Human Resource Planning (HRP)

HRP is the first component of HRM strategy. All other functional HR activities are derived from
and flow out of the HRP process. The HRP is necessary to find out the needs of different types of
employees and make strategy how to find them out. HRP is a process to decide the needs of
adequate no. of people at the proper time and allocation of work according to their ability.

“Manpower Planning is the process of determining manpower requirements and the means for
meeting these requirements in order to carry out the integrated plans of the organization”.
Bruce P. Coleman
“HRP is the process of forecasting a firm’s future demand for and supply of right type of people in
the right time”.

The process by which mgmt determines how an organization should move from its current
manpower position to its desired manpower position.

Manpower planning is the strategy for the acquisition, utilization, improvement, and preservation of
an organization’s human resources. It is aimed at coordinating the requirement for ant the
availability of differ type of employee. Thus HRP involves estimating manpower needs and
formulating plans to meet these needs.

The process of systematically reviewing human resource requirements to ensure that the required
number of employees, with the required knowledge, skills and abilities are available when needed

CHARECTERSTICS OF HRP:-
• It is future oriented. It involves forecasting future needs of manpower.
• It is a continuous process because demand of human resource changes continuously.
• HRP is an integral part of corporate planning without a corporate plan there can be no man
power.
• The basic purpose of HRP is to make optimum use of an org current and future HR.
• HRP can be long term or short term. Long term are prepared for more than five year.

Importance of Human Resource Planning

1. To carry on its work and to achieve its objectives. Every organization requires
employee with knowledge experience.
2. It ensure that adequate no. of people are selected and trained in advance to fill future
job vacancies.
3. ORGANIZATION CHANGE size of firm is increasing. Increased size and rapid
changes in environment require increased no. of people so HRP is needed to meet this
requirement.
4. SHORTAGE OF SKILL Org have become complex and required a wide range of
specialized skills .these skill are scare and problem arise when employee with this skill
leave the organization.
5. There is need to replace employee who retire die resign due to some reason these gaps
can be filled by HRP easily
 6. HRP creates awareness about the effective utilization of human resource in the org .it
helps to reduce wastage of manpower.
7. With the help of HRP areas of surplus manpower can be anticipated and timely action
can be taken.
8. HRP IS helpful in anticipating the cost of hr which facilitates the budgeting process.
And also helps in controlling hr cost
9. HRP facilitates career and succession planning in the ORG.
10.It is essential to face the changes in market and technology.

OBJECTIVES OF HRP:
1. To ensure optimum use of human resource
2. To forecast future requirement of human resource
3. To provide control measures to ensure that necessary human resource are available as and
when required?
4. To link hr planning with org planning
5. To assess the surplus and shortage of human resource
6. To anticipate the impact of technology on job and hr
7. To determine levels of recruitment and training
8. TO estimate the cost of human resource
9. To provide a basis for management development program
10.To meet the needs of expansion and diversification program

PROCESS OF HRP

THE MAJOR STAGES INVOLVED IN HRP ARE AS FOLLOWS:-

1. Analyzing org plan
2. Forecasting demand for hr(manpower forecasting)
3. Estimating manpower gaps
4. Action planning
5. Monitoring and control

(1). Analyzing org plan:- the first step is to analyze objectives and strategies plan of org. plans
concerning technology, productivity, marketing, finance, expansion and diversification are
analyzed so as to anticipate the org manpower requirement. It is necessary to study business plan
because all manpower plan relates to org plan.

(2). Forecasting demand and supply for hr(manpower forecasting) at this level future needs of
human resource in the org are anticipated. The no. of people and skill levels needed in future
depend on the production and sales. Techniques employed in manpower forecasting are as follows:
Managerial judgment, work-study method, ratio-trend analysis, mathematical model, workload
analysis etc.

(3). Estimating manpower gaps net human resource requirement can be identified by comparing
demand and supply forecast. Such comparison either will reveal deficit or surplus of human
resource in future. Deficits suggest the no. of person to be recruited from outside whereas surplus
suggest termination of employee. Gaps may occur in terms of knowledge ,skill and aptitudes.

(4). Action planning once the gaps are identified plans are prepared to fill this gaps. Deficit can be
met through recruitment, selection, transfer, promotion, training plans surplus manpower may be
redeployed in other departments.

(5). Monitoring and control once the action plans are implemented the hr structure and system
need to be reviewed and regulated. Monitoring and controlling phase involve allocation and
utilization of hr over time. Corrective action may be taken at the right time to remove all the
deficiencies.

LIMITATIONS OF HRP
• Inaccuracy
• Employee resistance
• Uncertainties
• Time consuming and costly
• Inefficient information system

RECRUITMENT
Recruitment is an important part of a business human resource planning. The overall aim of the
recruitment and selection process is to obtain the number and quality of employees that are required
in order for the business to achieve its objectives.

“Recruitment refers to the process of sourcing, screening, and selecting people for a job at an
organization or firm, or for a vacancy in a volunteer-based organization or community group”.

“The process by which a job vacancy is identified and potential employees are notified” .

Process of seeking and attracting a pool of people from which qualified candidates for job
vacancies can be chosen.

RECRUITMENT NEEDS ARE OF THREE TYPES:-

PLAANED, ANTICIPATED, &UNEXPECTED
PLANNED NEED ARISE CHANGES IN ORGANISATION & RETIRMENT OF POLICY.
RESIGNATIONS, DEATH, MAJOR ILLNESS, AND ACCIDENTS GIVE RISE TO
UNEXPECTED NEEDS.
ANTICIPATED NEEDS REFER TO THOSE MOVMENT IN HR WHICH AN ORGANIZATION
CAN PREDICT BY STUDYING TRENDS IN INTERNAL AND EXTERNAL ENVIORMENT.
 SOURCES OF RECRUITMENT

INTERNAL SOURCES: - This refers to the filling of job vacancies from within the business -
where existing employees are selected rather than employing someone from outside.

EXTERNAL SOURCES: - This refers to the filling of job vacancies from outside the business
(contrast with internal recruitment). Most businesses engage in external recruitment fairly
frequently, particularly those that are growing strongly, or that operate in industries with high staff

Advertising
Ad is probably the most common method. Advertising allows the employer to reach a wider
audience. The choice of advertising media (e.g. national newspaper, internet, specialist
magazine etc) depends on the requirement for the advert to reach a particular audience and,
crucially, the advertising budget
People respond more frequently to ads from companies with a positive corporate image.If
advertising is used as a primary source of recruitment, planning and evaluating advertising
program should be a primary concern of human resource personnel.

Employment / recruitment agencies

These businesses specialize in recruitment and selection. They often specialized in recruitment for
specific sectors (e.g., finance, travel, secretarial). They usually provide a shortlist of candidates
based on the people registered with the agency. They also supply temporary or interim employees.
The main advantages with using an agency are the specialist skills they bring and the speed with
which they normally provide candidates. They also reduce the administrative burden of recruitment.
The cost is the high agency fees charged - often up to 30% of the first year wages of anyone
employed.

EDUCATIONAL AND TRANING INSTITUTION various institute like IIMs, IIts, engineering
college and other educational institutes are a good source of recruiting the employee. They provide
facilities for campus interview and placement.

Factors Affecting Recruitment