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THE IMPACT OF HUMAN RESOURCE PLANNING ON PRODUCTIVITY

CHAPTER ONE

INTRODUCTION

1.1       Background of the Study

The greatest asset of any organization is its human resources that ensure that achievement of the company’s goal and objective. (Source: Human resource Article 2012). It is unfortunate that most company’s organization have neglected the development and management of their chief asset which is human resource (human resource Article 2012).

According to Susan, (2012), human Resource Management is the function within an organization that focused on recruitment of, management of, and providing direction for the people who work in the organization. It is also a strategic and comprehensive approach of managing people and the work place culture and environment (Susan, 2012). Effective Human resource management enables employees to contribute effectively and productivity to the overall company direction and the accomplishment of the organization’s goals and objectives (Susan, 2012).

Human resource management is administrative activities associated with human resources planning, recruitment, selection, orientation, training, appraisal, motivation and also a functions within an organization that focuses on people (Wikipedia, 2012). According to Wikipedia, Human resources is the set of individuals who make up the work force of an organization. Human resource management encompassed activities designed to provide for and co-ordinates, all human element within the organization. This will ensure its stable continuity and achievement. The human personnel element represents one of the company’s largest investments. Susan, (2012). Consequently, organization should prioritize the development of the human element to maximize talents, skills and ability which will automatically reflects on the company’s profit. It pre-supposes that we do need people in order to firm a business which that no business can exist entirely without people. Even a computer auto-mental machine factory has to employ some people, though a conventional plant with similar capacity might require more people. There arises the need for proper planning of these people employed otherwise known as “Manpower planning” (Source: eHow contributing writer).

Although people’s understanding of Human Resource Planning (HRP) differs, the general objective is how to use scarce talents in an effective way in the interest of work and organization. Human Resource Planning may be seen in its entirety as an effort to anticipate the future of the organization and to provide personnel to fulfill that organization and to satisfy customer’s demands.

Human resource planning has to do with forecasting demand for manpower based on its business needs and employing strategies required to meet these needs. The dimensions for the study include forecasting manpower demand and strategic action. Forecasting manpower demand involves the estimation of the number and type of human resource required at different levels in different departments in an organization (Pradeesh, 2011).

Strategic actions for human resource entails staffing activities carried out in order to achieve organizational success in the long run. It is a disciplinary and creative process for determining where the organization should be in the future and how to take to the future with the help of human resource staffing activities (Graf, Hemmasi & Strong, 1996).

There must be a proper utilization of human resources in organizations in order to achieve high performance and productivity standard (Lunenburg, 2012). Organizations may have adequate non- human resources like machines; materials and money but inadequate human resources cannot achieve high performance and productivity. Human resources are the main asset of an organization.

Human Resource Planning is also the personnel process that attempt to provide adequate HR to achieve future organisational objectives. It includes forecasting future needs for employees of various types, comparing these needs with the present workforce and determining the numbers and types of employees to be recruited or phased out of the organisation‟s employment group.

“Human resource planning is the system of matching the supply of people, internally (existing employees) and externally (those to be hired and searched for) with over a given time frame” (Watters cited in Byars & Rue, 1991). Human resource planning has two objectives; the optimum utilization of currently employed human resources and providing future HR needs in the areas of skills and numbers (Harvey & Bowin, 1996).

HRP will enhance the process of decision making, encourage open discussion, bringing the right people together around the right questions, resolving conflicts among strong technical professionals, and managing emotional ups and downs of employees of the organisation.

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