HUMAN RESOURCE PLANNING

• HRP is a process by which the management of an organization determines its future HR

requirements and how the existing HR can be effectively utilized to fulfill these
requirements.

• In the process of HRP, the management strives to have the appropriate kind and number
of people at the appropriate place.

• HRP may be defined as the replacement planning which encompasses the analysis of
labor turnover and developing models for planning recruitment and promotion of
employees.

• HRP develop , utilize and distribute HR so as to achieve the goals of the organization.

• Comparison of the present HR to future needs of an organization, duly identifying

competency gaps and subsequently developing plans for building the HR needed in
future.
VETTER:
HRP is a process by which a management determines how an
organization should move from the current HR position to its desired HR
position.

Coleman:
HRP is a process of determining manpower requirements and the means for
meeting those requirements in order to carry out the integrated plan of the
organization.
 Objectives

• Ensure adequate supply of manpower as and when required.

• Assess surplus or shortage of HR.

• forecast future requirement of Hr with different levels of skills

• Ensure cost minimization.

• Anticipate the impact of technology on jobs and HR

 Need for HRP

• Despite growing unemployment, there has been shortage of HR with

required skill and capabilities to carry on works. Hence the need for HRP.

• Large number of employees who retire, die or leave organization or become

incapacitated because of physical or mental ailments, need to replaced by
the new employees.

• HRP is also needed to identify areas of surplus personnel or areas in which

there is a shortage of personnel.

• HRP is needed to meet the needs of expansion and diversification

programmes of an organization.

• HRP is essential because of frequent labor turnover.

 INFLUENCE OF SM ON HRP

Strategy HRP Requirements

-Expansion Additional HR of existing category

-Diversification Additional HR of different category

-Acquisition & Mergers Reduction of managerial positions

-Retrenchments Reduction of HR of all the

categories.
 MPP VS HRP

• As personnel management is integrated with HRM as is manpower planning is

integrated with HRP.

• MPP takes care of manpower forecasting, career path, training etc but HRP is
basically a planning of the resourcefulness and human aspect of the entire
organization. Though it includes all the elements of MPP it gives greater
emphasis to HRD, succession planning etc.

• MPP has its concern for the manpower system of the organization. People who
are capable to contribute their power fully to the organization are retained,
while those who lack in contributing the best power will not be able to keep
their jobs. According to HRP: if individual has the human power for
productivity he has human weaknesses and problems too. As he is able to make
positive contributions, so is he susceptible to committing mistakes.

• MPP takes care of the power of people to make positive contribution, whereas
the other side of the coin is not its concern.
 MACRO LEVEL HRP

• Macro level HRP looks at population development and planning issues in

the same way as corporate HRP . The difference being that Government
take up role of a planner.

• In Macro level planning, the canvass of operation is the entire nation.

• Planners deal with issues of meeting current and future challenges facing
the country.

• Government has to focus on availability of HR for the country’s industry,

agriculture,military and so on.

• Government continuously study the environment in order to ensure that

the labor absorption capacity of the economy is kept in line with the
overall supply, so that unemployment levels are minimized.
 HRP PROCESS
Strategic planning HR demand HR supply

Technological forecasts Annual employment requirement Existing employment

Economic forecasts Numbers inventory
Market forecasts Skills Expected loss and attrition
Organizational planning rates.

Compared with

If none
Variances End

If surplus If shortage

Action
Decisions Decisions
Decisions
Layoff Overtime
Retirements Recruitment
Promotion

End
End
 Barriers to HRP

• People perceive that people are available in abundance in our labour

surplus economy. Then why to spend time and money in forecasting HR.

• Various types of uncertainties like labour turnover absenteeism market

fluctuations and changes in technology render HRP ineffective.

• Sometimes HRP suffer from a conflict between quantitative and qualitative

approaches used for it. Some people view HRP as a mere number game to
track the flow of people across the departments and in and out of the
organization.