NEED FOR HUMAN RESOURCE

PLANNING
Every organization has to plan for Human resource due to:

1. The shortage of certain categories of employees and/or variety of skills

despite the problem of unemployment.
2. The rapid changes in technology , marketing, management etc., and the
consequent need for new skills and new categories of employees.
3. The changes in organization design and structure affecting manpower
demand.
4. The demographic changes like the changing profile of the workforce in
terms of age, sex ,education etc.
5. The Government policies in respect to reservation ,child labor, working
conditions etc.
6. The labor laws affecting the demand for and supply of labor.
7. Pressure from trade unions, politicians ,sons of the soil etc.
8. Introduction of lead time in manning the job with most suitable candidate.

Benefits of Human Resource Planning

Human Resources Planning (HRP) anticipates not only the required kind and
number of employees but also determine the action plan for all the functions
of personnel management .The major benefits of Human resource planning
are:

1. It checks the corporate plan of the organization

2. It offsets uncertainly and change .But the HRP offsets uncertainties and
changes bto the maximum extent possible and enables the organization yo
have right men at right time and in right place.
3. It provides scope for advancement and development of employees through
training, development etc.
4. It helps to anticipate the cost of salary enhancement, better benefits etc.
5. It helps to anticipate the cost of salary , benefits and all the cost of human
resources facilitating the formulation of budgets in an organization.
6. To foresee the need for redundancy and plan to check it or to provide
alternative employment in consultation with trade unions, other organizations
and government through remodeling organizational, industrial and economic
plans.
7. To foresee the changes in values, aptitude and attitude of human
resources and to change the techniques of interpersonal ,management etc.
8. To plan for physical facilities, working conditions and the volume of fringe
benefits like canteen, schools, hospitals, conveyance, child care centres.
quarters, company stores etc.
9. It gives an idea of type of tests to be used and interview techniques in
selection based on the level of skills ,qualifications, intelligence, values etc.,
of future human resources.
10. It causes the development of various sources of human resources to
meet the organizational needs.
11. It helps to take steps to improve human resource contributions in the
form of increased productivity ,sales turnover etc.
12. It facilities the control of all the functions, operations, contribution and
cost of human resources.
internalOrganizational Challenges Of
HRM
Organizational challenges refer to concerns that are internal to the firm. However, they
are often a byproduct of environmental forces because no firm operates in a vacuum.
These issues include: competitive position (cost, quality, and distinctive capability),
decentralization, downsizing, organizational restructuring, self-managed work teams,
small businesses, organizational culture, technology, and outsourcing.
Organizational challenges are concerns or problems internal to a firm. They are often a
byproduct of environmental forces because no firm operates in a vacuum. Still, managers
can usually exert much more control over organizational challenges than over
environmental challenges. Effective managers spot organizational issues and deal with
them before they become major problems. One of the themes of this text is proactively:
the need for firms to take action before problems get out of hand. Only managers who are
well informed about important
HR issues and organizational challenges can do this. These challenges include the need
for a competitive position and flexibility, the problems of downsizing and organizational
restructuring, the use of self-managed work teams, the rise of small businesses, the need
to create a strong organizational culture, the role of technology, and the rise of
outsourcing.
An organization will outperform its competitors if it effectively utilizes its work force’s
unique combination of skills and abilities to exploit environmental opportunities and
neutralize threats.

a) Controlling costs
One way for a firm to gain a competitive advantage is to maintain low costs and a strong
cash flow. A compensation system that uses innovative reward strategies to control labor
costs can help the organization grow. A well-designed compensation system rewards
employees for behaviors that benefit the company. Other factors besides compensation
policies can enhance a firm’s competitiveness by keeping labor costs under control.
These include: better employee selection so that workers are more likely to stay with the
company and to perform better while they are there, training employees to make them
more efficient and productive; attaining harmonious labor relations); effectively
managing health and safety issues in the workplace and structuring work to reduce the
time and resources needed to design, produce, and deliver products or services.

b) Improving quality.
The second way to gain a competitive advantage is to engage in continuous quality
improvement. Many companies are implementing total quality management (TQM)
initiatives, which are programs designed to improve the quality of all the processes that
lead to a final product or service. In a TQM program, every aspect of the organization is
oriented toward providing a quality product or service.
c) Creating Distinctive Capabilities
The third way to gain a competitive advantage is to utilize people with distinctive
capabilities to create unsurpassed competence in a particular area (for example, 3M’s
competence in adhesives, Carlson Corporation’s leading presence in the travel business,
and Xerox’s dominance of the photocopier market).

d) Restructuring
A number of firms are changing the way the functions are performed. For example, some
companies are restructuring HR for reasons such as time pressures, financial
considerations, and market pressures. This restructuring often results in a shift in terms of
who performs each function. Organizations still perform the majority of a firm’s HR
functions inside the firm.