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86 (Unit-II) q ,' MBA Third Trimester (Human Resource Management) KTU Action Planning planning. It ensures proper and efficient

The organisation is required to take an immediate step completion of task by arranging right quantity of
to cover-up the gap, if any, identified between the two people with the right skills at the right rime to
estimates, i.e., HR demand and HR supply. In this tackle the challenging needs.
particular phase, the immediate action is taken to
maintain a balance between the exact requirement and 3) Helps in Budget Formulation: It allows
valuable resources. When there is surplus labour, a checking and assessing the cost of various
number of large firms adopt downsizing, rightsizing, re_ processes and actions regarding human resources
structuring, re-engineering, and outsourcing, to cut in the organisation. For example, salary or other
costs, increase efficiency, improve productivity and at benefits are counter-checked and planning is
the same time remain competitive. on the other hand, made for the budget preparation of various
to deal with the scarcity of the employees various departments of the organisations.
measures must be taken by the organisation to ensure 4) Reduces Uncertainties and Change: For the
that ample resources are available to fulfil the needs of proper working of an organisation, both the
the manpower in the future such as recruitment. components (human resource and non_human
selection, training, development, incentives, etc. resource) should be effectively utilised. If it is
not done, there would be an anxiety in the Evaluation and Control organisation. If the organisation has sufficient
The process of evaluating and controlling the non-human resources like money, machines
performance of the employees is very vital within the and raw materials, but lacks efficient human
organisation as it leads to the effective performance resources, then the manufacturing or production
of the organisation. If the organisation does not process cannot be initiated. Such uncertainties
continuously evaluate the workforce efforts, it may and changes can be reduced by proper human
be unable to foresee the expected changes in the resource planning as it helps in proper selection
future. It must have a systematic and planned process and placement of efficient people, at the
for the continuous review of the same. It is important required place, and time.
for the following reasons:
1) Take remedial actions for the deviations, if any. 5) Controls Labour Imbalance: HRp facilitates to
maintain proper balance of human resources.
2) Upgrade the manpower resources according to Human resource should not be less than required
the changing requirements in environment.
3) Assess the achievement of HR objectives. nor should it be in excess. Too less human
4) Review the progress of long-term plans. resource causes under-utilisation of other
organisational resources. While excess of human
5) To cope-up and manage the individual or resource causes under-utilisation of human
organisation grievances.
resource. Human resource planning helps in
For example, the evaluation process of the controlling this imbalance before it can become
organisation can help in determining some very uncontrollable and expensive.
important aspects, such &s, turnover cost, 6) Helps in Training and Development of
productivity data, workforce reduction. etc. Employees: Due to consistent competition, there
is a regular requirement to train and develop
3.2.9. Importance of Human Resource employees to make them capable enough for the
Planning organisation. HRP helps to identify the
Importance of human resource planning can be employees who need to be trained. Therefore, it
described in following points: aids in fulfilling the organisation's future
1) Serves as Talent Pool: All organisations need requirements regarding highly skilled staff.
individuals with required set of skills, experience,
and education. This requirement can be fulfilled by 3.2.10. Barriers to HRP
the appropriate human resource planning as Barriers to HRP are as follows:
defining the number and type of individuals is 1) Inaccuracy of Forecasts: HRp is dependent on
necessary to fulfil the needs of the organisation.
the future prediction of supply and demand of
2) Allows Easy Expansion and Diversification: human resources. Hence, thi efficiency of HR
Organisation's upcoming plans concerning planning is based on the correctness of forecasts.
diversification, modernisation, and growth can be In case, the forecast is inaccurate, then the HR
successfully executed by human resource planning will also not be completely accurate.