What Is Human Resource Planning (HRP)?
Human resource planning (HRP) is the continuous process of systematic planning ahead to achieve optimum use of an organization’s most valuable asset—quality employees. Human resources planning ensures the best fit between employees and jobs while avoiding manpower shortages or surpluses..The need for Human Resource Planning will be discussed in the post later.
Human resources planning allows companies to plan ahead so they can maintain a steady supply of skilled employees. That’s why it is also referred to as workforce planning. The process is also used to help companies evaluate their needs and to plan ahead to meet those needs
Need for Human Resource Planning
An organisation must plan out its human resource requirements well in advance so that it could compete effectively with its competitors in the market. A well thought-out-human resource plan provides adequate lead time for recruitment, selection, and training of personnel. It becomes all the more crucial because the lead time for procuring personnel is a time-consuming process and in certain cases, one may not always get the requisite type of personnel needed for the jobs. Non-availability of suitable manpower may result in postponement or delays in executing new projects and expansion programs which ultimately lead to lower efficiency and productivity further. To be specific, the following are the needs for human resource planning:
- Shortage of Skills: These days we find a shortage of skills in people. So it is necessary to plan for such skilled people much in advance than when we actually need them. Non-availability of skilled people when and where they are needed is an important factor which prompts sound Human Resource Planning.
- Frequent Labor Turnover: Human Resource Planning is essential because of frequent labor turnover which is unavoidable by all means. Labor turnover arises because of discharges, marriages, promotion, transfer, etc which causes a constant ebb and flow in the workforce in the organization.
- Changing needs of technology: Due to changes in technology and new techniques of production, existing employees need to be trained or new blood injected into an organization.
- Identify areas of surplus or shortage of personnel: Manpower planning is needed in order to identify areas with a surplus of personnel or areas in which there is a shortage of personnel. If there is a surplus, it can be re-deployed, or if there is a shortage new employees can be procured.
- Changes in organisation design and structure: Due to changes in organizational structure and design we need to plan the required human resources right from the beginning.