Meaning of human resource planning

Human resource planning is the process by which management determines how an organization should form its current manpower position to its desired manpower decision. A company’s current manpower position and desired manpower decision are determined by human resource planning. By managing the right people at the right time and place, the organization and individuals benefit in the long run.

Importance of HR planning

1. Human resource planning helps in selection and training.
2. Human resource planning identifies gaps in existing manpower in terms of quantity and talent.
3. Human resource planning provides for the replacement of personnel who die, retire, resign, or are incapacitated.
4. Human resource facilitates the expansion and diversification of an organization.
5. Human resource planning creates awareness about the effective utilization of human resources throughout the organization.
6. Human resource planning is helpful in the effective utilization of technological progress.
7. With human resource planning, areas surplus or deficit manpower can be detected, and timely action is taken.
8. Human resource planning is useful in anticipating the cost of human resources, which facilitates the budgeting process.
9. Human resource planning facilitates career succession planning in the organization.
10. Human resource planning helps in planning for physical facilities.
11. At the national level, human resource planning facilities educational reforms, geographical mobility of talent, and employment generation.

Features of HR planning

1. Human resource planning, like all planning, is future-oriented.
2. Human resource planning is an ongoing process because demand and supply fluctuate.
3. Human resource planning is an integral part of corporate planning. No manpower plan without a corporate plan.
4. Human resource planning is used to maximize an organization’s current and future human resources.
5. Human resource planning includes both quantitative and qualitative elements.
6. Human resource planning is the primary responsibility of management.
7. It is a highly dynamic function that requires highly skilled personnel to plan efficiently.
8. HR plans can be long or short-term.
9. Human resource planning involves calculating demand and supply for human resources.

Manpower planning studies the manpower environment and how it affects demand and supply.

Process of HR planning

1. Analysis of the plans: Analyzing organizational goals and strategies.
2.  The second step is called manpower forecasting: And it involves anticipating future human resource needs in the organization.
3. Forecasting human resource supply: Internal and external sources of supply are analyzed.
4. Estimating manpower gaps and identifying future human resource shortages or surpluses by comparing demand and supply forecasts.
5. Action planning: Once the manpower gaps have been identified, action plans are prepared to close them. In addition, surplus manpower can be redeployed, retrenched, or asked to retire early, while deficit can be met by recruitment selection promotion transfer or training.
6. Monitoring and control: Monitoring and controlling the human resource structure and system is required after the action plans are implemented.

Types of HR plans

There are two types of Human Resource Planning (HRP). 

1. Hard Human Resource Planning: HRP based on quantitative analysis in order to ensure that the right number of the right sort of people is available when needed is called Hard Human Resource Planning. 
2. Soft Human Resource Planning: HRP, concerned with ensuring the availability of people with the right type of attitudes and motivation, and commitment to the organization, is called Soft Human Resource Planning.