Reasons for Preparing Human Resource Plan in Organization
Organizations prepare human resource plan because of the following reasons:
- Human resource planning meets the organization need for right type of people in right number at right times.
- By maintaining a balance between demand for and supply of human resources, human resource planning makes optimum use of human resources, on the one hand, and reduces labour cost substantially, on the other.
- Careful consideration of likely future events, through human resource planning might lead to the discovery of better means for managing human resources. Thus, forceable pitfalls might be avoided.
- Manpower shortfalls and surpluses may be avoided, to a large extent.
- Human resource planning helps the organization create and develop training and succession planning for employees and managers. Thus, it provides enough lead time for internal succession of employees to higher positions through higher positions through promotions.
- It also provides multiple gains to the employees by way of promotions, increase in emoluments and other perquisites and fringe benefits.
- Some of the problems of managing change may be foreseen and their consequences mitigated consultations with affected groups and individuals can take place at an early stage in the change process. This may avoid resistance for change.
- Human resource planning compels management to assess critically the strength and weaknesses of its employees and personnel policies on continuous basis and, in town, take corrective measures to improve the situations.
- Through human resources planning, duplication of efforts and conflict among efforts can be avoided, on the one hand, and coordination of worker’s efforts can be improved, on the other.
- Last but no means the least, with increase in skill, knowledge, potentialities, productivity and job satisfaction, organization becomes the main beneficiary. Organization is benefited in terms of increase in prosperity/ production, growth, development, profit and thus, an edge over its competitors in the market.