Human Resource Planning - HRP

AAA

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.

VIDEO

Loading the player...
RELATED TERMS
  1. Split Payroll

    A method a business may use to pay its employees who are on international ...
  2. Occupational Labor Mobility

    Refers to the ease with which workers can switch career fields ...
  3. Pink Slip Party

    A party that brings together professionals and recruiters who ...
  4. Human Resources (HR)

    The company department charged with finding, screening, recruiting ...
  5. Employment Situation Report

    A monthly report compiling a set of surveys in an attempt to ...
  6. Human Capital

    A measure of the economic value of an employee's skill set. This ...
RELATED FAQS
  1. 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 >>
  2. 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 >>
  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 >>
Related Articles
  1. Professionals

    Human Resource Planning

    Just as companies must plan ahead to ensure a steady supply of raw materials, machinery and office space, they must also plan ahead to maintain a steady supply of quality employees. Human resource ...
  2. Retirement

    Job Hunting: Higher Pay Vs. Better Benefits

    Focusing on salary may be a mistake. Find out which benefits have the highest long-run payoff.
  3. Professionals

    Business Grads, Land Your Dream Job

    Companies are in need of strategic candidates, not walking resumes. Find out how to set yourself apart from the pack and land the business career you've always wanted.
  4. Personal Finance

    Employee Benefits: How To Know What To Choose

    Starting a new job is stressful but you don't need to sweat about setting up a benefits package.
  5. Personal Finance

    Tuition Reimbursement - An Employment Perk

    Boost your value in the job market at your employer's expense.
  6. Stock Analysis

    What Is Marvell's Mobile Progress?

    Although Marvell is far from the top in the processor market, it plans to keep investing in this business even as the competitive environment gets tougher.
  7. Stock Analysis

    How Will InvenSense Expand Its Gross Margins?

    One of the chief concerns surrounding motion sensor vendor InvenSense is that the company's gross profit margins have come under pressure.
  8. Stock Analysis

    Free Cash Flow Separates Delta From The Pack

    The U.S. airline industry has experienced a stunning revival in the past few years. No need to look hard to find airlines with doubledigit profit margins.
  9. Stock Analysis

    What Are Intel’s Hopes In The Processor Market?

    Intel has pretty minimal share in the smartphone applications processor market, despite some heavy investments in products for the segment.
  10. Stock Analysis

    What's DISH’s Strategic Direction In The Industry?

    Telecommunications industry has evolved from being a backwater of ultra-conservative utility-like stocks to a high-growth area for cutting-edge investors.

You May Also Like

Hot Definitions
  1. Risk Averse

    A description of an investor who, when faced with two investments with a similar expected return (but different risks), will ...
  2. Fixed-Charge Coverage Ratio

    A ratio that indicates a firm's ability to satisfy fixed financing expenses, such as interest and leases. It is calculated ...
  3. Efficiency Ratio

    Ratios that are typically used to analyze how well a company uses its assets and liabilities internally. Efficiency Ratios ...
  4. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  5. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  6. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
Trading Center