HUMAN RESOURCE PLANNING

(HRP)
UNIT 10 SHRM

Ms Shabnam

LEARNING OBJECTIVES
Define Human Resource Planning (HRP)
Understand the nature and importance of HRP

Analyse and evaluate the factors affecting HRP

Critically evaluate the HRP process

Ms Shabnam

HUMAN RESOURCE PLANNING (HRP)

Human Resource Planning (HRP) refers to the

process of evaluation and identification of HR

requirements for meeting organisational goals to
ensure competitive advantage in the marketplace.

HRP should be a key component of nearly every

corporations strategic business planning.

HRP translates the organisations objectives and

plans in to the number of workers needed to meet

those objectives.

Ms Shabnam

HUMAN RESOURCE PLANNING (HRP)

HRP planning approach addresses the following
questions
How many employees do we have/need?
How are they distributed? Their department/
branch locations
What is the age profile?
How many will leave in each of the next five years?
How many will be required in one, five, ten years?

Ms Shabnam

Characteristics of Strategic HRP

Having adequate number of employees
Having the right mixture of talent
Moves beyond the traditional role of HR as primarily

an administrative control function

Adds value to the organisation

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The Importance of Strategic HRP

Provides a road map for future staffing requirements-provides

future personnel needs

Business competition- to consider optimal solutions for the long-

term and under challenging economic conditions-enables to cope

with business changes
Employee Development-documents the talents and skills of

people who are in place and creates a highly talented workforce

Can anticipate resistance to change and re-location

Ms Shabnam

Factors that Affect HRP

The stage of business- business growth, business

change and business decline

Labour cost control- labour budgeting
Impact of Technology
Labour market trends and regulations
Demographic trends

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Factors that Affect HRP

Human Resources are unpredictable-they can easily

upset plans through resigning, being sick, refusing to

take up certain roles
Surpluses and deficits are more difficult to manage
Human Resources need careful and sensitive to
handling, which requires substantial thought and
care on the part of HR managers

Ms Shabnam

Human Resource Planning Process

The HRP process has to take account of the
organisations likely future demand for labour and of
the potential supply of labour
Demand forecasting
Supply forecasting

Ms Shabnam

Human Resource Planning Process

Demand Forecasting: This entails estimating the
organisations future staffing requirement in terms of
numbers and skills, by reference to its aims and
objectives and taking account of changes in working
practices and activity levels.
Supply Forecasting: This entails estimating the
likely future labour supply, both from and within the
organisation taking account of employee wastage,
current skills mix, performance, etc. and from outside
the organisation taking account of the potential pool of
staff with the right levels of knowledge and skill.
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STEPS FOR EFFECTIVE HR PLANNING

Demand Forecasting
Inventory Analysis and Supply Forecasting
Audit

Reconciliation
Control

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STEPS FOR EFFECTIVE HR PLANNING

Inventory analysis is keeping track of the current
employees in the organisation to determine the extent
to which this meets the forecast
The HR Inventory Analysis Entails
Skills inventory or keeping track of the number of
employees and the age, locations, qualifications, and
skills of each employee to determine the specific role
each employee would fill in the short term and in the
long term

Ms Shabnam

STEPS FOR EFFECTIVE HR PLANNING

Forecasting resignations and recruitment and

understanding their impact on the skills inventory

levels
Forecasting leaves, transfers, dismissals, sabbaticals,
prolonged illness

Internal supply of HR include methods such as

replacement schedules, succession planning

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AUDIT
Audit is the process of reconciling inventory with
forecast through a systematic analysis of demand and
supply forecasting and identifying areas where

shortages and surpluses exist

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AUDIT
The audit phase also involves
Identifying reasons for resignations, the cost of such
resignations such resignations such as recruitment
and training costs of new hires, cost of lost
experience, skills and knowledge of the departing
employee and devise retention plans to retain key
talent
Review the effectiveness of the recruitment activities,
training and development initiatives, career planning
exercises,
succession
planning
and
other
interventions
Ms Shabnam

RECONCILIATION
Action plans to bridge the gap between forecast and supply
The various alternatives include:
Strategy to recruit new employees
Adopting retrenchment or downsizing strategy to shed
excess workforce
Training and development plans to right-size the
workforce
Career planning and succession planning to identify key
personnel
Changes in work regulation such as timings, overtime
policy etc
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CONTROL
Monitoring and controlling the implementation of

the HR plan

This entails ensuring implementation proceeds in

accordance with the plan and also taking timely course
corrections

Ms Shabnam