Page 59 - DMGT106_MANAGING_HUMAN_ELEMENTS_AT_WORK

Unit 3: HR Planning, Recruitment, Selection, Placement and Induction

(e) They should employ suitable techniques leading to effective allocation of work with Notes
a view to improving manpower utilization.
(f) They should conduct research to determine factors hampering the contribution of
individuals and groups to the organization with a view to modifying or removing
these handicaps.
(g) They should develop and employ methods of economic assessment of HR reflecting
HR planning, recruitment, its features as income-generators and cost, and accordingly
improving the quality of selection, placement and induction decisions affecting the
manpower.
(h) They should evaluate the procurement, promotion and retention of the effective HR; and
(i) They should analyze the dynamic processes of recruitment, promotion and loss to the
organization and control them with a view to maximising individual and group
performance at minimum cost.
3.1.5 Advantages of HR Planning Programmes

As the manpower planning is concerned with optimum use of HR, it can be of great benefit
to the organization in particular and to the nation in general. At the national level, it would
be concerned with factors like population, economic development, educational facilities and
labour mobility. At the level of the organization it is concerned with personnel requirements,
sources of availability, the welfare of HR, etc. The advantages of HR planning are discussed
below:

Improvement of Labour Productivity
Manpower or HR as a factor of production differs from other factors of production. As it
is subject to its free will, the productivity of labour can be improved if the workers are kept
satisfied. In other words, just as the satisfied workers can be productive, dissatisfied workers
can even be destructive. Therefore, through proper HR planning we can improve the morale
of the labour and thereby labour productivity.

Recruitment of Qualified HR
Talented and skilled labour has become a scarce resource, especially in developing countries.
Therefore, for the survival of the firm it is essential to recruit the best labour force through
proper manpower planning.

Adjusting with Rapid Technological Changes
With the advancement in technology, job and job requirements are changing. Therefore, it
is necessary to forecast and meet the changing manpower, which can withstand the challenges
of the technological revolution. This can be done through effective manpower planning.

Reducing Labour Turnover
Labour turnover refers to the mobility of labour out of the organization due to various
factors, such as dissatisfaction, retirement, death, etc. Due to labour turnover a firm loses
experienced and skilled labour force. This loss can be minimised through efficient manpower
planning.

Control over Recruitment and Training Costs
Highly skilled personnel are in short supply and it is costly to hire, train, and maintain them.
A company has to incur heavy costs in processing applications, conducting written tests,
interviews etc., and in the process providing adequate training facilities. In consideration of
these costs it is essential to plan carefully vis-a-vis manpower so as to minimize costs.

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