human resource planningIntroduction
The success of a business is directly linked to the performance of those who work for that business. Underachievement can be a result of workplace failures. Because hiring the wrong people or failing to anticipate fluctuations in hiring needs can be costly, it is important that you put effort into human resource planning. Planning for HR needs will help to ensure your employees have the skills and competencies your business needs to succeed. An HR plan works hand in hand with your business plan to determine the resources you need to achieve the business’s goals. Human resource management is the strategic and coherent approach to the management of an organisation’s most valued assets, that is, the people who individually and collectively contributes to the achievement of the objectives of the organisation. At the start of the 21st century, there were increasing claims that the route to competitive advantage is achieved through people. In a situation where identical non-people resources in the form of finance, raw materials, plants, technology, hardware and software are made available to competing organisations differences in economic performance between organisations must be attributed to differences in the performance of people. For senior managers in an organisation whose task it is to plan a response to the pressure for continuous changes, the attraction, recruitment and selection, utilization, development and future of the organisation ought to be consistent with line functions such as finance, marketing and production etc. in the course of drawing strategic plans. Concept & Meaning of HRP To understand the Human Resource Planning First, we will see what is Planning? And why is it needed? What is planning? Plans are methods for achieving a desired result. Goals or objectives are specific results you want to achieve. Planning is thus "the process of establishing objectives and courses of action prior to taking action." What is planning concerned with? Planning provides a sense of purpose and direction. It is a comprehensive framework for making decisions in advance. It also facilitates the organizing, leading, and controlling functions of management. Planning: allows you to make your decisions ahead of time, it helps you to anticipate the consequences of various courses of action, it provides direction and a sense of purpose, it provides a unifying framework against which to measure decisions. It is concerned with the end (what is to be done) as well as with means (how it is to be done). Is planning really needed? Planning is one of the functional areas of Human Resource Management. Human Resource Planning Human resource planning is used by organisations to ensure that they have the right number and the right kind of people at the right place and at the right time. Where this process is carried out properly, it brings maximum long-run benefits to both the organisation and the individual employee. Human Resource Planning is the planning of Human Resources. It is also called manpower planning/ personnel planning/ employment planning. It is only after Human Resource Planning that the Human Resource department can initiate the recruitment and selection process. Therefore Human Resource Planning is a sub-system of organisational planning. Definitions “Human Resource Planning is a strategy for the acquisition, utilisation, improvement and preservation of an organisation’s human resource” – Y.C. Moushell “Human Resource Planning is a process of forecasting an organisation’s future demand for human resource and supply of right type of people in right numbers” – J.Chennly.K Human resources planning is the process of analysing an organisation's human resources needs under changing conditions and developing the activities necessary to meet these needs. Such planning helps entities anticipate the impact of change and respond to such change in a systematic and integrated way. It is a vital part of corporate planning and budgeting procedures since, human resource costs and forecasts both affect and are affected by longer-term corporate plans. Planning involves the forecasting of human resource needs in organisations and designing appropriate actions such as recruitment, training and career development based on identified needs. Planning is carried out within the goals and general policy framework of the firm or agency. It is also affected by public policies, changes in technology and availability of manpower. Human resource planning involves a complex task of forecasting and planning for the right numbers and the right kinds of personnel at the right places and at the right time to perform activities that will benefit the organisation in accomplishing its objectives and in helping its members to satisfy their needs. Human resource planning will be successful to the extent that it properly coordinates each of enumerated elements and it is essentially the fitting of resources to business needs in the longer term or shorter term as the case may be. Can we develop these knowledge, skills, and abilities internally, or will we have to seek outside help? Planning objective
Human resource planning provides answers to such questions as: i) How many people will be needed? ii) What skills, knowledge and competencies will they require? iii) Will existing human resource meet the identified need(s)? iv) Is further training and development needed? v) Is recruitment necessary? vi) When will the new people be needed? vii) When should training or recruitment start? Need for Human Resource Planning Shortage of Skills: – These days we find shortage of skills in people. So it is necessary to plan for such skilled people much in advance than when we actually need them. Non-availability of skilled people when and where they are needed is an important factor which prompts sound Human Resource Planning.
Guidelines for making Human Resource Planning effective Adequate information system: – The main problem faced in Human Resource Planning is the lack of information. So an adequate Human resource database should be maintained/developed for better coordinated and more accurate Human Resource Planning.
Features of Human Resource Planning It is future oriented: – Human Resource Planning is forward-looking. It involves forecasting the manpower needs for a future period so that adequate and timely provisions may be made to meet the needs.
Linkages with Business Planning & Strategies Human resources planning and strategic planning are intimately related. On the one hand, strategic planning provides the basis for the development of all human resources functions. On the other, human resources planning plays a key role in the strategic planning process as the organisation defines
Integrating Human Resource planning with Business/Strategic Plan: The integration of business plan and HR planning is likely to be more appropriate in a stable market place with largely passive (and static) customers and with scope of long-term forecasting because of the predictability of demographic change. Linking HR planning to business planning interprets these plans in terms of people requirement. However it may influence the business strategy by drawing attention to ways in which people can be developed and deployed more effectively to enhance the achievement of business goals as well as focusing on programme that might have to be resolved to ensure that the people required will be available and will be capable of making the necessary contributions. HR planning is important because it encourages employers to develop clear and explicit links between their business and HR plans and integrates the two more effectively. It also allows for better control over staffing costs and numbers employed and enables employers to make more informed judgements about the skills and attitude mix in organisations. The penalties for not staffing an organisation correctly are costly. Understaffing loses the business economies of scale and specialization, orders, customers and profits. Overstaffing on the other hand is wasteful and expenses. If sustained, it is costly to eliminate because of modern legislation in form of redundancy payments, consultation, minimum period of notice etc. Very importantly, overstaffing reduces competitive efficiency of the business enterprise (Aina, 2005). benefits and challenges of hrp
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