Human resource planning comprises of foretelling upcoming manpower necessities and developing manpower plans for the execution of the projections. Through human resource planning a management attempts to have the accurate number and the exact kind of people at the correct places at the correct time.
Human resource planning is concerned with two things:
• Planning of manpower supplies
• Planning of manpower requirements
Benefits of Human Resource Planning
Human resource planning can benefit at both- the company and national levels. At the national level, it will be concerned with factors such as the economic development, population, and geographical mobility and it will be the Government’s responsibility.
At the company’s level, forecasting of continuing manpower necessities assists them to predict the reimbursement costs involved. in addition, by predicting manpower requirements, they have a chance for developing existing manpower requirements to fill the prospect openings through promotions.
The Manpower Management Cycle
Manpower Management Cycle is concerned with having the correct type of individual accessible as and when required and improving the performance of existing people to make them more effective on their jobs. Manpower management thus starts with Manpower Planning. It is necessary to forecast the manpower needs. This is done by studying three types of forecasts:
• The economic forecast,
• The company’s sales expansion forecast,
• The employees market forecast.
Need for human resource planning
To meet with the changing needs, Manpower Planning is necessary. Despite the economical, political, social changes, Manpower Planning is necessary for the organization to survive in spite of changes. For example:
Growth of more industries can result in mobility of personnel and is a source of potential loss of both- managerial and other personnel. Fresh people must be ready to fill in such vacancies.
• If promotions from within are used, then there is likely to be less agitation from the unions.
• Such a policy can constitute great motivational force within the organization.
• It helps in developing talents within the organization.
Limitations of human resource planning
While there are many uses and benefits of Human resource planning, there are certain inherent limitations of the same:
1. Inaccuracy: It is difficult to predict long-range forecasts accurately.
2. Changes in economic condition and technology in future tend to make long-range forecasts unreliable.