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Importance of Human Resources Planning

February 23rd, 2015 Leave a comment Go to comments

IMPORTANCE OF Human Resources PLANNING IN ORGANIZATIONS

Introduction

 

Planning is very important to our everyday activities. Several definitions have been given by different writers what planning is all about and its importance to achieving our objectives. It is amazing that this important part of HR is mostly ignored in HR in most organizations because those at the top do not know the value of HR planning. Organizations that do not plan for the future have less opportunity to survive the competition ahead. This article will discuss the importance of HR planning; the six steps of HR planning that is : Forecasting; inventory, audit, HR Resource Plan; Actioning of Plan; Monitoring and Control.

 

Definition of HR Planning

 

Quoting Mondy et (1996) they define it as a systematic analysis of HR needs in order to ensure that correct number of employees with the necessary skills are available when they are required.

 

When we prepare our planning programme, Practitioners should bear in mind that their staff members have their objective they need to achieve. This is the reason why employees seek employment. Neglecting these needs would result in poor motivation that may lead to unnecessary poor performance and even Industrial actions.

 

Importance of Planning

 

Planning is not as easy as one might think because it requires a concerted effort to come out with a programme that would easy your work. Commencing is complicated, but once you start and finish it you have a smile because everything moves smoothly.

 

Planning is a process that have to be commenced form somewhere and completed for a purpose. It involves gathering information that would enable managers and supervisors make sound decisions. The information obtained is also utilized to make better actions for achieving the objectives of the Organization. There are many factors that you have to look into when deciding for an HR Planning programme.

 

HR Planning involves gathering of information, making objectives, and making decisions to enable the organization achieve its objectives. Surprisingly, this aspect of HR is one of the most neglected in the HR field. When HR Planning is applied properly in the field of HR Management, it would assist to address the following questions:

 

  1. How many staff does the Organization have?
  2. What type of employees as far as skills and abilities does the Company have?
  3. How should the Organization best utilize the available resources?
  4. How can the Company keep its employees?

 

HR planning makes the organization move and succeed in the 21st Century that we are in. Human Resources Practitioners who prepare the HR Planning programme would assist the Organization to manage its staff strategically. The programme assist to direct the actions of HR department.

 

The programme does not assist the Organization only, but it will also facilitate the career planning of the employees and assist them to achieve the objectives as well. This augment motivation and the Organization would become a good place to work. HR Planning forms an important part of Management information system.

 

HR have an enormous task keeping pace with the all the changes and ensuring that the right people are available to the Organization at the right time. It is changes to the composition of the workforce that force managers to pay attention to HR planning. The changes in composition of workforce not only influence the appointment of staff, but also the methods of selection, training, compensation and motivation. It becomes very critical when Organizations merge, plants are relocated, and activities are scaled down due to financial problems.

 

 

 

Inadequacy of HR Planning

 

Poor HR Planning and lack of it in the Organization may result in huge costs and financial looses. It may result in staff posts taking long to be filled. This augment costs and hampers effective work performance because employees are requested to work unnecessary overtime and may not put more effort due to fatigue. If given more work this may stretch them beyond their limit and may cause unnecessary disruptions to the production of the Organization. Employees are put on a disadvantage because their live programmes are disrupted and they are not given the chance to plan for their career development.

 

The most important reason why HR Planning should be managed and implemented is the costs involved. Because costs forms an important part of the Organizations budget, workforce Planning enable the Organization to provide HR provision costs. When there is staff shortage, the organization should not just appoint discriminately, because of the costs implications of the other options, such as training and transferring of staff, have to be considered.

 

Steps in HR Planning

 

Forecasting

 

HR Planning requires that we gather data on the Organizational goals objectives. One should understand where the Organization wants to go and how it wants to get to that point. The needs of the employees are derived from the corporate objectives of the Organization. They stern from shorter and medium term objectives and their conversion into action budgets

 

Inventory

 

After knowing what human resources are required in the Organization, the next step is to take stock of the current employees in the Organization. The HR inventory should not only relate to data concerning numbers, ages, and locations, but also an analysis of individuals and skills. Skills inventory provides valid information on professional and technical skillsand other qualifications provided in the firm. It reveals what skills are immediately available when compared to the forecasted HR requirements.

 

Audit

 

We do not live in a static World and our HR resources can transform dramatically. HR inventory calls for collection of data, the HR audit requires systematic examination and analysis of this data. The Audit looks at what had occured in the past and at present in terms of labor turn over, age and sex groupings, training costs and absence. Based on this information, one can then be able to predict what will happen to HR in the future in the Organization.

 

HR Resource Plan

 

Here we look at career Planning and HR plans. People are the greatest asserts in any Organization. The Organization is at liberty to develop its staff at full pace in the way ideally suited to their individual capacities. The main reason is that the Organization’s objectives should be aligned as near as possible, or matched, in order to give optimum scope for the developing potential of its employees. Therefore, career planning may also be referred to as HR Planning or succession planning.

 

The questions that should concern us are:

 

a)                Are we making use of the available talent we have in the Organization, and have we an enough provision for the future?

b)                Are employees satisfied with our care of their growth in terms of advancing their career?

 

Assignment of individuals to planned future posts enable the administration to ensure that these individuals may be suitably prepared in advance.

 

Actioning of Plan

 

There are three fundamentals necessary for this first step.

 

1)    Know where you are going.

 

2)    There must be acceptance and backing from top management for the planning.

 

3)    There must be knowledge of the available resources (i.e) financial, physical and human (Management and technical).

 

Once in action, the HR Plans become Corporate plans. Having been made and concurred with top management, the plans become a part of the company’s long-range plan. Failure to achieve the HR Plans due to cost, or lack of knowledge, may be a serious constraints on the long-range plan. Below is an illustration of how HR Plan is linked to corporate Plan.

The link between HR Plan and Strategic Management

 

STRATEGIC MANAGEMENT             -> HR PLANNING           à STRATEGIC PLAN

 

Organizational goals                                                     Values                                         Organizational goals

Strong and weak parts                                                   Mission                                         Strong &weak points

Opportunities and threats                                           Goals and Priorities                    Opportunities & threats

Sources of Competitive advantage                             Resource Allocations   Source of Competitive advantage

 

Identify People related matters                                 Define HR strategies,                Implement Hr Processes

                                                                                         Goals & plans                             Policy & Practices

 

HUMAN                                         RESOURCES                                              PLANNING

 

Monitoring and Control.

 

This is the last stage of HR planning in the Organization. Once the programme has been accepted and implementation launched, it has to be controlled. HR department has to make a follow up to see what is happening in terms of the available resources. The idea is to make sure that we make use of all the available talents that are at our disposal failure of which we continue to struggle to get to the top.

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