UNIT – I Lesson 1 HRM – AN OVERVIEW Lesson Outline Nature of ...

1. Defining Future Personnel need
Planning defines future personnel need and this becomes basis of recruiting and
developing personnel. In its absence there is likelihood of mismatch between personnel
needed and personnel available.
2. Coping with changes
In the Indian and international business arena fast changes are taking place.
Liberalization of economy has brought vast changes in India. At the international level
there is growing global competition. Every organization is trying to compete on the basis
of technology and managerial talents. In this war only those companies will survive which
adopt a formal, meticulous HRP. Change in technology has attached more premium to
knowledge and skills resulting into surplus manpower in some areas and shortage in other
areas. HRP helps in creating a balance in such a situation because manpower needs and
availability could be identified much in advance.
3. Providing base for developing talents
Jobs are becoming more and more knowledge oriented. This has resulted into
changed profile of manpower. Therefore an organization must be ready to face such as
eventuality by taking proper HRP.
4. High cost of investment in HR
The cost of acquiring, developing and retaining personnel is increasing much faster
than the average rate of inflation. This increasing cost may be taken care of by proper
HRP which provides the way for effective utilization of such talents. In fact, such a high
cost has forced many companies to have a relook at their HRM functions and particularly
HRP and to align these with new situations.
5. Creating involvement of top management in HRM
Systematic HRP forces top management of an organization to participate actively
in total HRM functions, an area that has been neglected by most of the companies until
recently.
HRP and Responsibilities involved
Formulation of human resource plans in a shared task between top management,
line managers and HR department. Top management is involved in HRP process because
ultimately, it approves various plans to the organisation as a whole.