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The study found that HR management effectiveness positively affected organizational productivity, financial performance, and stock value. Inaccuracy – HRP is based on demand forecasting and supply forecasting of human resources. There is generally a tendency on the part of manpower planners to remain aloof from other operating managers and to become totally absorbed in their own world. To be effective manpower planning must be integrated with other management functions.

1. Collect and summarize human resource data keeping long-run objectives and broad organizational interests in mind.
2. So the level of accuracy which is desired for the purpose of Human Resource Planning might not be achieved.
3. The focus should be on filling up future vacancies with right kind of people who can help in achieving the objectives of the organisation.
4. The nature of human resources necessitates human resource planning.
5. Planning is a process of developing a set of decisions for action in future.

HR planning manifests its importance as the key to managerial functions, efficient utilization, motivation, better industrial relations, and higher productivity. The major activities required to execute the HR plan are recruitment, selection, placement, training, development, socialization, etc. HR planning is a continuous process that starts with identifying HR objectives, moving through analysis of workforce resources, and ends at the appraisal of HR planning. The labor market comprises people with skills and abilities that can be tapped when needed.

HRP ensures there is the best fit between workers and jobs, avoiding shortages and surpluses in the employee pool. Employers consider the activity of Human Resource Planning to be time-consuming and expensive as for undertaking it accurate forecasts are required. For deriving accurate forecasts, the services of experts https://1investing.in/ may have to be availed which are expensive. So, employers are generally not in favor of undertaking Human Resource Planning in their organization. Human Resource Planning is an activity that is based on forecasts and estimates. For the success of Human Resource Planning, it is essential that the estimates are accurate.

Requirements for Effective HRP Successful HR planning requires:

Additionally, HR can spend time determining what skills and experiences qualify a candidate for each particular job. The HR manager is in a perfect position to understand how human resources will have to be used to meet future organizational goals. Look at new technologies that can automate specific processes. Sectoral trends and industry analysis can help to gauge future requirements quite effectively.

Purposes of Human Resource Planning

In some companies human resource planning is used as a number’s game. There is too much focus on the quantitative aspect to ensure the flow of people in and out of the organization. In Indian industries human resource information system has not fully developed.

Labour absenteeism, labour turnover, trade cycles, technological changes and market fluctuations are the uncertainties which serve as constraints to Human Resources planning. It is risky to depend upon general estimates of limitations of hrp human resource in the face of rapid changes in environment. There is generally identity crisis and many managers as well as Human Resource specialists do not fully understand the total Human resource planning process.

What Is the Proper Sequence of Steps for the HR Forecasting Process?

In absence of their support and commitment, proper allocation of resources is not possible which leads to improper implementation of the plans. Human Resource plans make the Human Resource policies up to date which makes them attractive to prospective employees as well as current employees. Human Resource Planning helps Human Resource Managers to retain and attract qualified and skilled personnel.

Recruitment and training costs, pensions, gratuity, provident funds, and other fringe benefits raise the costs of hiring a new worker. Higher recruitment costs encourage upgrading from within. Highly skilled personnel are in short supply, and it is very costly to hire and maintain them. Panning is the most important and primary function of management.

In Indian industries, information system is still not well developed hence, precise and reliable data cannot be collected for effective human resource planning. In most industries, the human resource information system has not been fully developed. Therefore, In the absence of reliable data, it is not possible to develop human resource plans effectively. HR planning is especially useful in organizations that deal with cyclical business, constant employee transition or turnover and variable workforce demand. With effective planning, you increase your ability to have the right number of workers in the right locations and jobs at any given point in time.

Selection of an appropriate mechanism for compensating the employees as per their worth to the organisation. Employment opportunity originates from technology up-gradation, innovation, and continuous search for newer scope and ideas. For example, after launching CNC machines, the use of old conventional machines has mostly been discontinued in large companies. The new generation machines have opened up opportunities for employment for software engineers, growth of air conditioner manufacturers, etc. The internal source includes promotion, transfer, job enlargement, and enrichment, whereas the external source includes recruiting fresh candidates capable of performing well in the organization.

If a company has the best employees and the best practices in place, it can mean the difference between sluggishness and productivity, helping to lead a company to profitability. The challenges to HRP include forces that are always changing. These include employees getting sick, getting promoted, going on vacation, or leaving for another job.

Human Resource Planning is one of the most important activities of the business. Monitor and measure performance against the plan and keep top manage­ment informed about it. To ensure that necessary manpower is available as and when required. The rate of growth of HR has two dimensions—quantity and quality. HRP is affected by the employment situation in a country. In countries with greater unemployment, there may be more pressure on the government to appoint more people.

Employees and trade unions often resist human resource planning. They feel that this planning increases their overall workload and regulates them through productivity bargaining. They also feel that it would lead to wide spread unemployment, especially of unskilled labour. The goal of HR planning is to have the optimal number of staff to make the most money for the company. Because the goals and strategies of a company change over time, human resource planning must adapt accordingly.