Human Resource Planning (HRP) : Meaning, Definition, Objectives, Process, Factors affecting, Importance.

Human Resource Planning: Meaning, Definition, Process, Benefits.

Hello friends, let's talk. This post will help you to understand, I repeat, understand the concept. This knowledge will be useful for you in future whether you are doing any business or any job. So, enjoy the learning time.

In this article, we will understand:

# HRP Meaning.

# HRP Objectives.

# HRP Process.

# Factors affecting HRP.

# HRP Benefits.

Meaning of HRP

I am sure, we will enjoy this learning discussion. Let's see a definition of HRP: According to Gordon Mc Beath, " HRP is concerned with two things: Planning of manpower requirements and Planning of manpower supplies."

Now, there are two vital points, the first is planning of manpower requirements and second is planning of manpower supplies. But why they are vital? Hmmmm...., Because business environment has a feature which is "It keeps Changing". This means, business environment keeps changing in all aspects, for example Consumer keeps changing ( Needs, fashion, perceptions, tastes, preferences, styles, attitude), and Business processes keep change ( Product, technology, service quality, manufacturing, Data analysis, strategies, distribution systems, promotion techniques ). 

They all change from time to time and companies should adapt to this changing environment by bringing change into themselves. Companies try to anticipate these changes to tackle the problems which may arise in future. Now think about this, when all things keep changing, human resource who is doing those things should also bring change into them. Did you got that?...Yes, you got that!, there comes the concept of HRP.

That's why the first point of the definition of HRP "planning of manpower requirements" is vital. Therefore Companies should keep doing demand forecasting analysis of their products and services. From demand forecasting results they will come to know about future HR requirements, what skills will they need, what knowledge will be required. 

Company will be able to have the human resource with the skills and knowledge required in future. That change in skills and knowledge will prepare them to bring change in whole organization and they will be able to adapt into that future changed environment. 

Woowww... Do you understand that?... A change in human resource can lead to improved performance in the anticipated future, however the anticipation in HRP is important. Proper techniques should be adopted to have more accurate information about the future change. 

Now, it depends on the company how they inject those required skills and knowledge by Recruitment process or by giving Training to current human resource. Hellooo.. do you noticed? Yeessss... We were talking above about the second vital point of the definition "planning of manpower supplies."

So, simply Human Resource Planning is the study of "How to move the organization from the current manpower position to the desired manpower position." Just like Tony stark anticipated about danger from the space. 

Aaaaaaa I thinnkkk, yeah let's forget about that. Let's come to the topic again~

Now, let's talk about the Objectives of HRP.

Objectives/ Importance of HRP:

1) To optimally utilize the human resource, which will reduce the wastage of efforts.

2) To forecast future conditions so that organization can prepare for future challenges.

3) To analyze the current workforce and compare them with the future requirement.

4) To analyze the gap between current HR and the required HR.

5) To take reasonable steps to fill the gap between present HR and future HR.

6) To integrate the workforce planning and overall organization strategy.

7) To make proper strategy about recruitment and selection process and acquire new skilled human resource.

8) To make proper framework about training & development policy, which will improve skills of current human resource.

9) To analyze labor market, so that when organization needs, they can get required workforce.

Process of HRP:

(1) Determine Objectives

HRP process starts with determining objectives. Company analyses 'why they are doing HRP?'. It provides direction to the whole process.

(2) Analyzing current HR

In the second step, company analyzes it's current human resource, skill level, knowledge, adaptation skills to accept future change, attitude , etc.

Here, company uses forecasting techniques to anticipate future situations, based on which they can prepare their human resource. Company will be able to know what kind of HR we require in future and from where and how to get that kind of HR. This anticipation should be accurate, because it will be the base for the following step, which is the 4th point.

(4) Analyze the gap

Here, we compare the current HR with the forecasted HR requirements. From this comparison, company can know about the gap between present and future which thay have to fill.

