Explain why human resource planning is so important to an organization.

Authors Avatar

1 Explain why human resource planning is so important to an organization

Planning is very important to our everyday activities; it is not easy as one might think because it requires someone to come out with a programme that would make your work easy. Human resource planning is important to an organization because it develops the strategies for matching the size and skills of the workforce organizational needs. Human resource planning help assist organizations to recruit, retain, and optimize the development of the personnel needed to meet the business objectives and to response to change in the external environment. HR planning involves gathering of information, making objectives and making decisions to enable the organizations achieve its objectives. The organization objectives and strategies for the future determine future needs of human resource. It means number and mix of human resources are reaction to the overall organizational strategy. It follows different procedures including the need to assess the impact of technological changes and new jobs and new skills.

There are four main reasons for human planning human planning

  1. It encourages employers to develop clear link between their business plan and their HR plans so that they can bring together the two effectively
  2. Organization can control staff costs and numbers employed more efficiently.
  3. Employees can build up a skill profile for each of their employees. This makes it easier for employers to give them work where they are most value to the organization
  4. It creates a profile of staff, which related to gender, race and disability.

If HR planning works effectively the outcomes will be…

  • Employees are stretched to their full potential to benefits the organization.
  • Employees do challenging work, which motivates them
  • Overtime is only done when vitally necessary
  • Employees are properly qualified to the job given to them.


Example: KPN came out with the new wireless modem their staff would need to operate the system before, but also present complex IT equipments must to handle. By forecasting the needs of technical and other human resources it can minimize the future risk of losing. A delay in recognizing human resources might be costly and expensive in the future.
(Example: ABN AMRO banks are compelled to upgrade their staffs by providing the latest skills and knowledge, so that they stay competing against other banking businesses. Human resource planning is also good for investors who want to invest in the business. Any investment in the HR activities considered an investment for the future growth and development of the organization. It is also helpful to accommodate government legislation regarding inclusion, qualification for possible future demand of trade unions. Human resource planning promotes the awareness that human resource activities are equally important at every level of the organization both lone and staff managers have to be involved in human resource planning activities.

There are three key stages, which are involved in HR planning such as:

  • Stock taking- stocktaking is to do with what is the quantity and quality off staff available in the organization. It uses the techniques such as job analysis, which is gathering all the information available about all the jobs in the organization. The most important aspect of this job is to do the job description and the person specification for each job.
  • Forecasting supply- meaning looking at the internal and external source of labour
  • Implementation and review- organization must undertake regular reviews to ensure that their human resources planning are effective.

Training involves employees being taught new skills or improving skills they already have. A well trained workforce has definite benefits for the business for example; a well trained workforce will be more productive. This will help the business achieve its set objectives such as to make profit. It also helps to create a more flexible workforce and improve employee’s chance of promotion. HR also needs to be able to indentify need for training, because there is a difference between the knowledge and skills of the employee and those, which are actually required, this may indicate need for training. Employees can also be asked about which areas there performance is not of high standards. This will make the workforce more committed to training and can be found in different levels in a business. Employers should only train people for the job they are employed to do but also train them for the future. Most managers will have a system of indentifying career potential in an employee. If they don’t have a system to do this they can end up in a dead end job and which will not motivate them. Employees who’s potential are not realized will often leave the organization, this means that employer will lose people who could have been a very great asset to the organization, had their potential been realized.

Join now!

Future human resource needs future direction of the organization which is done basing upon its current human resource situation. Year by year the organization analyze every job level and type is necessary. It is good for an organization to have a mix of people but it is not easy task to maintain all types of people in the organization. If accurate estimates are to be made of future demand in both qualitative and quantitative terms, a lot of information is required. Increasing and decreasing of human resource is normal it’s good by estimating changes in the internal supply and looking ...

This is a preview of the whole essay