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 >>
  6. What is the difference between the cost of capital and the discount rate?

    The cost of capital refers to the actual cost of financing business activity through either debt or equity capital. The discount ... 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. Investing

    How Can The iWatch Affect Apple's Stock?

    Given Apple’s enormous size today, can the iWatch have a meaningful impact on the company’s financials and ultimately poise the stock for future appreciation?
  7. Markets

    The Story Of Zipdial's Success

    Here is how ZipDial formed and subsequently shot to success in the Asian market.
  8. Fundamental Analysis

    Understanding Lululemon's Business Model

    Lululemon has succeeded in marketing more than just fitness apparel. The company has strategies for continued growth, but it faces tough competition.
  9. Investing

    The Top 6 Companies Owned By Apple

    Let’s take a look at six of the more notable acquisitions that Apple has made over the years.
  10. Personal Finance

    How Amazon Fresh Works

    Amazon Fresh, a grocery delivery company that operates in parts of Seattle, Los Angeles, New York, and New Jersey, is a new service from Amazon.

You May Also Like

Hot Definitions
  1. Mixed Economic System

    An economic system that features characteristics of both capitalism and socialism.
  2. Net Worth

    The amount by which assets exceed liabilities. Net worth is a concept applicable to individuals and businesses as a key measure ...
  3. Stop-Loss Order

    An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit ...
  4. Covered Call

    An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset ...
  5. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
  6. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
Trading Center