Techniques of determining human resource requirements for an organization
The need for human resource planning in organization is realized for the following reasons:
- Despite growing unemployment, there has been shortage of human resource with required skills, qualification and capabilities to carry on works. Hence, the need for human resource planning.
- Large numbers of employees who retire, die, leave organizations, or become incapabilities because of physical or mental ailments, need to be replaced by the new employees. HRP ensures smooth supply of workers without interruption.
- Human resources planning is also essential in the face of marked rise in workforce turnover which is unavoidable and even beneficial. Voluntary quits, discharges, marriages, promotions and seasonal fluctuations in business are the examples of factors leading to workforce turnover in organizations. These cause a constant ebb and flow in the workforces in many organizations.
- Technological changes and globalization user in change in the method of products and distribution of production and services and in management techniques. These changes may also require a change in the skills of employees, as well as change in the number of employees required. It is human resource planning that enables organizations to cope with such changes.
- Human resource planning is also needed in order to meet the needs of expansion and diversification programmes of an organization.
- The need for human resources planning is also felt in order to identify areas of surplus personnel or areas in which there is shortage of personnel. Then, in case of surplus personnel, it can be redeployed in other areas of organization. Conversely, in case of shortage of personnel, it can be made good by downsizing the workforce.
- 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 make 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 of 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 resources 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 markets.