How to Plan Human Resources for your Business Effectively?
“The first step regarding effective planning of human resources is to find out about the shortage or excess of work force in your company.”
A business cannot run without human resources. The first step regarding effective planning of human resources is to find out about the shortage or excess of work force in your company. In either case, you are on a wrong footing and such situations demand prompt remedy.Suitable workforce both in quality and quantity is the primary prerequisite of HR planning. The present strength of workers should be assessed in relation to future needs. The age, skills and levels of work force should be seen to analyze future manpower needs.
The requirement of workers in future is influenced by the anticipated production needs and likely changes in production methods. The work force should be estimated on the basis of future projection of production and the number required should be compared to the existing number of persons for estimating the future needs.
The change in the structure of an organization resulting from transfers, promotions etc. should be taken into consideration in HR. The demand and supply of labour should be forecasted. There is every likelihood that demand may exceed supply and vice-versa.
If the supply of labour force is limited, efforts should be made to explore new avenues. The external supply situation is mostly influenced by national and international factors.
The unemployment level at a place, residential facilities, transport facilities, competition among similar concerns etc. are some of the local factors that should be taken into account while planning HR needs.
The impact of various factors should be taken into account before deciding about future labour utilization. The cost incurred on various types of labour and resultant benefits should be taken into account. Such costs should also include losses like normal loss etc.
Labour cost has a direct effect on the profitability of an organization. So a decision about any type of labour force should strictly be taken by considering the likely benefit that can issue from it.
You should not fall prey to political gimmicks or leadership tactics. Such incidents are common in developing countries where leaders promise cheap labour force in lieu of party funds. Mostly, such claims don’t reach fruition.
After all, business is a profit making activity and the incorporation of each and every element that leads to profit is the mark of wisdom of a businessman. So, why exclude human resources from it?
Author - DeeKay
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