(5) Recruitment / layoffs

Now, the gap that the company wants to fill can be filled these two options. If forecasting results show that they will need more employees then recruitment can be done. And if results show that they will need less HR than now, then they can reduce some employees.

(6) Training of current HR

If, company realizes that the current human resource can learn the skills and knowledge demanded by future, then they can conduct a training program which will also motivate the employees to give their best. On this step the process ends, but wait every time we should recheck the whole process and that's the final point.

(7) Evaluation of HRP process

In this step, companies evaluate the whole process to be sure that the whole Human resource planning action is successful or not.

This is interesting to learn, after all we are talking about the future you know, the Time heist.... 

Helloooo.... Not this one. Hahaha... I am talking about ' anticipation ' not travel. Now, let's see the Factors affecting Human Resource Planning :

Factors affecting HRP.

1. Type of organization

Type of organization is a factor which affects HRP. Because different types of organization have different production methods, quantity & quality of workforce, strategy etc. Manufacturing company is much more complex than a service rendering company.

2. Product life cycle stage.

Company's product life cycle stage is also vital factor in HRP policy. Introduction stage will have different planning and maturity stage will demand different strategies.

3. External environment

External environment factors like economic, political, social factors also affect HRP process. Organization should use SWOT analysis to keep an eye on that.

4. Time period

Time period in which organization has decided to implement is also a vital factor, as it affects speed of activities. HRP should be given a reasonable time to achieve it's objectives.

5. Quality & quantity of information

HRP needs internal & external environment's data to predict future and act accordingly. So, that data is important factor in this process which will affect the results.

6. Human resource availability

The labor market, an vital factor which will affect the recruitment & selection process. Organization must keep looking for skilled manpower. If they are unavailable, then training will be a good idea.

Benefits of HRP.

(1) Future requirements

Human resource planning helps to meet the future requirements of the organization. It is a process of anticipation of future situations, and analyzing about what kind of human resource organization will need. Then organization takes actions to fulfill those needs.

(2) Counter the problems

Companies, with the help of human resource planning can do the preparation to counter the problems which may arise in the future. 

(3) Corrects imbalances

Human resource planning helps to know the HR imbalances, and to correct that too. If the current human resource doesn't match with future needed human resource, there is imbalance. Company can correct those by recruitment or training.

(4) Expansion & Diversification needs.

Human resource planning helps to anticipate about future expansion and diversification needs. Forecasting about future helps organizations to optimize many opportunities for expansion and diversification.

(5) HRP aids in Budgeting

HRP also helps in budgeting, as companies can anticipate future situations. As we saw in fourth point that with the help of human resource planning organization can predict any opportunity for expansion, organization can prepare their budgeting strategies too. It will help in reviewing the performance in future.

(6) Training & Development

Human resource planning helps in training and development, as it is the base for training program. Organization will be aware of the skills and knowledge which will be necessary in future. This will enhance the effectivity of training program.

(7) Aids other departments.

It not only helps in human resource related issues, but also helps to other departments also, as the forecasting results are useful for whole organization. For example, forecasting will help finance department in strategy making, marketing department in customer analysis and promotion strategies, etc.

Summary

So, we studied human resource planning in this article. First, we saw meaning of human resource planning with a definition and detailed analysis. 

Then we did Objectives of HRP. After that we understood the process of HRP, in which we saw all points of process which organization should follow.

Then we saw some factors affecting HRP. Those factors affects decisions in human resource planning.

At last we learned the Benefits of Human resource planning, which are positives which organization gets from human resource planning.

I really enjoyed this talk with you. But this talk is not for only one side communication, you can also communicate by commenting about this post, suggestions, improvements, etc. Thank you for reading, we will meet again in another post. Till that time take care, and keep learning.

Related article:

Human Resource Management: Meaning, Nature, Scope / Function, Objectives, Importance.

Article Categories:

1. Marketing topics.

2. Human resource management topics.