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People Resourcing and Reward - Essay Example

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In the current business arena, there is an increasing recognition of the importance of human resource planning in order to ensure organizational efficiency. According to Kohl (n.d.), human resource planning is "an information-decision-making process designed to ensure that enough competent people with appropriate skills are available to perform jobs where and when they will be needed." With this definition, it becomes apparent that human resource planning entails identifying the different human needs of the business organization for its various positions and evaluates the current labor pool in order to align them with the company's requirements…
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People Resourcing and Reward
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Download file to see previous pages In turn, effective planning can serve as a potent remedy some of the most pressing problems faced by companies. According to Kohl (n. d.), human resource planning in indispensable as it "serves to stabilize employment levels when demand for a firm's product is variable." In this case this tool becomes important in "reducing the firm's unemployment compensation liability costs due to layoffs, providing more job security to the firm's employees, and minimizing the costs of overtime during periods of peak demand." This highlights the company's ability to source the needed workforce only when they are required. This is done by hiring temporary employees in order to fill up positions during peak seasons.
Human resource planning also addresses the company's problem in employee turnover. This tool prevents young college recruits from leaving the business organization after it has spent on expensive training programs primarily because of the lack opportunities for promotion. As human resource planning uses techniques in order to forecast the future organizational needs of the company, training and skill enhancement programs will only be extended when they are deemed necessary in the future. This then also "reduces the problems of managerial succession by permitting plans for replacements to be drawn up in advance in case key executives resign or die" (Kohl n.d.).
In the end, human resource planning also helps in enhancing the financial performance of the company by increasing its profits. It makes possible the allocation of financial resources so that departments will have the necessary people to produce the firm's desired output. Human resource planning is seen as tool which is utilized in maximizing the resources of business organization by assigning each of the members of the workforce to the task or assignments where he or she can function more efficiently. Through this, the skills and knowledge of the human resource is utilized to the areas where they are most needed.
However, aside from the perceived advantages of human resource planning, it also has its own set of critiques. Firstly, the effectiveness of the tool is directly linked with the business organizations ability to forecast of human resource needs in the future. Failure to exactly estimate the human resource needs will make human resource planning only a waste of time because the company may still face shortages or surpluses of resources. The hardship of effective forecasting technique is even aggravated by the rapidly changing global markets which make it impossible for companies to predict the future of their operations.
Kohl (n.d.) also adds the "inherent mathematical complexity associated to model human resource systems." Until now, ...Download file to see next pagesRead More
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