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HRP is the process by which an organization ensures that it has the right number and kinds of people, at the right places, at the right time and that these people are capable of performing their tasks effectively and efficiently.

This helps the organization to achieve its overall objectives. Two major ways in which societal trends affect employment is through consumer markets, which affect the demand for goods and services, and labour markets, which affect the supply of people needed to produce goods and services.

Maintaining a flexible workforce is the major challenge of the HR department

and HRP helps it handle this challenge. HRP is done at different levels –

corporate, intermediate, and operations levels and for short-term activities.

A proper human resource planning exercise should utilize the inputs of all the

departments in the organization and enjoy the support of the top management. A human resource professional would be better equipped for human resource planning if he has a good understanding of the market dynamics, changes in the economy,organizational processes and technological developments.

The process of HRP involves three key steps – assessing and making an inventory of the current human resources, forecasting the organization’s human resource needs and matching the demand and supply of human resources.

Forecasting the overall human resource requirements involves studying the factors affecting the supply and estimating the increase or decrease in the external and internal supply of human resources.

New hires, transfers-in, individuals returning from leave etc. increase the internal supply of human resources, while retirements, dismissals, transfers-out of the unit, lay-off, voluntary quits, sabbaticals, prolonged illness, and deaths reduce the supply.

Part 1

Strategic importance or current, future & anticipated HR Requirement

Strategies concerns for hiring people at time of requirement and laying them off when they are not required. This strategy argument distinguish between personnel and the human resources.

Human Resource Requirement is to control labour costs, looking for the talented labours or employee’s, making informed business decisions and assessing the future market risks. The important work of the HR people is too place right people for the right job at a right time and with the right price which an organization can afford because the employees are the main assets of the organization.

H.R people plans that what the organization will need with his employee’s and those employee’s can meet the needs or the target of an organization’s.

The major problem now is faced by the H.R people is that this may create the gap between the organization’s demand and the availability of the workforce supply, the organization is going to develop new strategies or approaches to close these gaps.

Strategies as per the H.R Requirements

Environment Scan

Environment Scanning is a form of business intelligence. If the environment of the organization is in good, then it is easy for the new worker to mix up with the environment of the work, and it is going to help the organization that the employee or worker is giving his/her fullest working skills.

Current Workforce Profile

Current State is a profile of the demand and supply factors both internally and externally of the workforce the organization has ‘today’.

Future Workforce View

H.R people look towards the future organization that what all the requirements they need for the organization, what all the demand of the market, what sought of trend is going to be there, what will be the requirement of the employees at what price or the requirement of some other resources which may help to improve in the workforce in future and creates much better Working Environment of an organization. As well thinking about the Quantitative and Qualitative of the product and as well as for the employees.(It may be Internal or External demand and supply)

Closing the Gaps

The major work of the H.R people is to close gaps between the management and the employees, so that the easy flow of working can be there which will help to the organization for achieving its goals. H.R people work is to motivate the workers and employees at time of they needed, it can be in terms of money or as per the requirement of the employee or worker which an organization can easily provide while looking to the past performance of the employee. There are other things which an organization required to close those gaps, those are

– Resourcing,

– Learning and Development,

– Remuneration,

– Industrial Relations,

– Recruitment,

– Retention,

– Knowledge Management,

– Job design.

HR Planning impacts on the Strategic Plan

“Integrating human resource management strategies and systems to achieve the overall mission, strategies, and success of the firm while meeting the needs of employees and stakeholders.”

(Source: Herman Schwind, Hari Das and Terry Wagar, Human Resource Management: A Strategic Approach)

As per the HR plan for the Strategic Plans it may Positive or Negative too for an organization’s, but we are going to discussed on the positive side of the impacts on the strategic plan.

Strategy Development

Develop strategies for workforce transition.

-List specific goals to address workforce competency gaps or surpluses.

-Changes in organizational structure

-Succession planning

-Retention programs

-Recruitment plans

-Career development programs

-Leadership development

-Organizational training and employee development.

These are the developments which are going to impact on the organization with the help of HR planning in the strategic plan, these plans may be for the future or the current plans as per the requirements of the organization.

Part 2

Human resources are the participants as also the beneficiaries of economic development process. In that, human resources figure on the demand as well as the supply side of production of goods and services in the economy. On the demand side, goods and services produced are used by the human beings to alleviate poverty, improve health, generate better living conditions, enhance general educational levels and provide better facilities for training. Utilisation of goods and services thus leads to an improvement of quality of human resources. On the supply side, human resources and capital form essential ingredients of production systems which transform natural and physical resources into goods and services.

Complementarity between human resources and capital is so close that optimal increases in output and hence optimal economic growth is not possible through increases in one of them – either human resources or capital – at the cost of the other.”Some growth of course can be had from the increase in more conventional capital even though the labour that is available is lacking both in skill and knowledge. But the rate of growth will be seriously limited. It simply is not possible to have the fruits of modern agriculture and the abundance of modern industry without making large investments in human beings “. There is an optimal ratio of human resources to capital which has to be maintained to reach the attainable rate of economic growth.

In this Unit we will take into account the two dimensions of human resources: Quantity and Quality in context of HRP in general and also in tourism.

Quantitative and Qualitative on the basis of legal requirement of Human Resource Planning

Human being is looked as productive power which is one of the part of the population of an economy and another one the human being those are without any productive power.


Population of a country, in a generic sense, is taken as constituting the totality of all human beings of the country. The concept of population, viewed in this manner, appears to be very simple. However, in reality, the definitions used vary not only from country to country but even within a country depending on the purpose of enquiry. Broadly, the definitions of population used may be categorised into de facto and de ju re.

