Meaning of HRP / Manpower / Personnel Planning

Human Resource (Manpower or Personnel) Planning (HRP) involves :1. 2. 3. 4. Forecasting (Estimating) the Manpower requirements and recruitment. Manpower Allocation Manpower Motivation Manpower Development

Image Credits CIPD.

Need / Advantages / Role / Importance of HRP

Now-a-days organisations are fully dependent on human resources. Thus, they are giving great importance to Human Resource (Manpower) Planning. Following points bring out the need / advantages / role / importance of HRP :1. To make optimum utilisation of human resources : HRP helps to make optimum utilisation of the human resources in the organisation. It helps to avoid wastage of human resources. 2. To forecast manpower requirements : HRP helps to forecast the future manpower requirements of all organisations. It helps to forecast the number and type of employees who will be required by the organisation in a near future. 3. To provide manpower : Every organisation requires manpower to conduct its business activities. HRP provides different types of manpower as per the needs of the organisations.

4. To face manpower problems : HRP helps to face the manpower problems, which are caused by labour turnover, introduction of new technologies, etc. 5. To integrate different plans : HRP helps to integrate the personnel plans with the other important plans of the organisation. 6. To make employee development programmes more effective : HRP selects the right man for the right post. The right man will get maximum benefits from the employee development programmes. Therefore, HRP helps to make the employee development programmes more effective. 7. To reduce labour cost : Today the cost of labour is about 25% to 45% of the cost of production. So the labour cost is increasing very quickly. Labour cost has to be reduced in order to face competition. HRP helps to avoid both shortage and surplus of labour. It helps to make optimum utilisation of labour. It also helps to reduce labour turnover. All this helps to reduce labour cost. 8. To enable organisations to grow : When an organisation grows, the number of jobs also increases. More employees are required to perform these jobs. HRP helps to supply these employees to the organisations. So HRP enables the organisation to grow. 9. To identify potential replacements : Each year many employees either retire or leave or are taken out of the organisation. HRP helps to find replacements for these employees. These replacements may be either from inside or from outside the organisation. 10. To avoid disturbance in the production process : In HRP, the manpower requirements of the organisation are determined well in advance. So the manpower is supplied continuously to the organisation. This helps the production process to run smoothly. Thus, HRP helps to avoid disturbances in the production process. 11. Basis for effective recruitment and selection : HRP is the basis for effective recruitment and selection in the organisation. It helps the organisation to select the right man for the right post. 12. Basis for employee development programmes : HRP is the basis for employee development programmes.

Steps in HRP Process Meaning of HRP / Manpower / Personnel Planning

Human Resource (Manpower or Personnel) Planning (HRP) involves :1. 2. 3. 4. Forecasting (Estimating) the Manpower requirements and recruitment. Manpower Allocation Manpower Motivation Manpower Development

Image Credits CIPD.

Need / Advantages / Role / Importance of HRP

Now-a-days organisations are fully dependent on human resources. Thus, they are giving great importance to Human Resource (Manpower) Planning. Following points bring out the need / advantages / role / importance of HRP :1. To make optimum utilisation of human resources : HRP helps to make optimum utilisation of the human resources in the organisation. It helps to avoid wastage of human resources. 2. To forecast manpower requirements : HRP helps to forecast the future manpower requirements of all organisations. It helps to forecast the number and type of employees who will be required by the organisation in a near future. 3. To provide manpower : Every organisation requires manpower to conduct its business activities. HRP provides different types of manpower as per the needs of the organisations. 4. To face manpower problems : HRP helps to face the manpower problems, which are caused by labour turnover, introduction of new technologies, etc. 5. To integrate different plans : HRP helps to integrate the personnel plans with the other important plans of the organisation. 6. To make employee development programmes more effective : HRP selects the right man for the right post. The right man will get maximum benefits from the employee development programmes. Therefore, HRP helps to make the employee development programmes more effective. 7. To reduce labour cost : Today the cost of labour is about 25% to 45% of the cost of production. So the labour cost is increasing very quickly. Labour cost has to be reduced in order to face competition. HRP helps to avoid both shortage and surplus of

labour. It helps to make optimum utilisation of labour. It also helps to reduce labour turnover. All this helps to reduce labour cost. 8. To enable organisations to grow : When an organisation grows, the number of jobs also increases. More employees are required to perform these jobs. HRP helps to supply these employees to the organisations. So HRP enables the organisation to grow. 9. To identify potential replacements : Each year many employees either retire or leave or are taken out of the organisation. HRP helps to find replacements for these employees. These replacements may be either from inside or from outside the organisation. 10. To avoid disturbance in the production process : In HRP, the manpower requirements of the organisation are determined well in advance. So the manpower is supplied continuously to the organisation. This helps the production process to run smoothly. Thus, HRP helps to avoid disturbances in the production process. 11. Basis for effective recruitment and selection : HRP is the basis for effective recruitment and selection in the organisation. It helps the organisation to select the right man for the right post. 12. Basis for employee development programmes : HRP is the basis for employee development programmes.

Steps in HRP Process

HRP is done by the HRD manager. He is supported by the HRD department. He takes following Steps in the process of Human Resource Planning HRP.

1. Review of Organisation's Objectives

The HRD Manager first studies the objectives of the organisation. Then he prepares a list of all the activities (jobs) that are required to achieve the objectives. He also does Job's analysis.

2. Estimation of Manpower Requirements

The HRD manager then estimates the manpower requirement of the organisation. That is, he finds out how many people (manager and employers) will be required to do all the jobs in the organisation. Estimation of manpower requirements must be made in terms of quantity and quality.

3. Estimation of Manpower Supply

The HRD manager then estimates the manpower supply. That is, he finds out how many managers, and employers are available in the organisation.

4. Comparison of Manpower
The HRD manager then compares the manpower requirements and manpower supply.

5. In case of no difference
If there is no difference between the manpower requirements and the manpower supply, then the HRD manager does not take any action. This is because manpower requirements are equal to the manpower supply.

6. In case of difference
If there is a difference between the manpower requirements and the manpower supply the HRD manager takes the following actions.

1. Manpower Surplus
If the manpower requirements are less then the manpower supply then there is a surplus. During manpower surplus, the HRD manager takes the following actions :1. Termination i.e removal of staff. 2. Lay-off. 3. 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 :1. 2. 3. 4. Promotions Overtime Training to improve quality. Hire staff from outside, etc.

7. Motivation of Manpower
HRP also motivates the employers and managers by providing, financial and non-financial incentives.

8. Monitoring Manpower Requirements

The HRD manager must continuously monitor the manpower requirements. This is because many employees and managers leave the organisation by resignation, retirement, etc. and new work force must take their place fill the manpower gap. This helps in uninterruptible functioning of the organisation.