Human Resource Planning (HRP)

 

Human Resource Planning – Introduction:

 

Human resources are unquestionably the most crucial aspect of an organization's operation. The term resource or 'human resource' refers to the potentials, abilities, capacities, and skills that can be developed in an organizational setting through constant engagement.

The interactions, interrelationships, and activities carried out all contribute to the development of human potential in some way. Organizational productivity, company growth, and economic development are all dependent to a considerable part on the efficient use of human resources.

As a result, it is critical for an organization to take steps to ensure that these resources are used effectively. Effective human resource planning is critical at various stages of an organization's development. At all times, it is critical to match the work requirements with the individual  (Human Resource Planning: Definition, Importance, Objectives, Process & Prerequisites, 2022).

Figure 1: The 7 Steps of Human Resource Planning.

Human Resource Planning – Need and Importance:

The following points emphasize the need for and importance of HRP in businesses:

I. Assessing Future Personnel Needs:

Whether it's a case of excess labor or a case of labor scarcity, it paints a picture of poor planning or a lack of planning in an organization. Surplus labor is a concern for a lot of companies in India, particularly public sector units (PSUs).

Companies later provide schemes like the Voluntary Retirement Scheme (VRS) to eliminate surplus labor as a result of surplus labor. As a result, it is preferable to plan ahead of time for personnel. HRP allows for the correct quantity and type of workers to be employed  (Human Resource Planning: Definition, Importance, Objectives, Process & Prerequisites, 2022).

II. Foundation for Other HRM Functions: 

In all HRM functions, HRP is the first step. As a result, HRP provides critical information for other HRM operations like as recruiting, selection, training and development, promotion, and so on.

III. Coping with Change:

Changes in the corporate environment, such as competition, technology, regulatory guidelines, and the global market, affect the job's character. This entails changes in people's demands, job content, required qualifications, and experience. HRP assists the company in adapting to new changes.

IV. Investment Perspective:

Investment in human resources is seen as a better notion in the long-run success of the firm as a result of a shift in management philosophy. Human assets, unlike physical goods, can appreciate in value. As a result, HRP is seen as critical for the appropriate planning of future personnel.

V. Expansion and Diversification Plans:

More staff at all levels are required as part of the expansion and diversification efforts. An organization's specific personnel requirements in future plans can be determined through proper HRP.

VI. Employee Turnover:

Every organization, at some point or another, experiences a small labor turnover. This is particularly prevalent among young private-sector graduates. This demands a re-evaluation of manpower planning in order to continue recruiting and hiring.

VII. Conformity with Government Guidelines:

The Indian government has established some guidelines for organizations to follow in order to protect the weaker sectors of society. Reservations in jobs for SC/ST, BC, physically disabled, ex-servicemen, and others, for example. When recruiting new employees, the HR manager considers all of the government regulations.

VIII. International Expansion Strategies:

HRP is critical to an organization's international expansion initiatives. HRP becomes more difficult under International Human Resource Management (IHRM). An organization may wish to fill key roles in a foreign subsidiary with employees from its home nation, the host country, or a third country. All of this necessitates a highly effective HRP  (Human Resource Planning: Definition, Importance, Objectives, Process & Prerequisites, 2022).

Human Resource Planning - Responsibility

The personnel department is in charge of human resource planning. The industrial engineering department, top management, and a team of directors from several departments assist it in this duty. It is primarily a personnel or staffing role.

The Board of Directors bears overall responsibility because, according to Hindustan Lever's manpower planning scheme, "these members are in a position to steer the future course of business, set appropriate goals for the management concerned in the design of personnel policies."

"Recommend relevant personnel policies in respect of manpower planning, design ways of procedure, and identify the quantitative aspects of manpower planning," according to the personnel department  (Human Resource Planning: Definition, Importance, Objectives, Process & Prerequisites, 2022).

Referencing 

Economics Discussion. 2022. Human Resource Planning: Definition, Importance, Objectives, Process & Prerequisites. [online] Available at: <https://www.economicsdiscussion.net/human-resource-management/human-resource-planning-definition-importance-objectives-process-prerequisites/31575> [Accessed 4 May 2022].