Human Resource Planning: Explanation, Process, Importance
A strategical planning and a managerial function, through which any organization can create a better flow of human resource. It also helps the organization in fulfilling the future need of organization’s need for human resources. Human Resource Planning confirms that the right job is given to the right people and at the correct time. Human Resource Planning is essential in fruitfully accomplishing the strategies, goals, and objectives that have been set by the organization.
To meet the need of human resource, the organization has to plan and take required strategical steps. This is the reason behind naming the process of Human Resource Planning as a strategy of the organization.
What is Human Resource Planning?
HRP is the abbreviated form of Human Resource Planning. It can be defined as a process of identifying the future and current needs of the organization in terms of the human resource and working for it in a proper strategical and systematic manner. This is an important tool for an organization. It helps in achieving the goals and targets of an organization successfully, which is why Human Resource planning is considered as a link between the Human Resource Management and the strategical planning of an organization.
Objectives of Human Resource Planning:
Few aims and purposes of initiating the Human Resource Planning have been mentioned below:
- Maintain and manage the resources which are existing in the organization.
- Understand, analyze the changes that might occur with the advancement of technology and also its impact on the jobs created and also how the organization will be affected.
- To check the efficient utilization of human capital in the organization.
- To properly train and upgrade the skill and knowledge of the human resource in the organization.
- To understand how to fulfill the need during the time of scarcity of the human resources.
Why Human Resource Planning is Important?
Human Resource Planning, as we have read previously, is an important component for the better and efficient working of an organization.
Few of the reasons, which strengthens the importance of Human Resource Planning have been mentioned below:
- It helps in getting the right human capital for an accurate job during the hour of need for the organization.
- Proper Human Resource Planning helps in curtailing down the high labour cost, and also helps in balancing the demand and supply of the workers in the organization.
Helps the organization in creating an effective and successful plan for their workers. This helps in looking after the welfare of their workers, understanding their problems or causes which undermines their ability to work, creates a healthy competitive zone for all of them so that the worthier can have the opportunity to advance in their professional career and also by which other can learn to work professionally.
By helping the organization to understand the needs that may arise in the future, it results in providing proper training and knowledge to the workers, so that they can give a healthy return to the organization.
Needs of HRP:
Understanding the objective and importance of HRP, the question that often arises what creates the need for Human Resource Planning,
Few points regarding the needs of HRP have been mentioned below:
- Need for this arises due to the requirement of replacing the old workers with new workers due to old age, retirement, death and etc.
With the continuous advancement in technologies, it becomes necessary for the organizations to adopt them so that it can give the organization a competitive advantage. This again causes replacing the under-skilled and old workers with new skilled and knowledgeable workers who can adapt themselves with this change.
Adjustment with the situation causes the organization to take steps accordingly. If there is an excess of workers then it may cause the organization to cut the excess numbers out and if there is a deficiency in the number of the workers then the organization might require hiring few. This entire process is done by considering the labour cost incurred by the organization.
Depending on the business expansion, the organization might need workers to fulfill the gap.
For example: if an organization wants to open a new branch in another location then they might need more workers to look after it, similarly, if it wants to close a branch of its in some other location, then there will be a surplus labour force creating cost, this is when an organization might think of removing few of them.
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Features of HRP:
Human Resource Planning has many features, and a few among them have been mentioned below:
- The planning for the Human Resource is done on the basis of the goals set by the organization.
HRP should also be based on what the organization wants and what their needs are.
HRP should also focus on retaining the labour force which is why a proper working environment is needed. It encourages workers to work for the organization. Also, as an incentive of their work, they should be rewarded with more than only their wage.
It should look after the demand and supply of the workers.
Steps followed while Human Resource Planning:
Human Resource Planning, being said, as an important component of an organization needs few steps to be followed so that it is done effectively.
Few steps which are taken into consideration while making a proper Human Resource Plan has been mentioned below:
- The current capacity of the organization for the human Resource- during the time of analysing the Human Resource situation of the organization, the problems faced by the existing human resource worker should also be considered. Accordingly, steps should be taken by the organization.
Understanding the future requirements of the human resource will help the organization to choose the correct and appropriate plans so that their requirements and goals are duly met without causing any harm to the organization.
Assessment of the gap between the current capacity and future requirement is also needed. A proper forecast and analysis will help in effectively judging the problem and implementing the plans.
After understanding the situation and the problem the next step is to fix a budget and apply it in reality. Recruiting, training, is required in this step. Proper allocation of funds to fulfill this is also needed.
This is what we understand by the term Human Resource Planning or HRP. If done effectively, then it can give a competitive advantage to the organization over its rival organization.
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