Human Resource Planning - HRP

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DEFINITION of 'Human Resource Planning - HRP'

The ongoing process of systematic planning to achieve optimum use of an organization's most valuable asset - its human resources. The objective of human resource (HR) planning is to ensure the best fit between employees and jobs, while avoiding manpower shortages or surpluses. The three key elements of the HR planning process are forecasting labor demand, analyzing present labor supply, and balancing projected labor demand and supply.

INVESTOPEDIA EXPLAINS 'Human Resource Planning - HRP'

The HR plan needs to be flexible enough to meet short-term staffing challenges, while adapting to changing conditions in the business and environment over the longer term. Human resource planning is also a continuous process.

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RELATED FAQS
  1. At what stage of business should human resources planning occur?

    Human resources (HR) planning is an ongoing process. This is particularly true for companies with large workforces when labor ... Read Full Answer >>
  2. How do companies balance labor supply and demand in human resources planning?

    Companies can use strategic human resource (HT) planning to forecast current and future staffing needs using a variety of ... Read Full Answer >>
  3. What tools do companies use in human resources planning?

    Increasingly, companies are able to incorporate performance technology and forecasting matrices into human resources (HR) ... Read Full Answer >>
  4. What are the main goals of human resources planning?

    Human resource (HR) planning is an organizational technique that uses human resources to help achieve optimal outputs. Companies ... Read Full Answer >>
  5. How do companies measure labor supply in human resources planning?

    Human resources planning uses forecasts about product and service demand and insights about internal labor fluctuations to ... Read Full Answer >>
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    The difference between product bundling and product lines is a product line is a group of related products manufactured by ... Read Full Answer >>
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