Through HRP, its easy for the organization to hire right number, right kind of employee and placement in the right place for right timing.

Human Resource Planning (HRP)

The process of determining and assuring that the organization will have adequate number of qualified persons performing their jobs to achieve organizational goals efficiently and effectively.

Through HRP, its easy for the organization to hire right number, right kind of employee and placement in the right place for right timing.

There are different steps involve in HRP

  1. Setting Goals and objectives:

At this step the organization sets their goals and objectives, because if goals are clarify then the HRP process will be reliable.

For setting goals and objectives different steps are involved.

  • Analyze and evaluate external influences:

Those factors which are in the organization are called internal factors and can be controllable, while those which are out side the organization are said to be and external factors, external factors cannot be control by the company. The external factors involve social, cultural, economic, political, and ethical factors etc. For example, we want to start a Garment Shop in Kohat, first we identify the external factors like what is the culture of the people of Kohat ,on the basis of cultural, economic and social conditions of the people, we decide our Garment products.

  • Aspirations/ Opinions of top management:

After evaluating external influences the internal factors are to be follow, this step is to be done by aspirations and opinions of the top level managers or Board of Directors.

  • Analyze internal strengths and weakness:

In this step the organization identifies their internal strengths and weakness, For example; the analyses of informational , financial, physical and human resource (HR) conditions of the organization..

  • Compare internal strengths and weaknesses with the opportunities and threats:

In this step we complete the SWOT analyses. Means what are the strengths, weaknesses, opportunities and threats in an organization. Like how is the financial conditions of the company and its weak points, information about human resource etc.

  • Develop objective:

In this step the TOWS matrix is to be follow for the development of broad objective.

TOWS stands for threats, opportunities, weaknesses and strengths. Here it is being compare the threats, opportunities, weaknesses and strengths of the organization and then we develop the broad objective.

For example; providing quality education.

  • Divide the broad objective in to general Units:

The broader objective of the organization is divide in to general units or subunits.

The process of main or broad objective in to sub units is shown below;

  • Communicate individual objective to the member involved:

At last the objective is communicated to the individual, means every employee of an organization separately aware about the objective that he or she will achieve for an organization.

  1. Assessing Current Human Resource (HR) in an organization:(Supply of HR)

Top level management assess the current human resource in an organization, means what type of employee stock is available in an organization, it means that how much skillful, experienced employees are in the firm.

For the assessment of current HR in an organization different methods are use;

  • Skill Inventory:

It is that method for the assessment in which the inventory cards are use, the include all information about the employee for example, name, education, experience, salary level, date of joining, pay scale, prior employment etc. But that method is only use in those firm/ organization where the small level of employees, in large organizations, this method is not use because it is time consuming, effort consuming. In large organization at the time of requirement, it will take much time will searching the employee information in inventory cards, because in large firms or organizations thousands of employee work.

  • Human Resource Information System (HRIS):

HRIS is actually the computerize assessment system that is mostly use in every large organization for the assessment of Human resource. It is more reliable method, because it gives the accurate result, it saves the time.

  • Succession Planning:

It is the method of assessment that is followed by those organizations who promote the employees of their own organization. For this method the Replacement Chart is use.

In the above replacement chart, there is three different stages of Managers. Top, Middle, and lower level. According to this chat, if some problem occurs with top manager like in case of mental illness or death etc, than from the middle level managers, like A, B, C, the manager for the top level will be selected, it will be done by taking interview from them, thus one manager will be selected for the higher level management. Similarly this process is use for all levels.

  1. Determining Future Demand:

In this step the organization decide the future demand for the employees. Taking decision for the future demand the organization use different methods;

  • Judgment/Experience:

In this method the organization use Delphi Technique, in this technique the experienced managers give suggestion for the future demand of employees, that helps in the achievement of organizational goals and objectives.

  • Budgetary Planning:

As the name shows that in budgetary planning the organization decides the future selections of the employees on the basis of the budget of organization. For example; Institute of Management Sciences (IMS) has the monthly budget is $20,000 on that amount $14,000 are for the department different expenses, thus only $6000 left, on that amount more than two Lectures can be hire. It shows that only two employees can hire for the future.

  • Work Standard Data:

In this process the employee will be hire for the future in an organization on the basis of the work standard data. Here the time factor is very important. For example; in IMS department of Kohat University, the Top Director want to decide the number of lectures for each class, as we know that there is 100 seats for BBA(Hons) and it is divided in to two classes, Six subjects are for each semester, per week credit hours 18hrs. The working time for each lecturer is let say 8hrs, thus from that working standard data the Top Director will hire six lecturers for each class.

  • Key Predictive Factors:

Here the company hires employees on the basis of the sales volume of the products. Let say the Nestle company have 60% of sales volume, they further want to increase 25% of sales volume, if the company wants to sales volume than they must also increase the sales person, means they will hire more employees.


  2. Matching Demand and Supply:

In this step the organization match the supply and demand of the employees in an organization, means to compare the number of employees that are available and requirement for the future Demand.

  • Skills Shortage:(Under staffing)

If the demand of employees is greater than the supply, means the organization need more employees, for this the organization will hire the employees on leasing, contract, Permanent basis.

Demand > Supply

  • Over Staffing:

While comparing the demand and supply of employees of an organization if the number of employees in the firm is greater than the demand, in this case the firm use different method to lay off the employees, for this the organization use different methods;

Supply > Demand

  1. Downsizing:

In this method the organization lay off the employees by removing full layer of the employees.

  1. Rightsizing:

In this method the firm check that which employee is good for the firm and which is not suitable. In this method those employees are lay off which are not suitable for the firm.

  1. Golden handshake/Golden Parachute:

As the name indicates that it is the method of laying off but in this case some relaxation are provide to the employees. That relaxation can be in cash form or in the form of company’s shares etc.

  1. Action Plan:

In this step the rules and policies of the HRP are implemented.

  • Recruitment, Selection and Placement:

Through HRP the organization can give good and attractive ads for the employee to the print and mass media, similarly it helps in selection process because it identifies that what type of employees are require for the organization, and also place them in the suitable place.

  • Performance Appraisal:

HRP helps to check the performance appraisal of the employees. Means that either the individual (employee) have achieve the the goals and objectives effectively or not. On the basis of achievement the goals and objectives the rewards and punishments are decided for the employees.

  • Training and Development:

On the basis of HRP the organization train and develop the employees, for the achievement of organizational goals.

  • Career Development:

Mostly every organization take decision for the career development of the employees by Human resource planning (HRP0 programs.

  • Compensation:

Every employee works in an organization due to the handsome compensation packages, the individual will only work on that organization which gives some incentives and compensations , means, providing car, increment in salaries, etc.

  1. Follow Up / Audit:

The last step is the auditing step in which the demand and supply of the employees are check and control. If demand is greater from the supply of the employees than recruitment starts and if supply of employees are greater than the demand, in this case the the employees will be derecruit. The process of Follow Up is shown bellow;