IMPORTANCE OF HUMAN RESOURCE PLANNING IN AN ORGANISATION

Human Resource Planning is the ongoing, continuous process of systematic planning to achieve optimum use of an organization's most valuable asset — its human resources. It is a process that identifies current and future human resources needs for an organization to achieve its goals.  Human resource planning strives to get the right number of the right sorts of people in the right place at the right time and for the right cost. The objective of human resource planning is to ensure the best fit between employees and jobs while avoiding manpower shortages or surpluses. The four key steps of the human resources planning process are analysing present labour supply, forecasting labour demand, balancing projected labour demand with supply and supporting organizational goals.

The human resources plan needs to be flexible enough to meet short-term staffing challenges while adapting to changing conditions in the business environment over the longer term.

The importance of Human Resource Planning (HRP) cannot be understated. In the paragraphs below are some of the reasons why HRP is critical in an organisation.

a)      The Human resource is key to ensuring the four managerial functions in an organisation which include planning, organizing, directing and controlling are conducted efficiently and effectively.  Human resources help in the implementation of all these managerial activities and therefore a careful planning for the people to conduct these functions becomes critical.

b)      Efficient utilization of the human resource is an important function in the industrialization world of today. Setting of large scale enterprises requires management of large scale manpower. This can be effectively done through the staffing function and as such HRP comes in as critical.

c)      Staffing function not only includes putting right men on right job, but it also comprises of motivational programmes such as incentive plans to be framed for further participation and employment of employees in a concern. Therefore, all types of incentive plans become an integral part of staffing function. To ensure this motivation of employees being in an organisation that’s a going concern, there need to be prudent human resource planning to ensure the right number of staffing is maintained.

d)      An organisation can stabilize itself if human relations develop and are strong. Human relations become strong through effective control, clear communication, effective supervision and leadership in a concern. Staffing function also looks after training and development of the work force which leads to co-operation and better human relations.

e)      With good human resource planning, productivity level increases as the human resources are utilized in best possible manner. Higher productivity is a result of minimum wastage of time, money, effort and energy. This is possible through the staffing and its related activities such as performance appraisal, training and development, remuneration among others.