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Sunita joined a small IT firm’s HR department three months before the pandemic hit. She witnessed front and center just how much the organization struggled to shift everything online compared with its industry peers. After the initial wave of lockdowns was over, the leadership did an audit and found they lacked preparedness in several areas for unforeseen circumstances. They had a need for human resource planning.
The various types of human resource planning are all about aligning an organization’s long-term people management strategy with its strategic objectives. These objectives may be to grow in market share, enter new markets, improve customer service levels or product quality, make improvements in workflow and personnel well-being and introduce innovative products and services. It’s difficult to achieve these objectives without the right talent, and that’s where the importance of human resource planning comes in.
The Need For Human Resource Planning
An understanding of human resource planning objectives is needed to execute the organization’s business strategy. HR planning makes sure your organization is able to leverage its human resources for growth. This will result not only in financial success but also in product and customer service excellence.
Its purpose is to allocate the workforce toward the most productive areas in terms of organizational goals and objectives and optimize utilization. Here are some steps to take to get started:
- Human resource planning objectives can only be met once you understand the organization’s aims and needs for growth.
- When the organizational objectives and strategic goals are clear, the planning process begins by evaluating the current state of the workforce.
- HR planners identify those competencies that will be required for success. This analysis allows planners to identify issues, make the right hires and solve problems before they become serious.
Planning methods vary according to an organization’s culture and strategy. Each has its own need for human resource planning.
Types Of HR Planning
There are several types of human resource planning that organizations may engage in. They’re not mutually exclusive. Here’s a closer look:
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Strategic
If an organization wants to increase its reach either in the form of new markets or products, it’ll need to enhance its workforce. Based on these plans, HR planners work cross-functionally to recruit the best minds for marketing, selling, business development, or customer service jobs.
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Efficiency
One of the core human resource planning objectives, this helps streamline business operations for better profitability. The key to improving the efficiency of an organization is to find areas where costs can be reduced, productivity can be improved and quality can be enhanced.
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Talent Management
The importance of human resource planning is that it helps build a pool of talent capable of meeting business objectives, increasing its competitiveness. The focus is on developing talent to ensure the business is successful in the long term.
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Workforce Planning
The human resource planning objectives are to optimize workforce levels, keeping them in the right place at the right time. It can also help improve workforce demographics which can impact your business strategy in the future.
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Change Management
The need for human resource planning also arises from organizational changes. A change in market conditions or a new product or service may require a restructuring of the workforce’s needs and capabilities. Sometimes it may be necessary to make personnel changes required by a reorganization, a limited-time initiative or even unrest in the workforce.
These human resource planning objectives account for the various needs organizations might have from their HR policy. Several types of human resource planning are required to ensure that the future workforce and its capabilities are compatible with the business strategy.
Importance Of Human Resource Planning
When we take stock of the types of human resource planning, the importance of human resource planning also becomes clear. Here is a recap of the value organizations can gain by investing in their HR process:
- It allows organizations to create an appropriate working environment
- It helps organizations account for changing industry trends before they become pressing issues, allowing them to adapt well in time
- There’s a need for human resource planning to create a blueprint for growth for the entire organization
- An HR plan balances the human needs of an organization alongside the growth needs
- A well-articulated plan can help create an environment of inclusivity and diversity
The importance of human resource planning can be misunderstood by managers. But it’s a core function that needs due attention and thought. Keeping human resource planning objectives in mind will help an organization grow in a balanced and harmonious way, which allows for growth of employees.
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