Advantages Of Human Resource Planning Business Essay

1414 words (6 pages) Essay in Business

5/12/16 Business Reference this

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Human resource planning is really important that without this all planning will finally end up as a mere guess work. Even if the predictions or forecast is not always successful, it is still needed because the forecasts can be quite useful which will give a basis. Upon this basis it is able to avoid ad hoc problems to an extent. Therefore human resource planning should be articulated along with the organisational planning.

A dearth of particular category of employee or particular kind skills will affect the organisation in achieving its goals.

Rapid changes in technology, marketing, management etc., will result in need of particular category an skilled persons.

Changes within an organization in its design and structure will affect manpower demand.

Demographic changes like the altering profile of the manpower in terms of age, sex, education etc.

The Government policies in regard to reservation, child labour, working conditions etc.

Different labour laws affecting the demand and supply of labour.

Pressure from trade unions, politicians etc.

Advantages of Human Resource Planning:

Human Resources Planning (HRP) expects not just the needed quality and quantity of employees instead decide the accomplish plan for all the occasions of human resource management .The major advantages of Human resource planning are:

It assures the corporate plan of the firm.

The HRP elucidates doubts and alters to the upper limit potential and enables the organization to have right kind of people at right time in right place.

It allows background for progress and growth of employees through training, development etc.

It aids in anticipating the cost of salary increasing, improved benefits etc.

It also helps to predict the cost of pay offs, incentives and all other cost of human resources which facilitates the formulation of budgets in an organization.

To forecast the changes in abilities, aptitude and attitude of personnel.

It results in the advancement of different origins of human resources to encounter the organizational goals and objectives.

It also aids in taking measures to amend human resource shares in the form of enhanced output ,business turnover etc

It facilities the control of all the functions, operations, contribution and cost of human resources

Planning as an organisational business strategy:

Planning process in a strategic way is often accomplished by networking with in and outside the organisation. The focus is therefore on strengthening the networking with the internal human resource professionals and external human resource persons which will be rooted in sharing information, technology, tools necessary for planning and development of personnel. The outcome depends on effective implementation of the developed tools and resources needed. Out of these a sustainable and feasible strategy has to be formulated. The most important thing to be noted here is that the strategy formulated should be articulated with the overall business strategy of the organisation. For this they will consult different human resource managers and all the line managers in the organisation. In order to ensure highest possible utilization of the tools they will work in close conjunction with the managers. This will be aimed in creating a sound personnel data base and tools for the line managers.

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Long term planning for success in short term:

Though long term planning is advised the daily operational pressures would cause the long term planning to give way to short term planning. This might cause the plans ultimately to be less successful. It can be very expensive too. Quite lot of lead time is needed for recruiting, developing talented personnel. This will require long term economic plans. For a successful planning, all the factors need to be interconnected. The impact of short term planning will be to rely on current work force for all the organisational activities. But so as to achieve long term goals of an organisation it must have some changes made in the current human resources. It should be able to foresee the future needs of the organisation even in worst external scenario.

Now the focus has been shifted from long range planning to strategic planning. What long range means is to predict for a particular time in future the amount of demand of an organisation’s services and to analyse in what area that demand will occur in future. This is often used to determine the demand in certain situations like expansion, adding of more services to the existing situation, capital needs etc. But later when the industries became volatile and the external scenario became dynamic the long range planning was replaced by strategic planning. The idea behind long range planning is that the firm will continue its rendering of services so as to match with its demand. But the idea underlying behind the strategic planning is that there are lot of economic, social, political, technological and competitive changes happening. By understanding all these changes to analyse whether the organisation will be able to provide services that would meet these challenges or whether it should move to further new services and products. Though it will take considerable time to evolve a strategy, time span is not the important focus here. It might even take generations to evolve and implement a strategy. Therefore it is better to use ‘long term’ and ‘short term’ to describe the time that it will take for a strategy to implement.


Literature Review:

Human beings are the most important assets in hospitals. Machines and other equipments which are integral parts of delivering health care require the human touch, expertise, and commitment for their full utilization and application in delivery of health care. Therefore planning of human resources is the key to any health care provision. The objective of human resource (HR) policy is

to attract, recruit, retain and develop competent personnel and

Create a continuously learning health care organisation. (B.Ray)

Human resource planning is the projection of the number of people required and the type of people in terms of skill mix required for the organisation so as to achieve the desired goals and objectives of the organisation. This means that human resource planning is an important add on to the strategic plans. But evidence shows that the connecting bridge between human resource planning and strategic management is not stressed in practice (Baird et al.1983, De sancto-1983; Ohan & Rynes-1983). Reason to this non utilisation is found in focus of human resource planning literature. Almost all the research focuses on human resource supply and demand forecasting (Zedeck & Casci-1984). Extra care may be taken in developing a statistical model of manpower planning, but little care is given to gaining managerial acceptance of such plans. Thus there exist a huge gap between available techniques and their use because important organisational realities are not projected in to the models (Zedeck & Cascio,1984)

Rapid environmental change, globalization, innovations to provide competitive products and services, changing customer and investor demands have become the standard backdrop for organizations. To compete effectively, firms must constantly improve their performance by reducing costs, enhancing quality, and differentiating their products and services. To improve firm performance and create firm competitive advantage, HR should focus on better and new set of priorities. These newly set priorities should be more organisational, business and strategic oriented and less focussed towards old traditional HR functions like staffing, training, appraisal and compensation. Business strategic priorities include team-based job designs, flexible workforces, quality improvement practices, employee empowerment and incentive compensation (Jing and Huang 2005).

SHRM was designed to diagnose firm strategic needs and planned talent development which is required to implement a competitive strategy and achieve operational goals (Huselid et al., 1997).

Apart from report proof on the strategic importance of human resource planning, studies of organisation practices give an indication of its arousing grandness for strategic applications. A study interviewed human resource executives from 137 companies to describe the reasons why their companies were following human resource forecasting, which an important part of human resource is planning. The most important three reasons were for bringing up their human resources (77.6 percent), for avoiding personnel shortages (73.1 percent), and to collect information for decisions (73.1 percent). Another set of reasons for human resource forecasting included the following: optimistic action efforts (63.6 percent), budgeting (62.1 percent), and career planning (59.7 percent)

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