HRM Unit- 2 Human Resource Planning (HRP) Concept

BBA / II Sem/ HRM
Unit- 2
Human Resource Planning
(HRP)
Concept of HRP
HRP is the starting point of HRM. It is concerned with acquisition phase of HRM. Simply, HRP
is the planning for future personnel needs of an organization. Moreover, it is the process of
predetermining future human resource needs and selecting alternatives to satisfy such needs.
Broadly speaking, HRP is the estimation of the size (number) and composition (competency,
skill, quality etc.) of future work-force to ensure survival and growth of the organization. HRP
ensures that the organization has right number and kind of people at right place and at the time. It
is also called personnel planning or manpower planning.
According to Decenzo and Robbins, “HRP is the process by which an organization ensures that
it has the right number and kind of people, at the right place, at the right time, capable of
effectively and efficiently completing those tasks that will help the organization achieve its
overall objectives”.
B.P Coleman Provokes, “HRP is the process of determining manpower requirements and the
means for meeting those requirements in order to carry out the integrated plan of the
organization”.
R.W Mondy states, “The analysis of future personnel requirement is referred to as HRP”.
Therefore, HRP is the plan formulated with a view to attain organizational goal by acquiring
right type of person in right number and way at right time and place.
Characteristics of HRP
1. Goal Directed
HRP is directed towards achieving human resources goals as well as overall organizational goal.
2. Future Oriented
It is related with future time period. It forecasts the size and composition of future work-force. It
makes forecasting as well.
3. Quantitative & Qualitative
It estimates the required size or number of right employees with right skill and competency at
right time. So, it deals with both quantity and quality aspects.
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BBA / II Sem/ HRM
4. System Oriented
It is systematic planning indeed. It forecasts the demand of manpower as well as source of their
supply. It tries to match demand and supply with a view to avoid future shortage or excess.
Moreover, it prepares suitable action plan to resolve HR gaps.
5. Time Horizon
Every HRP has specified time frame. It can be short-termed or long termed. Especially, it is
prepared by considering long term survival and growth.
6. Continuous & Dynamic
The HRP prepared once may not be suitable for all the times. It is prepared till the organization
exists. Moreover, it is prepared in accordance with environmental changes.
7. Integral Part of Corporate Plan
It is prepared at all levels viz strategic level, tactical level, operational level as per the corporate
plan. In fact, it is one of the functional plans formulated to implement the corporate plan of the
organization. So, it stands as a part of corporate plan.
8. Part of Acquisition Phase
It is related with acquisition phase of HRM. Entire HRM functions begin with HRP.
Importance of HRP
HRP is the essence of organizational effectiveness. It supports to conduct the organizational
operation smoothly by providing essential manpower adequately as per the plan and program of
the organization. It is an invaluable means of attaining organization goal. It is important due to
following reasons:
1) Uncertainty Reduction
HRP helps to reduce uncertainty by projecting future manpower need. It performs essential work
to match demand and supply forecasts with a view to determine the excess or shortfall of future
manpower in terms of size and kind. It formulates action plan to address the problem evolved
due to excess or shortfall of manpower.
2) Objectives Achievement
It insists to attain overall goal. In fact, HRP is based on the overall goal, strategy and revenue
plan of the organization. It considers about the contribution possible to make by the human
resources and helps to attain the organizational goal.
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BBA / II Sem/ HRM
3) Environmental Adaptation
It assesses existing manpower through human resources inventory and job analysis. It projects
the possible changes going to occur in the environmental forces like economic, social, political,
legal, technological etc and formulates essential action plan to adopt the changes. Consequently,
the human resources can easily adapt the potential changes.
4) Acquisition of Human Resources
It determines in advance regarding the type and time of manpower requirement to support the
future plans and programs of organization. So, it provides guidance to manpower supply. It
serves as the basis of recruitment and selection to fulfill job vacancy.
5) Proper Utilization of Human Resources
It helps to perform organizational works in cost effective way by providing right persons at right
time in right number. It also helps to perform the employees effectively by utilizing their ability
optimally.
6) Human Resource Development (HRD)
It provides information about the necessary skill, ability etc. required to human resources
working at various levels. It gives due attention to training and development programs to be
conducted in organization with a view to enhance the ability of existing manpower. Such
programs help to reduce turnover, absenteeism etc which ultimately bring job satisfaction and
high morale.
7) Control
As HRP specifies the number and kind of manpower, it also serves as the standard of control.
Human resources control is not possible without it. So, it controls human resource cost.
8) Others
i. It supports the strategic plan of the organization.
ii. It facilitates collective bargaining.
iii. It helps to identify human resources related problem.
Human Resources Planning Process ( HRP Process )
Formulating HRP is essential to perform the work efficiently. Such plan is related with the long
range and strategic plan of the organization. Mostly, HRP is prepared for those persons who are
not easily available as well as requires long time to develop. HRP process includes the following
steps:-
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BBA / II Sem/ HRM
1. Assessing Current Human Resources
The process of HRP begins with the review of current manpower situation. In fact, the
assessment of current manpower is an internal analysis which provides information about present
jobs and persons doing them. For this purpose, it is necessary to prepare human resource
inventory (HRI) and perform job analysis.
(i) Human Resource Inventory (HRI)
It is the profile or statement providing information about the manpower currently working in the
organization. In the course of assessing its manpower, the organization has to keep proper
information regarding the capabilities, skill and number of manpower available currently. Such
information can be obtained through the profile filled up by employees themselves. It contains
general information (name, address, age, gender, marital status), ability (academic qualification,
performance level, training, experience, language) as well as possible jobs to be assigned (special
expertise, job and location preferences) etc.
( ii ) Job Analysis
It refers to the analysis of job related information. It provides information about the job to be
performed by an individual via any position, the activities under such job as well as the skill,
knowledge, personal qualities, behavior etc required to jobholders. Therefore, it is the systematic
exploration of the activities to be performed under a job.
2. Demand Forecasting
Neither the organization nor its human resource need remains static forever. Therefore, every
organization has to fix about the number and kind of human resources required to it. Here,
human resources demand refers to the total number of human resources required to organization
at various levels in order to perform its future program. So, here the number of manpower is
estimated depending on the objective, strategy and revenue plan of the organization. Various
methods like managerial judgment, ratio trend analysis, delphi technique, nominal group
technique, project/ venture analysis, mathematical model etc can be used to forecast the demand.
As manpower supply depends on demand, it is not rational to bring frequent change in human
resource demand.
3. Supply Forecasting
Human resource supply refers to determining the possible source of getting necessary manpower.
It estimates the future sources of manpower available inside and outside the organization. The
existing manpower may decrease due to resignation, retirement, transfer, dismissal, disability,
pro-longed disease, death etc. Similarly, it may not be adequate to facilitate the required
expansion. Such manpower can be obtained through transfer-in, training center, trade school,
migration, sponsorship etc. The methods such as managerial judgment, replacement planning,
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