Human resource planning can be defined as the process of identifying the number of people required by an organization in terms of quantity

and quality. All huma n resource management activities start with human resource planning. So we can s ay that human resource planning is the principle/primary activity of human resou rce management. From human resource planning the organization identifies how man y people it has currently and how many people will be required in future. Based on this information major human resource decisions are taken. Importance: 1.the company is able to find out how many people will be required in future. Based on this requirement the company could take further actions. This method al so helps the company to identify the number of jobs which will become vacant in the near future. 2.The recruitment and selection process is a very costly affair for a company. M any companies spend lakhs of rupees on this process. Therefore recruitment an d selection must be carried out only if it is extremely necessary. HRP process h elps to identify whether recruitment and selection are necessary or not. 3.Since the HRP process is conducted for the entire organization, we can identif y the requirements for each and every department. Based on the requirement, we c an identify existing employees and place them on those jobs which are vacant. 4.HRP make performance appraisal more meaningful. Since feedback is provided in performance appraisal and employee is informed about his future chances in same company, the employee is motivated to work better. Information for all this is c ollected from HRP process. 5.HRP identifies vacancies in the entire organization including all the branches of all the company. Therefore when the company implements promotion policy it c an undertake its activities in a very smooth manner

Steps in HRP Process

1. Review of Organisation's Objectives The HRD Manager first studies the objectives of the organisation. Then he prepar es a list of all the activities (jobs) that are required to achieve the objectiv es. He also does Job's analysis.

square 2. Estimation of Manpower Requirements The HRD manager then estimates the manpower requirement of the organisation. Tha t is, he finds out how many people (manager and employers) will be required to d o all the jobs in the organisation. Estimation of manpower requirements must be made in terms of quantity and quality. square 3. Estimation of Manpower Supply

The HRD manager then estimates the manpower supply. That is, he finds out how ma ny managers, and employers are available in the organisation. square 4. Comparison of Manpower The HRD manager then compares the manpower requirements and manpower supply. square 5. In case of no difference If there is no difference between the manpower requirements and the manpower sup ply, then the HRD manager does not take any action. This is because manpower req uirements are equal to the manpower supply. square 6. In case of difference If there is a difference between the manpower requirements and the manpower supp ly the HRD manager takes the following actions. 1. Manpower Surplus If the manpower requirements are less then the manpower supply then there is a s urplus. During manpower surplus, the HRD manager takes the following actions :Termination i.e removal of staff. Lay-off. Voluntary retirement. 2. Manpower Shortage If the manpower requirements are greater than the manpower supply then there is manpower shortage. During manpower shortage, the HRD manager takes the following actions :Promotions Overtime Training to improve quality. Hire staff from outside, etc. square 7. Motivation of Manpower HRP also motivates the employers and managers by providing, financial and non-fi nancial incentives. square 8. Monitoring Manpower Requirements The HRD manager must continuously monitor the manpower requirements. This is bec ause many employees and managers leave the organisation by resignation, retireme nt, etc. and new work force must take their place fill the manpower gap. This he lps in uninterruptible functioning of the organisation