Human Resource Planning (HRP) is a process of determining and ensuring the right number of people, in right place at right time, capable of executing the assigned task in effective and efficient manner in an organization. It deals with:

1. Demand and supply of people
2. Cost effectiveness
3. Development and Training
4. Setting Standards

In other words, HRP is the process of analyzing, anticipating the HR requirement and fulfilling them in accordance with business strategy.

According to Cash and Fischer, “HRP is a method for determining future staffing requirement and developing action plan for meeting them.HRP is a part of the company’s total resource planning. It influences and influenced by business plans, interacts with organizational plans and contributes to business decisions concerning, for example the development of new products, markets, facilities and production process as well as merger and acquisitions”.

Characteristics of HR Planning: 

The characteristics of HRP are as follows:

1. Based on strategic planning: HR planning is always formulated under the basis of corporate strategy. It has direct line with business strategy. E.g. when a company wants to expand the business, HRP helps by making available, the required number of concerned skilled manpower.
2. Estimate demand and supply of manpower: HRP estimates the expected demand and supply of manpower required and available in and outside the organization respectively. By the help of Human Resources Information System (HRIS), HRP continuously monitor the changes in human dimension in and outside the organization.
3. Focuses on ensuring availability of quality manpower: Business organization cannot survive until and unless there is dedicated employees. Thus, HRP not only forecast the demand and supply of workers but also, ensures the availability of trained, skilled and qualified workforce for organizational activities.
4. Mechanism for regular monitoring and evaluation: HRP does not work until and unless there is a proper mechanism for monitoring and evaluation. Thus, while formulating HRP an inbuilt mechanism with a number of indicators for monitoring and evaluation will be developed. This help to ensure that HRP is in right track.
5. Assisting in achieving cost effectiveness: Business organization always tries to minimize the cost and maximize the profit. So, HRP focuses on utilizing the HR in most effective and efficient manner, which not only reduces the cost but also helps in increase and develop the skill and abilities of work force.