Meaning of Human Resource Planning
Human Resource Planning is a process used by organizations for the management of human resources working in an organization. This is a technique that helps in maintaining the appropriate number of employees in a business organization. Human resource planning aims at removing the gap between the current human resource capacity of business and their prospected capacity. It aims at full utilization of employees working in the organization to achieve desired goals timely.
Human resource planning helps the organization in analyzing the optimum number of human resources and also recognizes the sources from which these human resources can be obtained. Shortage or excess of employees in any organization will adversely affect the productivity of any organization and human resource planning helps in avoiding this situation. It aims at matching the right person at the right job at the right time to achieve the maximum output.
Human resource planning is one of the important managerial functions required by every organization to remain profitable and productive. It mainly involves four important roles:
Analyzing the current supply of employees, forecasting future demand of employees, removing the gap of current supply and future demand of employees by acquiring them in the right number, and focusing on business goals. Importance of Human Resource Planning in the Business organization can be well understood by the following points
Objectives of Human Resource Planning
Assess Future Manpower Needs
Human resource planning helps the organization in identifying future manpower requirements for organizations. In view of organizational objectives to be achieved in the future, this process analyses the precise manpower required for the functioning of the organization. This process ensures the right number of peoples at the right time in an organization to derive requisite output.
Identify Manpower Gap
Identification of the gap between the manpower supply and manpower demand is a must for every organization. Human resource planning helps in finding out the surplus or deficit of employees in an organization. Accordingly, it makes a plan to overcome these gaps. In case of the deficit its plans for hiring new employees and in case of the surplus it reduces the number of employees by retirement, termination, layoff, etc.
Determination Of Training And Development Needs
Human resources planning aims at providing various training to all employees as per the requirement of market needs. These training and development programmers are meant for both new and existing employees. It focuses on updating and improving skills of manpower to derive the requisite productivity from them. This way it aims at the advancement of employees and serves the high skilled employees need of an organization.
Ensures Optimum Use Of Manpower
Human resource planning process helps in the full utilization of human resources. The right man at the right place is a must to achieve high productivity and efficiency. This process aims at providing job to individuals according to his knowledge, skills, and experience. Job positions are properly analyzed before deputing persons and it is checked whether a person is capable of delivering roles or not. This way Human resources planning ensures fuller utilization of human resources within the organization.
Meet Expansion And Diversification Needs
Expansion and diversification are activities that every organization needs to follow as they achieve progress over time. Human resource planning supports the organization in its various expansion, diversification, and modernization programs. It formulates plans for meeting the employee requirements as per the expansion plan. This ensures that skilled and knowledgeable people are available at the right time that is able to face the challenging job roles.
Estimates Human Resource Cost
Human resource planning controls the cost of human resources of an organization. It facilitates the preparation of the budget for meeting these expenses by estimating the cost of each and every human resource working in the organization. Formulation of appropriate budgets will ensure timely payment to employees and also avoids a shortage of funds.
Monitors Human Resource Performance
It monitors and controls the performance of employees from time to time. Human resource planning measures the actual performance of manpower with planned performance. If any deviations are found in performance it aims at removing them by taking appropriate corrective measures. It ensures whether human resources are performing as their defined roles and responsibilities. This way it helps in the achievement of organizational goals and objectives timely.
Importance of Human Resource Planning
Acquiring Right Employee
Human resource planning aims at hiring the personnel according to the requirements of the job. It aims at matching the right person with the right job. Jobs are provided to individuals according to their qualifications and skills. It involves proper analyzing of employee’s qualities and skills before hiring them for a particular job role.
Improves Employee’s Efficiency
Improving the efficiency of its employees is a great challenge before every business. Human resource planning helps businesses in analyzing the output of people working with it and suggests ways of improving their efficiency. It ensures that manpower is efficiently utilized and keeps a check on whether all employees are properly delivering their roles.
Development Of Personnel
Human resource planning involves imparting education and training to all employees working within the organization. As per the market requirements, it improves the skills of employees by organizing various training and development programs. It identifies the skills of various personnel and provides them training accordingly as per the requirement.
Increase Employee Satisfaction
The satisfaction of employees is important for retaining the employees in the organization. Human resource planning helps businesses in working for the welfare of their employees. It aims at providing better working conditions, fair salaries and wages, and several other amenities. By focuses on the welfare of employees Human resources planning increase the satisfaction level and productivity of employees.
Analyse Future Manpower Needs
Human resource planning helps in meeting the future manpower requirements of the organization. It analyses the present manpower capacity and forecast the future requirement and then aims at meeting the gap between the two. Business through this process acquires and maintains the right number of personnel according to the requirement of time.
Control Employee’s Turnover
Employee turnover has a great impact on the profitability of the business. Every business aims to control and minimize their overall cost incurred on its employees. Human resource planning focuses on maintaining the accurate number of personnel in every organization as per requirement. Any excess or shortage of employees is all fulfilled through proper analysis and planning. This way it controls all expenses required for hiring and maintaining new personnel.
Long Term Growth
Human resource planning has a great impact on the growth and survival of every organization. It improves the efficiency and profitability of a business by efficiently utilizing all human resources. This technique focuses on organization goals by keeping a check on the roles and duties of all persons working within the organization. It performs analysis from time to time within the organization and takes corrective measures in order to improve any deficiency. Therefore proper planning of human resources helps in increasing productivity and made the timely achievement of goals possible.