Limitations of human resource planning Human Resource Management

Hence, it is concluded that this matching process gives knowledge about requirements and sources of HR. New products and services also may require recruiting highly skilled employees or training existing employees to meet the need. Human resource planning can be defined as identifying the number of people required by an organization regarding quantity and quality. This includes identifying the type and number of employees needed, employee competency, budget considerations, recruiting and retaining measures, and employee development and training. As a result, individual employers face greater difficulties in holding preferred employees. Human resource planning is when organizations determine the staffing support they need to meet business needs and customer demands.

Small businesses often have to choose between offering an employee more pay or offering attractive benefits, points out Atlas Staffing. If your hiring people aren’t trained in the area of benefits and compensation planning, they probably won’t be able to put together the most attractive compensation packages to attract workers. As Human Resource Planning forecasts the number of employees, it helps the management to improve the quality of plans which are formulated by them for achieving the overall objectives of the organization.

  1. Human resource planning (HRP) allows a business to better maintain and target the right kind of talent to employ—having the right technical and soft skills to optimize their function within the company.
  2. Training and education can make your staff more effective in some areas, but they can’t be substitutes for resourcefulness and adaptability.
  3. In order to design such a policy, through the HR plan, the management gathers the necessary info about the conditions prevailing in the environment of the organization.
  4. There are four general, broad steps involved in the human resource planning process.
  5. This type of audit also helps the managers to facilitate internal transfers and promotions within the organization.

It also helps the management to identify and develop the skills that the organization requires in its employees. Once the management finalizes the number of employees required and the skills that they should possess, then the sources from where the employees can be obtained have to be determined. For this, the management has to fore-cast the supply of human resources. Before commencing the activity of Human Resource Planning, the manager should study the short-term and long-term objectives of the organization in detail. This helps the manager to forecast the need for human resources in the organization as well as the skills which should be possessed.

For its effectiveness, HRP should be incorporated with other managerial functions. The Human Resource Manager should design the recruitment, selection, training, and union policies that are in line with the objectives of the organization. The Human Resource Manager should ensure that the Human Resource Planning activity should act as a means of increasing the profitability of the organization. Human Resource Planning also ensures that the right numbers of employees are available in the organization.


By timely addressing these training needs, you stand a better chance of remaining competitive and retaining employees who know they can grow with your company. Pay particular attention to advancements in technology, because you may need to have your HR department develop training for programs and processes that didn’t exist when you first opened your company. Through Human Resource Planning, the Human Resources manager is able to identify such employees who have good potential to become leaders in the organization. This helps the mgt to retain employees who possess the necessary skills for the organization. Through effective Human Resources Policies, and practices that aim at reducing cost and attaining optimum labor efficiency, the organization can become a cost leader. Human resources planning is a proactive process used to identify the best way to allocate resources and adapt to employment changes.

Importance of Human Resource Planning

With effective planning, you increase your ability to have the right number of workers in the right locations and jobs at any given point in time. Additionally, HR can spend time determining what skills and experiences qualify a candidate for each particular job. Moreover, reliable datarelating labour market, trends in human resources, places etc. are generally notavailable. Hence, it is not always possible to develop effective human resourceplans. Hence, it is not always possible to developeffective human resource plans.

They also believe thathuman resource planning prepares programmes for securing manpower mostly fromoutside, generally by ignoring internal manpower supply. To conclude, human resource planning is an in-demand field, and professionals interested in pursuing it as a career can upgrade their skills by signing up for Emeritus’ online HR courses. These will upskill professionals in different aspects of human resource management and also give them a competitive edge in their careers. Effective human resource planning can help organizations create a positive work environment, and attract and retain top talent. By identifying critical roles and the competencies required for them, human resource planning can help organizations zero in on and, also, develop potential successors.

On the other hand, if the excess number of employees there, then it would lead to an increase in labor cost as the optimum level of work cannot be achieved. HR training is an powerful integer in all businesses sector method, nevertheless companies don’t decide the impact of hr training programmes more than the staff. In spite of its benefit of keeping the organization’s manpower position balanced, there are a few limitations of Human Resource Planning, which are discussed below. Based on the results of the analysis, HR objectives should be determined to meet future workforce needs. People change jobs for definite reasons such as higher pay packet, better chances of promotion, or better job satisfaction. The HR plan is integrated with the organization’s strategic business plan.

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Recruitment and training costs, pensions, gratuity, provident funds, and other fringe benefits raise the costs of hiring a new worker. Human resource planning is an integral limitations of hrp part of the overall corporate plan of the organization. It is a process of selecting the organizational objectives and taking actions to achieve those objectives.

HR planning refers to the process of matching the right employee for a given job, without staffing too few or too many people. This takes a great deal of planning and foresight to successfully achieve. The increased use of remote workers by many corporations will also impact human resource planning and will require HR departments to use new methods and tools to recruit, train, and retain workers.

Third Stage

Human Resource plans make the Human Resource policies up to date which makes them attractive to prospective employees as well as current employees. Human Resource Planning helps Human Resource Managers to retain and attract qualified and skilled personnel. Human Resource Planning ensures that the organization is able to effectively utilize the manpower that is present in the organization. The workers are able to work at their maximum potential which leads to the overall development of the employees of the organization. Human Resources plans help the managers to design a suitable compensation plan which is aligned with the strategy of the organization. In order to design such a policy, through the HR plan, the management gathers the necessary info about the conditions prevailing in the environment of the organization.

This helps them to allocate the employees to departments that are best suitable to them which prevents underutilization of human resources. Moreover, as the management is able to assess the required number of human resources in all departments, it is able to identify shortages or surplus manpower in the organization. This prevents shortage, as well as wastage of human resources in the organization, and the human resources, are utilized up to the optimum level.

In a profit system, the basic motivation for human resources planning, like all other firm activities, would be its contribution to profitability. Interest in human resources planning is increasing because the organization’s size is continually increasing. The direction of technological change has decreased jobs for unskilled workers but has increased the demand for new skills. Technological change makes re-training a must for many current jobholders.

This action plan should be updated according to change in time and condition. HRP is concerned with the allocation of human resources within an organization over time. It is concerned with estimating the supply of workforce given the analysis of current resources and future availability of the human resource in the organization.

A Better View to the business decision

HR planning can help businesses identify skill gaps and provide targeted training and development opportunities for their employees. Therefore, this can lead to increased employee satisfaction and motivation, which can ultimately improve productivity and performance. The second stage in HR planning is to forecast or assess the internal and external environmental factors that affect the demand and supply of labor. The HR planning process begins with considering organizational objectives and strategies. The first stage of HR planning is to integrate it with corporate planning. All staffing planning stems from business plans with a corporate strategy.