Human Resource Planning Process (HRP)
Demand forecasting method-
Supply forecasting methods-
Inflows & Outflows,
conditions of work and absenteeism
In simple words, HRP is understood as the
process of forecasting an organization's
future demand for, and supply of, the right
type of people in the right number.
After this only the HRM department can
initiate the recruitment and selection
Its called by manpower planning, personal
planning or employment planning
• Basically it’s the process by which an
organization ensures that it has the rightthe right
number & kind of people, at the right place, atnumber & kind of people, at the right place, at
the right time,the right time, capable of effectively &
efficiently completing those tasks that will help
the organization achieve its overall objectives.
HR plans need to be based on Organizational Objectives.
The role of HRP is to subserve the overall objectives by
ensuring availability and utilization of Human Resources.
In developing these objectives, specific policies need to be
formulated to address the following questions:
Are vacancies to be filled from promotions from within or
hiring from outside?
How do training and development objectives interfere with the
What union constraints are encountered in HRP and what
policies are needed to handle these constraints?
How to improve employees job? Should the routine and boring
jobs continue or be eliminated?
How to downsize the organization to make it more
Demand forecasting is the process of
estimating the future quantity and quality of
The basis of the forecast must be the annual
budget and long-term corporate plan,
translated into activity levels for each
function and department
Demand forecasting must consider several
factors both internal and external.
Among external factors are competition(foreign
and domestic), economic climate, laws and
regulatory bodies, changes in technology and
Internal factors include budget constraints,
production levels, new products and services,
organizational structure and employee
Demand forecasting helps to :
Quantify the jobs necessary for producing a given
number of goods
Prevent shortage of people where and when they are
Determine what staff-mix is desirable in the future
Monitor compliance with legal requirements with
regard to reservation of jobs
Asses appropriate staffing levels in different parts of
the organization so as to avoid unnecessary costs
Work study techniques
Flow modelsFlow models
Other techniquesOther techniques
In this all managers sit together, discuss and
arrive at a figure which would be the future
demand for labour.
This technique may involve a ‘bottom-up’ or
‘top-down’ approach. A combination of both
could yield positive results.
This is the quickest forecasting technique.
This technique involves studying past ratios,
say, between the number of workers and
sales in an organization and forecasting
future ratios, making some allowance for
changes in the organization or its method.
Work study techniques can be used when it is
possible to apply work measurement to
calculate the length of operations and the
amount of labour required.
• This technique is the method of forecasting
• It estimates of personnel needs from a group
of experts, usually managers.
• The HRP experts act as intermediaries,
summarize the various responses and report
the findings back to the experts.
• Summaries and surveys are repeated until
the experts opinion begin to agree.
Supply forecasting measures the no. of
people likely to be available from within and
outside an organization, after making
allowance for absenteeism, internal
movements and promotions, wastage and
changes in hours and other conditions of
Quantify no of people and positions expected
in near future.
Clarify the staff mixes.
Prevent shortage of people
Asses present staffing levels in different
parts of organization.
• Skill inventories – info. about non-managers.
1. Personal data
3. Special qualifications
4. Salary and job history
5. Company data
6. Capacity of individual
7. Special preference of individual
• Management inventories
1. Work history
4. Promotion potential
5. Career goals
6. Personal data
7. Number and types of employees supervised
8. Total budget managed
9. Previous management duties.
HR planning and analysis
Compensation and benefits
Health,saftey and security
Employee and labor relations
Inflows and outflows
IS= current supply – outflow + inflow
No. of separations during one year × 100
Avg. no of employees during the year
Conditions of work and absenteeism.
Absenteeism is given by
no of persons – days lost ×100
Avg. no of persons × no of working days
After personal demand and supply are
forecast the vacancies should be filled at
right time with right employees.
Converting HR plan into action.
Action programmes are..
Selection & placement
Training and development
Retraining & redeployment
The retention plan
The succession plan
Selection & placement
If Shortage of employees
Hire new full-time employees
Offer incentives for postponing retirement
Re-hire retired employees on part-time basis
Attempt to reduce turnover
Bring in over-time for present employees
Subcontract work to another company
Hire temporary employees
Re-engineer to reduce needs
It covers no. of trainees required
It necessary for existing staff
Identification of resource personal for
conducting development programmes
Frequency of training and development
Retraining and redeployment:
New skill should be imported to existing
Employees leaving in search of green pastures
Who is to be unneeded and where and when
Plans for re-development or re-training
Steps to be taken to help unneeded
employees finding new jobs
Policy for declaring terminations
Programme for consulting with unions or
Analysis of demand
Audit of existing executives
Planning of individual career path
Performance related training and
Planned strategic recruitment
Filling the openings
Establish the reporting procedures
Identifying who are in post and those who
are in pipe line
It should report employment costs against
budget and trends in wastage and