Human Resource Planning
                     
Table of Contents 
1) Human resource planning – Introduction
2) What is human resource planning?
3) Human resource planning – Meaning 
4) Human resource planning – Definition 
5) Human resource planning – Definition by Eminent Authors 
6) Steps in human resource planning
7) Challenges of human resource planning 
8) Importance of human resource planning 
9) Human resource planning – Examples 
10) Summary 
Human Resource Planning - 
Introduction
Human resource planning, in simple words, is a technique that a company uses to employ the right set 
of people to reach its objectives. It is also called manpower planning. 
This planning is done while  keeping in mind future obstacles that can be overcome with a good team.
 The work is distributed among diverse individuals that add their own inputs and overall help the 
organization thrive and be productive for the long run.
What is Human Resource Planning?
Human resource planning is a continuous process in which systematic planning is done with the 
purpose of achieving the optimum use of the organization’s most valuable asset- the employees. The 
main aim of human resource planning is to manage the best fit between the employees and jobs 
available at hand to help avoid manpower shortage as well as surplus. 
It’s a process which helps in the identification of current and future human resource needs of the 
organization to achieve its goals. Human resource planning aids in providing a link between the 
company’s overall strategic management as well as the human resource management. 
Human Resource Planning- Meaning 
The greatest asset of every organization is its human resource. Few organizational leaders succeed in 
capitalising on it while others don’t. The reason why many leaders fail is because they haven’t been 
able to master the art and science of human resource planning. 
HR planning often takes into consideration the employee motivation, organizational design, 
succession planning and overall increase in investment to retain the existing employees and to remain 
competitive in the market.
Human Resource Planning- Definition 
A strategic way of employing people into an organisation to optimize its productivity is called human 
resource planning. 
HR planning often takes into consideration the employee motivation, organizational design, 
succession planning and overall increase in investment to retain the existing employees and to remain 
competitive in the market.
 
Human Resource Planning- Definition 
by Eminent Authors
• Edwin Flippo defined human resource planning as “planning, organizing, directing, controlling of 
procurement, development, compensation, integration, maintenance and separation of human 
resources to the end that individual, organizational and social objectives are achieved.”
• Robbins and Coulter says “HR Planning is the process by which manager ensures that they have 
the right number and right kind of capable people in the right places and at the right times.”
• Michael Armstrong (2008) explains the process of Human Resource planning (HRP) that it is not 
necessarily a linear one, starting with the business strategy and flowing logically through to 
resourcing, flexibility and retention plans.
• According to Edwin B. Geisler, Manpower planning is, “the process by which a firm 
ensures that it has the right number of people and the right kind of people, at the right 
places, at the right time, doing things for which they are economically mast useful.”
• Bruce P. Coleman defined Manpower Planning as, “the process of determining 
manpower requirements in order to carry out the integrated plan of the organization.”
• According to Leon C. Megginson, Human resource planning is “an integrated approach to 
performing the planning aspect of the personal function in order to have a sufficient supply 
of adequately developed and excepted people to perform the duties and task required to 
meet organizational objective and satisfy the individual needs and goals of organizational 
members.”
Steps in Human Resource Planning
There are basically six steps in HR planning:
1)  Analysis of organizational objectives
As there are various fields in the organization like marketing, finance, production and other expansion 
plans of the organization so the first step in HR planning involves analysis of the objectives to be met 
in these various fields which gives an idea about the work to be done and hence, manpower required 
for the same.
2)  Assessing the current human resource of the organization
The data related to the present number of employees in the organization, their capacity, performance 
and potential, all can be accessed through the updated human resource information system in the 
organization. The various job requirements identified in the first step can be fulfilled through the 
estimation of internal sources as well as external sources of manpower.
3)  Demand/Supply forecasting of human resource
In this step, estimation of human resource required at various positions is done against their 
respective job profiles. Internal as well as external sources available to fill the said requirements are 
also measured. Proper matching of job description and job specification with the profile of the person 
should be done.
4)  Manpower gap estimation
The human resource surplus or deficit can be provided by the comparison of human resource demand 
and supply. Deficit indicates how many people need to be employed whereas surplus means how 
many should be terminated. Employees’ skills can be upgraded by making extensive use of employee 
training and development programme.
5)  Formulation and execution of final human resource plan
The identified deficit or surplus in the organization determines its HR planning. Accordingly the plan is 
finalised for either recruiting, training, promoting, transferring in case of deficit or voluntary retirement, 
layoff etc in case of surplus.
6)  Evaluation and feedback
The HR planning come into action, according to the requirement the human resource is allocated and 
human inventory is updated over a period of time. The deficiencies are identified strictly and removed 
according to the human resource plan.
Challenges of Human Resource Planning
While Human Resource Planning is effective in the company’s workforce management, it can also pose some 
challenges. Lets have a look at some of the common challenges of HR planning-
1) Difficulties in predicting the future 
2) Inaccurate Data 
3)  Diversity of the employees 
4)  Constant Learning 
5) Changing workforce 
6)  Efficient management of change 
7)  Managing the performance of the employees 
Importance of Human Resource 
Planning
Human Resource Planning is important as it helps the organisation to employ the right talent and 
people needed to maximise their function and the overall productivity of the company. 
1) Increasing productivity 
2) Keeping the workforce motivated 
3) Effective cost management 
4) Precise Inputs
5) Overcoming and sustaining change 
Human Resource Planning – 
Examples 
Human resource planning can be for short term, medium or long term depending upon the 
organizational work goal at hand. For example, HR plan may be to hire five new sales representatives 
by the end of fiscal year. With the goal to accomplish this short term goal, the HR team will look for 
identifying channels to market this new position, create and post vacancy ads via these channels, 
collect and process applications, interview and select candidates and give job offer. In similar fashion, 
HR planning can be done for other organizational manpower requirement.
The HR planning involves not just putting together a road map but also forming a timeline target and 
managing and allocating manpower and other resources. For example, money to pay for the job ad 
placement in newspaper or job site, staff to filter, process and contact the job applicants and to 
arrange their interviews and salary for the new hire.
Summary
 Strategy used by companies to maintain a stable and constant stream of skilled employees while 
avoiding employee shortages(lack) or surpluses(excess) is called as human resource planning 
(HRP).
 A good human resource planning strategy aids in helping the company in achieving its optimum 
productivity and profitability.
 In totality, there are four major steps in the HRP process: identification of the current supply of 
employees, future determination of the workforce, creating steady balance between labour supply 
and demand, and plan development which support the goals of the company.
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