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Discuss the importance of Effective Human Resource Planning

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Describe the systematic approach to the Construction , development and execution and review of a meaningful HR Plan. Discuss the importance of Effective Human Resource Planning A firm cannot hire several hundred engineers and get them on board overnight, nor can it develop management talent in just a few weeks. Foresight is necessary to ensure that appropriate staffing will be available for an organizations future plans. In a declining economy planning ahead is critical to prevent overstaffing and the subsequent need for layoffs. Human Resource planning is concerned with the flow of people into, through and out of an organization. HRP involves forecasting the needs for labor and the supply of labor, then planning the programs necessary to ensure that the organization will have the right mix of employees and skills when and where they are needed. The four steps for effective HRP is: 1. ...read more.


The second major type of information comes from inside the organization. Internal information includes short and long term organizational plans and strategies. Plans to build, close or automate facilities will have HR implications as will plans to modify the organizational structure, buying or selling businesses and entering or withdrawing from markets. Finally information is needed on the current state of human resources in the organization such as how many individuals are employed in each job and location their skill level and how many are expected to leave or retire during the forecasted period. Once the planners have the external and internal information they need, they can forecast the future demand for employees. Next planners forecast the supply of labor, the internal supply of employees and their skill and promotability as well as the probable availability of various types of people in the external labor market. ...read more.


Planning is usually mounted once a year, but modification can be made on the basis of new information throughout the year and can be either long-range(more than 3 years) or short range ( 1 year) or intermediate term (2-3 years out). Once HR planers have collected information from both internal and external sources they forecast the Demand for labor. Different methods of forecasting demand for labor requires different assumption, mainly being that past trends and relationships among variable will hold up in the future, that the productivity ratio is constant as the number of units produced increases and that the business plan of the organization, sales forecasts and so on ore reasonably descriptive of what will actually happen. Demand forecasting methods can be divided into two categories judgmental and mathematical. Judgmental bottom-up or unit forecasting: Each unit branch or department estimates its own future need for employees. Or top-down forecasting is done by experienced top managers and executives, they discuss trends, business plans, the economy and other factors which affect the need for human resources. ...read more.

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