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Human Resources Management - Human Resource Planning

Significance of HRP - Human Resource Planning

   Posted On :  12.06.2018 09:23 pm

HRP is of primary nature and it precedes all other HRM functions. Without HRP no other function can be undertaken in any meaningful way.

Significance of HRP

HRP is of primary nature and it precedes all other HRM functions. Without HRP no other function can be undertaken in any meaningful way. HRP contributes in the following ways in managing resources in an organization.

1. Defining Future Personnel Need

 
Planning defines future personnel need and this becomes basis of recruiting and developing personnel. In its absence there is likelihood of mismatch between personnel needed and personnel available.
 

2. Coping with Changes

 
In the Indian and international business arena fast changes are taking place. Liberalization of economy has brought vast changes in India. At the international level there is growing global competition. Every organization is trying to compete on the basis of technology and managerial talents. In this war only those companies will survive which adopt a formal, meticulous HRP. Change in technology has attached more premium to knowledge and skills resulting into surplus manpower in some areas and shortage in other areas. HRP helps in creating a balance in such a situation because manpower needs and availability could be identified much in advance.
 

3. Providing Base for Developing Talents

 
Jobs are becoming more and more knowledge oriented. This has resulted into changed profile of manpower. Therefore an organization must be ready to face such an eventuality by taking proper HRP.
 

4. High Cost of Investment in HR

 
The cost of acquiring, developing and retaining personnel is increasing much faster than the average rate of inflation. This increasing cost may be taken care of by proper HRP which provides the way for effective utilization of such talents. In fact, such a high cost has forced many companies to have a relook at their HRM functions and particularly HRP and to align these with new situations.
 

5. Creating Involvement of Top Management in HRM

 
Systematic HRP forces top management of an organization to participate actively in total HRM functions, an area that has been neglected by most of the companies until recently.

HRP and Responsibilities Involved

 
Formulation of human resource plans is a shared task between top management, line managers and HR department. Top management is involved in HRP process because ultimately, only it approves the various plans to the organisation as a whole.
 
According to Udai Pareek, “It is the top management responsibility to project shared vision and strategic plans of the organization into long-term vision and short-term goals. The projected vision and plans are then translated into human resource requirements for their respective departments by the managers. Detailed analysis of required competencies in terms of levels and numbers are developed by personnel department.

 

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