Human resource planning (HRP) is a process that involves: 1) Examining an organization's future human resource needs through environmental scanning and forecasting demand; 2) Analyzing the current supply of human resources and identifying any gaps between future supply and demand; 3) Developing plans of action to address gaps, such as recruiting or layoffs. HRP helps organizations acquire and motivate the right number and types of employees with the proper skills to achieve business objectives now and in the future. It is an important process that allows organizations to anticipate and address potential problems related to skill deficiencies.

1. Planning For Human Resource

2. HR Planning
• HR Planning is the process of examining an organizations’
future human resource need.
• It involves:
– Identifying and acquiring the right number of people with the
proper skills
– Motivating them to achieve high performance
– Creating interactive links between business objectives and
resource planning activities

3. Human Resource Planning
Human Resource Planning (HR Planning) is both a process and a set of plans.
It is how organizations assess the future supply of and demand for human resources.
An effective HR plan also provides mechanisms to eliminate any gaps that may exist
between supply and demand. Thus, HR planning determines the members and types
of employees to be recruited into the organization or phased out of it.
Dynamic by nature, the HR planning process often requires periodic readjustments as
labor market conditions change.

4. Strategic Planning HRP Process
Human Resource Demand Human Resource Supply
Technological forecasts Annual employment Existing employment inventory
Economic forecasts requirements After application of expected
Market forecasts Numbers Compared loss and attrition rates
Organizational planning Skills with
Investment planning Occupational categories
Annual operating plans
If none
Variances End
If surplus If shortage
Decisions Decisions
Action
Layoff, Overtime,
Decisions
retirement, recruitment,
etc. etc.
End End

5. The HRP Process
All effective HR planning shares certain features. It is generally agreed that HR
planning involves four distinct phases or stages:
Situation analysis or environmental scanning
Forecasting demand for human resources
Analysis of the supply of human resources
Development of plans for action

6. Why is HRP important ?
• Even an imperfect forecast is better than none at all
• Anticipating needs – prepare for the future gives you an
edge
• Address potential problems – avoid skill deficiencies

7. What is HRP?
• HRP is a sub-system of total organizational planning.
• HRP facilitates the realization of the company’s
objectives for the future by providing the right type and
number of personnel
• HRP is also called Manpower planning, Personnel
planning or Employment planning

8. • HRP ensures that the organization has:
– Right Number
– Right Kind
– Right Place
– Right Time

9. Benefits of HRP
• Create reservoir of talent
• Prepares people for future
• Expand or Contract
• Cut Costs
• Succession Planning