Human Resource Planning

Human Resource planning

Human Resource planning is another one of important function in Human recourse Management. This chapter explains about some important details in HRP which includes an introduction to Human resource planning, the importance of HRP and the process of this function.


Introduction to Human resource Planning

Importance of HRP

Process of HRP

Introduction to Human Resource Planning

Employees are the most significant resource for the organization, because of its unique characteristics. So planning their workforce is very important to the organization. What types of employees they have, how many employees do they need in future are essential facts for the organization.

In this case, Human Resource Planning (HRP) gives guidance to the organization.

Human Resource Planning is the continues process of deciding future employee necessity and settle strategies to fulfil them.

This function helps the organization to achieve its goals and objectives by arranging the organization’s most significant asset.

Why Human Resource Planning important?

Human resource planning is a significant function for the organization. Because it helps to achieve organizational goals and objectives in many ways.

HRP helps to decide future employee necessity

Useful for manage employee cost

To develop employee skills

Helps to make better strategies to manage workforce

Human resource can be utilized effectively and efficiently

Good way to identify suitable workforce for the organization.

The process of HRP

There are five steps in human resource planning process

  1. Speculate future demand for HR
  2. Estimate the HR supply
  3. Compare the speculate demand within the estimated supply
  4. Determine strategies
  5. Evaluate

1.Speculate future demand for human resources

In this step, the organization estimate employee types and numbers they need in future. Also, study about variables which may affect the demand ( increase or reducing)

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Customer demand for the product and services,

Production method in the organization,

Strategic plans, and

Organizational culture. Are some variables that affect the employee demand.

To estimate HR demand, each organization use variety of techniques. Such as informal forecast, formal expert survey, delphie technique, unit forecasting and ratio analysis.

 2.Estimate the HR supply

After forecasting the HR demand, the organization need to estimate human resource supply. There are two sources of HR supply. One source is internal supply and the other one is external supply.

The internal supply is about employees who can be moved and promoted to reach future HR needs.

And external supply means, employees in other organizations and job seekers in the outside.

3.Compare the estimated HR supply and demand

By comparing estimated HR demand and supply, the organization will be able to assess net employee necessity for a specific period.

4.Determine strategies

After comparing the HR supply and demand, there may be a surplus of employees or a shortage of employees. Hence the organization need to decide proper strategies for each situation.  

Strategies for excess of employees.

  • Hold hiring employees
  • Early retirements
  •  Depletion of reward expenditure
  • Termination
  • Stop employee service temporary

Strategies for insufficiency of employees

  • Outsource some business functions
  • Hire employees for temporary
  • Hire full-time workers
  • Bring new technology to the organization


As the final step in the human resource planning process, the evaluation helps to measure the effectiveness and the progress in HRP. if there any issues with the HRP, the organization will able to identify those things by evaluating. The Evaluating factors can be presented as follows

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Forecasted job vacancies

Difference between forecasted numbers of job vacancies and actual numbers of job vacancies.

About the cost

Failures of HRP process


Human Resource planning is the process of identifying future employee necessity for the organization and setting up strategies to accomplish them.

HRP plays a vital role in organizational success by providing a proper workforce for the organization.  

The steps of HRP are, forecast employee demand, estimate HR supply, compare HR demand and HR supply, determine suitable strategies and evaluate.

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