Human resources being an integral part of population, the growth of human resources is depend on the growth of population. Population growth is measure by three factors: population structure, migration and population policies.

Age Composition

Age composition means dividing the population by age groups, usually five year age groups. At some point of time it shows the results of the past trends in mortality and in fertility.

In the computation rate of growth of population, future births are usually computed by applying five year age specific fertility rates to the women of child bearing age (10 to 49 years) at the midpoint of each five-years time interval.

It is useful in analysing and in computing of the labour supply. Normally the active age-group is being considered to be 15 to 65 years.


Another factor which causes changes in population is the net migration. If the net migration is positive, the population rise at a rate faster than the indicated by natural growth. If the net migration is negative then it causes decline in the rate of growth indicated by the natural growth.

If population changes then it doesn’t cause changes as such in the human resources. Rather than change in the economical active component of population which affects the growth in the human resources. In terms of economic activity classification, population may be divided into workers and non-workers.

Workers are defined as a person who actively participate in the productive work by mentally or physically presence. It includes not only the actual work but also includes effective direction and supervision. The non workers is being categorised as :

beggars, retired person, full-time students, infants and dependent doing no work, persons engaged in household duties, renters living on rent on an agricultural or non-agricultural royalty, vagrants and others with unspecified sources of income, inmates of penal, charitable and metal institutions, unemployed but available for work, and others.

Labour force is that segment of population whose work is to produce goods and services demanded by the whole population they are known as economically active population also, Usually they are aged between 15-64 years. However, not everyone in the productive age-group is effectively in the labour force.

“According to the accepted definition, labour force comprises all persons of either sex who furnish the supply of labour available for the production of economic goods and services including:employers, employees, self-employed persons, and those engaged in family enterprises without pay.”

Education and Training

Education and training is the most affective quality of the human resources in the terms of skills and knowledge. Educational labour demand is more than the uneducated labour in the market. Education and training serve both social and individual’s ends. Education and Training affects on the culture and social for the up gradation of an individual. In other words training and education for the society means to take advantage of the technology which helps in the furthering technological progress.

Depending on the methods of imparting knowledge and skills, education and training may be classified into two types: Formal and Informal. Formal education and training, which is imparted through schools and colleges, emphasises transfer of knowledge. Informal education and training such as on-the-job training and hereditary training lays stress on transfer of skills, i.e., practical application of knowledge.

As far as development of education and training is concerned there are five choice areas which are critical:

– Choice between science and technology on the one hand, and on the other hand liberal and humanities.

– Choice between quality and quantity in education and training.

– Choice between level of education such as higher, secondary and primary education.

– Choice between market forces and incentives to attract people into some occupations.

– Choice between the aspirations of individuals and needs of the society.

Health and Nutrition

Health and nutrition status is one of the most important status for an human resource as significantly they contribute in building and maintaining a productive human ability as well as improving in the average expectation of life and a quality of life.

There are three determinants of health status:

Public sanitation, climate and availability of medical facilities.

People’s knowledge and understanding of health hygiene and nutrition.

Education, health and nutrition are inter-linked and they complement each other in the process of human resources development.

Equality of Opportunity

Investments in human resources development do not always ensure proportionate development of all sections of population. In the absence of deliberate policy intervention, there are bound to be discriminations. We can say that there are three distinct forms of discriminations which are relevant to developing nations:

Social discrimination may take either the form of sex discrimination or discrimination among different social groups or both. For example, a few years back the air hostesses of a particular airlines petitioned in the court because their retirement age was earlier than of their male counterparts. The court upheld their petition and now the retirement age of both male and female air hostesses is same.

Economic discrimination takes place largely among groups of population belonging to different economic strata classified in terms of either income generating assets.

Regional discrimination can be in the form of either discrimination between rural and urban population or discrimination among population belonging to different regions.

These three forms of discriminations individually and/or jointly lead to inequality of opportunities of varying degree among different sections of population.

Discrimination of any form causes differential access to education and training, and health and nutrition. This in turn leads to differences in quality and productivity of human resources belonging to different segments of the population – with the privileged benefiting the most and under privileged being deprived of their due share in the development process.

Opportunity costs of discrimination are very high, as it leads to many social and economic evils apart from retarding the pace of economic development. It has been demonstrated that the national output can be further expanded by improving the average level of productivity of each individual through appropriate social and economic policies directed towards equality to opportunity in the fields of education and health.

Tourism has long been recognised as a tool for economic growth and development. However, it can be beneficial to the host economies when it creates jobs for the locals. Here qualitative dimensions of HRD become an important factor for education and training of local population as per the requirements of responsible tourism development.

The dimensions, attributes and distribution of population the product of whose labour adds to national wealth constitute human resources. They are thus, the participants and beneficiaries of economic development. The demographic profile, migration and mobility and participation patterns in economic activity determine the quantitative aspects of actual and potential human resources. Investments in education and training, health and nutrition, and social welfare and quality promote quality of human resources through enhanced labour productivity.

While quantitative and qualitative dimensions only regulate supply of human resources, the other aspect of human resources planning namely the demand for human resources crucially depends on the functioning and flexibility of labour markets. Labour market analysis is a principal instrument of human resources planning, as it helps identify skill shortages and also enables a diagnosis of market failure to match labour supply with demand. To facilitate labour market analysis, there is a need for a comprehensive and regularly updated labour market information system.