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Human Resource Planning

Process by which an organization ensures that it has the right number of qualified people at the right place and at the right time, capable of effectively and efficiently completing those tasks that help the organization achieve its overall objectives.

What is Human Resource Planning?


Integrated approach to performing all planning aspects of the HR function in order to have sufficient supply of adequately developed and motivated workforce to perform the duties and tasks required to meet organizational objectives and satisfy individual needs.

Five Key Questions in HRP


How many employees do we needin terms of number? What are we looking for in terms of skills, knowledge, experience, abilities, quality etc.? Where do we need the employeesWhich location, division, or department? When do we need the employees immediately, in the next 3 months or 6 months etc.? How long do we need them for a limited period or long period?

Features of HRP
Forward looking In sync with organizational needs

In tune with corporate plan


Proactive Get Qualified workforce at the right time

HRP Process

Organizational Objectives & Policies


Downsizing / Expansion Acquisition / Merger / Sell-out Technology Up gradation/Automation New Markets & New Products External Vs Internal hiring

Training & Re-training


Union Constraints

HR Demand Forecast
Process of estimating future quantity and quality of manpower required for an organization.
External factors - competition, laws & regulation, economic climate, changes in technology and social factors Internal factors - budget constraints, production levels, new products & services, organizational structure & employee separations

Forecasting Techniques
Managerial Judgment - Managers discuss and arrive at a figure of inflows & outflows which would cater to future labour demand

Ratio-Trend Analysis - Studying past ratios, i.e. No. of Workers Vs Volume of Sales, forecasting future ratios and adjusting for future changes in the organization Work-Study Technique - Used when length of operations and amount of labour required can be calculated Delphi Technique - From a group of experts the personnel needs are estimated

HR Supply Forecast
Process of estimating future quantity and quality of manpower available internally & externally to an organization

Supply Analysis

Existing Human Resources Internal Sources of Supply External Sources of Supply

HR Programming

Balancing Demand and Supply

Vacancies filled in by the right employee at the right time

HR Plan Implementation
Recruitment, Selection & Placement

Training & Development


Retention Plan Downsizing Plan

Control & Evaluation

Are Budgets, Targets & Standards met?

Responsibilities for Implementation & Control Reports for Monitoring HR

Plan