HUMAN RESOURCE PLANNING

Human Resource Planning and Organizational Performance

Human resource planning and organizational performance

Introduction

Human resource plays a crucial role in the success of any organization. There are four factors of production that forms the foundation of every organization. These four factors are Land, Labor, Capital and Entrepreneur's risk bearing ability. Without efficient and effective labor force, organizations may lack competitiveness. For some entities, human resource has been the core competency due to the quality of human resource it has. Businesses around the world have diverted efforts in improving and hiring quality human resource. Human resource departments are formed in order to plan out the activities that should be carried out by the employees to enhance organizational performance. Not only does it plan out the activities but also strategies that are much needed in response to the changing needs that arise due to the environment. This report highlights the human resource planning needed for improved organizational performance and the effects of external environmental factors on a company's performance.

Human resource planning

Human resource planning requires the assembling the right people with right skills at the right time. Organizations are concerned with effective management of its human resource in order to attain maximum benefit. Different people from various categories, casts, culture and religion engage in an organization of a distinct culture. Therefore, it is management's duty to keep a balance between the needs of the organization and the needs of its people. Individual needs must be considered because people coming from different backgrounds have varying aspirations and requirements which should be fulfilled by opportunities created within an organization. Effective management of human resource enables the company to interact with its employees by analyzing their developmental needs, individual needs and opportunities they seek.

According to Raghavendra (n.d), the objective of human resource planning is to ensure that all organizational departments are staffed with each employee fulfilling the job description allotted and task expected to be carried out. Planning involves swapping of overstaffed departments to understaffed departments with the essential skills needed. Human resource planning allows organizations to plan out its budget. In case of achieving growth and diversity an organization aims to expand its human resource which requires an estimate of how much finance is required in the recruitment and training process itself. Then how much finance is required for employees to be paid for the skills and knowledge they possess. The remaining finance is then allocated to other departments of marketing and advertising.

Importance

With effective and efficient human resource planning, organizations are better able to increase its:

Employees' abilities and skills providing a quality workforce

Increases motivation and promotes positive attitude

Well defined activities enhances productivity

Integrates organizational policies in achieving overall objectives

It is a source of competitive advantage through quality performance and high productivity

Reduces labor costs by maintaining a balance between supply and demand of human resource.

Brings in innovations with recruitment of candidates with a broad range of skills and expertise.

The benefits that a company gets from the planning of human resource help it to forecast future needs of employees with ...