Why Is Human Resource Planning Important ?

 

👦👧👨👩👱👲  We plan feelings, not people..

What is human resource

planning (HRP)?

why is it important...?

Human resource planning (HRP) is the systematic

forecasting of an organization’s future HR

requirements. Ultimately, it’s to make sure

the right people with the right skills are in

the right places at the right times.

 It’s an ongoing, data-driven process to optimize a

company ’s most valuable asset—its people—by

avoiding shortages or surpluses.

 This involves

identifying current and future hiring or

training and development needs,

addressing skill gaps

implementing strategies for HRP is about aligning

HR strategies with the evolving needs of your

business to ensure optimal performance and

productivity while avoiding costly workforce

imbalances.

Dealing with Feelings …..???

u To win in the marketplace, you must first win in the workplace,” says Doug Conant, CEO of Campbell’s Soup. Human resources is undoubtedly the most important asset of an organization. How well you capitalize on their strengths and abilities determines an organization’s success.  Businesses use human resource planning to achieve optimal utilization and allocation of workforce.  

What Are the Four Steps to Human Resource Planning (HRP)?

There are four general, broad steps involved in the human resource planning process. Each step needs to be taken in sequence in order to arrive at the end goal, which is to develop a strategy that enables the company to successfully find and retain enough qualified employees to meet the company's needs.

01. Analyzing labor supply

The first step of human resource planning is to identify the company's current human resources supply. In this step, the HR department studies the strength of the organization based on the number of employees, their skills, qualifications, positions, benefits, and performance levels.

02.Forecasting labor demand

The second step requires the company to outline the future of its workforce. Here, the HR department can consider certain issues like promotions, retirements, layoffs, and transfers—anything that factors into the future needs of a company. The HR department can also look at external conditions impacting labor demand, such as new technology that might increase or decrease the need for workers.

03.Balancing labor demand with supply

The third step in the HRP process is forecasting the employment demand. HR creates a gap analysis that lays out specific needs to narrow the supply of the company's labor versus future demand. This analysis will often generate a series of questions, such as:

• Should employees learn new skills?
• Does the company need more managers?
• Do all employees play to their strengths in their current roles?

04.Developing and implementing a plan

The answers to questions from the gap analysis help HR determine how to proceed, which is the final phase of the HRP process. HR must now take practical steps to integrate its plan with the rest of the company. The department needs a budget, the ability to implement the plan, and a collaborative effort with all departments to execute that plan.

The Human Resources Planning (HRP) process contains systematic steps in HRP that drive effective management of human resources. It is sometimes referred to as the process of human resources planning or manpower planning.

This methodical approach involves careful analysis, prediction, and strategic allocation of workforce resources. By understanding the process of manpower planning, businesses can ensure that the workforce remains a dynamic and responsive asset, vital for achieving long-term success.

Importance of Human Resource Planning: What it Brings to the Organization

• HR planning enables businesses to optimize their usage of human resources, 
• increasing productivity while reducing labor turnover, employee unrest, and absenteeism. 

• The five business management functions including planning, organizing, leading, directing, and controlling rely on the oversight and action of human resource planners 
• At the organizational level, good HR planning enables the enterprise to optimize its deployment and utilization of available talent and project the need for additional or alternative skills well in advance
• Besides optimizing its usage of skills, the planning function also provides the organization with a clearer path to the future, both in terms of anticipating skills requirements and creating an order of succession for the promotion and shifting of talent within the corporate hierarchy.

• Strategic workforce planning enables managers to more easily adapt to changes when employees retire or leave the organization
• In times of economic uncertainty, human resource planning becomes a value add for the organization, with its power to foresee and avoid short-sighted staffing decisions. 
• unnecessary downsizing may result in costs to the enterprise and possibly, backlash from worker’s unions. Also,  replacing these employees will cost time, effort, expense, and training.

References: 

Allen.D.G.2008Sociity for HRM

Henwman .H.G.& Jude T.A.2006 Staffling Organization ,

https://itchronicles.com/human-resources/why-human-resource-planning-is-important/

https://www.keka.com/human-resource-planning

https://www.hibob.com/blog/human-resource-planning/