp must align with the overall goals of the organization as well as both the long-term and short-term strategic plans set by the organization. o.