Objectives and Benefits of HRP - Benefits / Importance of Human Resource Planning
To recruit and maintain the HR of requisite quantity and quality.
To predict the employee turnover and make the arrangements for minimizing turnover and filing up of consequent vacancies.
To meet the requirements of the programmes of expansion, diversification etc.
To anticipate the impact of technology on work, existing employees and future human resource requirements.
To progress the knowledge, skill, standards, ability and discipline etc.
To appraise the surplus or shortage of human resources and take actions accordingly.
To maintain pleasant industrial relations by maintaining optimum level and structure of human resource.
To minimize imbalances caused due to non-availability of human resources of right kind, right number in right time and right place.
To make the best use of its human resources; and
To estimate the cost of human resources.
So, human resource planning is required to achieve the objectives of estimating potential human resources requirements; to cope with changing requirements of the organisation taking into consideration the changing technology; to make full utilization of the existing and potential workforce of the organisation; and career planning of employees.
According to a recent study on workforce engagement, nearly one-third of the U.S. workforce fits the category of “unengaged.” Unengaged employees perform their jobs in ways that do not contribute to organizational success, performance, and profitability. The productivity loss of unengaged workers equals nearly $300 billion a year.
Benefits/Importance of Human Resource Planning
Human resource planning or manpower planning is necessary for ail organisations because of following reasons:
To meet up requirements of the organisation:
To do work in the organisation, every organisation needs personnel of desired skill, knowledge and experience. This human resources requirement of organisation can be effectively fulfilled through proper human resource planning. It helps in defining the number of personnel as well as kind of personnel required to satisfy its needs. It ensures the reservoir of desired human resources as and when required.
Counterbalance insecurity and change:
There must be proper utilisation of human and non-human resources in the organisation. Sometimes the organisation may have adequate non-human resources e.g. machines, materials and money but inadequate human resources as a result, manufacturing process/production cannot be started. Human resource planning helps to offset uncertainties and changes as far as possible and enables to ensure availability of human resources of the right kind, at right time and at right place.
It helps in checking labour imbalance:
Human resource planning helps to anticipate shortages and/or surpluses of manpower in the organisation. The shortage of manpower as well as surplus of manpower is not good for the organisation. It proves very expensive for the organisation. In case of shortage of human resources, physical resources of the organisation cannot be properly utilized. In case of surplus of human resources, this resource may remain under-utilized It helps in counter balancing the problem of shortage and surplus employees very comfortably. Human resource planning helps in correcting this imbalance before it become unmanageable and expensive.
Right-sizing the human resource requirements of the organisation:
In an existing organisation, there is a constant need for right-sizing the organisation. In the organisation, some posts may fall vacant as a result of retirement, accidents, resignations, promotions or death of employees. Consequently, there is constant need of replacing people. Human resource planning estimates future requirements of the organisation and helps to ensure that human resources of right kind, right number, in right time and right place.
To meet expansion and diversification needs of the organisation:
It helps to execute future plans of the organisation regarding expansion, diversification and modernization. Through human resource planning it is ensured that employees in right number and of right kind are available when required to meet these needs of the organisation. It ensures that people of desired skills and knowledge are available to handle the challenging job requirements.
Training and Development of Employees:
There is constant need of training and development of employees as a result of changing requirements of the organisation. It provides scope for advancement and development of employees through training and development etc. Thus, it helps in meeting the future needs of the organisation of highly skilled employees.
Fulfill Individual Needs of the Employees:
It helps to satisfy the individual needs of the employees for promotions, transfer, salary encashment, better benefits etc.
Helps Formulation of Budgets:
It helps in anticipating the cost of human resources e.g. salary and other benefits etc. It facilitates the formulation of human resource budget for various departments/divisions of the organisation. So, it may also help in, the formulation of suitable budgets in an organisation.
To Check Joblessness:
In the exercise of right-sizing of employees by the organisation, some of the employees may become surplus. It means their services are no more required in the organisation. It tries to foresee the need for redundancy. It plans to check job loss or to provide for alternative employment in consultation with various concerned parties and authorities.
HR PLANNING FAILURE AND LABOUR IMBALANCES