HUMAN RESOURCE PLANNING (HRP)

 HRP is the process of forecasting a firm’s future demand for and supply of the right type of
people in the right number.

 ‘Forecasting’ includes:

 the estimation of how many qualified people are necessary to carry out the assigned
activities,

 how many people will be available, and

 what, if anything must be done to ensure that personnel supply equals personnel
demand at an appropriate point in the future.

 As a part of Strategic Management, HRP is also known as Strategic Manpower Planning or

Employment Planning.

IMPORTANCE OF HRP

 Future Personnel Needs: -

HRP is significant as it helps determine future personnel needs. Surplus or deficiency in staff
strength is the result of the absence of or defective planning.

 Creating Highly Talented Personnel: -

Jobs are becoming highly intellectual and more challenging. There is an increasing need for
dynamic and ambitious employees to fill the positions. Efficient HRP is needed for attracting and
retaining well qualified, highly skilled and talented employees. Technological changes would,
also, further upgrade or degrade jobs and create manpower shortages based on skills and
expertise. In these situations only accurate human resource planning can help to meet the
requirements.

 To increase investments in HR:

Another compelling importance of HRP is the investment an organization makes in its HR,
because human assets, as opposed to physical assets, can increase in value. An employee who
gradually develops his/her skills and abilities becomes a more valuable resource. Because an
organization makes investments in its personnel either through direct training or extensive job
assignments, it is important that the employees are used effectively throughout their career.

 To tackle with the employees’ resistance to change and move:

The growing resistance among employees to change and move. There is also a growing emphasis
on self evaluation, loyalty and dedication, making it more difficult to assume that organization
can move its employees anywhere, at anytime. Here HRP becomes very important and needs
the resources to be planned carefully.

 Other Benefits

 Upper management has a better view of the HR dimensions of business decisions.

 Personnel
Compare Personnel Supply
Requirements
Forecast
Forecast
 Personnel cost may be less because the management can anticipate imbalances
before they become unmanageable and expensive.

 More time is allocated to search for skillful talent.

No Difference Better division of work.
(Requirement = Difference
Supply)
HUMAN RESOURCE PLANNING PROCESS:

Requirement < Supply Requirement > Sup

Lay Off Hire

Terminate
VRS