HRP

HUMAN
RESOURCE
PLANNING
MEANING & DEFINATION
• Human Resource Planning is the process by which an organization ensures
that it has the right number and kind 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.
• ( Source: Decenzo and Robbins 2000, Personnel/Human Resource
Management)
• HR/ Manpower Planning is the process of acquiring and utilizing human

resources in the organization. It ensures that the organization has the right
number of employees in the right place at the right time.
• ( Source: Adhikari, Dev Raj, 2001,Human Resource Management )
• Employment planning is the process of formulating plans to fill future

openings based on an analysis of the positions that are expected to be open
and whether these will be filled by inside or outside candidates.
• ( Source: Dessler, G. 2000,Human Resource
Management )
Objectives of HRP
 Forecast the human resource requirement:- without HRP it would be
difficult to have the services of right kind of people at the right time
therefore HRP is essential to determine the future manpower needs in an
organization.
 Cope with changes:- HRP is required to cope with changes in market
conditions, technology, products and government regulation in an effective
way.
 Promote employees in a systematic manner:- In the absence of HRP, it may
be difficult to ensure regular promotion to the competent employee on a
justifiable basis. HRP provides useful information in the organization.
 Assessing skill requirement in future. Determining training & development
needs of the organization.
 Anticipating surplus or shortage of staff & avoiding unnecessary detention
or dismissal
 Controlling wages & salary cost.
 To help the organization reach its goals.
Importance of HRP
• Future Personnel needs – exa-excess staff, VRS
• Creating highly talented personnel - upgrade
• International Strategies – PCNs, HCNs, TCNs
• Foundation of personnel function – recruitment,
selection, promotions
• Resistance to change and move – anywhere,
anytime
• Increasing investment in human resources –
Foreign Assignments
Factors Affecting HRP
Organisational
growth cycle
and planning
Environ
Type and
mental
strategy of
Uncertain
organization
ties
HRP
Time
Outsourcing
horizons
Type and
Quality of Nature
forecasting of job
Information
1. The type of organization determines the
production process, type of staff,
(supervisor and manager). And the
strategy plan of the organization defines
its HR needs.
2. Organizational growth cycle and planning
– start up, growth, maturity, decline
3. Environmental uncertainty – political,
social and economical change affect all
organizations.
4. Outsourcing – the process by which
employees transfer routine or peripheral
work to the another organizations.
5. Nature of job – job vacancies,
promotions and expansion strategies.
6. Type and quality of forecasting
information - organizational structure,
budgets, production.
7. Time horizons – long term plans and
short term plans, the greater the
uncertainty the shorter the plan.
Example computers and university.
HRP Process
Environment
Org objectives and policies
HR Needs Forecast HR Supply Forecast
HR Programming
HRP Implementation
Control and Evaluation
Surplus Shortage
HRP Process
• Environment - :
1) Economic factors
2) Technological Changes
3) Demographic changes
4) Political and legislative issues
5) Social concerns
HRP Process (Contd.)
• Organizational objectives and policies-:
• HR plans need to be based on

organizational objectives.
• Specifics requirements in terms of
numbers and characteristics of employees
must be derived from organizational
objectives.
• HR need or demand forecast-:
• The process of estimating the future quantity
and quality of people required.
• The basis of forecast will be annual budget
and long term corporate plans.
• Demand forecasting must consider several
factors like
i. Internal (Budget constraints, employee
separations, production level etc.)
ii. External (Competition, laws, change in
technology).
• HR Supply forecasting-:
• It determines weather the HR department will be

able to acquire the required number of workers.
• Specifically supply forecasting measures the

number of people likely to be available from
within and outside an organization.
HRP Process
• HR Programming-:
• Once the Organization’s HR need and
supply are forecast,
• Then vacancies can be filled by the right
employee at the right time.
• HR Plan Implementation-:
• Implementation requires converting an HR
plans into action. (Recruitment, Training,
etc.)
• Control and evaluation :-
• Surplus – restricts hiring, reduced hours

(VRS, lay off etc)
• Shortage – recruitment and selection

HRP

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HUMAN

• HR/ Manpower Planning is the process of acquiring and utilizing human

• Employment planning is the process of formulating plans to fill future

Org objectives and policies

HR Needs Forecast HR Supply Forecast

Control and Evaluation

• HR plans need to be based on

• It determines weather the HR department will be

• Specifically supply forecasting measures the

• Surplus – restricts hiring, reduced hours

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