Human Resource Planning – Concept

and need

Factors affecting HRP, HRP Process

 Human Resource Planning
• Meaning – Assessment of Human Resource
requirements and time and stages of requirement.

• Right person ---At Right place ---At Right time.

• Definition – HRP is defined as the process by which

management determines how an organization
should move from its current manpower position to
its desired manpower position.
• HRP is also called manpower planning, personnel
planning or employment planning.
 Objectives of HRP
• To ensure optimum use of existing
HR.
• To forecast future requirement for HR.
• To provide control measures to
ensure that necessary HR are
available as and when required.
• To asses the surplus and shortage of
HR. (Downsizing).
 Objectives of HRP – Contd.
• To anticipate the impact of technology
on jobs and HR.
• To determine the level of Recruitment
and Training.
• To estimate the cost of HR and
Housing needs of employees.
• To meet the needs of expansion and
diversification programmes.
 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 Nature

Quality of
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.
 HRP Process (Contd.)
• 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).
 HRP Process (Contd.)

• 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