Need for Human Resource Planning
Everything you need to know about the need for human resource planning. Human resource planning or manpower planning is the process of identifying current and future human resources needs for an organization to achieve its goals. HRP is the process by which the management determines how the organization should move from its current manpower position to its desired manpower position.
Through planning, management strives to have the right number and the right kinds of people, at the right places, at the right time, doing things which result in both organization and the individual receiving maximum long-run benefit.
Human resource planning serves as a link between human resource management and the overall strategic plan of an organization.
The need for human resource planning arises from the operational needs of an organization and its importance lies in maintaining a sufficient supply of employees, in the right place and time, and at the right cost.
Only through detailed observation and planning of many variables both internal to the organization and external in the wider political, socio-economic environment, management can ensure a reconciliation of labour supply and demand such that difficult unexpected situations are avoided.
The importance and need of human resource planning are as follows:-
1. Determining Recruitment Needs
2. Determining Training Needs
3. Effective Utilization of Human Resources
4. Management Development
5. Balancing the Cost between the Utilization of Plant and Workforce
6. Industrial Relations
7. Replacement of Persons
8. Expansion Plans
9. Labour Turnover
10. Adjustment with Changing Situation and
11. Controlling the Process.
The purposes of human resource planning in the crucial areas of management are as follows:
1. Determining Recruitment Needs – Human resource planning is needed for determining the recruitment needs so as to avoid the problems of unexpected shortages, wastage, blockages in the promotion flow and needless redundancies.
2. Determining Training Needs – This is fundamentally important to plan training programmes, for which it is necessary to assess not only quantity but also quality in terms of the skills required by the organisation. This can be easily done through human resource planning.
3. Management Development – A succession of trained and experienced managers is essential for the effectiveness of the organisation, and this depends on accurate information about present and future requirements in all management posts, this information is provided by human resource planning.
4. Balancing the Cost between the Utilization of Plant and Workforce – This involves the comparison of the costs of material and human resources in different combinations and choosing the optimum. The information required for the cost of human resource is provided through human resource planning.
5. Industrial Relations – The business plan makes assumptions about the productivity of the human resources which affect the industrial relations. These assumptions about the productivity of human resources are made through the information provided by human resource planning.
6. Replacement of Persons – There is always a need to prepare persons for taking up new positions in case of contingencies. This is due to the reason that a large number of persons are to be replaced in the organisation because of retirement, old age, death, etc.
7. Expansion Plans – Human resource planning is essential for filling the new situations which are created in the organisation due to the execution of the plans of expansion and diversification.
8. Labour Turnover – In every organisation, there is problem of labour turnover but the degree may vary from firm to firm. There will be need to recruit the new persons for the vacant posts, which is done through human resource planning.